Powered by MOMENTUM MEDIA
defence connect logo

Website Notifications

Get notifications in real-time for staying up to date with content that matters to you.

Defence must combat project overruns

dcns future sub

In the wake of the latest Future Submarine contract signing and the release of the Major Projects Report from the Australian National Audit Office, which confirmed cost overruns and delivery delays, calls have been made to change the way Defence does business.

In the wake of the latest Future Submarine contract signing and the release of the Major Projects Report from the Australian National Audit Office, which confirmed cost overruns and delivery delays, calls have been made to change the way Defence does business.

As previously reported on Defence Connect, major defence projects are averaging delays between 14 and 54 months, while project of concern AIR 5431 Phase 3 Civil Military Air Traffic Management System (CMATS) will be seeking extra funds from the government next month.

Advertisement
Advertisement

Nick Xenophon Team senator Rex Patrick, a former submariner and project manager, said the latest ANAO report and evidence provided to the Senate presented serious concerns about the current state of operations within the Department of Defence.

"Defence's management of major equipment procurement is bleeding billions of dollars," said Patrick.

"While the government has been cutting cost to welfare, health, education and other important community programs, major blowouts in Defence are almost going unnoticed."

The latest $700 million contract awarded to Lockheed Martin Australia has been welcomed by the Nick Xenophon Team, however Senator Patrick has raised concerns over the cost of the contract and the lack of transparency.

"We have no idea what's included in the $700 million contract. That's something we'll have to unpack at [Senate] estimates," he said.

PROMOTED CONTENT

"Noting this work is for integration and installation, the number seems high." 

Former senator Nick Xenophon asked questions at a 2015 Senate estimates hearing about the actual tactical weapon control system that Lockheed Martin will integrate but no answer was given.

"On the evidence, the government has not established a price for the actual tactical weapon control system that will be installed and integrated by Lockheed Martin," Senator Patrick said.

"It seems we've committed to a system where we don't understand the price. That approach is somewhat cavalier."

Defence must combat project overruns
DCNS-Future-sub.jpg
lawyersweekly logo

more from defence connect

Jul 1 2022
Cyber businesses encouraged to take part in defence awards
As Defence Connect eagerly gears up to host the 2022 Australian Defence Industry Awards, we’re encouraging all defence cyber bus...
Jul 1 2022
Air Marshal Mel Hupfeld farewells RAAF
Air Marshal Mel Hupfeld has now transferred command of the RAAF to his replacement, Air Marshal Robert Chipman, at a ceremony in C...
Jul 1 2022
UK trade envoy tours JFD facility
The maritime solutions provider has hosted the dignitary at its national headquarters. ...