Annual Report for the year ended 30 June 2003
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Part 3: Departmental financial statements (continued)
Output Class D3 - Management of equipment procurement
Target |
Delivered |
5. Continue management of Light Armoured Vehicles (LAV) for the Army
The following milestones were planned for 2002/03 |
|
- complete system design reviews in the 3rd quarter of 2002;
|
- The critical design review for the Infantry Mobility Vehicle (IMV) was conducted over the period 12 - 16 August 2002.
|
- complete first of type vehicle testing in the 4th quarter of 2002;
|
- First production vehicle inspection commenced on 16 December 2002 and was completed in January 2003.
|
- commence full vehicle production in the 1st quarter of 2003.
|
- Full vehicle production commenced in February 2003.
- Cost Summary - Light Armoured Vehicles
A GST inclusive summary of project expenditure charged to non-departmental appropriations, and a forecast of future costs to complete is (see table below):
|
|
$(000) |
|
| Expenditure to 30 June 2002 |
90,850 |
|
| Expenditure 2002/03 |
212,403 |
|
| Future commitments and forecasts |
380,258 |
|
| Forecast cost to complete |
683,511 |
|
| Project approval |
652,834 |
|
| Foreign exchange variances to date and forecast to complete |
30,977 |
|
| |
683,811 |
|
Target |
Delivered |
6. Continue management of maritime helicopters for the Navy
The following milestones were planned for 2002/03 |
|
- complete delivery of five naval helicopters by 4th quarter of 2002;
|
- The delivery of the fifth and final aircraft was achieved on 3 February 2003.
|
- pay all outstanding costs by the 1st quarter 2003;
|
- All outstanding costs with the exception of the cost recovery for some minor activity still underway by the New Zealand Defence Force has been achieved by June 2003.
|
- complete final closure report in the 1st quarter 2003;
|
- Minor systems certification remain to be completed and these are being handled by the New Zealand Defence Force. Project closure reports are work in progress.
|
- complete project within Cabinet approval of $380.8 million (inclusive of GST) after allowing for foreign exchange variance.
|
- The project has been delivered $6 million (GST inclusive) below the approved budget.
- Cost summary - Maritime helicopters
A GST inclusive summary of project expenditure charged to non-departmental appropriations, and a forecast of future costs to complete is (see table below):
|
|
$(000) |
|
| Expenditure to 30 June 2002 |
402,332 |
|
| Expenditure 2002/03 |
21,904 |
|
| Future commitments and forecasts |
4,012 |
|
| Forecast cost to complete |
428,248 |
|
| Project approval |
380,782 |
|
| Foreign exchange variances to date and forecast to complete |
53,497 |
|
| |
434,279 |
|
Target |
Delivered |
7. Progress Joint Command and Control System (JCCS)
Subject to Government approval, the intention is to: |
|
- identify a suitable contractor to undertake the project definition study in the 3rd quarter of 2002;
|
- A suitable contractor to undertake a Project Definition Study was selected in September 2002.
|
- obtain Ministers' approval to proceed and commence the project definition study in the 3rd quarter of 2002.
|
- Ministers' approval was obtained on 8 September 2002 and a contract awarded on 31 October 2002. Two of three reports were delivered by the end of June 2003. The third and final report is due in October 2003.
- Cost summary - Joint Command and Control System
A GST inclusive summary of initial project costs charged to departmental appropriations is (see table below):
|
|
$(000) |
|
| Expenditure to 30 June 2002 |
62 |
|
| Expenditure 2002/03
| 1,405 |
|
Expenditure to 30 June 2003 |
1,467 |
|
Budget for initial costs |
2,160 |
|
Target |
Delivered |
8. Complete life of type study of Air Force C-130H transport aircraft
|
- No milestones were included in the 2002 Departmental Forecast Report for this project.
- A life of type study was completed to allow decisions to be made by Government in late 2002 on the future needs of the New Zealand Defence Force fixed wing transport fleet. The study provided the necessary information for the Government's decision to undertake a life of type extension on the C-130 Hercules fleet.
- Finalisation of the report was achieved by June 2003 and the project is now complete.
- Cost Summary - C-130H Life of type study
A GST inclusive summary of initial project costs charged to departmental appropriations is (see table below):
|
|
$(000) |
|
| Expenditure to 30 June 2002 |
1,218 |
|
| Expenditure 2002/03
| 1,607 |
|
Expenditure to 30 June 2003 |
2,825 |
|
Budget for initial costs |
3,223 |
|
Target |
Delivered |
9. Purchase of Boeing 757 aircraft for the Air Force
|
- No milestones were included in the 2002 Departmental Forecast Report for this project.
- In November 2002 the Government instructed the Ministry of Defence to acquire two Boeing 757-200 aircraft for the New Zealand Defence Force to replace the Boeing 727 aircraft. The approved budget included all necessary training, ground support equipment, aircraft purchase and modification for the cargo carrying capability.
- The two aircraft were identified, and joint Ministers approval to purchase was granted on 18 February 2003.
- The aircraft were delivered on 8 April 2003 and 8 June 2003.
- The New Zealand Defence Force commenced a review of the scope of work for cargo conversion ahead of the Ministry of Defence commencing an acquisition process for that conversion.
- Cost Summary - Boeing 757 aircraft
A GST inclusive summary of initial costs charged to departmental appropriations is
(see table below):
|
|
$(000) |
|
| Expenditure 2002/03
| 768 |
|
Expenditure to 30 June 2003 |
768 |
|
Budget for initial costs |
490 |
|
A GST inclusive summary of project expenditure charged to non-departmental appropriations, and a forecast of future costs to complete is (see table below):
|
$(000) |
|
| Expenditure 2002/03 |
104,830 |
|
| Future commitments and forecasts |
88,437 |
|
| Forecast cost to complete |
193,267 |
|
| Project approval |
196,794 |
|
| Foreign exchange variances to date and forecast to complete |
(1,835) |
|
| |
194,959 |
|
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