In-year capability performance

2.32 On the basis of DMO data, there are five Major Projects experiencing challenges in delivering elements of their system's planned capability, which is highlighted in Figure 11.

Figure 11

Projects' Measures of Effectiveness: DMO Level of Confidence in their Delivery as at June 2010 (Percentages: Green, Amber and Red)

Source: 2009-10 MPR.

Note 1: The MOEs concern forecasting future achievements and are outside the scope of ANAO's review.

Note 2: The DMO has advised that the Super Hornet project does not have endorsed MOEs because of its military-off-the-shelf nature.

Note 3: For some Major Projects, a number of their MOEs at 30 June 2010 concerned achieving budgeted cost, schedule or specific milestone dates. The DMO has advised that as these MOEs do not focus on key capability delivery, they have been excluded from the PDSS data used to compile the above figure.

2.33 The projects of note in regard to capability delivery issues include:

● Wedgetail - the performance of phased array radar, which is central to the surveillance capability, will not meet the specification at final delivery. A radar remediation program is providing the basis for further work on improving the system's performance. Other current technical challenges involve the development of the electronic support measures, electronic warfare self-protection and ground support systems.

● FFG Upgrade - capability issues involve:

- the electronic support system remains a medium risk to achieving Operational Release of the anti-ship missile defence capability;

- the torpedo defence system is unlikely to achieve operational viability. As a result, a towed torpedo decoy arrangement has been fitted to a ship to address some of the limitations with the torpedo defence system; and

- the design of sealing arrangement and hardware reliability issues affecting the upgraded mine and obstacle avoidance sonar capability are currently being addressed.

● MRH90 Helicopters - a number of aircraft systems issues are impacting on achieving the required level of aircrew training.

● Hw Torpedo - a lack of submarine availability, which is driven by the full cycle docking program, has impacted on the project's ability to test weapons' firing and conduct operational scenarios.

● Next Gen Satellite - pressures on the project relate to obtaining an orbital slot and the installation of support systems.