3.1
The Department of Defence (Defence) seeks approval from the Committee to proceed with the proposed project, Facilities to support LAND 19 Phase 7B Short Range Ground Base Air Defence (LAND 19), at RAAF Base Edinburgh, South Australia.
3.2
The objective of the project is to provide fit-for-purpose facilities and infrastructure for the 16th Regiment, Royal Australian Artillery, to ‘raise, train and sustain new air defence capability that will be acquired under the LAND 19 Phase 7B Short Range Ground Base Air Defence Project’.
3.3
Defence stated that the air defence capability delivered through the project ‘will provide Australian forces with greater flexibility in responding to threats independently or as part of coalition operations’.
3.4
The project is an integral step in the upgrade of key air defence capabilities, the strengthening of which was recommended by the 2016 Defence White Paper.
3.5
The estimated cost of the project is $266.1 million (excluding GST).
3.6
The project was referred to the Committee on 26 August 2021.
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 public submission and one confidential submission. These are listed at Appendix A.
3.9
On Wednesday 13 October 2021, the Committee conducted a virtual site inspection, private briefing, public and in-camera hearings via teleconference. A transcript of the public hearing is available on the Committee’s website.
Need for the works
3.10
Currently Defence is supported by a portable laser guided surface-to-air missile system that the 16th Regiment operates out of Woodside Barracks, South Australia.
3.11
Defence stated that in response to the 2016 Defence White Paper, ‘the Integrated Air and Missile Defence Program will modernise the Australian Defence Force’s air defence systems’, with LAND 19 the first step in achieving this improved capability.
3.12
At the public hearing Defence commented that:
The new short-range ground-based air defence capability will provide Australian forces with greater flexibility in responding to threats independently or as part of coalition operations … The new capability will be a significantly larger and more sophisticated vehicle-based air defence system.
3.13
Defence explained that the proposed works will deliver ‘a significantly larger and more capable vehicle-based air-defence system that the Regiment will operate out of RAAF Base Edinburgh’.
3.14
Works would see the relocation of the 16th Regiment, Royal Australian Artillery from Woodside Barracks to RAAF Base Edinburgh. Defence identified that Woodside Barracks would be unable to support the regiment’s new capability requirements due to their age, footprint, size, capacity and the way facilities have been constructed, which is ‘not conducive to supporting the new capability’.
3.15
Relocation of the 16th Regiment to RAAF Base Edinburgh would enable co-location of ‘other capabilities that are part of Defence’s integrated air missile defence capability’.
Options considered
3.16
Defence stated that the endorsed business case included ‘comprehensive master planning, site investigations, stakeholder consultation, whole-of-life cost analysis and design development to establish the capital facilities and infrastructure works required to address the Project need’.
3.17
Defence explained that the new ‘working, operational support and training facilities’ are proposed to replace the 16th Regiment’s existing facilities at Woodside Barracks, which ‘will not be able to support the new and incoming capability’.
3.18
In developing the business case, Defence considered four options. These were:
Option 3: in budget scope
Option 4: reduced risk scope
3.19
Defence stated that Option 1 (do nothing) was not a viable option as the ‘existing facilities and infrastructure at Woodside Barracks are not fit for purpose’ and as such they cannot ensure an ‘acceptable operating level’ for new air defence capability.
3.20
Option 2 (full scope) would deliver fit-for-purpose facilities and upgraded engineering infrastructure at RAAF Base Edinburgh to support the Regiment ‘to meet its raise, train and sustain objectives’. Although it achieved all identified project requirements this option was discounted as it was over budget.
3.21
Option 3 (in budget scope) was considered the preferred option prior to the receipt of additional funding. This proposed delivery of ‘the highest priority requirements within the approved project budget’. Defence stated that this was a cost driven measure which would include ‘new facilities and some upgraded engineering infrastructure’, however this option would restrict the Regiment’s operational capability.
3.22
Option 4 (reduced risk scope) was considered the preferred option once additional funding was secured through the Force Structure Plan 2020 and includes ‘fit-for-purpose facilities and upgraded engineering infrastructure at RAAF Base Edinburgh’, which would allow the Regiment to meet its objectives with enhanced air defence capability. This option is considered ‘reduced risk’ as it excluded local emergency generators, however this risk can be managed by Army.
3.23
Option 4 is the preferred option as it will minimise the risk of not achieving final operating capability.
Scope of the works
3.24
In its submission, Defence outlined seven project elements under Option 3 in support of the proposed LAND 19 project:
Project element 1 – Site-wide engineering infrastructure:
upgrades to electrical, sewerage, water, stormwater and security systems, information and communication technology, and civil works; and
contamination remediation.
Project element 2 – Regimental headquarters and training facility:
new facility to house office accommodation (command functions); and
training areas with generic and system-specific instructional spaces.
Project element 3 – Battery facilities:
construction of two ‘mirror image’ buildings to provide working accommodation and undercover vehicle and equipment storage.
Project element 4 – Combat support service headquarters, workshops and repair parts store:
new multipurpose facility with office accommodation, workshop areas, and equipment and vehicle storage.
Project element 5 – Quartermaster’s store:
new equipment storage and warehouse.
Project element 6 – Regimental transport facility:
new fenced hardstand compound.
Project element 7 – Living-in Accommodation:
accommodation for personnel who are minors or are within 12 months of completing their initial employment training.
3.25
At the public hearing Defence explained to the Committee that proposed works includes the following:
The estimate includes construction costs, professional management fees and appropriate allowances for contingencies and escalation. Subject to parliamentary approval, construction is expected to commence no later than December 2022 and is scheduled to be complete by late 2024.
3.26
Additional scope under Option 4 will primarily include construction of additional Living-in Accommodation, upgrades to base access roads, construction of a transport facility building, additional hydraulic services and electrical works including local emergency power generation.
Community and stakeholder consultation
3.27
Defence advised that it has engaged widely with stakeholders regarding the project including community consultation with the Traditional Owners, the Kaurna People, Defence SA, local industry, business and community groups, local councils, and federal and state members of parliament. Defence received two briefing requests relating to the works - one from a Federal Member of Parliament and one from a local council. No concerns regarding the proposed works were noted.
3.28
Defence added that the works and relocation of 16th Regiment will not have an impact on noise levels at RAAF Base Edinburgh.
3.29
This project will see the relocation of 16th Regiment’s 320 personnel to RAAF Base Edinburgh as well as an increase to the Regiment’s complement; with an additional 100 personnel joining the Regiment at the end of 2025. Defence did not note any concerns regarding the relocation of staff.
Cost of the works
3.30
Under Option 4 the proposed works has an estimated cost of $266.1 million (excluding GST) and includes project and contract management, design, professional services related to construction costs, information and communications technology, furniture, fittings, equipment, relocation and provision for risk and escalation.
Revenue
3.31
There is no revenue expected to be generated by the project.
Public value
3.32
Defence drew attention to the public value of the works which includes addressing capability requirements through ‘introducing the Short Range Ground Based Air Defence capability into the Australian Defence Force’.
3.33
At the public hearing Defence highlighted the employment opportunities the project is expected to deliver, particularly within the South Australian construction market.
Committee Comment
3.34
The Committee did not identify any issues of concern with the proposal and is satisfied that the project has merit in terms of need, scope and cost.
3.35
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.
3.36
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 – Facilities to support LAND 19 Phase 7B Short Range Ground Base Air Defence, RAAF Base Edinburgh, South Australia.
3.37
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.