Estimate $m

Actual $m

Variance $m

Variance Factor

Explanation

FMS

The year end overspend results from the approval of a contract change proposal which resulted in CEA ramping up procurement of Ships 2-8 components above what was included in their 09-10 Additional Estimates (AE) budget. Since late December 2009, funds were progressively released to CEA for ships 2-8 phased array radar components to ensure acquisition obsolescence management. Phase 2B has now exceeded the 09-10 AE's budget but under achieve the DMO CFO approved November 2009 Programming Variation Certificate (PVC) by $15m. The PVC was approved to effect the Government decisions of July 2009 where the Government approved a Ship 1 program as well as delegating funding approval for the purchase of forward components for Ships 2-8 to the DMO CEO.

Overseas Industry

7.6

Local Industry

Brought Forward

Cost Savings

FOREX Variation

Commonwealth Delays

86.0

93.6

7.6

Total Variance