Australian auditor’s office finds defence department’s procurement process lacked ‘value for money’ focus
The Australian National Audit Office found that the Department of Defence’s management of the Hunter class procurement had been only “partly effective”.
The report said the design issues had driven up the cost to Defence by $423m so far. But it added: “At January 2023 the project was forecast to exceed the whole of project budget approved by government by a significant amount.”that the Hunter class frigates would be designed by the British company BAE Systems and built at the Osborne shipyard in Adelaide.
But the Anao found the advice provided to the government was “not complete”, because Defence had failed to make clear that a value-for-money assessment had not been conducted. The contract management plan was established only three and a half years after the contract was executed.
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