2.2 Project Expenditure History

Date

Description

Base Date $m

Current $m

 

Contractor

Notes

2.2 Project Expenditure History

 

 

 

 

 

Prior to
Jul 10

 

 

2,529.2

 

Boeing

 

 

 

 

93.3

 

US Government

 

 

 

 

173.6

 

Other

11

 

 

 

 

2,796.1

 

 

FY to
Jun 11

 

 

125.1

 

Boeing

 

 

 

 

4.0

 

US Government

 

 

 

 

47.1

 

Other

12

 

 

 

 

176.2

 

 

Jun 11 

Total Expenditure

 

 

2,972.3

 

 

 

 

 

 

 

 

 

Jun 11

Remaining Budget

 

 

887.2

 

 

 

 

 

 

 

 

 

Notes

1

This project's original DMO budget amount is that prior to achieving Second Pass Government approval.

2

Transfer to Project Olympus.

3

Merger of Project Olympus, which had been established separately to acquire classified elements of the AEW&C capability.

4

Variation for overfunding of indexation and for eign exchange at time of approval.

5

Transfer to supplement Overseas Allowances.

6

Increased scope, approved by Government in April 2004, for the acquisition of the 5th and 6th aircraft.

7

Administrative Savings harvest.

8

Transfer to Facilities.

9

Skilling of Defence Industry harvest.

10

Up until July 2010, indexation was applied to project budgets on a periodic basis. The cumulative impact of this approach was $1068.4m. In addition to this amount, the impact on the project budget as a result of out-turning was a further $42.7m having been applied to the remaining life of the project. $388.1m of this amount is relates to a real cost increase for contract price indexation variations beyond the supplementation provided by Government.

11

Out of the $173.6m expenditure up to June 2010 the majority of expenditure is associated with Independent Verification and Validation Services of $61.1m, In Service Support Contract costs of  $37.7m, Facilities related expenses of  $27.3m, travel costs of $16.3m and other project management support costs (legal, project administration, minor asset costs etc) of $31.2m. 

12

Out of the $47.1m expenditure up to 30 June 2011, the majority is associated with Tindal Facilities expenditure invoice to Defence Support Group of $32.6m. Independent Verification and Validation Services of $5.0m and AEWC Radar Collaborative Study (ARCS) of $3.6m and other project administration costs of approx $6.0m.