News Review: Clare updates Project of Concern list | ADM November 2011

Minister for Defence Materiel Jason Clare held a two-day round of meetings in September with senior Defence officials and the CEOs of companies which have projects on the Projects of Concern (POC) list.

This was Care’s second round of biannual face-to-face meetings with industry and Defence, a cycle he announced in February this year. 

“The purpose of these meetings is simple – to make sure there is focus from the top of Government, Defence and industry to remediate these projects,” Clare said.

“It ensures that the senior Defence and industry people responsible for these projects are doing everything necessary to remediate them.

“Ultimately, we want these projects off the list. This is about working together to get these projects back on track.”

Clare and Minister for Defence Stephen Smith announced at the D+I Conference in Adelaide a range of reforms to strengthen the POC system, including:

•           the establishment of a more formal process for adding projects to the list

•           the establishment of a formal process for removing projects from the list

•           the development of agreed remediation plans, including formal milestones for the removal of a project from the list

•           increased Ministerial involvement and oversight of the process.

“The Projects of Concern process is working and the reforms we are implementing will make it even more effective,” Smith said.

In the meantime, a second diagnostic review of the MRH-90 Multi Role Helicopter Program began in September. This followed a review conducted in April which recommended that Defence work with prime contractor Australian Aerospace to implement a remediation plan. The first diagnostic review was ordered to address delays to the project due to a series of key issues including engine failure, transmission oil cooler fan failures and the poor availability of spares.

At that time, Clare said a second review would be undertaken later in the year to examine the effectiveness of the action taken and whether further action is necessary to remediate the project. The second review was Chaired by DMO’s Acting Deputy Chief Executive Officer Harry Dunstall and was scheduled to report back by the end of October. To date, 13 MRH-90 helicopters have been accepted by Defence and are currently being used for testing and initial crew training.

Since the Projects of Concern process began in 2008, 18 projects have been listed as Projects of Concern. Since then, nine of those have been removed – seven due to remediation and two due to cancellation.

Subject: Defence Policy