Hawkei, Taipan experience budget blow outs, design faults, project delays

A series of budget blow outs and project delays have placed two Townsville military projects “under threat”, the Australian National Audits Office has found.

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A SERIES of budget blow outs and project delays have placed two Townsville military projects “under threat”, the Australian National Audits Office has found.

The Australian National Audits Office 2019-20 Defence Major Projects Report was released on Monday and evaluates 25 of the largest and most complex projects.

The MRH90 Taipan helicopter and the newly released Hawkei armoured vehicle are among five projects “under threat” and at risk of failing to remain on budget and meet delivery time frames.

“The five project offices experiencing challenges with expected capability delivery are Joint Strike Fighter, MRH90 Helicopters, Hawkei, Battlefield Command System and Battlefield Airlifter,” the report read.

The report revealed the Hawkei’s project’s delays have been caused by reliability issues, design, and production delays.

The project completed its “Production Reliability Acceptance Test” 24 months later than originally contracted.

The MRH90 Taipan helicopter and the newly released Hawkei armoured vehicle are among five projects “under threat” and at risk of failing to remain on budget and meet delivery time frames.

Based at the 5th Aviation Regiment, the MRH90 Taipan was the only project required

$26.3 million in top up funding during the 2019–20 financial year to pay for ongoing cost blow outs.

“While all projects reported that they could continue to operate within the total approved budget of $78.7 billion, the MRH90 Helicopters project was required to draw upon contingency funds to complete project activities,” the ANAO report read.

The Bulletin previously revealed the entire fleet was grounded in July 2019 due to a critical malfunction when a Taipan was en route to pick up Chief of Defence Force General Angus Campbell off the coast of Shoalwater Bay.

Members from 5th Aviation Regiment get on board a MRH-90 Taipan as the Army drops off supplies to farmers who were affected by the floods. Picture: Zak Simmonds

The Taipan was introduced in 2004 as the replacement for the Black Hawk helicopter that was expected to be phased out by 2022.

This roll out of new helicopter has been on Defence’s “Projects of Concern” list since November 2011 when it was flagged for contractor performance linked “significant technical issues” delaying schedule.

The audit reported the approved budget for the 25 Major Projects has increased by 30.7 per cent, amounting to $24.2 billion. This figure reflects acquisition budgets only and does not include ongoing costs such as training and replacements.

As at 30 June 2020, Capability Acquisition and Sustainment Group was managing 206 projects worth $130.5 billion.

Defence reported that 19 projects in this year’s report would deliver all key capability requirements.

Originally published as Hawkei, Taipan experience budget blow outs, design faults, project delays