Overview of the 22 Projects contained in the 2009-10 MPR

The following seven projects are additional to last year's MPR:

● LAND 121 Phase 3 - Overlander

● JP 2008 Phase 4 - Next Generation SATCOM Capability

● SEA 1448 Phase 2B - ANZAC Class Anti-Ship Missile Defence

● SEA 1429 Phase 2 - Replacement Heavyweight Torpedo

● SEA 1439 Phase 3 - Collins Class Submarine Reliability and Sustainability

● AIR 5418 Phase 1 - Follow-on Stand Off Weapon

● SEA 1448 Phase 2A - ANZAC Class Ship Anti-Ship Missile Defence

The following 15 projects were reported last year and are again included in this year's report.

● SEA 4000 Phase 3 - Air Warfare Destroyer Build

● AIR 5077 Phase 3 - Airborne Early Warning and Control Aircraft

● AIR 9000 Phase 2, 4, & 6 - Multi Role Helicopter

● AIR 5349 Phase 1 - Bridging Air Combat Capability

● JP 2048 Phase 4A/4B - Amphibious Deployment and Sustainment

● AIR 87 Phase 2 - Armed Reconnaissance Helicopter

● AIR 5376 Phase 2 - F/A-18 Hornet Upgrade

● AIR 5402 - Air to Air Refuelling Capability

● AIR 8000 Phase 3 - C-17 Globemaster III Heavy Airlifter

● SEA 1390 Phase 2.1 - Guided Missile Frigate Upgrade Implementation

● AIR 5376 Phase 3.2 - F/A 18 Hornet Upgrade Structural Refurbishment

● LAND 116 Phase 3 - Bushmaster Protected Mobility Vehicle

● JP 2043 Phase 3A - High Frequency Modernisation

● SEA 1444 Phase 1 - Armidale Class Patrol Boat

● SEA 1439 Phase 4A - Collins Replacement Combat System

Table 1 provides a 30 June 2010 status on key project performance metrics covering cost and schedule across the 22 projects in this year's MPR.

Table 1: DMO MPR Projects' Performance Overview of Cost and Schedule

Project

Second Pass Budget $m71

Price Indexation $m72

Foreign Exchange $m73

Scope Changes $m74

Transfers $m75

Budgetary Adjustments $m76

Net Variation %77

Current Budget $m

Original FOC

2008-09 DMO MPR FOC

Current FOC

Variation Factor78

AWD Ships

7,207.4

854.8

(322.1)

0.0

0.0

0.0

0.0%

7,740.1

Dec-18

Dec-18

Dec-18

1.0

Wedgetail

3,269.5

951.879

(371.3)

225.6

(18.9)

(173.2)

-5.3%

3,883.5

Dec-08

Dec-12

Dec-12

1.5

MRH90 Helicopters

957.2

556.1

(116.8)

2,597.1

(239.0)

0.0

0.0%

3,754.6

Jul-14

Jul-14

Jul-14

1.0

Super Hornet

3,545.8

351.4

(234.8)

0.0

(33.3)

0.0

0.0%

3,629.1

Dec-12

Dec-12

Dec-12

1.0

LHD Ships

2,959.9

348.5

(157.0)

0.0

9.4

0.0

0.0%

3,160.8

Nov-16

Nov-16

Nov-16

1.0

Overlander Vehicles

2,745.3

313.2

(169.0)

(14.8)

4.5

0.0

0.0%

2,879.2

Dec-19

-

Dec-19

1.0

ARH Tiger Helicopters

1,584.0

414.9

168.4

0.0

(84.3)

(6.7)

-0.4%

2,076.3

Jun-09

Dec-12

Dec-12

1.3

Hornet Upgrade

1,300.0

314.3

79.2

221.5

35.0

(3.4)

-0.3%

1,946.6

Aug-11

Aug-11

Nov-11

1.0

Air to Air Refuel

2,076.6

473.9

(372.0)

0.0

(135.5)

(153.6)

-7.4%

1,889.4

Mar-11

3rd Qtr 12

Dec-12

1.2

C17 Heavy Airlift

1,864.4

103.4

(133.2)

0.0

0.0

0.0

0.0%

1,834.6

Dec-11

Jan-11

Jan-11

0.8

FFG Upgrade

1,392.5

213.4

77.1

0.0

(152.6)

(0.8)

-0.1%

1,529.6

Dec-05

Dec-09

Jul-11

1.9

Hornet Refurb

156.6

145.0

(30.6)

673.6

0.0

(1.1)

-0.7%

943.5

N/A

N/A

N/A

N/A

Bushranger Vehicles

295.0

118.9

(3.1)

515.4

0.0

0.0

0.0%

926.2

Apr-12

Apr-12

Apr-12

1.0

Next Gen Satellite

884.9

107.3

(98.1)

0.0

0.0

0.0

0.0%

894.1

Dec-14

-

Dec-14

1.0

HF Modernisation

505.0

139.6

12.6

11.0

(4.7)

(0.8)

-0.2%

662.7

May-05

Dec-16

May-15

2.1

Armidales

436.8

72.9

(11.0)

67.1

(29.8)

0.7

0.2%

536.7

Mar-09

Dec-11

Mar-12

1.5

ANZACASMD2B

248.8

71.0

(10.0)

0.0

148.7

0.0

0.0%

458.5

Mar-13

-

Apr-17

1.5

Collins RCS

455.3

55.5

(51.1)

0.0

(0.9)

(0.8)

-0.2%

458.0

2010

2016

2016

1.7

Hw Torpedo

238.1

91.6

(102.3)

213.3

1.0

(0.2)

-0.1%

441.5

Nov-13

-

Nov-13

1.0

Collins R&S

72.0

66.8

(2.3)

310.3

(38.3)

(0.80

-1.1%

407.7

Jun-14

-

Sep-22

1.6

Stand Off Weapon

370.7

58.7

(29.8)

0.0

0.0

0.0

0.0%

399.6

Dec-10

-

Dec-12

1.4

ANZACASMD2A

449.0

88.7

(0.7)

0.0

(159.8)

(0.1)

0.0%

377.1

Dec-11

-

Apr-17

1.7

Total

33,014.8

5,911.7

(1,877.9)

4,820.1

(698.5)

(340.8)

-0.7%

40,829.4

-

-

-

1.30



___________________________________________________________________

71 The portion of Second Pass (or equivalent) budget approved by Government, transferred to the DMO under a MAA with Defence for delivery of the materiel system.

72 The total of price indexation variations between Second Pass budget and the current budget.

73 The total of foreign exchange variations between Second Pass budget and the current budget.

74 The total value of all approved project scope changes between Second Pass budget and the current budget.

75 The total of all transfers to and from other Defence Groups (i.e. Defence Support Group) and DMO projects.

76 The total of all other budgetary adjustments (administrative in nature) outside of price indexation, foreign exchange, scope and transfer variations between Second Pass budget and the current budget.

77 Net variation accounts for budgetary movements outside of price indexation, foreign exchange, Government approved scope changes and transfer variations to the Second Pass budget as a percentage.

78 A schedule variance factor of 1 = on time; >1 = late; and <1 = early.

79 Of the $951.8m, $388.1 m of this relates to a real cost increase for contract price indexation beyond the supplementation provided by Government.