A performance audit into the Department of Defence’s procurement of combat reconnaissance vehicles (CRVs) has found the Department’s acquisition of CRV’s was largely effective.
In his report, Defence’s Procurement of Combat Reconnaissance Vehicles (Land 400 Phase Two), Auditor-General Grant Hehir said the Department’s Land 400 project had been described as the biggest and most expensive acquisition program in the Australian Army’s history.
Mr Hehir said the project was expected to address the risk of a capability gap emerging by 2020 in the Army’s ability to conduct its core business – sustained close combat.
“Defence’s acquisition to date of combat reconnaissance vehicles under project Land 400 Phase Two is largely effective,” Mr Hehir said.
“Defence has the potential to ultimately achieve value for money outcomes if the identified risks and issues are managed appropriately and the contracted quality and quantity of goods and services are delivered according to the agreed schedule and cost,” he said.
“Defence has established largely effective project governance and contracting arrangements.”
Mr Hehir said the Department’s request for tender process was partly effective and it had conducted a largely effective tender evaluation.
The Auditor-General recommended the Department review the process for providing assurance to its senior leadership that agreed internal review recommendations were implemented in a timely manner.
The audit report can be accessed at this PS News link and the 90-page printed report at this link.
The audit team was Natalie Whiteley, Kim Murray, Clyde Muthukumaraswamy and Sally Ramsey.
