3.1
The Department of Defence (Defence) seeks approval from the Committee to proceed with proposed project, HMAS Harman Redevelopment Project, at HMAS Harman, Australian Capital Territory.
3.2
HMAS Harman was established in 1939 to provide an inland communications facility for the Royal Australian Navy. Today, the base continues to serve as a communications and operational facility, also providing administrative and personnel functions to support Navy Personnel in the region, as well as Navy, Army and Air Force reserve and cadet units.
3.3
The objective of the project is to provide fit-for-purpose facilities and infrastructure to support Defence activities at HMAS Harman. The base provides administrative and personnel functions to support all Navy personnel in the Canberra region.
3.4
The project will remediate and upgrade the following facilities and infrastructure on the base:
high-voltage power network
administration and command facility
personnel support unit facilities
minor refurbishment of existing live-in accommodation; and
demolition of redundant buildings.
3.5
The estimated cost of the project is $116.4 million (excluding GST).
3.6
The project was referred to the Committee on 27 September 2022.
Conduct of the inquiry
3.7
Following referral, the inquiry was publicised on the Committee’s website and via media release.
3.8
The Committee received one submission and one confidential submission. A list of submissions can be found at Appendix A.
3.9
On 3 November 2022, the Committee conducted a site inspection, private briefing, public and in-camera hearing. A transcript of the public hearing is available on the Committee’s website.
Need for the works
3.10
The need for this redevelopment project is due to the aging nature of the facilities at HMAS Harman which have either reached or are approaching end-of-life. Further issues include capacity and compliance issues, which pose a risk to the functionality of the base.
3.11
Defence advised the Committee that this project ‘will reinvest in facilities and infrastructure’ to sustain the existing base. The works will also address evolving base functions and increasing workforce demands, while maintaining operational efficiency in supporting Navy Administration and Command functions in the Canberra region.
3.12
HMAS Harman supports Navy personnel in the Canberra region through the provision of administrative and personnel functions, including short term transit, permanent accommodation, physical training and rehabilitation.
3.13
The base also hosts units from the Australian Army Reserves, Royal Air Force Reserves and all three branches of Australian Defence Force Cadets.
Options considered
3.14
Defence advised the Committee that to establish the required scope of works it undertook ‘master planning, site investigations, stakeholder consultation, a whole-of-life cost analysis and design development.
3.15
Defence considered the following four options to address the project:
Option 1 (do nothing) was not considered viable, as it would not address the base’s capacity and compliance issues and risks.
Option 2 (minimum scope) was discounted as it did not adequately address the needs of the project, and it would have only partially enabled the sustainment of HMAS Harman. The option would result in the consolidation of administrative and base entry functions, and it would have provided limited scope for other facilities and engineering infrastructure.
Option 3 (prioritised scope) was also not considered viable as this would not adequately address all the project’s needs. The option would have delivered a separate, refurbished Navy Administration and Command facility, including a Navy Personnel Support Unit scope. However, this option would not provide key administrative, training or rehabilitation facilities required to meet future demand.
Option 4 (full scope) is the recommended option as it would fully address the needs of the project. This option will provide fit-for-purpose facilities and infrastructure that will address all capacity and compliance issues and risks. This option will ensure that HMAS Harman can support current and future requirements.
3.16
Defence selected option 4 as the preferred option as it ‘represents the best value for money for the Commonwealth as it addressed the projects needs from a whole-of-life perspective’.
Scope of the works
3.17
Option 4 is comprised of seven project elements:
1
Engineering infrastructure: the high voltage power network will be reconfigured and upgraded in accordance with the HMAS Harman Master Plan, including new ring mains, intake switching stations, sub-stations and a power control and monitoring system. Additionally, information and communication technology will receive new trunk infrastructure.
2
Navy Administration and Command Facility: the existing Navy Administration and Command facility will be demolished and replaced. The new facility will comprise office working areas and conference facilities, with separation between Command and other functions.
3
Base Entry Precinct: the base entry precinct will be upgraded and expanded, with the provision of new entry and exit lanes, electronic security access gates with an access pass database system, and a guard hut. The existing visitor carpark will be expanded, with the inclusion of a dedicated cadet drop off area.
4
Office Accommodation: the existing building will be demolished and replaced with a new facility that will include office working areas, meeting rooms and amenities.
5
Navy Personnel Support Unit: the existing building that houses the Navy Personnel Support Unit will be demolished and relocated into another building which will be refurbished and extended.
6
Gymnasium: the current gymnasium will be demolished and replaced. The new gymnasium will include working accommodation, consolidated weights and cardio areas, and a reception area. The new building will be constructed adjected to the existing basketball court, which will be enclosed to provide a multi-purpose court area for flexible use.
7
Living-in Accommodation: existing living-in accommodation will be refurbished to meet compliance requirements.
3.18
A digital depiction of the Navy Administration and Company Facility, Base Entry Precinct, Office Accommodation and Gymnasium is included in Submission 1, Attachment 2.
3.19
Defence also outlined the general scope elements of the project:
Structures: the proposed facilities will include a range of structural systems depending on the form and scale of the building, including reinforced concrete and steel framed construction. Smaller facilities to be refurbished will be extended using the existing structural systems.
Mechanical services: mechanical services have been designed according to building requirements and will meet ventilation, thermal comfort and air quality requirements.
Hydraulic services: existing sewage and storm water services will be extended for each facility. Potable water will be connected to the existing supply via sub-metering to each new building. Further, rainwater will be collected for tanks, to be used for toilets and landscape irrigation.
Electrical services: lighting, power and lighting protection will be provided. Electrical infrastructure will have spare capacity to allow for future growth. Sub-metering will be included for new and refurbished buildings, which will be monitored through a base wide Building Management System.
Fire protection: as HMAS Harman is on bushfire prone land, construction of facilities will be in accordance with the Australian Standard to provide appropriate fire resilience and protection measures. Additionally, there will be general upgrades to fire systems within existing facilities.
Security measures: advice from Defence security authorities has been incorporated into the proposed facilities.
Acoustics: acoustic separation has been considered between rooms and walls, aircraft noise reduction measures will also be implemented in facilities located within the Australian Noise Exposure Forecast contours for Canberra Airport.
External materials and furnishings: external walls for new building will be a mixture of concrete panels and metal cladding with double glazing. Additionally, a vertical louvre sun screening system will be installed to improve environmental performance. Where required, pre-finished steel roofing and rainwater fittings will be installed.
Internal materials and furnishings: internal walls will be lined with plasterboard, with floors being a combination of vinyl, ceramic tiles or carpet. Sealed concrete will be used in utility and plant spaces.
Landscaping: landscaping works will complement and enhance the site, with a focus on a functional, low maintenance water sensitive approach, using Indigenous plants.
3.20
In relation to the bases high voltage electrical upgrade Defence stated that at the time of the last electrical masterplan the base was drawing a load of 10.7 Mega Volt Ampere (MVA). The upgrade for this project is intended to accommodate growth up to over 30 MVA by the end of the planning period, currently after 2030.
3.21
Defence noted that if savings are achieved through tendering or retired risk provisions, the savings will be used for enhancements that are consistent with the approved project scope.
Community and stakeholder consultation
3.22
Defence developed a community consultation and communications strategy for the project, which enabled local residents and stakeholders to have input into the projects.
3.23
Defence stated that the aim of their consultation was to ensure that local residents and other stakeholders were well informed about the projects details and given opportunities to raise concerns and seek further information if required.
3.24
The stakeholder and community consultation activities to fulfill the projects consultation strategy included:
advertisement of community information forum details in local newspapers in both Canberra and Queanbeyan, and establishment of a project email address to receive submissions and questions regarding the project
hosting of two community information forums in Queanbeyan on 19 and 20 October 2022
invitation to key stakeholders, including Federal, State and Local Members, local community and business groups to receive a personal briefing about the project.
3.25
Defence noted that the proposed project was generally well received by the community and that it has not been made aware of any objections. Defence advised it has consulted with representatives of the former Royal Australian Naval Service (WRANS) regarding the WRANS memorial currently on the base.
3.26
Defence provided a summary of topics and key issues that were raised during the consultation in Annex F of Submission 1.3.
Cost of the works
3.27
Option 4 of the proposed works has an estimated cost of $116.4 million (excluding GST). This includes ‘management and design fees, construction costs, information and communication technology, furniture, fittings, equipment, contingencies and a provision for escalation’.
3.28
Defence expects that there will be an increase in operating and sustainment costs from the current $1.6 million to $3.6 million. This is due to the addition of new facilities and infrastructure, which will increase maintenance and cleaning requirements, and utilities expenses.
3.29
Defence provided further details on project costings, including asbestos removal and remediation in its confidential submission and during an in-camera hearing.
Revenue
3.30
There will be no revenue generated by this project.
Public value
3.31
Defence considers that the public value of the project will include:
Economic impacts: project expenditure will support the Australian economy, in particular construction and professional services sectors in the Australian Capital Territory.
Employment opportunities: the project will employ a range of workers including consultants, contractors and construction workers, it is expected that the project will generate opportunities for up-skilling and job training to improve skills and employability.
Local industry and Indigenous business opportunities: Defence and the Head Contractor will promote opportunities for local small and medium enterprises through construction trade packages. A Local Industry Capability Plan and an Indigenous Participation Plan will also be developed to maximise opportunities for local industry and Indigenous businesses.
Health and Safety: the project will address health and safety risks at HMAS Harman.
Committee comment
3.32
The Committee did not identify any issues of concern with the proposed project, and it was satisfied with its merit in terms of need, scope and cost.
3.33
The Committee notes that some of the proposed demolition work includes facilities containing asbestos, and as part of the in-camera hearing requested further details on the costs of this work.
3.34
Having 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.
3.35
The 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 - HMAS Harman Redevelopment Project.
3.36
Proponent 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.