Public Accounts Committee tables review of the Defence Major Projects Report

PARLIAMENT'S Public Accounts Committee today tabled its report into the 2014‑15 Major Projects Report produced by Australian National Audit Office (ANAO) and Defence.

The Major Projects Report consolidates information on major Defence acquisition projects—including cost, schedule, and capability performance. It also provides a longitudinal analysis of projects and commentary on Defence’s project governance systems.

“The Major Projects Report has developed into an excellent tool to assess the status of Defence major acquisition projects” Committee Chair, Mr Ian Macfarlane MP said.

“However, despite some significant capabilities being delivered in recent years, the Committee remains concerned that slippage of projects continues and believes it is critical that Defence correctly assess the project type early in the procurement cycle—be it ‘off the shelf’ or developmental.”

“The Committee was strongly concerned with the contracting model for the Air Warfare Destroyer project—making a recommendation that Defence undertake a detailed review to determine liability for the project’s problems and to help mitigate similar issues arising in the future.”

“The Major Projects Report is a key tool to improve the transparency of Defence procurement. Recent reforms of Defence represent an opportunity to further improve the Report and Defence procurement outcomes—but ongoing commitment, resourcing and leadership will be required. The Committee commends Defence and the ANAO for their strong efforts in this regard.”

The JCPAA’s report can be found at the Committee’s website http://www.aph.gov.au/jcpaa.

ends