1.1
Since 2007, the Joint Committee of Public Accounts and Audit (JCPAA, the Committee) has reviewed and published reports on the annual Major Projects Report (MPR). The MPR provides information regarding major projects managed by the Department of Defence (Defence), through the inclusion of Project Data Summary Sheets (PDSSs), including: progress on achieving milestones, costing, scheduling, and issues facing individual projects. The Australian National Audit Office (ANAO) also provides details on additional matters affecting the management of major projects at large, such as risk management, acquisition governance, and scheduling issues.
1.2
The MPR was established to improve the accountability and transparency of Defence acquisitions for the benefit of Parliament and other stakeholders. It is prepared on the basis of the Major Project Report Guidelines (‘the Guidelines’), approved by the JCPAA before the MPR is conducted. This annual input is complementary to inquiries conducted by the Committee to investigate the MPR, which have had a historical focus on the transparency of PDSSs and the business management of Defence.
1.3
In the 2018-19 MPR, 26 projects are included which meet the Guidelines, as determined by the Committee and the ANAO.
1.4
The design phase of the Future Submarines Program will be included in 2019-20 MPR, following a request of the Committee. This particular project is of public and parliamentary interest, as it is recognised as a ‘megaproject’, or one of the largest acquisition projects ever undertaken in Australia.
1.5
The Committee resolved to undertake the inquiry on 5 February 2020, determining that it would examine Auditor-General’s Report No. 19 of
2019-20 2018-19 Major Projects Report (Auditor-General’s Report No. 19) and Auditor-General’s Report No. 22 of 2019-20 Future Submarine Program – Transition to Design (Auditor-General’s Report No. 22). The latter report was added to the terms of reference due to the anticipated addition of the Future Submarine Program to the 2019-20 MPR.
1.6
Three public hearings were held in relation to this inquiry on the following dates:
1.8
The Committee would like to thank the organisations and individuals who made submissions to the inquiry and appeared at public hearings.
1.9
Chapter 2 examines Auditor-General’s Report 19, which reviews the audit methodology of the ANAO and major projects as provided by Defence and the ANAO.
1.10
Chapter 3 examines Auditor-General’s Report 22, which considers the Future Submarine Program and its transition into the design phase of the project’s acquisition.