3.35 The Committee is to be advised of significant changes to projects, whether they are financed through direct procurement or a PPP. In 2005, the staffing level requirement for the HQJOC project changed from 1185 to 750 personnel. This change resulted in the number of buildings required for the project being reduced, and necessitated an extension to the request for tender process so that the consortia putting in tender documents could revise their bids. It also led to a media release being issued on 5 October 2005 noting the change and the consequential change to the request for tender deadline. The Committee was not notified of this change, as is required by the Committee's Manual. In November 2005, the Chair of the Committee wrote to Defence regarding the change and requesting that a briefing be provided to advise how the proposed staffing decrease will impact on the scope and budget of the HQJOC project.
3.36 In October 2006, the Committee was briefed on the impact on the project of the staffing reduction announced on 5 October 2005. The Defence briefing noted that some of the facilities were to be reduced in size, and that one support building was no longer required.
3.37 The Single LEAP Phase 1 was altered when the number of rooms to be upgraded at the Holsworthy site was increased by 100. The increase was proposed after the Parliamentary expediency motion43. Defence advised that the increase was considered to be of a lesser significance, and was to be included within the approved annualised service payment cap, which represented the upper level of payment that Defence could negotiate. The change was also only anticipated to require a one month extension to the delivery timeframe for Holsworthy. Defence did not advise the Committee of the Single LEAP Phase 1 change in room numbers, although follow up reports to the Committee detail the new room number requirement.
3.38 A consistent review process, including the identification of any significant changes to project scope, purpose, function, design, space or cost and the need to advise the Committee, would help to ensure these situations are less likely to occur in future. The delivery of projects in accordance with the approved project scope, purpose, function, design, space and cost is being examined in detail in a related audit ANAO currently has underway (see paragraphs 1.3 and 1.16). The second audit's sample includes two Defence projects.
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43 As noted in paragraph 1.9, once the Committee's report is tabled in Parliament, the Minister for Finance and Deregulation moves a motion in the House of Representatives that the House resolve that it is 'expedient to carry out the work'. The House's resolution is the Parliamentary approval of the project.