- RAAF Base Wagga Redevelopment project
Department of Defence
7.1The Department of Defence (Defence) seeks approval from the Committee to proceed with the proposed RAAF Base Wagga Redevelopment project.
7.2The aim of the project is to sustain existing personnel throughput and increase the trained permanent workforce of officers and aviators in technical and logistics disciplines and trades.
7.3Defence states this will be delivered by the upgrade and replacement of site-wide infrastructure (electrical, water supply, information and communications technology, wastewater, stormwater, gas, roads and footpaths), living-in and working accommodation, messing, training facilities, health and wellbeing facilities, logistic facilities, and the demolition of redundant facilities.
7.4The estimated cost of delivery of the project is $590 million (excluding GST).
7.5The project was referred to the Committee on 27 March 2024.
Conduct of the inquiry
7.6Following referral, the inquiry was published on the Committee’s website and via media release.
7.7The Committee received one submission, one supplementary submission and one confidential submission. A list of submissions is at Appendix A.
7.8On 13 June 2024, the Committee conducted a site inspection at RAAF Base Wagga followed by a public and in-camera hearing at Carriage House, East Wagga Wagga. A transcript of the public hearing is available on the Committee’s website.
Need for the works
7.9Officers and aviators undertake initial recruit training as well as subsequent professional development and training in technical, logistics and trade, at RAAF Base Wagga. The built environment of the Base provides many RAAF recruits and trainees with an initial impression of pursuing a career in Defence.
7.10The annual training throughput at RAAF Base Wagga is planned to increase over the next decade, with an anticipated peak additional trainee throughput of approximately 450 personnel per annum in 2032, before reducing to a long-term steady state of an additional trainee throughput of approximately 300 personnel per annum from 2040.
7.11Defence believes investment in modern, contemporary, and fit-for-purpose facilities in which to live, train and work, is critical to the retention of current and future Defence workforce.
7.12Defence points out that the Defence Strategic Review 2023 recommends ‘investing in the growth and retention of a highly skilled Defence workforce’ and suggests the proposed project will assist in the achievement of this recommendation.
7.13If recruit numbers plateau, or Defence is not able to meet desired recruit targets, Defence advises the new LIA facilities will not become redundant but could be repurposed, or used for different types of training:
As our workforce numbers grow, we also conduct additional training such as advanced initial employment training and our leadership training, so we could use those facilities to house our growing workforce and upskill them in terms of their defence mastery.
Options considered
7.14Defence has undertaken 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. The following options were considered:
- Option 1 – Minimum Scope ($405.4 million): This option will address all high and very high infrastructure risks, as well as new Training Level 1 Living-In Accommodation (384 beds), a new Combined Mess, a secure conference facility, and the demolition of redundant facilities. This option does not meet the minimum viable capability requirements for base functions and does not support workforce growth.
- Option 2 – High Priority Scope ($701.1 million): This option will address all high and very high infrastructure risks, as well as new Training Level 1 Living-In Accommodation (768 beds), a new Combined Mess, a secure conference facility, an educational facility, a new swimming pool and recruit fitness facility, and the demolition of redundant facilities. This option does not meet the minimum viable capability requirements for base functions and does not support workforce growth.
- Option 3 – Full Scope ($924.0 million): This option will address all high and very high infrastructure risks, as well as new Training Level 1 Living-In Accommodation (768 beds), a new Combined Mess, a secure conference facility, an educational facility, an auditorium, a new swimming pool and recruit fitness facility, a refurbished clothing store, and the demolition of redundant facilities. This option supports workforce growth but exceeds the minimum viable capability requirements for base functions.
- Option 4 – ADF Workforce Growth Integration ($590.0 million). This option will address all high and very high infrastructure risks, as well as new Training Level 1 Living In-Accommodation (432 beds), a new Combined Mess, a secure conference facility, new Recruit Living-In Accommodation (192 beds), an educational facility, a weapons training simulation system facility, a new swimming pool and recruit fitness facility, a recruit welfare facility, a new clothing store, and the demolition of redundant facilities.
- Option 4 meets the minimum viable capability requirements for base functions, with some residual capacity and condition risk, and supports workforce growth. This option is the preferred option.
Scope of the works
7.16The proposed scope of the works includes:
- upgrade of site-wide infrastructure, including electrical, water supply, ICT, wastewater, stormwater, gas (minor works), roads and footpaths
- new Training Level 1 Living-In Accommodation (432 beds)
- new Recruit Living-In Accommodation (192 beds)
- new health and well-being facilities, including a swimming pool, gymnasium and retail
- new Training facilities, including an educational facility, a secure video conference facility, and a weapons training simulation system facility
- a new Combined Mess
- a new Clothing Store and Q Store
- rooftop solar panels to suitable facilities
- demolition of redundant facilities.
- At the public hearing, Defence explained that the intellectual property in the design of the LIA is owned by Defence, having been developed specifically to meet Defence needs. It is now used as a basis for LIA and can be adapted to local conditions, while providing cost efficiencies in using the same design for various projects.
- The proposed training facilities will include a weapons training simulation system to allow training in the use of weapons without the risks of live fire. This offers the following benefits:
… There are a lot of logistic saves, and there are a lot of safety requirements that are somewhat lessened without using live explosive ordnance on a range. There is absolutely a time and place for live-fire training, but it doesn't have to be the entire curriculum, if that makes sense. The weapons training simulation system also allows individual coaching of individual airmen and aviators, to improve their skills. We will literally do slow-motion replays in terms of their shooting techniques, to improve their marksmanship. That is almost impossible to detect with dry-fire training or even live-fire training.
7.19If savings are made during the project, Defence proposes to complete a number of below the line items, including:
- additional upgrade of engineering services (electrical, water supply, ICT, wastewater, stormwater)
- a new Base entry
- additional new Training Level 1 Living-In Accommodation (144 beds)
- a new Auditorium.
Staff and stakeholder consultation
7.20Defence has developed a community consultation and communications strategy that allows residents from the Murray and Hume communities and other interested stakeholders to provide input into, or raise concerns relating to, the proposed works.
7.21Defence has, or will, consult with the following stakeholders:
- the Federal Member for Riverina, Hon Michael McCormack, MP
- the Federal Member for Farrer, Hon Sussan Ley, MP
- Minister for Regional Development, Local Government and Territories
- the Federal Member for Eden-Monaro, Hon Kristy McBain MP
- the New South Wales State Member for Wagga Wagga, Dr Joe McGirr, MLA
- the New South Wales State Member for Albury, Mr Justin Clancy, MLA
- Wagga Wagga City Council
- local Indigenous groups
- local authorities
- local community, business groups and businesses.
- Defence advertised community information sessions in local newspapers and through letter drops distributed in a 5 to 10 km radius from RAAF Base Wagga. Four community information sessions were held between 5 December 2023 and 16 May 2024 in Wagga Wagga. The sessions had 27 attendees, who were a mix of local residents and local business representatives.
- The following items are concerns raised by participants:
- Opportunities for supply and shipping lines of materials through key ports
- Opportunities to use local products during construction
- Questions around accessing and registering on the Industry Capability Network
- General enquiries about the Program and the management of stormwater
- Opportunities for local industry and business participation in the proposed works
- Opportunities for local business to support the Program through the supply of accommodation services
- Interest in the solar and electrical vehicle potential as part of the Program.
- Availability of accommodation and housing in Wagga Wagga
- Interest in trade packages
- Concern about construction noise and dust, especially dust that is contaminated by Per- and polyfluoroalkyl substances (PFAS)
- Impacts on workforce availability for local businesses.
- Questions regarding the provision of wellbeing services for veterans and ex-serving personnel
- Some residents raised concerns about PFAS, specifically the Personal Protective Equipment (PPE) requirements and human health concerns for workers managing soil in the area
- Questions about what was going to be demolished at RAAF Base Wagga and what would be improved as a result
- Noted the importance of a library on Base
- Concerns around the workforce employed by the Program and the diversion away from local contracts due to wage differences.
- At the public hearing, Defence provided further information on how it is addressing the community concerns. When questioned about the PFAS risk, Defence explained that the PFAS contamination on the site of the proposed works is the lowest possible category of contamination:
PFAS contamination has been detected in all areas investigated. However, the levels are deemed suitable for reuse of the material on-site, which is in accordance with Defence policy guidelines.
Cost of the works
7.25The estimated total capital delivery cost of the project is $590.0 million (excluding Goods and Services Tax). This cost estimate includes management and design fees, construction, information and communications technology, furniture, fittings, equipment, escalation, and contingencies.
7.26There will be ongoing operating and sustainment costs resulting from the proposed works. This is due to the increase in facilities capacity being provided by the project, which will see additional maintenance, cleaning and utilities expenses that will be required to operate and maintain the new facilities and infrastructure.
7.27The project will be delivered together with the Albury Wodonga Military Area Redevelopment Project and the Blamey Barracks, Kapooka, Redevelopment Project, under a single construction program to maximise construction and cost efficiencies. Each project will be the subject of a separate PWC inquiry.
Revenue
7.28There will be no revenue generated by this project.
Public value
7.29Defence has assessed public value, opportunities and benefits to the local communities as a result of the proposed works.
7.30Economic impacts – the project expenditure will support the Australian economy in the construction and professional services sectors in the Riverina regional development areas and surrounding regions.
7.31Employment opportunities – the project will employ a diverse range of consultants, contractors, and construction workers, and is expected to generate major opportunities for up-skilling and job training over the approximately eight-year construction program to improve individual skills and employability on future projects.
7.32Local industry and Indigenous business involvement opportunities – the project will comply with the Government Policy for Local Industry Participation, which requires the Managing Contractor to provide detailed commitments on how they will utilise and develop Australian industry. These commitments will become contract deliverables and the Managing Contractor will be required to report on their performance against them. While the policy does not mandate the use of local suppliers, the project will provide local businesses with opportunities to supply construction materials and labour, while actively promoting opportunities for small to medium local enterprises through construction trade packages. In accordance with the Government’s Indigenous Procurement Policy, the Managing Contractor will develop an Indigenous Participation Plan, which will provide opportunities for Indigenous businesses to be involved in the Project.
Committee comment
7.33The 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.
7.34The Committee recognises the practicality of the living in accommodation design and the ability for these buildings to be repurposed if trainee numbers fluctuate.
7.35The Wagga airport is leased by the Commonwealth to the local government, who are responsible for operating and maintaining the airport. The Committee notes the importance of RAAF Base Wagga to the community and the value of maintaining a good relationship with the local council.
7.36Having 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.
7.37The 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 —RAAF Base Wagga Redevelopment Project.
7.38Proponent 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.
Mr Graham PerrettMP
Chair