1.14 The objective of the audit was to review Defence capital works projects to assess whether they have been submitted in accordance with the Committee's requirements for notification and review prior to entering into financial commitments for the works. The audit also examined the procedures applied by Defence to refer public works projects to the Committee, and identified administrative practices that may improve adherence with relevant legislative and administrative referral requirements.
1.15 In order to test Defence's adherence to the Committee's requirements regarding notification and review prior to entering into financial commitments for works, 13 projects from a possible 22 referred by the department between mid 2004 and mid 2007, were reviewed in detail during fieldwork. The 13 projects selected are a cross section of projects, from the very large and complicated (for example, provision of facilities for the Single LEAP Project), to the relatively straightforward (for example, the facilities upgrade to the Shoalwater Bay Training Area). The sample of projects include 10 that were financed through direct procurement, and three that are to be financed using Public Private Partnerships (PPPs).
Table 1.1
Defence Public Works Projects referred to the Committee between mid 2004 to mid 2007 selected for review in this audit
PROJECT | DESCRIPTION |
Direct procurement projects | |
Special Operations Working Accommodation and Base Redevelopment, Holsworthy, NSW. | The project is to deliver new and refurbished facilities to allow for the collocation of special operations staff and for upgrade and replacement works of existing services. |
RAAF Base Amberley Redevelopment Stage 2, QLD. | The project is to deliver new buildings and infrastructure for the newly purchased air-to-air refuelling aircraft; upgrade runways for the aircraft; and upgrade the base's engineering services. |
Relocation of RAAF College, East Sale Victoria and Wagga Wagga NSW. | The project is to deliver updated facilities (accommodation, training rooms) in the RAAF bases in East Sale and Wagga Wagga due to the move of college elements from the Point Cook and Edinburgh bases. |
Tactical Unmanned Aerial Vehicle Facilities Project, Gallipoli Barracks, Enoggera, QLD. | The project is to deliver new and refurbished buildings to house the vehicles and staff to operate them. |
Facilities upgrade to the Shoalwater Bay training area, Rockhampton, QLD. | The project is to deliver a variety of simulated city buildings to allow for training exercises and a command centre. |
Defence Force School of Signals Redevelopment, Simpson Barracks, Watsonia, VIC. | The project is to build new and refurbish existing training facilities and trainee accommodation, and remove an existing fuel depot. |
Lavarack Barracks Redevelopment Stage 4, Townsville, QLD. | This project is to update facilities for three regiments based there, upgrade the gymnasium and build a new facility for medical services. |
Royal Malaysian Air Force Base Butterworth, Malaysia, Australian Defence Force Facilities Rationalisation. | The project is to replace and refurbish facilities that the Australian Defence Force use. |
RAAF Base Pearce Redevelopment Stage 1, Pearce, WA. | The project is to build new facilities, refurbish existing facilities, and demolish facilities no longer required, and bring accommodation up to standard. |
RAAF Base Amberley Redevelopment Stage 3, QLD. | The project is to deliver 14 discreet elements, including: new accommodation and recreational facilities; new facilities for the dental services section; and new accommodation and dog kennels. |
Public Private Partnership Projects | |
Headquarters Joint Operations Command Project, Bungendore NSW. | The project is to develop a new building on an undeveloped site to collocate operations command staff currently based at other sites. The project is to be delivered using a private public financing arrangement for the building, with conventional contracts used for the information technology component. |
Provision of Facilities for Project Single LEAP - Ph 1. | Project Single LEAP (Living Environment and Accommodation Precinct) is to deliver new accommodation rooms for Defence Force Personnel living on various bases around mainland Australia. Phase 1 is to build 1 295 rooms identified as most urgently in need at Holsworthy NSW, RAAF Base Amberley QLD and Gallipoli Barracks QLD. |
Provision of Facilities for Project Single LEAP - Ph 2. | Project Single LEAP (Living Environment and Accommodation Precinct) is to deliver new accommodation rooms for service personnel living on various bases around Australia. Phase 2 is to build a further 3 535 rooms identified as most urgently in need at 17 bases (54 sites). |
1.16 The audit did not test the extent to which the projects included in the ANAO's sample have delivered in accordance with expectations. As discussed in paragraph 1.3, ANAO is currently conducting a second audit which is assessing six construction projects (including two Defence projects). In addition to assessing the extent to which these six projects have delivered in accordance with expectations, the second audit will also assess the planning and delivery of capital works projects by sponsoring agencies and the extent to which sponsoring agencies have complied with the requirements of the Act and approved procedures.
1.17 Audit fieldwork was conducted between August and October 2007. The audit team met with Defence's Infrastructure Asset Development Branch and Strategic Infrastructure Projects Branch, and Finance's Special Claims and Land Policy Branch and Procurement Branch. The ANAO provided three issues papers to Defence, and extracts to Finance and the Secretariat of the Public Works Committee in November 2007. This was followed by a proposed report issued under Section 19 of the Auditor-General's Act 1997, which was provided to Defence, Finance and the Department of the House of Representatives. Written responses were received from Defence and Finance. The Secretariat of the Public Works Committee advised on 7 April 2008 that the Department of the House of Representatives did not intend to provide a written response to the proposed report.
1.18 The audit was conducted in accordance with the ANAO auditing standards at a cost to the ANAO of $170 000.