Gary Humphries (ACT, Liberal Party, Shadow Parliamentary Secretary for Defence Materiel) Share this | Link to this | Hansard source

asked the Minister representing the Minister for Defence, upon notice, on 9 November 2011:

(1) Given that the Minister has stated that the contingency allowed for in the AIR 6000 Joint Strike Fighter (JSF) program is running out, in terms of cost and schedule for the JSF program, what amount of contingency remains.

(2) What are the terms of reference/mandate for the Scheduled Compliance Risk Assessment Methodology (SCRAM) team review being undertaken by the Defence Materiel Organisation into the JSF program under AIR 6000.

(3) When will the SCRAM team report and to whom.

(4) (a) Does the SCRAM team have the power to recommend that Australia defer or cancel its current or future orders for F-35 Lightning II (JSF) aircraft; and

(b) what are the options under the terms and conditions of the order that is currently in place for 14 aircraft.

Chris Evans (WA, Australian Labor Party, Leader of the Government in the Senate) Share this | Link to this | Hansard source

The Minister for Defence has provided the following answer to the honourable senator's question:

(1) While Australia uses the official United States Department of Defense cost estimates as the basis for our own, we have always adopted a more conservative approach to Joint Strike Fighter (JSF) cost estimates than has the United States. Australia has always included contingency funding, but the Government does not divulge the contingency levels for sound commercial reasons. The estimated cost of Australia's first 14 JSF aircraft does, however, remain within the Government's programmed approval.

In terms of schedule risk, Australian project staff in the United States Air Force test and evaluation program in the United States from early 2012 (through 2017) greatly mitigates risk to our schedule.

(2) and (3) In parallel with the United States Government's current review of the JSF Program's progress, Defence's New Air Combat Capability Project continues to independently monitor the JSF Program's schedule compliance. The Schedule Compliance Risk Assessment Methodology being applied is that used by the Defence Materiel Organisation to assess risk in major projects. Under direction from Australia's JSF project manager, an independent Defence Materiel Organisation team visited Lockheed Martin in the United States in late October 2011 to discuss JSF progress. Our project office's risk assessment, and any recommendations, will be part of an overall submission to Government in early 2012 and will inform further decisions on JSF in late 2012.

(4) (a) No.

(b) While the Government has committed to buying 14 JSF aircraft, it has yet to sign an order for aircraft. The Government has only approved the funding for 14 JSF aircraft and paid for some initial long lead items for Australia's first two aircraft. A final decision that will commit Australia to a binding contract for these first two aircraft will not occur until early 2012.