1. Continue management of the ANZAC ship project

• Due to Anzac ship treaty arrangements the Ministry of Defence continues to maintain an interest in this project and is contributing financially in accordance with the contract and treaty arrangements.
• Cost summary - Anzac ship
  A GST inclusive summary of project expenditure charged to non-departmental appropriations, and a forecast of future costs to complete, is (see table below):

• complete tender documents and issue the Request For Tender in the 2nd quarter of 2002;

• The Request For Tender was issued on 27 June 2002 and closed in October 2002 after an extension was sought from a selected supplier.

• following evaluation and selection of a preferred vehicle type and supplier, seek Government approval to negotiate a contract for the purchase of the LOV in the 3rd quarter of 2002.

• The tender evaluation required due diligence visits and further tender clarification resulting in a need for the New Zealand Defence Force to review the overall capability, in particular potential fleet mixes. Further re-pricing has been sought as a result of the capability considerations and budget constraints.
• Cost summary - Light Operational Vehicles
  The Government approved Long-term Development Plan for Defence has set the upper limit for this project budget at $110 million. Initial project costs (GST inclusive) charged to departmental appropriations is (see table below):

• issue an Invitation To Register in the 2nd quarter of 2002;

• The Invitation To Register was released on 26 July 2002 and closed on 13 September 2002.

• issue a Request For Proposal in the 3rd quarter of 2002;

• Following approval from Cabinet on 9 December 2002 of the short-listed six respondents, the Request For Proposals was released on 26 May 2003 and closes on 27 October 2003. Due to the complexity of the project, three ship types and the more complex capability options required in respect of the multi role vessel, the functional performance specifications took considerably longer to develop and finalise than anticipated.
  

• Subject to the range and scope of responses, further definition of milestones will be decided at a later date.

• Project budget guidance was provided in the approved Long-term Development Plan with the budget being set at $500M. No expenditure forecast can be provided until contract negotiations are completed and Government approval to commit to the purchase of these ships for the New Zealand Defence Force is obtained.
• Cost summary - Maritime forces vessels
  A GST inclusive summary of initial project costs charged to departmental appropriations is (see table below):

• complete delivery of 1853 radios by the 3rd quarter 2002;

• The delivery of 1853 radios was achieved in December 2002.

• pay all outstanding costs by 4th quarter 2002;

• Costs are being paid in accordance with the Foreign Military Sales Case billing profile.

• complete final closure report by the 4th quarter 2002;

• The project remains active as a result of Government approval to acquire additional radios for the New Zealand Defence Force. These radios were purchased from savings generated in the project and will be used for future approved weapons and transport systems.

• complete project within Cabinet approval of $134.2 million (inclusive of GST) after allowing for foreign exchange variance.

• Completion has been delayed because of processing problems by United States Foreign Military Sales and approval to acquire additional radios. The revised completion date is now the 2nd quarter of 2005.
• Cost summary - Tactical communications (including special operations communications systems).
  A GST inclusive summary of project expenditure charged to non-departmental appropriations, and a forecast of future costs to complete is (see table below):