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Monday, 11 August 2003
Page: 13151


Senator Chris Evans asked the Minister for Defence, upon notice, on 10 June 2003:

With reference to Project Sea 1390, the project to upgrade the Adelaide Class Guided Missile Frigates (FFGs), and the answer to parts 23, 24 and 25 of question on notice no. 1182 (Senate Hansard, 14 May 2003, page 10968):

(1) Given that clauses 11.13.1 and 11.13.2 of the contract with ADI Limited refer to dates set out in the contract for provisional acceptance of (upgraded) FFGs, under the terms of the contract, what are the provisional dates of acceptance for each of the FFGs.

(2) Given that clause 11.13.2 of the contract with ADI Limited refers to Attachment A to the contract, can a copy of this attachment be provided.

(3) Given that the response to parts 24 and 25 of question on notice no. 1182 states that `none of the FFGs has reached the contracted date that would allow clause 11.13.2 to be invoked', for each of the FFGs, on what date would each FFG reach the contracted date that would allow clause 11.13.2 to be invoked.


Senator Hill (Minister for Defence) —The answer to the honourable senator's question is as follows:

(1) The commencement and completion (provisional acceptance) dates of the ships are subject to negotiation with the Navy and ADI, cognisant of the Navy's operational requirements and ADI's industrial capacity. The anticipated commencement dates of the upgrade for the first ship, HMAS Sydney, is 22 September 2003 with completion in December 2004. The remainder of the commencement and completion dates are currently being negotiated with the prime contractor as part of the contract change to reflect the revised schedule.

(2) Attachment A to the contract cannot be provided as it contains pricing information and is commercial-in-confidence.

(3) Based on the estimated revised delayed schedule, clause 11.13.2 (liquidated damages) will be invoked for each upgraded FFG for every working day post-provisional acceptance. Contractually, the provisional acceptance date for each of the subsequent ships after the lead ship can be moved forward or delayed provided the cumulative effect of these changes does not postpone the provisional acceptance of the sixth and final follow-on FFG by more than eight months.