Cost Performance
The Project is expected to deliver the required capability materiel within the approved budget.

Schedule Performance
The Commonwealth and Australian Aerospace reached agreement in September 2010 to allow a delay in the delivery of the 22nd final configuration aircraft to July 2011 in return for additional capability, which will further enhance the capabilities of the Tiger for combat operations and restructured contractual commercial arrangements as compensation. The Commonwealth granted a 10 working day postponement for the remaining aircraft deliveries as a result of the major flooding that occurred in South East Queensland and unseasonal snow falls in Europe that occurred in January 2011. Delivery of the last aircraft in a final configuration was planned for July 2011 with Final Supplies Acceptance planned for July 2012.

In February 2011, Australian Aerospace advised the Project Authority that it would not be able to deliver all 22 Armed Reconnaissance Helicopters (ARH) by July 2011 as currently contracted and that a potential further five month delay was likely. The Project Authority is agreeing to a number of initiatives with Australian Aerospace to minimise the operational impact to Army's introduction into service plans under Plan Peregrine.

The major contract milestone of Pre-Initial Operational Release No.2 was not achieved by the contracted date of 31 December 2010. Aircraft delivery requirements for this milestone were met on 28 January 2011. The Project Authority granted achievement of the milestone on 26 May 2011 following Australian Aerospace adequately demonstrating that its Maintenance Support Networks were operating effectively to support the 15 in-service aircraft.

The major contract milestone of Pre-Operationally Capable Helicopter was also not achieved by the contracted date of 26 May 2011. Australian Aerospace is currently forecasting achievement of the milestone by 23 September 2011 following the acceptance of the 19th final configuration aircraft.

Materiel Capability Performance

As at 30 June 2011, 20 ARH have been Accepted by the Commonwealth; four are undergoing retrofit to the Initial Operational Test and Evaluation Readiness configuration; five are being used for training, one of which is also being used to support the remaining Type Acceptance test activities; and 11 are being used for collective training and Operational Evaluation in the operational squadron in Darwin. All three simulators have now been Accepted and are being used for aircrew training in Oakey and Darwin. Nine aircraft have had the enhanced anti-collision light modification incorporated and four aircraft have had the additional ballistic protection modification incorporated.

The rebaselined schedule includes all planned engineering activities required to deliver a fully compliant ARH System. Full compliance or Service Release of all Engineering Change Proposals is currently assessed as March 2012.

Operational Evaluation of the delivered ARH capability is being progressed by Army. Operational Evaluation for the next Operational Capability 2 milestone, a deployable squadron, planned for July 2011 has been delayed. The delays are due to ongoing technical serviceability issues with the TopOwl Helmet Mounted Sight and Display which has affected Army's ability to develop a night aided flight capability. Additionally, Australian Aerospace's immature maintenance and supply support networks is impacting the ability to achieve the required aircraft flying rate of effort. The TopOwl Helmet Mounted Sight and Display serviceability issue has been resolved with industry with night aided course of instruction verification and validation recommencing at Oakey in June 2011.

As at 30 June 2011 the ARH fleet had flown in excess of 8372 hours with 2413.3 hours flown in 2010/11.