The Defence Portfolio includes the Department of Defence (Defence), Defence Housing Australia and the Australian Signals Directorate.
As at 31 December 2020, the Defence Portfolio employed 17,831 staff under the Public Service Act 1999. Of this total, 9,614 staff (54 per cent) are employed in Canberra, central Melbourne and central Sydney, 5,587 staff (31 per cent) in other capital cities and 2,630 staff (15 per cent) in regional areas.
Department of Defence
Defence, including the Australian Defence Force (ADF), has a significant footprint in regional Australia, with extensive bases and associated employment and community engagement activities.
Defence both employs and serves the local people in our regions. Defence members and their families are an integral part of regional communities, interacting on official duties and at community activities and events. They contribute to economic activity through spending in regional economies. Defence recognises the economic impact that engaging local contractors and suppliers, where there is the capacity and capability available in the local market, on regional economies.
Defence maintains strong links with regional Australia through Reserve units and individuals. Many of Army’s Reserve units are headquartered in regional centres with staff and soldiers based in surrounding districts (Army has approximately
15,950 reservists).
The Defence estate consists of 400 owned properties and approximately 958 leases. Facilities include 72 major bases, training areas and ranges, research facilities and office accommodation including Defence Force Recruitment Centres. Construction and maintenance activity associated with Defence facilities in regional areas provides considerable economic, social and environmental support to regional communities.
Other Defence support provided to regional, rural and remote Australians includes:
The economic activity stimulated through Defence exercises and major training activities, including joint exercises and collective training with our overseas allies and partners in Australia.
- Defence Assistance to the Civil Community, where Defence provides both emergency support (such as natural disasters) and non-emergency support (such as Public Events of Significance) across Australia.
- Defence Community Organisation activities to build the capacity of local, urban and regional communities in support of Defence member families.
- Defence engagement with regional indigenous communities, predominantly through employment.
- Defence Youth Programs conducted across Australia as an essential element of nation building.
- Engaging people with disabilities through initiatives and assistance programs to provide them the opportunity for meaningful work.
- Defence industry development, through activities undertaken across Australia to support the vital role that the Australian defence industry plays in delivering leading edge technologies and capabilities required to generate and sustain the future force.
- The economic activity associated with Defence capability and estate projects undertaken in the regions.
- Defence environmental management and cooperation on heritage issues in regional Australia.
Of the total Defence workforce (2020-21), including both those employed under the Public Service Act 1999 and members of the ADF and Reservists (an estimated average full-time total workforce of 76,996 and a headcount of 21,185 Reservists) approximately:
- 40 per cent are located in Canberra, central Sydney and central Melbourne
- 28 per cent are located in other capital cities
- 31 per cent are located in other regional areas
- 1 per cent are located overseas.
Figure 1 below depicts the Defence footprint across Australia.
| East & West Zone | Northern & Central Zone | South East Zone |
|---|---|---|
|
Australian Capital Territory
New South Wales
Victoria
Western Australia
|
Northern Territory
Queensland
South Australia
|
New South Wales
Tasmania
Victoria
|
Defence Housing Australia
Defence Housing Australia (DHA) administers Defence housing policy and provides housing and related services for ADF members and their families. The DHA maintains offices in capital cities, major regional centres and on some ADF bases and establishments around Australia, with: 34 per cent of staff located in Canberra Head Office, 7 per cent located in Sydney CBD Office, 44 per cent located in Regional Offices and 15 per cent located in Contact Centres situated in Adelaide, Brisbane, Townsville and the Hunter Valley.
The DHA manages more than 18,000 properties in capital cities, major regional centres and remote locations of Australia where the ADF has a presence. The majority of properties are integrated throughout the community, close to ADF bases and establishments, and close to a range of amenities and services such as transport, shopping facilities and schools.
To complement its leasing program, the DHA acquires property sites throughout Australia to construct suitable accommodation to meet ADF requirements. DHA currently has a number of regional development or construction projects underway which will deliver housing, providing construction work to local communities.
The DHA has two residential development projects in progress in regional Australia. These projects are located in Ipswich, Queensland. The estimated value of the projects on completion is $137 million. Subject to receiving the necessary planning approvals, DHA will undertake further residential development projects in Newcastle, New South Wales. The estimated value of the projects on completion is $104.6 million.
The DHA also manages a multi-million dollar Defence-funded upgrade, construction and redevelopment program. The DHA is managing five current projects in regional Australia. They are located in Katherine, Northern Territory (three projects), and Puckapunyal, Victoria (two projects). The estimated value of the projects on completion is $48.4 million. The DHA anticipates undertaking an additional three future Defence-funded projects in regional locations including Woomera, South Australia, Frankston, Victoria and Kapooka, New South Wales. The estimated value of these future projects on completion is $55.8 million.
New Initiatives
Defence Industry Development in Regional Areas
Australia's defence industry plays a vital role in supporting Defence and delivering leading edge technologies and capabilities required to generate and sustain the future force.
The Defence Innovation Hub was launched on 5 December 2016 as part of the Australian Government’s $1.6 billion investment in growing the capability and capacity of Australia’s defence industry and innovation sector. The Defence Innovation Hub is funded at $800 million to 2030 and manages a portfolio of Defence innovation investments and provides a single innovation development pipeline for defence industry and research organisations to develop new and innovative capability. It brings together Defence, industry, academia and research institutions from across Australia to collaborate on innovation technologies that can be developed into advanced capability for Defence.
The Defence Innovation Hub has awarded contracts totalling over $10.2 million with organisations based in regional Australia. The following details the innovation contracts entered into the 2020-21 financial year:
- 04/08/2020 - 01/02/2022 $1.5 million Low Profile Body Armour, Dandenong South, Victoria.
- 26/08/2020 - 26/09/2021 $2 million Alternative Small and Light Projectile System, The Vines, Western Australia.
- 23/09/2020 - 01/06/2021 $1.6 million Lightweight Modular Shotgun System, Dandenong South, Victoria.
- 16/10/2020 - 08/10/2021 $2.7 million Future Soldier System – Integrated Digital Soldier Systems, Queanbeyan West, New South Wales.
- 08/12/2020 - 23/11/2021 $2.2 million Abrams Main Battle Tank Engine Inlet Upgrade, Bundamba, Queensland.
- 04/01/2021 - 12/10/2021 $0.3 million Combustion Engine Inhibiting Smoke, Dandenong South, Victoria.
New Capital Equipment Projects delivered in Regional areas in 2021-22
ARMY Safety Watercraft
On 24 March 2021, the Australian Government announced that a contract has been awarded to two Cairns-based businesses in Far North Queensland, Tropical Reef Shipyards and BME NQ. The contract cost is $4.1 million and will produce seven new watercraft to strengthen the Australian Army’s amphibious capability. The project has commenced and is expected to be completed by January 2023. The award of this contract provides growth opportunity for these Cairns-based businesses. BME NQ currently employs 17 staff and will now bring on an additional six employees, to work on the watercraft including an apprentice.
New Estate and Infrastructure Projects delivered in Regional areas in 2021-22
Defence’s Enterprise Estate and Infrastructure Program has 165 active projects
(with initial Government approval) in Australia with an approximate total construction value of $29.5 billion. Estate and infrastructure projects are required to obtain final (Second Pass) Government and Parliamentary approvals prior to commencing construction. Following the implementation of Local Industry Capability Plans (LCIP) in January 2018, there has been a steady increase in the rate of local industry participation across the program with currently around 76 per cent, or 1,752 of all sub‑contracts, at around $1.9 billion, being awarded to local companies and businesses, on those projects with an LCIP.
Newcastle Airport Improvements
The Government will provide $66.1 million over two years from 2021‑22 to 2022-23 to upgrade the Newcastle Airport runway to accommodate long range aircraft and facilitate international flights, as part of planned upgrades to the airport.
Puckapunyal Military Area Mid Term Refresh
This $45.8 million project will address condition, capacity and compliance issues with existing infrastructure at the Puckapunyal Military Area, Victoria including remediating and upgrading engineering services and constructing a new storage facility. This project is scheduled to commence construction by mid 2021 for completion in late 2022. The appointed contractor will be required to prepare and implement an LICP, which details its approach to maximising opportunities for local subcontractors to be involved in the works.
Plan MURA - General John Baker Complex Capability Assurance Project (Public Private Partnership)
Ensuring a secure and resilient Australia requires modernising Joint Operations Command (JOC). Plan MURA will be the means of this modernisation, and will provide JOC with pathway to continuous modernisation. This project is delivering the infrastructure to modernise JOC facilities as a component of Plan MURA. This will include extensions, upgrades and new inclusions, and will create a world’s best practice, fit-for-purpose site that will enable efficient and effective support for operational constructs. The purpose-built facility will be specifically designed to house the future workforce, securing the JOC capability out to 2035 and beyond.
The facilities at the Bungendore site were originally constructed, and continue to be operated, through a Public Private Partnership (PPP) with Praeco Pty Ltd.
Consistent with the PPP arrangement, the funding allocation is spread over 20 years
(2020-21 to 2039-40). The project is being delivered in two tranches. Tranche One was approved by the Minister for Defence on 1 July 2020 and by the Parliamentary Standing Committee on Public Works on 5 February 2021.
- Tranche One will take place in 2021-22 and is valued at $31.7 million. Tranche One will deliver additional car parking, interim security accreditation works, site preparation for future works and the construction of a solar power farm.
- Tranche Two is expected to receive Parliamentary approval in early 2022. Tranche Two will deliver a collaboration facility, on-site accommodation and amenities, and an extension to the existing main operations building.
Current Initiatives
Current Capital Equipment Projects delivered in Regional areas in
2021-22
SEA 2400 – Hydrographic Data Collection Capability
Project SEA 2400 – Hydrographic Data Collection Capability includes the HydroScheme Industry Partnership Program (HIPP). The HIPP is a partnership with industry for delivery of the national hydrographic survey requirement to meet Defence's legislated responsibilities for the provision of hydrographic services within the Australian Area of Charting Responsibility. The HIPP was approved by the Australian Government in December 2019, with initial funding of $154 million over five years from 2019-20. The first HIPP survey commenced in May 2020. The HIPP Initial Operational Capability is scheduled for 2021 with the first hydrographic survey conducted under the program incorporated in navigation products on 21 January 2021. COVID-19 travel restrictions have impacted the HIPP with additional survey areas to compensate and mitigate interstate mobilisation risk. Since the HIPP launch in February 2020,
13 hydrographic surveys have been contracted at $36.8 million. Budgeted expenditure in 2021-22 of $31.5 million for six to seven hydrographic surveys reflects the maturing of the program, and confidence in industry partners, with the issue of larger hydrographic survey tasks.
Protected Mobile Fires Project (LAND 8116)
Following an election commitment by the Australian Government in April 2019, the Government has allocated $0.9 - $1.3 billion over eight years for the acquisition of Protected Mobile Fires from 2020-21 to 2029-30, and work is planned to commence in Geelong, Victoria, before the end of 2022-23. The Government agreed to Defence’s planned release of a single supplier limited tender to Hanwha Defense Australia in August 2020. The outcomes of this approach to market are planned to be considered by the Government by 2022. The project will maximise Australian industry participation, creating regional employment opportunities, with details to be confirmed through the tendering process and contract negotiations. Benefits to Geelong, will include warehousing, transport, supply chain participation, maintenance, generation of a skilled Australian workforce and facilities construction.
Evolutionary Digital Ground Environment (EDGE)
In December 2020, the Australian Army invested $31.9 million in the second phase of a defence communications proof-of-concept referred to as Command, Control Communications Enhanced Digital Ground Environment (C4 EDGE). C4 EDGE involves eighteen sovereign Australian companies designing and manufacturing a prototype mobile tactical communications system, informing future options for Defence projects. C4 EDGE reinforces the Government’s commitment in the 2020 Force Structure Plan to build a resilient and internationally competitive defence sovereign industrial base and increase sovereign participation in future Integrated Investment Projects, such as Project Land 200 Phase 3 Battlefield Command System. C4 EDGE is scheduled to finish in December 2021, and will generate up to 57 technical and engineering jobs across six states and the Australian Capital Territory, with several companies located in regional areas, including Newcastle, New South Wales, Derwent Park, Tasmania and Toowoomba, Queensland. Outcomes from the C4 EDGE initiative will inform future opportunities for local design and manufacture of communications capabilities from across Australia.
Strategic Domestic Munitions Manufacturing
Thales Australia and the Australian Government have signed a 10-year
Strategic Domestic Munitions Manufacturing contract for $1.1 billion commencing on
1 July 2020. The contract is for the continued management and operation of Australia’s munition factories in Benalla, Victoria, and Mulwala, New South Wales providing job certainty for more than 650 highly skilled workers. The agreement provides surety of supply of key munitions and components for the ADF, and guarantees the Australian manufacture and supply of strategic munitions to the ADF. Thales continues to build long-term relationships with hundreds of Australian suppliers, building Australia’s
self-reliance and the capability of the broader Australian manufacturing sector.
Munitions Manufacturing Arrangement
NIOA Munitions (NIOA) and the Australian Government have signed a new 10-year contract establishing NIOA as a direct tenant to Defence alongside Thales Australia for part of the Benalla Munitions facility in Victoria, commencing 1 July 2020. NIOA has commercial arrangements with world leading munitions suppliers and plans to introduce and produce new munitions types for the ADF and for export. NIOA has announced it is planning to employ up to 100 new staff at Benalla over the life of the agreement.
Current Estate and Infrastructure Projects delivered in Regional areas in 2021-22
The Australian Government is investing approximately $3.4 billion over four years from 2021-22 in estate and infrastructure projects as listed below. Defence estate and infrastructure investment is funded by the Defence Integrated Investment Program via Defence’s existing annual appropriation. Approved regional projects include the following.
New Air Combat Capability Facilities Project (AIR 6000 Phase 2A/B)
This $1.5 billion project provided new and upgraded facilities and infrastructure to support the introduction of the Joint Strike Fighter at RAAF Base Williamtown, New South Wales, and RAAF Base Tindal, Northern Territory with support facilities and infrastructure at Defence Establishment Myambat, New South Wales. This project commenced construction in early 2015. The majority of the works are complete with the exception of final demolition works, which are scheduled for completion in mid 2022. The revised estimate for 2020-21 was $19.2 million and the budget estimate for 2021-22 is $5.5 million. This project maximised opportunities for local industry to be involved as subcontractors throughout the construction of the works.
DEF101 Data Centre Upgrade
This $131.5 million project is providing infrastructure to support and ensure ongoing communications capability at HMAS Harman, Australian Capital Territory, through expansion and fit out of existing facilities. This project commenced construction in mid 2020 and is scheduled for completion in early 2022. The revised estimate for
2020-21 was $76.6 million and the budget estimate for 2021-22 is $25.7 million. This project is maximising opportunities for local industry to be involved as subcontractors throughout the construction of the works.
RAAF Base Williamtown Redevelopment Stage 2
This $274 million project is sustaining and improving the functionality and capability of RAAF Base Williamtown, New South Wales, including upgrading or replacing critical ageing infrastructure to meet future requirements. This project commenced construction in early 2016 and is scheduled for completion in late 2021. The revised estimate for
2020-21 was $19.8 million and the budget estimate for 2021-22 is $5.1 million. This project maximised opportunities for local industry to be involved as subcontractors throughout the construction of the works.
Navy Capability Infrastructure Sub-Program Maritime Operational Support Capability (SEA 1654 Phase 3), Hunter Class Frigate Program Facilities
(SEA 5000 Phase 1), and Offshore Patrol Vessel (OPV) Facilities (SEA 1180 Phase 1)
This $2.1 billion program of works is providing new and upgraded facilities and infrastructure around Australia to support the introduction into service and sustainment of new Frigate, Offshore Patrol, and Maritime Operational Support Capability vessels. This program is maximising opportunities for local industry to be involved as subcontractors throughout the construction of the works. This program includes:
Hunter Class Frigate Program Facilities (SEA 5000 Phase 1)
This $918.8 million project is providing upgraded facilities and infrastructure to support the introduction of the new Hunter Class Frigates to replace the current Anzac Class Frigates at various locations including HMAS Watson and the Garden Island Defence Precinct, New South Wales; St Kilda and Osborne Naval Shipyard, South Australia and HMAS Stirling and Henderson Maritime Precinct, Western Australia. This project commenced construction in early 2021 and is scheduled for completion in mid-2026. The revised estimate for 2020-21 was $49.9 million and the budget estimate for 2021-22 is $110.3 million.
Offshore Patrol Vessel (OPV) Facilities (SEA 1180 Phase 1)
This $918.5 million project is providing berthing, training, maintenance, logistics, and support facilities to support the introduction into service of new OPVs at
HMAS Coonawarra and RAAF Base Darwin, Northern Territory, HMAS Cairns, Queensland, HMAS Stirling and Henderson Maritime Precinct, Western Australia. This project commenced construction in early 2021 and is scheduled for completion in mid-2026. The revised estimate for 2020-21 was $16 million and the budget estimate for 2021-22 is $120.2 million.
Maritime Operational Support Capability Facilities (SEA 1654 Phase 3)
This $220.5 million project is providing new and upgraded facilities and infrastructure to support the introduction of the Supply Class Auxiliary Oiler Replenishment vessels at HMAS Stirling, Western Australia, and Randwick Barracks and the Garden Island Defence Precinct, New South Wales. This project commenced construction in late 2018 and is scheduled for completion in mid 2024. The revised estimate for 2020-21 was $39.8 million and the budget estimate for 2021-22 is $21.5 million.
RAAF Base Tindal Redevelopment Stage 6 and United States Force Posture Initiatives RAAF Base Tindal Airfield Works and Associated Infrastructure
This $1.2 billion program is addressing functional deficiencies, capacity constraints and
non-compliances with facilities and infrastructure, and delivering airfield improvements at RAAF Base Tindal, Northern Territory. This program of works commenced construction in late 2020 and is scheduled for completion in late 2027. The revised estimate for 2020-21 was $71 million and the budget estimate for 2021-22 is $123.7 million. This project is maximising opportunities for local industry to be involved as subcontractors throughout the construction of the works.
Armoured Fighting Vehicles Facilities Program Stage 1
Stage 1 of this program, at $235.1 million, is providing fit-for-purpose facilities and infrastructure to support, sustain, and train Army personnel on, the next generation of Armoured Fighting Vehicles capability at Lavarack Barracks, Queensland; Edinburgh Defence Precinct, South Australia; and Puckapunyal Military Area, Victoria. Stage 1 commenced construction in early 2021 and is scheduled for completion in mid 2023. The revised estimate for 2020-21 was $35.9 million and the budget estimate for 2021-22 is $87.3 million. This project is maximising opportunities for local industry to be involved as subcontractors throughout the construction of the works.
Point Wilson Waterside Infrastructure Remediation Project
This $218.9 million project is remediating waterside infrastructure at Point Wilson, Victoria to enable the recommencement of bulk explosive ordnance importation operations. This project will refurbish the existing 2.4 kilometre jetty, and provide an entirely new wharf, amenities building, landside infrastructure and engineering services. This project commenced construction in early 2020 and is scheduled for completion in late 2022. The revised estimate for 2020-21 was $55.8 million and the budget estimate for 2021-22 is $70.3 million. This project is maximising opportunities for local industry to be involved as subcontractors throughout the construction of the works.
AIR555 Phase 1 Airborne Intelligence Surveillance Reconnaissance Warfare Capability Facilities Works
This $294.5 million project is providing fit-for-purpose facilities and infrastructure to support the introduction into service of the MC-55A Peregrine Airborne Intelligence Surveillance Reconnaissance Electronic Warfare capability at RAAF Base Edinburgh, South Australia; RAAF Base Darwin, Northern Territory; RAAF Base Townsville, Queensland; and Territory of Cocos (Keeling) Islands. This project commenced construction in late 2020 and is scheduled for completion in mid 2024. The revised estimate for 2020-21 was $33.6 million and the budget estimate for 2021-22 is $35.8 million. This project is maximising opportunities for local industry to be involved as subcontractors throughout the construction of the works.
LAND 121 Phase 5B Facilities Project
This $183.3 million project will provide fit-for-purpose facilities and infrastructure at various bases to support and sustain vehicles, modules, and trailers being procured through the Land 121 Vehicle Acquisition Program. The bases include Robertson Barracks, Northern Territory; Lavarack Barracks and Gallipoli Barracks, Queensland; Derwent Barracks, Tasmania; Puckapunyal Military Area, Victoria and Campbell Barracks, Western Australia. This project is scheduled to commence construction by mid-2021 and scheduled for completion in mid-2024. The revised estimate for 2020-21 was $4.1 million and the budget estimate for 2021-22 is $36.6 million. This project will maximise opportunities for local industry to be involved as subcontractors throughout the construction of the works.
Shoalwater Bay Training Area Remediation Project
This $135.4 million project redeveloped the Shoalwater Bay Training Area, Queensland to support the introduction of amphibious capability, and ensure sustainability into the future through airfield, road and creek crossing upgrades, and new camp, field hospital infrastructure, and training facilities. This project commenced construction in early 2020 and is scheduled for completion in late 2021. The revised estimate for 2020-21 was $70.7 million and the budget estimate for 2021-22 is $30 million. This project is maximising opportunities for local industry to be involved as subcontractors throughout the construction of the works.
Singleton Mid-Term Refresh
This $42.2 million project is remediating trunk infrastructure, and delivering new and refurbished buildings for base support and logistics in the Singleton Military Area, New South Wales. This project commenced construction in late 2020 and is scheduled for completion in late 2021. The revised estimate for 2020-21 was $23.7 million and the budget estimate for 2021-22 is $9.8 million. This project is maximising opportunities for local industry to be involved as subcontractors throughout the construction of the works.
Holsworthy Mid-Term Refresh
This $29.5 million project is addressing power supply reliability issues, serviceability of high voltage infrastructure, and serviceability of training living-in-accommodation at Holsworthy Barracks, New South Wales. This project commenced construction in early 2021 and is scheduled for completion in early 2023. The revised estimate for 2020-21 was $9.7 million and the budget estimate for 2021-22 is $13.4 million. This project is maximising opportunities for local industry to be involved as subcontractors throughout the construction of the works.
SEA 1397 Phase 5D Nulka Assembly and Maintenance Facilities Project
This $31.6 million project will construct new purpose-built facilities at Defence Estate Orchard Hills, New South Wales to assemble, maintain, test and store decoy capability. This project is scheduled to commence construction by mid-2021 for completion in early 2022. The revised estimate for 2020-21 was $6.2 million and the budget estimate for 2021-22 is $17.6 million. This project will maximise opportunities for local industry to be involved as subcontractors throughout the construction of the works.
Larrakeyah Defence Precinct Redevelopment Program
This $495.6 million program is upgrading critical base infrastructure, improving the working environment, delivering new facilities, and supporting future growth on the Larrakeyah Defence Precinct, Northern Territory. This program is also delivering a new wharf, fuel storage and refuelling capabilities to support Navy’s major surface combatant ships operating in the north of Australia. This program of works commenced construction in late 2018 and is scheduled for completion in mid 2023. The revised estimate for 2020-21 was $136.4 million and the budget estimate for 2021-22 is $89.6 million. This project is maximising opportunities for local industry to be involved as subcontractors throughout the construction of the works.
Robertson Barracks Close Training Area
This $7.6 million project is providing perimeter fencing, signage, fire break installations; clearing rubbish; and removing asbestos to ensure the Robertson Barracks Close Training Area, Northern Territory, is suitable for Defence use. This project commenced construction in mid-2020 and is scheduled for completion in late 2021. The revised estimate for 2020-21 was $5.7 million and the budget estimate for 2021-22 is $1.4 million. This project maximised opportunities for local industry to be involved as subcontractors throughout the construction of the works.
Mulwala Decommissioning and Demolition
This $47.3 million project is decommissioning and demolishing 116 aged and contaminated redundant factory buildings at the Mulwala Propellant and Explosives Facility, New South Wales. This project is scheduled for completion in mid-2023. This project maximised opportunities for local industry to be involved as subcontractors throughout the construction of the works.
LAND 555 Phase 6 Force Level Electronic Warfare, Signals Intelligence and Vehicles
This $29.6 million project is providing vehicle storage, workshop extension, heavy vehicle weighbridge, access gate automation, and remediation of vacated facilities to accept training modules at Borneo Barracks, Queensland to support deployable electronic warfare capabilities. This project commenced construction in mid-2020 and is scheduled for completion in late 2021. The revised estimate for 2020-21 was $12.3 million and the budget estimate for 2021-22 is $9.5 million. This project is maximising opportunities for local industry to be involved as subcontractors throughout the construction of the works.
Puckapunyal Health and Wellbeing Centre
This $39.8 million project will replace obsolete, unsafe and non-compliant training facilities with a new-fit-for purpose health and wellbeing centre at the Puckapunyal Military Area, Victoria. This project is scheduled to commence construction by late 2021 for completion in early 2023. The revised estimate for 2020-21 was $5 million and the budget estimate for 2021-22 is $21.4 million. This project will maximise opportunities for local industry to be involved as subcontractors throughout the construction of the works.
Oakey Mid-Term Refresh
This $31.3 million project will upgrade engineering services and demolish redundant buildings at Swartz Barracks, Queensland. This project is scheduled to commence construction by mid-2021 for completion in mid-2023. The revised estimate for 2020-21 was $3.1 million and the budget estimate for 2021-22 is $11.9 million. This project will maximise opportunities for local industry to be involved as subcontractors throughout the construction of the works.
Airfield Capital Works P0006 (Curtin, Tindal and Townsville)
This $95.3 million project is providing major maintenance to aircraft pavements and airfield lighting at RAAF Bases Curtin Western Australia, Tindal Northern Territory and Townsville Queensland. This project commenced construction in early 2016 and is scheduled for completion in late 2022. The revised estimate for 2020-21 was $6 million and the budget estimate for 2021-22 is $8 million. This project is maximising opportunities for local industry to be involved as subcontractors throughout the construction of the works.
AIR 2025 Phase 6 Jindalee Operational Radar Networks (JORN) Facilities Project
This $50.7 million project is providing new facilities and infrastructure to support the mid-life upgrade of JORN capability, with priority works at the JORN Radar 3 Receive (Mount Everard) and Transmit (Harts Range) sites near Alice Springs, Northern Territory. Supplementary works are located at Murray Bridge Training Area in South Australia, and RAAF Learmonth and Kojarena in Western Australia. This project commenced construction in mid-2019 and is scheduled for completion in early 2022. The revised estimate for 2020-21 was $5.9 million and the budget estimate for 2021-22 is $3.7 million. This project maximised opportunities for local industry to be involved as subcontractors throughout the construction of the works.
Maritime Patrol Aircraft Replacement (AIR 7000 Phase 2B)
This $792.6 million project is providing new and upgraded facilities and infrastructure to support the introduction of the P-8A aircraft at RAAF Base Edinburgh, SA, RAAF Base Townsville, Queensland, RAAF Base Pearce, Western Australia, and RAAF Base Darwin, Northern Territory, as well as additional explosive ordnance facilities at HMAS Stirling, Western Australia. This project commenced construction in early 2016 and is scheduled for completion in late 2022. The revised estimate for 2020-21 was $114.1 million and the budget estimate for 2021-22 is $75.3 million. This project is maximising opportunities for local industry to be involved as subcontractors throughout the construction of the works.
HMAS Cerberus Redevelopment
This $465.6 million project is upgrading engineering services, refurbishing
living-in-accommodation, constructing a new logistics precinct, upgrading the School of Survivability and Ship Safety, upgrading the gym, refurbishing training facilities and galley, and demolishing redundant buildings at HMAS Cerberus, Victoria. This project commenced construction in early 2018 and is scheduled for completion in mid-2023. The revised estimate for 2020-21 was $75.4 million and the budget estimate for 2021-22 is $51.4 million. This project maximised opportunities for local industry to be involved as subcontractors throughout the construction of the works.
Air Traffic Control Complex Infrastructure Project and Fixed Base Defence Air Traffic Management and Control System (AIR 5431 Phases 2 and 3)
This $409.9 million project provided facilities in support of replacement Air Traffic Management Surveillance, Command and Control Systems under AIR 5431 Phases 2 and 3, incorporating the replacement of aged and degraded Air Traffic Control Towers, at various bases. The bases included HMAS Albatross, RAAF Williamtown, New South Wales, RAAF Darwin and RAAF Tindal, Northern Territory, RAAF Amberley, Army Aviation Centre, Oakey and RAAF Townsville, Queensland, RAAF Woomera and RAAF Edinburgh, South Australia, RAAF East Sale, Victoria and RAAF Gingin and RAAF Pearce, Western Australia. This project commenced construction in mid-2016 with construction work at all bases complete excluding minor works at RAAF Base Amberley and HMAS Albatross, which are scheduled for completion in mid-2021. The staged demolition of redundant facilities is scheduled for completion in late 2024. The revised estimate for 2020-21 was $19.2 million and the budget estimate for 2021-22 is $7.9 million. This project is maximising opportunities for local industry to be involved as subcontractors throughout the construction of the works.
Battlefield Airlifter Facilities (AIR 8000 Phase 2)
This $370.4 million project provided facilities at RAAF Base Amberley, Queensland to accommodate and support the operation of the new C-27J Battlefield Airlifter aircraft. This project commenced construction in mid-2016 and the works are complete except for resolving minor defects, which are scheduled for completion by mid-2021. The revised estimate for 2020-21 was $14.1 million and the budget estimate for 2021-22 is $0.2 million. This project maximised opportunities for local industry to be involved as subcontractors throughout the construction of the works.
LAND 121 Stage 2A
This $276.5 million project is providing facilities across bases to sustain the B-vehicle fleet in accordance with the Basis of Issue for Army, the Royal Australia Air Force, and Joint Logistics Command. The bases include RAAF Williamtown and Holsworthy Barracks, New South Wales, Robertson Barracks and RAAF Darwin, Northern Territory, Lavarack Barracks, Gallipoli Barracks, RAAF Townsville and RAAF Amberley, Queensland, RAAF Edinburgh, South Australia, Puckapunyal Training Area, Victoria, and Campbell Barracks, Western Australia. These facilities will maintain (workshops and repair parts storage), support (fuel points, loading ramps, wash points and weighbridges), and sustain (shelters and hardstand) the LAND 121 vehicles. This project commenced construction in mid-2016 and is scheduled for completion in late 2021. The revised estimate for 2020-21 was $13.7 million and the budget estimate for 2021-22 is $6.5 million. This project is maximising opportunities for local industry to be involved as subcontractors throughout the construction of the works.
Joint Health Command Garrison Facilities Upgrades
This $212.5 million project is providing fit-for-purpose, contemporary Garrison Health Facilities around Australia. This project commenced construction in late 2018. The works are complete except for those at Robertson Barracks, Puckapunyal Training Area, Royal Military College, Russell Offices, RAAF Townsville, Simpson Barracks, and Gallipoli Barracks, which are progressively scheduled for completion in late 2021. The revised estimate for 2020-21 was $68.5 million and the budget estimate for 2021-22 is $11.7 million. This project maximised opportunities for local industry to be involved as subcontractors throughout the construction of the works.
Airfield Capital Works P0007 (East Sale, Gingin and Oakey)
This $149.0 million project is providing major maintenance to aircraft pavements and airfield lighting at RAAF Bases East Sale Victoria, Army Aviation Centre Oakey Queensland, which are both complete, and Gingin Western Australia. This project commenced construction in mid 2019 with the remaining works scheduled for completion in late 2021. The revised estimate for 2020-21 was $27.2 million and the budget estimate for 2021-22 is $9.9 million. This project maximised opportunities for local industry to be involved as subcontractors throughout the construction of the works.
Naval Guided Weapons Maintenance Facilities Project
This $95.5 million project is delivering new facilities at Defence Establishment Orchard Hills, New South Wales to enhance the maintenance of existing and new guided weapons. This project commenced construction in early 2020 and is scheduled for completion in late 2021. The revised estimate for 2020-21 was $48.1 million and the budget estimate for 2021-22 is $1.4 million. This project maximised opportunities for local industry to be involved as subcontractors throughout the construction of the works.
Defence High Performance Computing Centre
This $68.8 million project is providing facilities to house high performance computing equipment as well as meeting, auditorium, and training facilities at RAAF Base Edinburgh, South Australia. This project commenced construction in late 2019 and is scheduled for completion by mid-2021. The revised estimate for 2020-21 was $35.3 million and the budget estimate for 2021-22 is $0.4 million. This project maximised opportunities for local industry to be involved as subcontractors throughout the construction of the works.
LAND 2110 Phase 1B – Chemical, Biological, Radiological and Nuclear Defence (CBRND) Facilities
This $16.7 million project is providing new and refurbished facilities, including training and storage facilities at 14 bases to support Australian Defence Force CBRND activities. The bases include Majura Range and HMAS Creswell, Australian Capital Territory, Holsworthy Barracks, Kapooka Military Area, RAAF Base Wagga, New South Wales, Robertson Barracks, Northern Territory, Lavarack Barracks, Gallipoli Barracks, RAAF Amberley, Queensland, RAAF Edinburgh, South Australia, HMAS Cerberus and Dutson Air Weapons Range, Victoria, and HMAS Stirling and Bindoon Training Area, Western Australia. This project commenced construction in early 2021 and is scheduled for completion in early 2022. The revised estimate for 2020-21 was $12.2 million and the budget estimate for 2021-22 is $8.7 million. This project is maximising opportunities for local industry to be involved as subcontractors throughout the construction of the works.
RAAF Pearce – Upgrade of Potable Water
This $7.5 million project is providing a compliant base-wide potable water system modification at RAAF Base Pearce, Western Australia, to address potable water supply and infrastructure issues that are critical to the ongoing operations of the base. This project commenced construction in early 2020 and is scheduled for completion in late 2021. The revised estimate for 2020-21 was $3.6 million and the budget estimate for 2021-22 is $0.1 million. This project maximised opportunities for local industry to be involved as subcontractors throughout the construction of the works.
Defence Base Service Contracts
Defence has a number of base service contracts that support the management of the Defence estate and the daily activities of Defence bases across Australia. Where services are delivered to bases located in regional and remote areas, the base services contractors generally draw their workforce from local employment areas as well as accessing local business suppliers. The services provided include estate maintenance, hospitality and catering, range and training area support, living-accommodation and housekeeping, transport, access control, waste management services, land and environment management, pest and vermin management, firefighting, airfield operations and aircraft refuelling.
The Base services contractors are required to demonstrate a commitment to Indigenous employment, including the use of Indigenous business suppliers. Base services contractors must have a current Indigenous Training, Employment and Supplier Plan.
In the 2020 calendar year, Defence, through its ten Base Services Contractors, engaged 1,862 Small and Medium Enterprises across Australia with expenditure totalling $843 million. During the same period, 82 Indigenous businesses were engaged with total expenditure of $163 million. In the 2020 calendar year, 832 businesses were engaged by the Base Services Contractors in regional areas across Australia with expenditure totalling $310 million.
Current Communication Technology delivered in Regional areas in 2021-22
Information communication technology (ICT) in Defence is delivered through a number of large contracts supporting Defence capability, which includes the provision of localised ICT services and support at Defence bases and sites throughout Australia. Delivery of localised ICT services through these contracts is provided through a locally engaged workforce across capital cities, regional and remote locations in Australia.
DEF799 Phase 1 Geospatial Intelligence Satellite capability-enhanced Commercial Access
Sustainment of the DEF799 Phase 1 capability is delivered through a number of arrangements with companies across regional and remote Australia. Approximately $3.7 million was spent with Australian industry in 2020-21, of which a small but significant, percentage was for goods and services in regional and remote locations. Delays to procurement activities, primarily caused by COVID-19 travel restrictions, meant that the project could not engage local service providers in the manner originally intended. Approximately $7 million is planned to be spent with Australian industry in 2021-22. This expenditure will include a locally engaged maintenance workforce in regional and remote locations across Australia.
Other
Tasmanian Defence and Maritime Innovation and Design Precinct
Following an election commitment by the Australian Government in April 2019, Defence signed an agreement with the University of Tasmania (UTAS) in July 2020 committing $30 million over three years to develop the Defence and Maritime Innovation and Design Precinct at the UTAS Australian Maritime College campus in Launceston.
The commitment is supporting the implementation of new, updated or modified capabilities at the Australian Maritime College, including fit for purpose laboratories and workshops that can be used for both Defence and the wider Maritime Community, with a focus on the Southern Ocean and Antarctic environments.
To date, $3 million has been spent on the 2020-21 design and definition phase. In 2021-22, $15 million has been budgeted for significant infrastructure upgrades and capital works, with a further $12 million in 2022-23 for further significant infrastructure and capital works.
An estimated 50 additional jobs are expected to be created during construction and the development will create further employment opportunities across a broad range of science and technology capabilities beyond maritime-specific solutions, drawing researchers and industry from across the country to use the world-class facilities and promote collaboration between Defence, academia and industry.
This commitment is to build additional infrastructure over 2021-2024 in the form of a new Engineering Service Centre at the Australian Maritime College. The three year program expands the capability of the Australian Maritime College and other UTAS organisational entities to meet the growing research and development needs of Defence, and its industry supply chains.
Pentarch Industrial – New Ammunition Container Contract
Defence signed a six-year contract of up to $15 million with Pentarch Industrial at the end of May 2020 for the supply of new and refurbished ammunition boxes.
Pentarch Industrial is a regional Victorian company based in Wangaratta, employing 13 full-time and three casual staff across both Oaklands New South Wales and Wangaratta Victoria. The company provides services to Defence in ammunition container refurbishment, recycling and disposals. This service enables containers to be reused many times, rather than Defence having to import new containers from overseas every time they are needed.
Defence Economic Stimulus package
On 26 August 2020, the Australian Government announced a $1 billion, two-year investment package to boost Australia’s defence industry and support jobs across Australia. The Defence Economic Stimulus package was announced for the 2020-21 and 2021-22 financial years.
Given the scope and scale of the Defence Economic Stimulus package, many initiatives span the life of the package. Over the two financial years the redirected investment initiatives are providing additional opportunities to the Australian defence industry and support to an estimated 4,000 Australian jobs.
Defence is focusing on providing support to sovereign industrial capabilities and regional Defence infrastructure, which will help to support Australian businesses and jobs in a time of considerable economic uncertainty. The package is directed towards nationwide projects and jobs across Australia including:
- A $300 million national estate works program that is helping to support the construction industry as a result of the COVID-19 pandemic, focusing on regional areas (including bushfire affected regions) such as Jervis Bay and Eden, RAAF Bases East Sale, Pearce, Wagga and Amberley, the Albury Wodonga Military Area and Blamey Barracks.
- Accelerating the sustainment of ADF platforms and capabilities, including the upgrade of Bushmaster Protected Mobility Vehicles, modernisation of ADF uniforms; and additional C-27J military transport aircraft maintenance, which is engaging ex-Qantas and Virgin technicians.
- Advancing approximately $190 million of investment in approved infrastructure projects in the Northern Territory across Robertson Barracks, RAAF Base Darwin, Larrakeyah Defence Precinct and Delamere Air Weapons Range.
- Increased funding of $110 million for Defence innovation, industry grants, skilling and micro credentialing and cyber training for defence industry.
- Accelerating important ADF capability development projects, targeting key manufacturing, construction and high-tech sectors, including:
- A $20 million contract with a Canberra-based company DATAPOD (Australia), to provide Defence with portable, containerised data systems which can be rapidly deployed by sea, air or road. This investment will help to protect up to 27 direct and up to 80 supply chain jobs.
- A $94 million contract with Queanbeyan-based company Electro Optic Systems to supply Defence with 251 Remote Weapon Stations to increase the lethality of the ADF’s protected mobility vehicles. This investment draws upon Australian‑owned intellectual property, with more than 80 per cent of the parts sourced through its Australian supply chain of more than 140 Australian companies.
- Increasing the employment of Australian Defence Force (ADF) Reservists who have lost their civilian income, with an allocation of up to an extra 210,000 days, and the targeted recruitment of an additional 500 ADF Reservists.
- Enhancing the employability of current and former ADF personnel and supporting the partners of ADF personnel who may be out of work due to the COVID-19 pandemic. This is achieved through initiatives such as the Partner Employment Assistance Program (PEAP) which aims to assist eligible ADF partners to find employment. PEAP provides funding towards initiatives such as professional employment services and re-registration to improve employability. Eligibility criteria for this program has been temporarily expanded in response to COVID-19 so that partners of ADF members can access PEAP at any time during the posting cycle, rather than following a recent relocation.
These initiatives complement the ongoing modernisation of the Australian Defence Force, proposed under the 2020 Force Structure Plan.
COVID-19 Assist – March 2020 - Present
These are extraordinary times, and the Australian Defence Force is ready to help when asked by the Australian Government, or the states and territories. The ADF is providing customised support to state and territory authorities. This includes planning and logistics support, frontline medical assistance and other roles that keep Australians safe by limiting the spread of COVID-19.
The scope and scale of Defence support is coordinated through Emergency Management Australia. Over 17,000 ADF personnel have so far deployed on Operation COVID-19 Assist. At its peak, more than 3,500 ADF personnel were supporting the Australian, State and Territory governments response to COVID-19.
In the 2021-22 financial year, ADF is supporting the Department of Health’s Vaccine Operation Centre in the rollout of COVID-19 vaccines to the staff and residents of aged and disability care facilities in regional and metropolitan Australia. This includes support to locations that may face unique pressures in terms of remoteness and difficulty in contracted solutions provided the necessary assistance.
In addition to supporting public health efforts, to support Australians and Australian businesses, Defence has modified existing and future Defence infrastructure contracts to allow for cost and time relief to businesses whose obligations are impacted by
COVID-19.
Since the beginning of the COVID-19 pandemic, the Defence COVID-19 Industry Support Cell (the Cell) has worked to strengthen the Defence and industry partnership, while also supporting the whole-of-government response to COVID-19. The Cell monitors and engages with industry to provide ongoing advice and guidance on safe business practices, supply‑chain constraints and COVID-19-related industry proposals and support. Additionally, it advises on Defence capability impacts of State and Territory governments work and travel restrictions. As part of the ongoing support, from
March 2020 to April 2021 Defence has paid more than $24.3 billion of invoices earlier than the contracted payment terms and ensured cash flow to Australian small business contractors and into the Australian economy.
Further to this, Defence initiated a Recovery Deed option that allowed Defence industry to continue to safely meet contractual obligations while dealing with the uncertainty caused by disruptions to domestic and international travel, supply chains and local restrictions. The Deed was in effect from March to December 2020 and focused contractors on performance rather than having to consider whether they needed to invoke contractual mechanisms to seek relief. Contractors who signed the Recovery Deed provided recovery plans that were used to negotiate contract changes.
Defence is currently assessing the cost and schedule impact of COVID‑19 on procurement, and will respond as the situation demands.
Support to the economy is one of four lines of effort set out in the Defence COVID-19 Strategy which outlines the key ways Defence is working to support the
whole-of-government response to COVID-19. Defence is working with contractors to engage local people who have been made redundant as a result of COVID-19. Since March 2020 when Defence COVID-19 Taskforce was established and the industry support cell was set up as a key part of Defence’s support to the economy, more than 1,150 small-to-medium regional enterprises have been engaged under this approach. Companies across Australia have benefitted and come from a range of sectors, including a landscaping business in Tasmania, the Snowy Mountain Cookies Company in Jindabyne, Dynamic Catering Solutions in Western Australia, and CMJ Catering, a small Indigenous-owned catering company in New South Wales.
Support to COVID-19 impacted personnel in the Civil Airline Industry
Over the course of the pandemic, Defence industry has been reassured by the Australian Government’s commitment to bring forward investment in Defence capability, and has continued to expand its operations, including the civil aviation sector. For example, Northrop Grumman Australia (NGA) employed 34 ex-airline staff to support the C-27J platform, of which 23 were former Qantas staff (comprising of 19 engineering and four technical officers) who are based in New South Wales. The other 11 employees were
ex-Virgin maintainers and supported NGA with deeper maintenance activities in Amberley Queensland. Over the first half of 2021-22, seven ex-Qantas airline staff will continue providing engineering support to the C-27J platform. Airbus Australia Pacific employed nine staff from the airline industry, who are now supporting the MRH-90 sustainment platform. Airbus Australia Pacific also established a short-term contract with Burrana, a small to business in Brisbane that delivers airline entertainment systems, to engage eight engineers. This work was completed in November 2020. BAE Systems Australia employed 25 aviation technicians, including apprentices to support the Hawk Lead‑In‑Fighter and the F-35 Joint Strike Fighter program at RAAF Base Williamtown, New South Wales. Following their training, 21 aviation technicians and logisticians will support the maintenance of the Australia’s F-35 fleet while four workers are supporting the Hawk Lead in Fighter at BAE’s facility.