- Edinburgh Defence Precinct Mid-Term Refresh
Department of Defence
4.1The Department of Defence (Defence) seeks approval from the Committee to proceed with the proposed Edinburgh Defence Precinct Mid-Term Refresh.
4.2The project will replace or upgrade engineering services and associated facilities and infrastructure across the Edinburgh Defence Precinct that are aged and approaching the end of useful life, have capacity and compliance issues, and pose risks to current and future functions. It is anticipated that the project will deliver enhanced resilience and redundancy to support Defence activities conducted on the precinct.
4.3The project will be delivered across the Edinburgh Defence Precinct, South Australia, including at:
- RAAF Base Edinburgh which supports intelligence, surveillance, reconnaissance and research operations, land combat functions and administrative and personnel functions for ADF personnel in the South Australian region
- Defence Science Technology – Edinburgh which supports national defence research working within the Australian science, technology and innovation fields to deliver scientific advice and solutions that provide capability enhancement for the ADF and the national security community.
- The estimated cost of delivery of the project is $311.9 million (excluding GST).
- The project was referred to the Committee on 3 August 2023.
Conduct of the inquiry
4.6Following referral, the inquiry was publicised on the Committee’s website and via media release.
4.7The Committee received one submission, two supplementary submissions, and one confidential submission. A list of submissions is at Appendix A.
4.8On 4 October 2023, the Committee conducted a site inspection and public and in-camera hearings. A transcript of the public hearing is available on the Committee’s website.
Need for the works
4.9The Edinburgh Defence Precinct is a key national defence research and intelligence surveillance and reconnaissance hub which supports multiple Defence Service groups operating concurrently. The project will support the generation and sustainment of its current and future capability.
4.10Defence states the project directly supports its strategic objectives by reinvesting in engineering services and associated facilities and infrastructure to sustain the two sites into the future. Defence also states the Project will enhance estate resilience and redundancy to ensure that the ADF maintains operational efficiency.
4.11The project will deliver new and upgraded engineering services, including a high voltage power network, fire water, sewer and stormwater, and associated facilities infrastructure to support base operational requirements.
Options considered
4.12Defence considered four options for the Project with Option 4 assessed as best value for money:
- Option 1 (do nothing) was discounted as it does not sustain the two sites to support current and future capability requirements.
- Option 2 (minimum scope) was discounted because although it provides a minor increase in available high voltage power supply and limited scope for other engineering services and infrastructure it does not fully support current and future estate capability requirements.
- Option 3 (minimum scope plus limited additions) was discounted because although it doubles the available high voltage power supply and provides limited scope for other engineering services and infrastructure it does not fully support current and future estate capability requirements.
- Option 4 (full scope) was preferred because it provides fit-for-purpose engineering services and infrastructure that will address all capacity and compliance issues and risks and sustain the two sites to support current and future capability requirements.
Scope of the works
4.13The project has been labelled as a ‘mid-term refresh’. At the public hearing, Defence provided further information about the length of a term:
What is normally done in [Capital Facilities and Infrastructure] is we have a major redevelopment, and they usually are about 20 years apart. A mid-term refresh is about at the ten-year mark; that's what's established. In recent times, we're looking forward to going away from the term 'mid-term refresh'. It's sometimes a little bit of a misnomer and sometimes an expectation that we'll do it exactly on 10 years and things like this. It is, once again, driven by the estate based plans, which are done by an estate planning branch, and that feeds into the age of a base to try and work out when the need is for a redevelopment.
4.14The scope of work for Option 4 has five elements:
- Project Element 1 – Electrical Infrastructure Upgrade Stage A
- Electrical infrastructure upgrades including high voltage cabling, new central emergency power station (at RAAF Base Edinburgh only), substation replacements, control system upgrade, switching station buildings.
- Project Element 2 – Electrical Infrastructure Upgrade Stage B
- Electrical infrastructure upgrades including high voltage cabling, new central emergency power station (Defence Science and Technology - Edinburgh only), substation replacements, control system upgrade, switching station buildings.
- Project Element 3 – Electrical Infrastructure Upgrade Stage C
- Electrical infrastructure upgrades including switching station buildings, reconfiguration of switching station buildings, high voltage cabling, additional capacity in new central emergency power stations.
- Project Element 4 – Civil Infrastructure at RAAF Base Edinburgh
- Civil infrastructure upgrades including new fire water and potable water pipework, sewer infrastructure and stormwater network.
- Project Element 5 – Civil Infrastructure at Defence Science and Technology - Edinburgh
- Civil infrastructure upgrades including new fire water and potable water pipework, sewer infrastructure and stormwater network.
- If the project is tendered under budget or there is a retirement of risk provisions, Defence will use available funding for enhancements that are consistent with the project scope such as additional cabling, sewer relining or extensions, increase extent of expansion/replacement of fire water and stormwater systems.
Potential impacts
4.16The Department of Defence conducted assessments to identify potential environmental and local community impacts and found there were no potential visual, noise, or traffic, transportation and road impacts. Defence further stated that:
Acoustic analysis indicates that noise emission levels, produced by the proposed emergency generation plant will be approximately 66 decibels at the exterior of the nearest Defence building; which is located approximately 90 meters away. As such, the project does not anticipate any noise impacts to either the public or any Defence personnel located within on-base living in accommodation.
4.17Because the project deals with high voltage electrical works, Defence considered potential impacts on the existing high voltage network during switchover and has established robust commissioning, handover and takeover processes designed to avoid unplanned loss of power supply on the precinct. The project requires a new easement due to the high voltage work being done. At the public hearing the Managing Contractor commented:
There's currently an easement in place for one of the interconnectors and the data PCMS that's going across the two bases. A new easement will be required. That process can take a significant amount of time. We've commenced discussions with the local council.
4.18The site selection process also considered the Edinburgh Defence Precinct Heritage Management Plan with a particular focus on utility route selection minimising Indigenous heritage risks. If a heritage artefact is discovered during construction, the managing contractor will comply with Defence’s heritage finds process, which will be outlined in the contractor’s environmental management and heritage plan.
4.19Defence has determined that the project will not have a significant impact on existing environmental and heritage values.
Community and stakeholder consultation
4.20Defence has developed a community consultation and communications strategy, and has engaged with a variety of internal and externals stakeholders during the project development phase including:
- Federal and Local Members of Parliament in affected electorates
- South Australia’s Chamber of Commerce and Industry
- Representatives of the Kaurna Nation.
- Defence conducted two community information sessions, one at Playford Civic Centre on 26 July 2023 and one at Salisbury Community Hub on 27 July 2023, to publicly outline the scope of works being proposed under the project. There were four attendees in total from the following local interest groups: local government, base personnel, local residents and local business.
Cost of the works
4.22The estimated total capital out-turned cost of the project is $311.9 million (excluding Goods and Services Tax). This includes management and design fees, construction, information and communications technology and a provision for escalation and contingencies.
4.23Defence noted that they expect an increase in future sustainment and employment costs due to the nature of the works.
4.24Costing for the project includes adequate provision for hazardous substances that may be uncovered during demolition and replacement of existing works. At the public hearing, the Managing Contractor stated that in order to anticipate the risk of legacy contaminants such as heavy metals, asbestos, hydrocarbons and PFAS, the company Hansen Yuncken has:
…engaged an environmental consultant. We've undertaken borehole testing in areas where we're expecting to undertake construction works, and we have identified some legacy contamination… A number of methodologies were used to establish the contaminates. We looked at the historical data and discussed the legacy contamination with a lot of stakeholders. There has also been a lot of previous investigation and testing done on site.
4.25Defence provided further details on project costs in its confidential submission and during an in-camera hearing.
Revenue
4.26There will be no revenue generated by this project.
Public value
4.27Defence considers that the public value of the proposed works will include:
- Economic impacts: promotion of opportunities for small to medium enterprises through construction trade packages.
- Employment opportunities: generation of a diverse range of consultants, contractors and construction workers, and opportunities for upskilling and job training. Defence projects that over 100 personnel could be provided with employment opportunities over the life of the project.
- Local industry and Indigenous business involvement opportunities: the head contractors will comply with the Government Policy for Local Industry Participation and will provide local businesses with opportunities to supply construction materials and labour as well as actively promote opportunities for small to medium local enterprises through construction trade packages. The Managing Contractor will also develop an Indigenous Participation Plan which will provide opportunities for Indigenous businesses. At the public hearing the Managing Contractor further stated that:
On the previous projects that we've [the company] worked on we've achieved, met and exceeded these target percentages. There are a number of trades that we've worked with that are Indigenous owned within South Australia, and they also meet the local capability.
- Existing infrastructure services: the project will address existing critical issues at the site, which is located within Commonwealth land. SA Power Networks will own the new power supply infrastructure which may provide benefits to users along the route used to bring the new supply to the precinct.
Committee comment
4.28The Committee did not identify any issues or concerns with the proposal, and it is satisfied that the project has merit in terms of need, scope, and cost.
4.29The Committee understands that Option Four is the preferred option for this project. The Committee supports this, as the additional scope elements will further increase the longevity of the site.
4.30The Committee noted that the new facilities will comply with the National Construction Code and Australian Standards for noise and acoustics and that acoustic separation has been considered between rooms and walls to meet user requirements. The Committee encourages Defence to consider the ways in which they may be able to prevent any extensive noise impacting site neighbours.
4.31The Committee acknowledges Defence’s commitment to contamination containment and the investigation, remediation and management of risks to the environment and human health from any legacy contamination sites.
4.32The Committee notes the strategic requirement for the Army's ongoing presence at Edinburgh and the importance of maintaining the functionality of the precinct through the proposed mid-term refresh.
4.33Having regard to its role and responsibilities contained in the Public Works Committee Act 1969, the Committee is of the view that this project signifies value for money for the Commonwealth and constitutes a project which is fit-for-purpose, having regard to the established need.
4.34The Committee recommends that the House of Representatives resolve, pursuant to section 18(7) of the Public Works Committee Act 1969, that it is expedient to carry out the following proposed works: Department of Defence - Edinburgh Defence Precinct Mid-Term Refresh.
4.35Proponent entities must notify the Committee of any changes to the project, scope, time, cost, function, or design. The Committee also requires that a post-implementation report be provided within three months of project completion. A report template can be found on the Committee’s website.