Australian DoD announces public defence cuts
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Today we release a June 2011 electronic supplement to the Public Defence Capability Plan (the DCP).
The DCP provides information for Defence industry on Defence’s Capital Acquisition Plans.
The supplement outlines the adjustments to the DCP since the last update in December last year.
The adjustments include projects approved by Government, (including projects approved and removed from the Defence Capability Plan), cancellations and schedule and cost adjustments.
The adjustments since the December 2010 electronic update include the following:
The DCP provides information for Defence industry on Defence’s Capital Acquisition Plans.
The supplement outlines the adjustments to the DCP since the last update in December last year.
The adjustments include projects approved by Government, (including projects approved and removed from the Defence Capability Plan), cancellations and schedule and cost adjustments.
The adjustments since the December 2010 electronic update include the following:
- two projects or phases have been approved by Government and are therefore removed;
- one project has been cancelled;
- 14 projects have been brought forward, 10 projects have had their indicative schedules deferred and two projects provide more precise information on their schedule;
- 22 projects have had their indicative cost bands updated;
- 26 projects have had a change of title; and
- three projects have had phases combined
In addition, a number of projects not included in the DCP due to their classification and three new projects have been approved since the December 2010 update: an additional C-17 heavy lift aircraft, the Largs Bay amphibious ship and 101 additional Bushmaster vehicles.
Since the December 2010 update, a total of 18 projects have been approved by Government, comprising:
Second Pass approval for nine projects at an estimated total cost of around $4 billion.
First Pass approval for nine projects, with funding approved of around $100 million. These projects combined are estimated to involve expenditure of over $2.5 billion by the time they are complete.
In the coming weeks Defence will incorporate these changes into the electronic DCP.
The DCP changes over time as Defence priorities and strategic circumstances change and new projects enter the DCP, or projects are approved and as a consequence removed from the DCP.
It is therefore the case that changes have and will continue to occur. Projects may be accelerated, deferred, or diminished as circumstances change. While the DCP provides the best information available at the time of publishing, some of the information in the DCP, including in relation to approval schedules is indicative.
There is also an element of over-programming built into the DCP. Over-programming is designed to provide flexibility and to ensure that best use is made of available funding in the development of individual projects. Over-programming means that project timing does change.
