klecam-klecem

Two projects have been removed from the Projects of Concern list, the Minister for Defence Materiel, Jason Clare, said at the D+I Conference yesterday.

These are the Vigilare air defence command and control system and the HF MOD communications upgrade, for both of which Boeing is prime contractor.

An Independent Projects Performance Office will be set up with effect from July 1 to oversee projects on the list, he added. This is part of an ongoing reform process designed to reduce or prevent project delays.

Clare also announced that UK maritime consultant BMT had been engaged to carry out a review of sustainment of the Collins-Class submarines.

As expected, Clare also announced the project value threshold at which an Australian Industry Capability (AIC) Plan would be required has been reduced from $50 million to $20 million, also with effect from July 1.

However, the value of this plan and the associated Global Supply Chain program is clear, he said: for a Defence investment of $11 million, Australian SMEs have secured contracts worth some $356 million, a 30-fold return on investment, of which around $200 million are from Boeing and $100 million from Raytheon.