5.2  Major Project Issues

Description

Remedial Action

The Tiger was a far more developmental aircraft than envisaged at contract signature.

The finalisation of the Acquisition Contract has been affected by not having a single ARH System configuration leading to an impact on schedule and supportability.

Functional capability elements in the rebaselined Acquisition Contract have better defined exit criteria for Milestones.

Issue closed following approval of Contract Change Proposal 107 in May 2009.

Timely establishment of supply and maintenance support networks. Issue updated to read:

The ARH Rate of Effort has been affected by not having adequate maintenance and supply support networks established and working effectively leading to an impact on schedule, cost and supportability.

Establishment of maintenance support subcontracts in the exit criteria for key milestones has not yet assisted in mitigating this issue.

Third party review of ARH maintenance and supply chain management, processes and structure.

Potential requirement for the procurement of additional spares.

Assuring continuing staff supplementation to the Armed Reconnaissance Helicopter Project Office to ensure project outcomes are delivered.

Additional resources are being applied from other project and support areas within the Branch and Division as required.

The achievement of the remaining major and critical milestones will be affected by the contractor's inability to deliver aircraft from its production and retrofit programs in accordance with its plan leading to an impact on schedule and supportability.

Negotiations have commenced between the parties to resolve this issue.

The achievement of the Pre-Operationally Capable Helicopter major contract milestone has been affected by the contractor's inability to deliver aircraft from its production and retrofit programs in accordance with its plan leading to an impact on schedule and supportability.

Work with the contractor to expedite delivery of the remaining three aircraft required for achievement of the milestone.

Enforce the provisions of the Acquisition Contract including claiming accrued Liquidated Damages once milestone has been achieved.