3.1
The Department of Defence (Defence) seeks approval from the Committee to proceed with the Larrakeyah Barracks Redevelopment project. The redevelopment will address shortcomings in buildings and vehicle facilities, water and sewerage, and electrical and ICT infrastructure, and will provide for future growth of the precinct population.
3.2
The estimated cost of the project is $223 million (excluding GST). Future sustainment costs are estimated at $7.3 million per annum.
3.3
The project was referred to the Committee on 28 March 2018.
3.4
Subject to Parliamentary approval of the project, construction is expected to commence in late 2018 and be completed in mid-2023.
Conduct of the inquiry
3.5
Following referral, the inquiry was publicised on the Committee’s website and via media release.
3.6
The Committee received two submissions and two confidential submissions.
3.7
On 30 April 2018, Defence conducted a site inspection/private briefing for the Committee. On 1 May 2018, the Committee also conducted a public and in-camera hearing. A transcript of the public hearing is available on the Committee’s website.
Need for the works
3.8
According to Defence, the Larrakeyah Defence Precinct is a vital component of Australia’s capability. The Precinct sustains the North-West Mobile Force, referred to as NORFORCE, which ‘enhances Australia’s remote area reconnaissance and surveillance capability in the north and north-west of Australia’.
3.9
The Larrakeyah Barracks is the original part of the Larrakeyah Defence Precinct, with many buildings dating back to 1932. The 2012 review found that working accommodation for several military units is in poor condition, does not meet contemporary work or training standards and/or is not fit for purpose. It also determined that the base entry does not meet Defence security standards.
3.10
Defence submitted that the following inadequacies must be addressed to meet standards and improve the functionality and capacity of the Barracks:
The existing Landing Craft Tank boat ramp is in poor condition.
Five buildings onsite have reached their end-of-life and require replacement.
The NORFORCE vehicle maintenance workshops are inadequate and not fit for purpose for the current and future fleet of Army vehicles.
The electrical infrastructure lacks redundancy and does not have sufficient capacity to support planned developments.
The potable water infrastructure does not meet the supply authority’s standards.
The firefighting infrastructure is non-compliant.
The existing sewerage infrastructure is aged, blocked in areas and does not comply with local authority standards.
Stormwater currently overflows into adjoining residences in Cullen Bay.
Key parts of the information and communications technology (ICT) infrastructure do not comply with relevant design guidelines, Australian Standards and /or Defence policy requirements. The pits, conduit and cabling infrastructure require upgrading.
There is a shortage of car parking facilities.
3.11
Defence noted that parts of the redevelopment are ‘key enablers’ for the Facilities to Support Naval Operations in the North project, discussed in Chapter 2 of this report.
Scope of the works
3.12
The proposed redevelopment comprises 11 separate project elements:
Project Element One proposes a new facility for NORFORCE, consisting of two main buildings, vehicle maintenance and housing facilities, and a goods store building.
Project Element Two seeks to upgrade the electrical infrastructure, including new underground cabling. It also proposes to construct new intake switch rooms, a new high voltage distribution network to handle higher loads, and undertake complementary works.
Project Element Three will install new potable water services infrastructure for most areas, including provision of smart meters and backflow prevention.
Project Element Four proposes a new firefighting water supply system, including dedicated fire water main, pumps, water storage tanks and fire brigade suction boosters, and an extension of the existing fire alarm system.
Project Element Five seeks to replace the gravity sewerage network where is it currently deficient in capacity, condition or compliance. Includes removal of asbestos piping.
Project Element Six will provide an upgraded stormwater system, configured as two defined catchment areas (eastern and western). The upgrades provide additional stormwater pipes and increase the number of inlet pits, gross pollutant traps and other stormwater control mechanisms. The new system will re-direct stormwater so that it no longer impacts residences in Cullen Bay.
Project Element Seven proposes new ICT infrastructure, including a new ICT core node building and new single mode optical fibre cabling and network switches. Pit and conduit systems will be upgraded to accommodate the new cabling and provide capacity for growth. Old cabling will be removed where possible.
Project Element Eight seeks to refurbish the Landing Craft Tank boat ramp, including repairing the rock revetment. Additionally, it proposes repairing or replacing the concrete ramp and joints (as required) and providing additional scour protection at the ramp toe.
Project Element Nine is focused on constructing a new Shared User Facility, in the form of a compact two storey building providing flexible office accommodation for approximately 112 personnel as well as classrooms and training rooms.
Project Element Ten proposes the construction of a new, safer and more secure base entry precinct. This includes a new pass office, new access and connection roads, parking areas and a roundabout, boom gates, pedestrian access gates, upgraded footpaths, and bicycle storage facilities. Upgraded security features include guardhouses, closed circuit television, alert systems, vehicle inspection bays, and a ‘road blocker’ that can be manually activated by the guards. The base will also be enclosed by a standard Class 2 perimeter fence.
Project Element Eleven seeks to provide car park upgrades and new fuel point. The proposed car park will be located adjacent to the proposed new Shared User Facility and provide 300 car spaces for Australian Defence Force personnel, civilians and contractors. The new carpark will replace 155 car parks displaced by other project elements, plus rectify the current shortfall in parking in this area, as well as accommodating the increase in visitors to the training facilities at the Shared User Facility. The car park will include a fuel point with self-contained 10 kilolitre tank, bowser, pump, and control skid, LED lighting stormwater drainage and covered walkways.
‘Below the line’ project elements
3.13
Defence submitted that the following three project elements were not able to be incorporated under the approved project budget but will be considered for later inclusion should there be financial efficiencies gained in the delivery of the higher priority elements:
Construct new Living In Accommodation (LIA) to replace two existing transit accommodation buildings affected by concrete cancer and degradation.
Upgrade the Other Ranks’ Mess, which is currently usable but ‘does not have the flexibility to meet future demand expected at Larrakeyah Defence Precinct’.
Upgrading the gymnasium, which is not big enough and no longer meets requirements.
Stormwater
3.14
The upgrade of the stormwater system is a significant project, redirecting stormwater flows and increasing the capacity of the system.
3.15
Specifically, the project addresses stormwater and run-off issues previously raised by residents in Cullen Bay by diverting stormwater and sewerage outflows from the north to the south side of the precinct (away from residences) ‘in an environmentally appropriate manner’.
3.16
The Committee asked Defence why these upgrades would be managed and completed by Defence, and not the relevant local water authority. Defence explained that this option was considered, but it was not practical, due to security requirements and concerns about assurance of supply.
3.17
Defence explained that if a commercial company was to provide the infrastructure, every worker would need to be checked for security purposes:
A lot of those providers will use third-party contractors to do that, so it would be a very difficult and unwieldy process to keep track of actually doing the security clearances for all those individuals.
Cost of the works
3.18
The estimated cost of the project is $223 million (excluding GST). Future sustainment costs are estimated at $7.3 million per annum.
3.19
The Committee also received evidence relating to cost breakdowns in the in-camera hearing.
3.20
The Committee is satisfied that the costings for the project provided to it have been adequately assessed by the proponent entity.
Local impacts
3.21
The proposed works will impact upon some residents of the base, as well as local residents in the Cullen Bay and Larrakeyah area. Possible areas of concern for the local community during construction include:
air emissions from construction and operational activities;
increased traffic on local (residential) road network during construction and operation (particularly on Larrakeyah Terrace); and
noise and vibration impacts from trenching and rock breaking for engineering services and construction of facilities.
3.22
Defence outlined its consultation processes and assured the Committee that concerns about noise, emissions and traffic management have been addressed through special investigations and the development of mitigation plans.
3.23
The Committee was particularly interested in how Defence will manage the traffic issue, given there is a school in the area of the works, and ‘pick up’ and ‘drop off’ already cause traffic flow problems.
3.24
Defence reported that the existing traffic situation will be greatly improved by the installation of a new roundabout being built as part of the upgrade to the entry precinct, and outlined the following mitigation measures:
restricting deliveries to the worksite during school drop off and pick up times;
constructing a temporary entry off Larrakeyah Terrace whilst the existing entry is being redeveloped; and
engaging a specialist to manage traffic flows if necessary.
3.25
Eleven Defence Housing properties are also set to be vacated on a voluntary basis, as noise from the excavation for the stormwater and other building works will make living in these properties unpleasant for the residents.
Local contractors
3.26
The Committee sought details from Defence around how it intends to maximise opportunities for local contractors to participate in the work.
3.27
Defence confirmed that the managing contractor for the project, Laing O’Rourke has undertaken measures to make it easier for local contractors to tender for the work. Defence stated:
I know that at the moment, based on market research and engagement with local bodies that Laing O'Rourke has done, there are going to be approximately 60 subcontracts let, and they are designed to maximise the opportunity for local businesses.
3.28
Defence’s managing contractor also said that they would be able to provide a summary of the local contractors involved in the project for the post-implementation report.
Heritage and environmental
3.29
In its submission, Defence stated that a report was commissioned that assessed environmental and heritage considerations for the proposed project; and that the report found no matters of environment or heritage significance that would trigger a referral in accordance with the Environment Protection and Biodiversity Conservation Act 1999.
3.30
The Larrakeyah Defence Precinct is registered on the Commonwealth Heritage List and the current NORFORCE headquarters building, which survived Cyclone Tracy, is specifically listed. While this project will provide a new building for NORFORCE, Defence proposes to undertake refurbishment of the current NORFORCE Headquarters building for alternate use for Army Cadets. Defence states that the proposed remodelling will not impact on its Commonwealth Heritage significance.
3.31
Part of the NORFORCE redevelopment impacts on an area of cultural significance known as the Sacred Site Precinct. Defence sought approval from the Aboriginal Areas Protection Authority (AAPA) to undertake temporary construction works in the southern portion of the Sacred Site Precinct. Approval was granted subject to management controls specified in the AAPA certificate and the provision of cultural heritage training for workers.
3.32
The redevelopment includes the removal of an existing diesel and unleaded petrol refuelling point. Defence submitted that this process presents a risk of encountering hydrocarbon pollution. Provisions for the management and/or removal of this and any other hazardous materials encountered have been included in the construction program and cost estimates for the project.
Previous works and related projects
3.33
The last major program of works undertaken at Larrakeyah was in 1982 when the naval base Coonawarra was constructed. Since 1982, new works have been limited to the construction of the following facilities:
Headquarters NORCOM facility;
Port Services Organisation and standby crew facility;
Defence Housing Australia service residences;
new living-in accommodation (under Project Single LEAP);
extension of the Fremantle Wharf; and
small fuel storage facility.
3.34
The following related projects have been taken into consideration when developing this proposal and a coordinated projects site plan has been developed:
The Facilities to Support Naval Operations in the North project proposes a new wharf, associated hardstand, access road and a new ready use fuel facility at Coonawarra.
The Offshore Patrol Vessel (OPV) Facilities Project proposes to upgrade and extend the Attack Wharf and strengthen the Fremantle Wharf to support the larger OPV.
The Joint Health Command Garrison Health Facilities Upgrade project will deliver a permanent health facility at Larrakeyah Defence Precinct to replace the existing interim facility. The PWC Hearing for this project occurred in January 2018 and subject to approval, construction is currently planned for the period July 2018 to June 2019.
A component of LAND 121 Phase 3A Project Overlander will deliver new light, medium and heavy vehicles to NORFORCE.
A component of the Defence Terrestrial Communications Network Facilities Project will occur at Larrakeyah Defence Precinct.
Committee comments
3.35
The Committee appreciates that this is a large program of works designed to upgrade facilities that are, in many cases, degraded and aged. As such, the Committee appreciates the need for these works, and believes the scope of the works is suitable to achieve the stated purpose.
3.36
The construction phase of the project presents challenges for Defence in managing traffic flows and noise impacts in a way that meets the community’s expectations. However, the Committee is satisfied that Defence has and will continue to engage with the community around these disruptions, and has taken steps to mitigate the negative impacts.
3.37
The Committee is encouraged to see that Defence is working to maximise opportunities for local engagement in this project, and looks forward to a report outlining the outcome of these efforts.
3.38
The Committee recommends that the House of Representatives resolve, pursuant to Section 18(7) of the Public Works Committee Act 1969, that it is expedient to carry out the following proposed work: Larrakeyah Barracks Redevelopment Project.
3.39
Proponent agencies must notify the Committee of any change to the project scope, time, cost, function or design – and if the project has been cancelled. The Committee also requires that a post-implementation report be provided within three months of project completion.