Annual Report for the year ended 30 June 2002
Contents | Previous | Next
Departmental operations (continued)
Statement of objectives and service performance
For the year ended 30 June 2002
Output Class D3 - Management of equipment procurement
Description
Under this output class the Minister of Defence will purchase management of procurement or refurbishment, on behalf of the Crown, of significant equipment contributing to a capability of the New Zealand Defence Force. This output covers the management of procurement functions from the initial identification of a requirement through ministerial approval in principle to the acquisition process involving project investigation, risk assessment, quality assurance, equipment selection, negotiation and execution of contract arrangements, up to the point when the equipment is delivered to the New Zealand Defence Force, and the management of any warranty provisions beyond that date. It also covers the investigation of any associated financing arrangements and the arrangement of on-sale to the New Zealand Defence Force.
Also included in this output class are the maintenance of information on industrial capability and the provision of advice to industry on Defence requirements.
Outcome
New Zealand armed forces equipped to the level appropriate for the protection of New Zealand and its external interests according to the Government's defence policy.
Service performance
Target |
Delivered |
1. Progess continuation of the ANZAC ship project
|
- Class issues continued to be monitored throughout the period across all ANZAC Class Ships. Resolution of the outstanding class issues was progressed but a small number still need to be resolved. Implementation of agreed solutions has been, and will continue to be, constrained by the availability of operational ships for non-programmed maintenance.
The bilge keel defect, identified during the year, has been rectified on HMNZS Te Kaha and similar work will be undertaken on HMNZS Te Mana later in 2002. Costs have been met from the project contingency pending investigation and resolution of the cause and any attribution of responsibility. Cost Summary – ANZAC Ship
A summary of expenditure charged to Crown appropriations, and forecast of future costs to complete, is (see table below): |
|
$(000) |
|
| Expenditure to 30 June 2001 |
1,166,657 |
|
| Expenditure 2001/02 |
32,944 |
|
| Future commitments and forecasts |
111,288 |
|
| Forecast cost to complete |
1,310,889 |
|
| Project approval |
938,947 |
|
| Cost escalations and foreign exchange variances to date |
379,397 |
|
| |
1,318,344 |
|
Target |
Delivered |
| 2. Subject to individual Government approval, progress light operational vehicles project for the Army |
- The number and type of vehicles were re-evaluated by the NZDF during the year, which resulted in a decision to reduce the numbers of high mobility vehicles and introduce a limited capability military vehicle into the total number.
The limited capability military vehicle was introduced to meet lower mobility needs of the NZDF. For tender purposes, the project was split into high mobility vehicles and limited capability military vehicles. The tender for the high mobility vehicles was forwarded to short-listed suppliers and will close on 30 October 2002. The tender for the limited capability military vehicles was advertised world wide and will close on 9 August 2002. Cost Summary – Light Operational Vehicles
A summary of initial project expenditure charged to departmental output class D3, is (see table below): |
|
$(000) |
|
| Expenditure to 30 June 2001 |
225 |
|
| Expenditure 2001/02 |
24 |
|
Expenditure to 30 June 2002 |
249 |
|
Target |
Delivered |
| 3. Progess special operations communications systems |
|
4. Progess tactical communications for the Army and the Air Force |
- The majority of the communications systems have been delivered with major shipments occurring in December 2001 and June 2002.
Tenders were also advertised, received and evaluated for system componentry during the period. Cost Summary - Tactical Communications (including Special Operations Communications Systems).
A summary of expenditure charged to Crown appropriations, and forecast of future costs to complete, is (see table below): |
|
$(000) |
|
| Expenditure to 30 June 2001 |
62,148 |
|
| Expenditure 2001/02 |
40,469 |
|
| Future commitments and forecasts |
22,623 |
|
| Forecast cost to complete |
125,240 |
|
| Project approval |
119,223 |
|
| Foreign exchange variances to date |
6,926 |
|
| |
126,149 |
|
Top | Previous | Next
