- Facilities to Support JP9101 Phase 1 Enhanced Defence High Frequency Communications System — 'Project Phoenix'
Department of Defence
2.1The Department of Defence (Defence) seeks approval from the Committee to proceed with the proposed project, Facilities to Support JP9101 Phase 1 Enhanced Defence High Frequency Communications System — 'Project Phoenix'.
2.2The project will provide the required facilities and infrastructure upgrades to support the installation and sustainment of the new Enhanced Defence High Frequency Communications System capability across 15 different sites across Australia.
2.3Works to be delivered as part of the proposed project include the ‘refurbishment of existing buildings, an upgrade of engineering services at transmit and receive sites at various locations across the country, construction of a new receive site at the Mount Bundey training area in the Northern Territory, installation of new fibre optic intersite link cables connecting each pair of transmit and receive sites, and a decommissioning of high-frequency communications infrastructure at Shoal Bay in the Northern Territory’.
2.4The estimated cost of delivery of the project is $280.2 million (excluding GST).
2.5The project was referred to the Committee on 20 June 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 submission. A list of submissions is at Appendix A.
2.8On 21 July 2023, the Committee conducted a project briefing, and public and in-camera hearing via videoconference. A transcript of the public hearing is available on the Committee’s website.
Need for the works
2.9The 2016 Defence Integrated Investment Program and the 2020 Defence Strategic Update identified the Enhanced Defence High Frequency Communications System as a key enabler for the Australian Defence Force (ADF) by ‘provide[ing] reliable, automated and survivable long-range high-frequency radio communications.’
2.10This project will provide the facilities and infrastructure required to support the new communications system and enable the ADF to boost its strategic high-frequency communications capability to support regional and global operations.
2.11Defence further states that this project:
…will complement Defence’s investment in secure and resilient satellite communications to support Australia’s soldiers, sailors and aviators on operations at home and abroad. Australia and its international partners will use these latest advances in command and control methods over the coming decades.
Options considered
2.12Defence advised that three overarching options were considered:
- Option 1 (do nothing) was discounted as it does not deliver any new or upgraded facilities and the enhanced capability would not be provided.
- Option 2 (full scope plus maximised energy security and ancillaries) was discounted as it is over budget despite delivering the full scope required to meet the need with additional enhancements.
- Option 3 (full function and increased energy security) was recommended as the preferred option as it provides the required facilities to achieve the full functional capability requirement through scope reductions and services consolidation. This option also provides additional energy security at selected sites.
- Defence considers Option 3 to represent the best value money solution to the Commonwealth from both an initial and whole of life perspective.
Scope of the works
2.14The scope of work for Option 3 is comprised of various work across 15 different sites (elements):
- Element 1 - Lyndoch Transmit Site (Riverina, NSW)
- Building works: repurpose, refurbish and extension to existing control building through architectural, security, and minor structural upgrades to meet capability requirements and Building Code requirements.
- Building services: replacement and upgrade of electrical, mechanical, hydraulic, fire protection, security and ICT to meet capability requirements and Building Code requirements. The scope also includes installation of a new local emergency generator.
- External Works: upgrade of sections of perimeter fence tracks impacted by water flow, external fencing, and physical and electronic security upgrades.
- External Services: above-ground fuel storage tanks and water storage tanks.
- Element 2 - Morundah Receive Site (Riverina, NSW)
- Building Works: repurpose and refurbish existing control building through architectural, security, and minor structural upgrades to meet capability requirements and Building Code requirements.
- Building Services: replace and upgrade electrical, mechanical, hydraulic, fire protection, security and ICT to meet capability requirements and Building Code requirements. The scope also includes installation of a new local emergency generator.
- External Works: upgrade sections of perimeter fence tracks impacted by water flow, external fencing, and physical and electronic security upgrades.
- External Services: above-ground fuel storage tanks and water storage tanks.
- Element 3 - Inter-site Link Cable (Riverina, NSW)
- Provision of an additional below ground communications link between the existing receive and transmit sites.
- Element 4 - Bohle River Transmit Site (Townsville, QLD)
- Building Works: repurpose and refurbish existing control building through architectural, security and minor structural upgrades to meet capability requirements and Building Code requirements.
- Building Services: replace and upgrade electrical, mechanical, hydraulic, fire protection, security and ICT to meet capability requirements and Building Code requirements. The scope also includes installation of a new local emergency generator.
- External Works: upgrade sections of perimeter fence tracks impacted by water flow, external fencing, and physical and electronic security upgrades.
- External Services: above-ground fuel storage tanks and water storage tan.
- Element 5 - Speed Creek Receive Site (Townsville, QLD)
- Building Works: repurpose and refurbish existing control building through architectural, security and minor structural upgrades to meet capability requirements and Building Code requirements.
- Building Services: replace and upgrade electrical, mechanical, hydraulic, fire protection, security and ICT to meet capability requirements and Building Code requirements. The scope also includes installation of a new local emergency generator.
- External Works: upgrade sections of perimeter fence tracks impacted by water flow, external fencing, and physical and electronic security upgrades.
- External Services: above-ground fuel storage tanks and water storage tanks.
- Element 6 - Inter-site Link Cable (Townsville, QLD)
- Provision of an additional below-ground communications link between the existing receive and transmit sites.
- Element 7 - Humpty Doo Transmit Site (Darwin, NT)
- Building Works: repurpose and refurbish existing control building through architectural, security and minor structural upgrades to meet capability requirements and Building Code requirements.
- Building Services: replace and upgrade electrical, mechanical, hydraulic, fire protection, security and ICT to meet capability requirements and Building Code requirements. The scope also includes installation of a new local emergency generator.
- External Works: upgrade sections of perimeter fence tracks impacted by water flow, external fencing, and physical and electronic security upgrades.
- External Services: above ground fuel storage tanks and water storage tanks.
- Element 8 - Mount Bundey Receive Site (Darwin, NT) – new site
- Building Works: new receive control building and associated building infrastructure, including backup power supply through the installation of a new local emergency generator.
- Building Services: new communications services and cabling throughout the control building.
- External Works: new infrastructure to facilitate access to the new control building and antennae, including a new access road.
- External Services: new high voltage grid mains connection from the training area boundary to the site.
- Element 9 - Shoal Bay Antenna Decommissioning (Darwin, NT)
- External Works: decommission antennae and associated infrastructure, including concrete pads, and minor building equipment.
- Element 10 - Inter-site Link Cable (Darwin, NT)
- Provision of Defence Terrestrial Communications Network primary link.
- Provision of two below-ground communications links between the existing receive and transmit sites.
- Element 11 - Exmouth Transmit Site (North West Cape, WA)
- Building Works: repurpose and refurbish existing control building through architectural and minor structural upgrades to meet capability requirements and Building Code requirements.
- Building Services: replace and upgrade electrical, mechanical, hydraulic, fire protection, security and ICT to meet capability requirements and Building Code requirements. The scope also includes installation of a new local emergency generator.
- External Works: upgrade sections of perimeter fence tracks impacted by water flow, external fencing and physical and electronic security upgrades.
- External Services: above ground fuel storage tanks and water storage tanks. New local generator for on-site 24/7 power supply, with investigation into connection to existing mains power supply (Exmouth township) ongoing.
- Element 12 - Rough Range Receive Site (North West Cape, WA)
- Building Works: repurpose and refurbish existing control building through architectural and minor structural upgrades to meet capability requirements and Building Code requirements. Extension of existing control building to house new ICT services.
- Building Services: replace and upgrade electrical, mechanical, hydraulic, fire protection, security and ICT to meet capability requirements and Building Code requirements. New local diesel power generator and solar photovoltaic generation with battery energy storage system to allow 24/7 operation.
- External Works: upgrade sections of perimeter fence tracks impacted by water flow, external fencing and physical and electronic security upgrades.
- External Services: above ground fuel storage tanks and water storage tanks, and a new solar farm power supply on site with associated electrical infrastructure (batteries, cabling, invertors etc).
- Element 13 - Inter-site Link Cable (North West Cape, WA)
- Provision of an additional below-ground communications link between the existing receive and transmit sites.
- Element 14 - Russell 8 Network Management Facility (Canberra, ACT)
- Fit-out Works: refurbish the existing network management facility at Russell to support increased communications racks and power requirements. Works also include new workstations and interior refurbishment.
- Building Services: upgrade electrical, mechanical, ICT and security services to meet capability requirements and Building Code requirements.
- Element 15 - HMAS Harman Network Management Facility (Canberra, ACT)
- Fit-out Works: refurbish existing network management facility at HMAS Harman to support increased communications racks and power requirements. Works also include new workstations and interior refurbishment.
- Building Services: upgrade electrical, mechanical, ICT and security services to meet capability requirements and Building Code requirements.
- The project proposal includes several ‘below the line’ items which may be included in the final scope should the project realise savings through tendering or retiring risk provision. These include:
- Renewable power supply at Speed Creek (QLD)
- Renewable power supply at Exmouth (WA)
- Renewable power supply at Bohle River (QLD)
- Renewable power supply at Humpty Doo (NT)
- Renewable power supply at Lyndoch (NSW)
- HMAS Harman Modular Secure Facility (ACT)
- Perimeter and antenna field access roads all existing sites
- Removal of legacy microwave towers all sites.
- Defence indicated that the priority of below the line items is to replace 24/7 diesel generator operated sites, followed by high power usage sites.
- In addition to the elements listed above, the project also includes the following general scope items:
- Structure: minor amendments to existing facilities structures to allow for better space utilisation apart from the building of a new facility structure at the Mount Bundey Training Area and an extension to the existing structure at Lyndoch.
- Civil infrastructure: new civil infrastructure is required for the new site at the Mount Bundey Training Area, and additional civil works are required to support facility extension at the Lyndoch site, broadly comprising an extension to the existing elevated compound. Access roads and perimeter fencing at existing sites will be upgraded or repaired as required.
- Hydraulic services: includes the provision of new rainwater storage tanks, water treatment and pump systems at sites which are not connected to town water and waste services.
- Electrical services: installation of metering to allow for efficient operation and support energy management on sites. Solar renewable energy supply electrical work at Rough Range is included in these works.
- Fire protection: general upgrades to the fire systems within existing facilities and bushfire protection measures at relevant sites.
- Materials and furnishings: materials and furnishings will be sought from readily available local sources and external façades for the new building at the Mount Bundey Training Area and the extension at the Morundah receive site will comprise a combination of precast concrete wall panels, and pre-finished profiled steel walling and roofing similar to existing sites.
- Landscaping: minimal landscaping is required at most sites, apart from the Mount Bundey Training Area. Landscaping at all sites will focus on a functional, low maintenance, water sensitive approach with the use of native plants.
Potential impacts
2.18Due to the remoteness of most of the sites, the impact of the works is relatively minor; however, Defence advised the Committee that there may be some minor traffic increases to each site during construction.
2.19While Defence has determined through the Environmental Assessment Report process the Project will not have a significant impact on existing environmental and heritage values, investigations and field surveys suggest that the site of the new facility at the Mount Bundey Training Area is home to four threatened fauna species, the Gouldian Finch (Erythrura gouldiae), Partridge Pigeon (Geophaps smithii smithii), Yellow-snouted Ground Gecko (Lucasium occultum) and Red Goshawk (Erythrotriorchis radiatus). To manage this Defence have included ‘several design modifications, management and mitigation measures…for both the construction period and the ongoing operation of this new site to minimise any potential environmental and heritage impacts, particularly with respect to the yellow-snouted ground gecko.’
2.20Minor pockets of PFAS have been identified on selected sites, however Defence explained that ‘the concentration levels are well below the allowable contamination thresholds and will be managed within the Defence PFAS construction framework.’
Community and stakeholder consultation
2.21Defence told the Committee that it has developed a community consultation and communications strategy and has engaged with a variety of internal and externals stakeholders during the project develop phase including; federal and local members of parliament in each location, local businesses, traditional owners, service authorities, city councils, and nearby private landholders.
Cost of the works
2.22The estimated total capital delivery cost of the project is $280.2 million (excluding Goods and Services Tax). This includes management and design fees, construction, information and communications technology, furniture, fittings, equipment, contingencies and a provision for escalation.
2.23Defence noted in its submission that it expects an increase in ongoing operating and sustainment costs primarily due to the new capability’s requirement for higher power usage.
2.24Defence provided further details on project costs in its confidential submission and during an in-camera hearing.
Revenue
2.25There will be no revenue generated by this project.
Public value
2.26Defence considers that the public value of the project will include:
- Economic Impacts: promotion of subcontract packages for small to medium enterprises
- Employment opportunities: generation of a diverse range of consultants, contractors and construction workers, and opportunities for upskilling and job training
- Local industry and Indigenous business involvement opportunities: the head contractors will also develop a Local Industry Capability Plan and an Indigenous Participation Plan
- Health and Safety: Reduction of health and safety risks at each of the current sites through refurbishment
- Potential upgrades to existing infrastructure services: The project plans to extend the high voltage supply from the Mount Bundey Training Area feed to the new site within the training area and this is being coordinated with the utility provider, Power and Water Corporation (NT). The project is also currently investigating connection to existing mains power supplies (Exmouth township)
- Defence advised the Committee that the ‘head [project] contractors will be required to develop local industry capabilities plans and Indigenous participation plans that will detail how they will engage and maximise opportunities for local industry and Indigenous businesses.’
Committee comment
2.28The 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.
2.29The Committee understands that Option three is the preferred option for this project, but that Defence will deliver some - if not all - of the below-the-line options in the event of cost reductions or the retirement of risk provisions. The Committee supports this, as the additional scope elements will further increase the usefulness of the facility.
2.30While the committee did not conduct a site inspection for this inquiry it did receive a comprehensive briefing from Defence on the proposed project.
2.31The Committee was pleased to hear that Defence had engaged with key stakeholders in each region including Traditional Owners and local indigenous groups and encourages Defence to continue to engage locally throughout the duration of the project.
2.32Having 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.
2.33The 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 JP9101 Phase 1 Enhanced Defence High Frequency Communications System — 'Project Phoenix'.
2.34Proponent 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 Perrett MP
Chair