The Department of Defence has confirmed two Air Force projects have been added to its Projects of Concern list.
Minister for Defence Marise Payne and Minister for Defence Industry Christopher Pyne have confirmed Project AIR 5431 Deployable Defence Air Traffic Management and Control System and Project AIR 5431 Phase 3 Civil Military Air Traffic Management System have been added to the list.
In 2014, AIR 5431 Phase 1 was awarded to Indra Australia to deliver a mix of mobile and transportable air traffic control radars and supporting equipment to allow defence to control and monitor air traffic while deployed on operations.
Defence has said the project has experienced delays since approval, and initial delivery is expected almost two years later than originally planned.
AIR 5431 Phase 3, also approved in 2014, is meant to deliver the defence aspects of a harmonised civil/military air traffic management system under the OneSKY banner — collectively being led and managed by Airservices Australia.
The Department said the project is a highly complex, inter-departmental project of national significance that has experienced some substantial challenges getting into contract. The challenges revolve around issues with ensuring value for money for the taxpayer.
Although the projects are under the same program, there is no dependency between the two and their inclusion on the Projects of Concern list is unrelated, according to defence.
So far the Projects of Concern process has seen the remediation of 17 troubled projects with a combined value of around $17 billion.
Defence Connect recently reported that the Collins Class sustainment project is also likely to soon come off the list, with shipbuilder ASC announcing it had secured a further five-year contract for the sustainment of the Collins Class submarine fleet.