MEDIA RELEASE - COST AND TIME BLOW OUT ON ONESKY PROJECT UNDER GOVERNMENTS WATCH

05 August 2019

MEDIA RELEASE

THE HON RICHARD MARLES MP
DEPUTY LEADER OF THE AUSTRALIAN LABOR PARTY
SHADOW MINISTER FOR DEFENCE
MEMBER FOR CORIO

CATHERINE KING MP
SHADOW MINISTER FOR INFRASTRUCTURE, TRANSPORT AND REGIONAL DEVELOPMENT
MEMBER FOR BALLARAT

MATT KEOGH MP
SHADOW MINISTER FOR DEFENCE INDUSTRY
SHADOW MINISTER FOR WA RESOURCES
SHADOW MINISTER ASSISTING FOR SMALL AND FAMILY BUSINESS
MEMBER FOR BURT

JULIAN HILL MP
DEPUTY CHAIR OF THE JOINT COMMITTEE OF PUBLIC ACCOUNTS AND AUDIT
MEMBER FOR BRUCE

The OneSky Project is becoming another complete failure of this Liberal National Govermment, with an ANAO report confirming costs have more than doubled and delivery is due ten years late.

What has this Liberal National Government been doing for the past six years to oversee such a large a blow out in delivery time and cost?

In its scathing report, the ANAO has said in relation to the contractual arrangements of OneSky:

If the current contracted timeframes are achieved, there will be a more than ten year delay (from 2015 to 2026) in the replacement of the existing separate civil and military systems compared with the timeframe envisaged at the start of the procurement process.

The ceiling price under the target cost incentive model that was then adopted is more than double the price submitted by the successful tenderer in its response to the 2013 request for tender.

There is inadequate assurance that the contracted acquisition price is consistent with a value for money outcome for the capability being acquired.

When Labor first initiated this project from the 2009 National Aviation White Paper we identified benefits from synchronising civil and military air traffic management through the procurement of a single solution to replace the separate systems of Airservices Australia and the Department of Defence.

Under this Liberal National Governments watch this project has seen failure:

Negotiations took so long that the offer submitted by the successful tenderer expired

After failure:

Negotiations also resulted in a late change in the contracting model from the one that had been presented to the market in June2013.

After failure:

The delays in negotiating and finalising an acquisition contract required the lives of the existing systems to be extended beyond that which was originally envisaged.

This Liberal National Government has overseen a massive ten year blow out with contracts having to be constantly renegotiated leading to ANAO concern over inadequate assurances of value for money.

Labor expects that the powerful Joint Committee of Public Accounts and Audit will seriously consider this report and the governments failure to demonstrate value for money.

Hardworking Australians who pay their taxes, rightly expect the Government not to waste their money.

In a failure of Government, the Liberals and Nationals incompetence and inability to demonstrate value for moneyhas once again been exposed by the Auditor-General.