(1)   In respect of the tender process for the amphibious ships build project, is the Minister aware of any prospective (a) overseas and (b) Australian bidders for the project.

(2)   Has the Minister, any member of his staff or department, had any discussions, informal or otherwise, with any prospective (a) overseas and (b) Australian bidders for the project; if so, what were the outcomes.

(3)   What circumstances led the Minister to (a) make a commitment on 5 October 2004 to the effect that the amphibious ships would be built in Australia and (b) modify that commitment on 16 August 2005 to indicate that the ships may be built overseas.

(4)   What factors have influenced the proposed timing of the request for tender process to be in the second quarter of 2006 as suggested by the Minister on 16 August 2005.

(1)  

(a)   Yes.

(b)   Yes.

(2)  

(a)   Yes.

(b)   Yes. Discussions are confidential.

(3) (a)   and (b) The Defence Materiel Organisation conducted a Request for Quotation in early 2005 where prospective bidders were asked to provide prices to build each of the contender designs. The results of this Request for Quotation indicated that the cost of building these ships in Australia exceeded the project budget, whereas building either the Navantia or Armaris designs in their parent shipyards was achievable within, or close to, budget. This exercise validated the Defence Procurement (Kinnaird) Review recommendation that off-the-shelf solutions be presented for Government consideration.

(4)   Following Government First Pass approval on 9 August 2005, and to ensure that prospective Australian bidders have well-defined ship specifications to tender against, the Defence Materiel Organisation is in final contract negotiations with both Navantia and Armaris to conduct a Design Development Activity over the period September 2005 to March 2006. Request for Tender documentation will be released on completion of the Design Development Activities.