- RAAF Base Darwin—Mid-term Refresh
Department of Defence
2.1The Department of Defence (Defence) seeks approval from the Committee to proceed with its proposed mid-term refresh at RAAF Base Darwin, Northern Territory.
2.2The project will provide enhanced resilience and redundancy to RAAF Base Darwin (located approximately 6 km north-east of Darwin), in order to better support the Australian Defence Force’s (ADF) strategic objectives. Specifically, the works will address safety and capacity concerns associated with RAAF Darwin base entrances as well as deliver upgrades to engineering services.
2.3The project will improve the Base’s ability to rapidly surge to full capacity on short notice to support the significant number of defence personnel, aircraft and support elements that operate from the Base during major activities. The works will also mitigate risk associated with ageing infrastructure in preparation of the next base redevelopment which is tentatively scheduled to occur between 2031 and 2038.
2.4The estimated cost of delivery of the works is $159.9 million (excluding GST).
2.5The project was referred to the Committee on 15 November 2023.
Conduct of the inquiry
2.6Following referral, the inquiry was publicised on the Committee’s website and via media release.
2.7The Committee received one submission and one confidential supplementary submission. A list of submissions can be found at Appendix A.
2.8On 5 March 2024, the Committee conducted a site inspection, and public and in-camera hearings in Darwin, NT. A transcript of the public hearing is available on the Committee’s website.
Need for the works
2.9The 2020 Defence Strategic Updateand2020 Force Structure Planstate that enhancing northern defence capability is an integral part of Australia’s defence strategy. The 2023 Defence Strategic Review also urges for the upgrade and development of Australia’s northern bases as this will improve the ability of the Australian Defence Force to operate from Northern Australia. This project directly supports Defence’s strategic objectives by reinvesting in engineering services and associated facilities and infrastructure to improve the Base’s ability to cater for surge activity.
2.10RAAF Base Darwin is one of the Air Force’s main forward mounting bases, with administrative, accommodation, recreational and operational support facilities as well as technical workshops, aircraft hardstands and aircraft pavements. The Base supports major exercises and operations and shares its runway with Darwin International Airport. RAAF Base Darwin also hosts an extended deployment of United States Marine Corps personnel and their aircraft under the United States Force Posture Initiative. At the public hearing, Defence provided further information about the role and functions of RAAF Base Darwin:
RAAF Base Darwin is a key northern air base. It forms part of a network of northern air bases that enables air defence and surveillance of the northern approaches to Australia and the Indo-Pacific region. The base functions as both a main operating base and a forward operating base. As such, the base is required to surge to full capacity on short notice to support the deployment of military aircraft and their supporting elements. The base hosts several national and international exercises each year, including Exercise Pitch Black and Exercise Talisman Sabre, which are held during alternate years. The base also accommodates elements of the United States Marine Rotation Force—Darwin.
Options considered
2.11In preparation for the works Defence undertook comprehensive master planning, site investigations, stakeholder consultation, whole-of-life cost analysis and design development to establish the capital facilities and infrastructure works required. Defence developed the following three options to meet the project need:
- Option 1 – Do nothing: This option considers the impact of not investing in facilities and infrastructure. Existing engineering services and infrastructure have numerous capacity and compliance risks, in addition to the safety concerns associated with the current main entrance and heavy vehicle access. This option does not address any of these concerns, would not sustain the site to support current and future capability requirements and is considered not viable.
- Option 2 – Prioritised scope: This option provides the prioritised scope identified to meet the capability need. This option fully addresses the Project needs and is within budget. This is the recommended option.
- Option 3 – Prioritised scope plus living-in accommodation: This option addresses all work elements of Option 2 with the addition of new live-in accommodation. This option exceeds the available budget and is therefore not recommended.
- Defence’s preferred option is Option 2 as it meets the requirements of the project, is in-budget and will provide value for money investment in sustaining the facilities and infrastructure of the Base.
Scope of the works
2.13The essential requirements of the works are:
- a replacement, high-capacity main entrance for the Base
- an upgraded entrance for heavy vehicle access to the Base for Explosive Ordnance and fuel deliveries
- capacity, condition and compliance upgrades to the potable water network
- capacity, condition and compliance upgrades to the firefighting water network
- capacity, condition and compliance upgrades to the sewer network.
- Option 2 includes the following elements:
Project Element 1 – Main Access Precinct
- New high-capacity vehicle and pedestrian Base entrance
- New pass office
- Upgrade of Stuart Highway intersection with Billeroy Road
- Decommissioning of current vehicle and pedestrian Base entrance (existing heritage pass office will be retained)
Project Element 2 – Heavy Vehicle Access Precinct
- Upgraded heavy vehicle entrance
- Signalisation and upgrade of Stuart Highway intersection with Bombing Road construction of new taxiways, as well as the strengthening and widening of existing taxiways, across the airfield to provide connection to new aircraft parking aprons
Project Element 3 – Potable Water Network
- Prioritised network replacement of primary domestic and working accommodation precincts
Project Element 4 – Fire Water Network
- Prioritised network upgrade of primary domestic and working accommodation precincts
- New dedicated fire hydrants at prioritised buildings.
- At the public hearing, Defence stated that the scope of work that will be carried out in Option 2 has been identified as necessary in the lead up to the scheduled redevelopment of the base between the years 2031 and 2038.
- While an operational base, RAAF Darwin includes the RAAF Darwin Heritage Precinct which includes a number of Commonwealth heritage listed buildings. These buildings were in operational use during World War II and any changes to their use must comply with the Defence Heritage Strategy and be managed through the RAAF Darwin Heritage Management Plan.
- Defence states that in preparation for the works detailed environmental and heritage investigations have been completed. This has led to the inclusion of the decommissioning and retention of the current pass office.
- Defence has identified potential impacts in the following three areas as a result of the project:
Visual Impacts. The new main entry precinct is adjacent to both the local community and Defence housing; however, all works are located within the existing Base. All works have been designed to minimise the aesthetic impact to the natural environment and maintain a consistent visual approach with that of other Defence entry precincts.
Noise Impacts. There is expected to be no material noise impacts to local communities outside of the Base. The new main entry precinct is adjacent to the current entrance and has also incorporated a noise barrier on the boundary with the local community and Defence housing. On the Base, the mechanical plant selection and location of plant rooms within facilities has been designed to minimise the noise impacts on nearby Defence facilities.
Traffic, Transportation and Road Impacts. The NT Government Department of Infrastructure, Planning and Logistics has been engaged throughout the design process to coordinate the upgrade of entrance intersections with the Stuart Highway. Particularly, the signalisation of the Stuart Highway intersection with Bombing Road to facilitate the upgraded heavy vehicle entrance is a new traffic control measure for the Highway. The project will offer community consultation for the implementation of the signalisation, as well as the upgrade of the Stuart Highway intersection with Billeroy Road and associated coordination of construction work staging and disruption minimisation.
Community and stakeholder consultation
2.19Defence states a community consultation and communications strategy is being carried out with the following stakeholders:
- Federal Member for Solomon – Mr Luke Gosling, Order of Australia, Member of Parliament
- Senator for the Northern Territory – Senator The Honourable Malarndirri McCarthy
- Senator for the Northern Territory – Senator Jacinta Nampijinpa Price
- Territory Member for Sanderson – The Honourable Kate Worden, Member of the Legislative Assembly
- Territory Member for Fong Lim – The Honourable Mark Monaghan, Member of the Legislative Assembly
- The Right Worshipful the Lord Mayor of Darwin – The Honourable Konstantine Vatskalis
- NT Government Department of Infrastructure, Planning and Logistics
- NT Government Power and Water Corporation
- Local community, business groups and businesses including:
- Industry Capability Network – Northern Territory
- Australia Post – Winnellie Business Centre
- Winnellie Supermarket and Shopping Centre
- The Narrows residents
- Defence Housing Australia
- Defence has advertised community information sessions in local newspapers, and community information sessions were held on 23 and 24 October 2023 in Darwin. The sessions had 1 attendee, Mr Luke Gosling MP.
- Key points raised included:
- Likely construction start and finish dates.
- Likely number of jobs to be generated from this project.
- Level of community engagement during the design process.
- The importance of sustainability as a key design consideration (Submission 1.2, Annex C).
Cost of the works
2.22The estimated total capital out-turned cost of the project is $159.9 million (excluding GST). This includes management and design fees, construction, information and communications technology, furniture, fittings, equipment, contingencies and a provision for escalation.
2.23There will be ongoing operating and sustainment costs resulting from the proposed works. This is due to the upgrade of engineering services and the new infrastructure associated with improved Base entrances.
2.24At the public hearing, Defence provided information about their design process and how the cost of this project represents value for money:
.. we based this project on the base infrastructure program that was undertaken some years ago—engineering. It looks at all the engineering services and prioritises them to determine what should be included in this project and also subsequent redevelopment projects. So it prioritises all the existing base engineering services in particular to determine what needs to be done sooner and what can be put off to maybe the next project. Once we identify broadly what the scope elements are that are the highest priorities, then we will look at the detail of those scope elements to determine what work necessarily needs to be undertaken within the budget that we do have. So it's all prioritised. It's value-managed to keep within that project budget. The design is developed at certain points. We have various stages of design, where we will then review the design at certain hold points—at five per cent, 30 per cent, 50 per cent and 90 per cent—to continue to refine that design to ensure that what we are proposing to deliver is the most efficient and effective scope and gives us the best value for money that we can afford under this project.
2.25Defence provided further details on project costings in their confidential submission and during an in-camera hearing. The Committee is satisfied with the rationale underpinning the project costing.
Revenue
2.26There will be no revenue generated by the project.
Public value
2.27The project will fulfil strategic Defence requirements, enhancing the capability and resilience of the ADF in the north of Australia.
2.28Project expenditure will support the broader Australian economy and in particular the construction and services sectors within the region of Darwin.
2.29The project will promote opportunities for small and medium local enterprises through construction trade packages. At the public hearing, Defence provided further information about how this will be done:
The managing contractor is required to prepare a local industry capability plan. All of our contractors have to provide a plan for how they're going to maximising engagement of local industry on any of our major construction projects. For this particular project, the target that is being set by Laing O'Rourke is that 90 per cent of the packages are anticipated to be awarded to local Darwin construction businesses, plus a further six per cent to other construction businesses within the Northern Territory. That 96 per cent is the target across the Northern Territory for this particular project.
2.30The project will improve the safety of the intersections of the Stuart Highway with the Base. New signalisation and an upgrade to the heavy vehicle entrance will mitigate risk associated with semi-trailer and ‘road train’ explosive ordnance and fuel deliveries queuing over the highway with no formal traffic control.
2.31The project will improve and upgrade existing Commonwealth owned infrastructure and services by addressing critical compliance and capacity issues.
Committee comment
2.32The 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.
2.33The Committee recognises the importance of these works in enhancing northern defence capability and that this is an integral part of Australia’s defence strategy according to the 2020 Defence Strategic Update and 2020 Force Structure Plan.
2.34The Committee understands that Option Two is the preferred option for this project and that the scope has been selected to meet identified Base requirements. The Committee appreciates that the intended works are necessary in the lead up and separate to the Base redevelopment scheduled between 2031 and 2038. The Committee notes Defence’s assurances that the improvements are designed to be sufficient to support increased capacity out to 2045.
2.35The Committee was interested in understanding the Heritage aspect of RAAF Base Darwin and the number of historic buildings on base. The Committee acknowledges that while some historic buildings have been refurbished and are currently in use, there are a number of buildings on the Commonwealth heritage list that continue to be managed by the Base but are too costly to maintain and refurbish to a habitable standard.
2.36The Committee supports the proposed replacement of the heavy vehicle entry point and the signalisation at the intersection for heavy vehicles carrying fuel or explosive ordnance. This will provide greater safety to Defence personnel as well as members of the public on the Stuart Highway. The Committee notes private business in the RAAF Base Darwin region, as well as the Northern Territory government will similarly benefit from the signalised intersection.
2.37The Committee notes that Defence’s Indigenous participation target is six percent in a Territory where 33 percent of the population is Indigenous. While the Committee appreciates that Defence is striving to go above this target in terms of opportunities for Indigenous employment, it may be appropriate to have a higher target in future works in the Northern Territory. The Committee requests a detailed breakdown of Indigenous participation in the post-implementation report for these works.
2.38Having regard to its role and responsibilities contained in thePublic 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.
2.39The Committee recommends that the House of Representatives resolve, pursuant to section 18(7) of thePublic Works Committee Act 1969, that it is expedient to carry out the following proposed works: Department of Defence -RAAF Base Darwin—Mid-term Refresh.
2.40Proponent entities must notify the Committee of any changes to the project, scope, time, cost, function, or design. The Committee also requires that apost-implementation report be provided within three months of project completion. A report template can be found on the Committee’s website.