Estimate
$m

Actual $m

Variance
$m

Variance Factor

Explanation

(0.8)

FMS

The total variance of ($15.8m) to the estimated 2010-11 year end out-turn is attributable to the following Variance Factors:

FMS ($0.8m): reduced US Government FMS scheduled payments ($0.9m) attributable to favourable exchange rates.

DMO PROCESSES ($11.6m): upgraded combat system software and technical support costs ($9.5m) initially funded from and programmed against the Project has been transferred to the FFG Fleet Sustainment program as agreed by Defence delayed procurement of UWS equipment and spares ($1.8m), and Project Support ($0.4m).

COST SAVINGS ($3.4m): revised (reduced) requirement for Electronic Support spares ($1.5m), land based facilities requirements ($0.9m), Prime Contract close-out costs ($0.7m) and other administrative costs ($0.4m) that have been identified for return to the Defence Capital Program.

Overseas Industry

Local Industry

Bought Forward

(3.4)

Cost Savings

FOREX Variation

(11.6)

Commonwealth Delays

21.1

5.3

(15.8)

Total Variance