3.39 The Committee made 23 recommendations in relation to the three PPP projects in the ANAO's sample. Of those, the Committee requested that a report back from Defence be provided for 14 of the recommendations. The recommendations relate to the need for ongoing consultation with appropriate bodies, a requirement to update the Committee on final costs when a strategic partner is chosen, and to provide reports on progress and cost during the life of the project. Table 3.4 identifies which projects required Defence to report back to the Committee.
3.40 As is the case in relation to some of the Committee recommendations relating to direct procurement projects in the ANAO's sample, some of the recommendations cannot be reported on until the project is finished or substantially underway, given the nature of the recommendation. Considering the long term nature of some of the projects, and the requirement to report to the Committee at various stages, a regular review mechanism implemented by Defence would ensure enhanced adherence with the Committee's requirements.
Table 3.4
Requirement for Defence to provide feedback to the Committee's recommendations on PPP Projects in the ANAO's sample
Project | Number of recommendations | Date of Committee Report | Feedback to Committee |
Bungendore: Headquarters Joint Operations Command Project | 5 | Aug 2004 | Yes, most recently October 2006 |
Provision of Facilities for Project Single LEAP Phase 1 | 5 | Oct 2006 | Yes, April 2007 |
Provision of Facilities for Project Single LEAP Phase 2 | 13 | Jun 2007 | Yes, December 2007 |
Source: ANAO analysis of Defence documents
Note: | A total of 23 recommendations were made, although a request for Defence to provide feedback to the Committee was made in only 14 cases. |
3.41 The Committee reports for all but one of the 13 projects in the ANAO's sample included a final recommendation that the project proceed at the cost estimate provided to the Committee by Defence. The exception is Single LEAP Phase 2, where the Committee's final recommendation was that, subject to the relevant Minister being satisfied as to the overall cost of the project, and that the project represents value for money, the works proceed. This recommendation was accepted by Defence, and the expediency motion was moved in Parliament on 20 June 2007.