2.2 Project Expenditure History

Date

Description

Base Date $m

Current $m

Contractor

Notes

2.2 Project Expenditure History

Prior to

839.8

986.6

AWD Alliance

Jul 10

240.9

264.0

Navantia

709.8

737.5

US Government

2

15.2

16.2

NATO Consortium

80.4

89.2

Other

3

1,886.1

2,093.5

FY to Jun 11

609.8

643.1

AWD Alliance

72.5

77.2

Navantia

155.9

174.2

US Government

33.8

37.7

NATO Consortium

2

11.5

12.3

Other

3

883.5

944.5

Jun 11

Total Expenditure

2,769.6

3,038.0

Jun 11

Remaining Budget

4,437.8

4,893.8

Notes

1

Up until July 2010, indexation was applied to project budgets on a periodic basis. The cumulative impact of this approach was $854.8m. In addition to this amount, the impact on the project budget as a result of out-turning was a further $318.4m having been applied to the remaining life of the project.

2

For Base Date calculations for FMS cases, a consistent de-escalation factor has been applied to all projects which is derived from Defence's cost estimation methodology.

Other expenditure comprises: Operating expenditure, minor contract expenditure and other capital expenditure not attributable to the listed contracts. For base date calculations against "Other" expenditure, calculations have been made using a proportional adjustment. This proportional adjustment involves the average between base date calculation of the disclosed major contract(s) and their constant price and applying to the "Other" expenditure.

3