3.1 As previously discussed, between mid 2004 and mid 2007, 22 Defence capital works projects were referred to the Committee. In respect of all 22 of these projects, Defence submitted statements of evidence and confidential cost information to the Committee to allow the Committee to consider and report upon the individual projects.
3.2 Thirteen of these projects were selected for review in detail by the ANAO during fieldwork, having regard to adherence to both the requirements of the Act and the Committee's Manual. These 13 selected projects represent 78 per cent of the total estimated cost of the 22 Defence projects referred to the Committee over the relevant three year period. The projects reviewed have reported indicative cost ranges from $11.16 million to $1.2 billion31.
3.2 The three projects financed, or proposed to be financed, using a PPP arrangement were all included for review, as part of the audit sample of 13. The requirements of the Committee when projects are referred are essentially the same for projects financed using direct procurement and those financed using a PPP. An exception is the requirement in the case of a PPP for the sponsoring agency to provide a report to the Committee following the selection of the preferred bidder but before the signing of a contract. This requirement is in recognition of the fact that there may not be definite cost information available when the project is presented to the Committee. If there is significant change to the public works component, the Committee can require a further review of the project.
Table 3.1
Project legislative and guidelines adherence
Year | Project Name | Reported value ex GST (million) | Legislative adherence | Guidelines adherence |
2005 | Special Operations Working Accommodation and Base Redevelopment | $207.70 | ✓ | ✓ |
2005 | RAAF Base Amberley Stage 2 | $285.60 | ✓ | ✓ |
2005 | Relocation of RAAF College | $133.40 | ✓ | ✓ |
2006 | Tactical Unmanned Aerial Vehicle Facilities Project | $17.45 | ✓ | ✓ |
2006 | Facilities to Upgrade Shoalwater Bay training area | $11.16 | ✓ | ✓ |
2007 | Defence Force School of Signals Redevelopment | $101.30 | ✓ | ✓ |
2007 | Lavarack Barracks Stage 4 | $207.20 | ✓ | ✓ |
2007 | Australian Defence Force Facilities Redevelopment, Malaysia | $23.60 | ✓ | ✓ |
2007 | RAAF Base Pearce Stage 1 | $142.20 | ✓ | ✓ |
2007 | RAAF Base Amberley Stage 3 | $331.50 | ✓ | ✓ |
Public Private Partnership | ||||
2004 | Headquarters Joint Operations Command (HQJOC) Project | $318.08(a) | ✓ | x(b) |
2006 | Provision of Facilities for Project Single LEAP Phase 1 | $406.00 | ✓ | x(b) |
2007 | Provision of Facilities for Project Single LEAP Phase 2 | $1 200.00 | ✓ | ✓ |
Source: ANAO analysis of Defence documents
Notes: | (a) March 2004 Statement of Evidence provided to the Committee, and is noted in the Statement as including buildings and infrastructure. (b) The non adherence to the guidelines relates to the requirement to advise the Committee of any significant changes to design, scope and related matters. |
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31 The costs noted are as reported to the Public Works Committee, and are all excluding GST.