New Headquarters handed over to Defence

21 Jul 2008

The new Headquarters Joint Operations Command (HQJOC) has been built and fitted out near Bungendore, NSW, about 25 km east of Canberra and has been handed over to Defence by Praeco.

“The project has been a successful outcome and we have delivered on what we promised.

"We are looking froward to continuing to do that for the life of the contract,” Peter Hicks managing director of Praeco, said.

Defence will pay Praeco (a consortium comprising Leighton Contractors Pty Limited and ABN AMRO Australia Limited) an Annual Service Payment, commencing when the facility is completed in 2008.

The first full-year payment will be $39.99 million, commencing in 2009-10.

The whole-of-life net present cost to Defence for the provision by Praeco of the buildings, infrastructure and services over the 30-year term is $572.2 million (all dollar amounts are expressed in 2006-07 prices, less GST).

In terms of what Praeco would do differently next time around in a PPP with Defence, Peter Hicks was very positive about the working relationship.

“I think it went well overall but next time we would put more effort and resources into dealing with Defence.

"I think we underestimated the amount of time and effort it would take in dealing with the many aspects of the Defence Department, which is quite a complex organisation.”

“I think the project has been a bench mark in terms of where we are with the Commonwealth government and PPPs.

"This has been the first experience for Defence with a PPP, so it has been a groundbreaker in more ways than one.

"Things can always be done better, but given that it was the first time I think it went very well.

"I would have no problems signing up for another one,” Hicks said.

The HQJOC facility will be equipped with a comprehensive range of command, control, communications, computing and intelligence (C4I) systems.

In December 2005, Defence contracted Codarra Advanced Systems to provide C4I Systems Project Management and Systems Engineering services.

Codarra is providing the majority of the Defence Project Office functions for managing the design and delivery of the C4I Systems for HQJOC.

Following an extensive evaluation process, Defence selected Thales Australia as the contractor to deliver the integrated suite of C4I systems for the new

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