Estimate $m

Actual $m

Variance $m

Variance Factor FMS

Explanation

(20.0)

FMS

Phase 1 variation was ($45m) below the budget plan. The most significant drivers of the underspend are ($10.9m) in Exchange Gain (March to June 2011) and ($20m) underspend associated with FMS case against US Navy activities and offsets to the sustainment budget; Other variations have occurred associated with other Project activity including ferry costs not incurred ($2.5m); ($9.2m) due to optimistic forecasts and ($2.4m) due to delays in inter-agency invoicing. Phase 2 had a variation of ($0.94m). This is due to the ($0.32m) PSTL procurement delay and the overall FOREX gains for Financial Year 2010-11 of ($0.62m).

Overseas Industry

(9.4)

Local Industry

Brought Forward

Cost Savings

(11.5)

FOREX Variation

(14.4)

Commonwealth Delays

426.4

380.5

(45.9)

Total Variance