- Army Aviation Omnibus Program of Works
Department of Defence
2.1The Department of Defence (Defence) seeks approval from the Committee to proceed with the proposed Army Aviation Omnibus Program of Works.
2.2The project will provide new and upgraded facilities and infrastructure at RAAF Base Townsville and the Townsville Field Training Area, Queensland, to support the introduction into service of the Apache helicopter capability. These 29 Boeing AH-64E Apache attack helicopters were acquired in March 2022 as a replacement for the Tiger fleet operated by the 1st Aviation Regiment.
2.3The works will also create new permanent facilities for the 16th Aviation Brigade which relocated to RAAF Base Townsville from Gallipoli Barracks at Enoggera in January 2024. The Brigade Headquarters is currently accommodated in temporary facilities.
2.4The estimated cost of delivery of the project is $518.3 million (excluding GST).
2.5The project was referred to the Committee on 20 August 2024.
Conduct of the inquiry
2.6Following referral, the inquiry was published on the Committee’s website.
2.7The Committee received one submission, two confidential submissions and one supplementary submission. A list of submissions in in Appendix A.
2.8On 28 October 2024, the Committee received a private briefing, and then conducted a public and in-camera hearing at Australian Parliament House, Canberra. A transcript of the public hearing is available on the Committee’s website.
Need for the works
2.9The 2023 Defence Strategic Review set the agenda for force posture and structural reform to meet Defence’s strategic objectives. It endorsed the priority acquisition of the UH-60M Black Hawk and AH-64E Apache helicopters to enhance Army Aviation’s helicopter capability.
2.10These works support the broader Army Aviation Command strategy of establishing a centre of excellence. The centre of excellence model co-locates Army Aviation’s operational, training, maintenance and sustainment elements with key elements of industry that directly support the capability.
2.11Defence explained the benefits of co-location at the public hearing:
The centre of excellence allows us to consolidate elements of our operation and our training into the one location. At the moment, with our Tiger armed reconnaissance helicopter capability, the operational unit is in Darwin yet the training is in Oakey, in South-East Queensland. Putting all the Apaches, operational and training, into the one node delivers efficiencies in the management of the aircraft feet but also, for the maintenance workforce or the aircrew, allows that correlation between those experienced instructors and those within the operational unit in all being together every day, which aids their professional development.
Options considered
2.12Defence undertook master planning, site investigations, stakeholder consultation, whole-of-life cost analysis and design development, to establish the facilities and infrastructure requirements to address the project need. The following options were considered:
- Option 1 – Do nothing. This option will not provide any investment in facilities or infrastructure to support the introduction into service of the Apache helicopter capability.
- Option 2 – Minimum Viable Capability. This option includes the delivery of the highest priority requirements within the approved budget. The proposed scope includes a combination of new construction and reuse of existing facilities and infrastructure to meet command, management, training, logistics and maintenance requirements (Submission 1, p. 3).
- Option 3 – Full Capability. This option includes all the scope in Option 2, with some elements enhanced to achieve workforce efficiencies and to meet all the functional requirements identified by Army Aviation.
- Option 2 is the preferred option as it meets Defence’s minimum viable capability requirements and represents the best value for money for the Commonwealth.
Scope of the works
2.14The scope of works of Defence’s preferred option includes the following work elements:
2.15Project Element 1 – RAAF Base Townsville:
- Project Element 1.1: Command and Management Facilities
- construction of a new facility for Headquarters 1st Aviation Regiment, two Apache flying squadrons and Headquarters 16th Aviation Brigade;
- refurbishment of Building 802 to provide working accommodation for Headquarters 5th Aviation Regiment and one flying squadron; and
- refurbishment of Building 280 to provide working accommodation for 16th Aviation Support Battalion.
- Project Element 1.2: Training Facilities
- refurbishment of Building 808 to accommodate Apache Pilot Simulation Training and the Army Aviation Training Centre Attack Helicopter Wing.
- Project Element 1.3: Logistics Facilities
- construction of a new multi-purpose facility to provide working accommodation, training and maintenance facilities for the Operational Support Squadron;
- construction of a new facility for parking bulk fuel vehicles and fuel equipment maintenance; and
- refurbishment of Building 273 to provide a workshop for general support equipment.
- Project Element 1.4: Maintenance Facilities
- construction of a new multi-purpose facility to provide a two bay deep maintenance hangar, special repair activity workshop and repair parts store (warehouse);
- refurbishment of four hangar bays in Building 295 for deep maintenance;
- construction of a two bay hangar extension to Building 274 for line maintenance;
- refurbishment of all 19 hangar bays in Buildings 273, 274 and 275 by upgrading the building services and providing a de-humification system to the aircraft in each bay;
- extension of Buildings 272 and 273 to provide an aircraft wash bay suitable for both Apache and Chinook helicopters; and
- refurbishment of mechanical services in Buildings 287 and 238 to provide working accommodation for the Systems Program Office.
- Project Element 1.5: Airfield Infrastructure
- construction of new traverses at Ordnance Loading Aprons 12, 13 and 14.
- Project Element 1.6: Engineering Services Infrastructure and Contamination Remediation
- upgrade of electrical, potable water, firefighting water, wastewater and communications infrastructure;
- construction of a multi-storey carpark and a new on-grade carpark; and
- remediation of contamination.
- Project Element 2 – Townsville Field Training Area:
- Project Element 2.1: Airfield Infrastructure
- construction of a new landing lane and three new Ordnance Loading Aprons at Townsville Field Training Area
- The following items have been identified as below-the-line items currently unable to be funded within the project’s approved budget but may be delivered if cost savings occur:
- demolish Building 280 and construct a new facility for 16th Aviation Support Battalion
- extend Building 808 to provide a second simulator hall for pilot simulation training
- construct a second landing lane and a crew rest facility at Townsville Field Training Area
- install a system capable of de-humidifying all 19 bays in the line maintenance hangar.
Potential impacts
2.18Defence outlined in its submission that a preliminary desktop review identified the potential presence of per- and polyfluoroalkyl substances (PFAS) in soil and groundwater in the proposed development area at RAAF Base Townville. Subsequent site investigations identified that concrete and soil material tested was generally suitable for beneficial re-use on site.
2.19A re-use strategy has been recommended as part of the environmental assessment and the contractor will be required to test excavated materials to ensure these materials are managed in accordance with the Defence PFAS Construction and Maintenance Framework. In response to questions from the Committee, Defence advised of the process if higher than expected contamination is found:
We will continually monitor during construction to ensure the disturbed areas are appropriately managed. If we did come across any material above the threshold, it would be taken and disposed at the appropriate regulated waste area, which is located within 20 kilometres of the RAAF base, once we obtain the relevant permits and requirements.
2.20Defence also discussed the potential of traffic, transport and road impacts of the project. Defence stated that proposed developments at both establishments are not expected to have any long-term material impacts on local traffic from construction or operation of the proposed facilities. During construction there will be an increase in the number of large vehicles entering RAAF Base Townsville. Management controls will be implemented to mitigate the effects of this increased traffic on local road network.
Community and stakeholder consultation
2.21Defence has, and continues to, engage with internal and external stakeholders during the project’s development to allow an opportunity to provide input into, or raise concerns relating to, the proposed works. Stakeholders include:
- Federal Member for Herbert, Mr Phillip Thompson, OAM, MP
- State Member for Townsville, Mr Scott Stewart, MP
- City of Townsville, Mayor Troy Thompson
- Airservices Australia
- Civil Aviation Safety Authority
- Department of Infrastructure, Transport, Cities and Regional Development
- Department of Transport and Main Roads
- Queensland Airports Limited
- Townsville Airport Pty Limited
- Townsville Chamber of Commerce
- Townsville Community Aviation Consultation Group
- Townsville Enterprise
- North Queensland Conservation Council
- Local Indigenous Groups, including Elders of the Bindal, Gudjala and Wilgurukaba peoples
- Utility service providers of electricity, gas, sewer and stormwater
- Local community, business groups and businesses including the Master Builders Queensland.
- Townsville Field Training Area
- Federal Member for Kennedy, Hon Bob Katter MP;
- State Member for Traeger, Mr Robert Katter
- Charters Towers Regional Council, Councillor Liz Schmidt.
- Defence ran a community consultation process to inform local communities and other stakeholders about the project and provide an opportunity to raise concerns. Two community information sessions were held on 20 and 21 August 2024 at Garbutt, Townsville. The sessions were advertised in the newspaper, on the project webpage and a letter box drop. There was a total attendance of 37 people. The attendees were a mix of local residents, local business, state government and local government representatives and Australian Defence force. Key points raised by the community were:
- proposed works, timing and aircraft capabilities
- impacts of aircraft noise and flight paths in the local area, including the management of potential safety risks
- procurement opportunities for industry, including the tender process and works packaging information such as the scope and timing of activities
- the expected population growth of Townsville associated with the proposed works and how housing would be supplied for Defence personnel without impacting the current market and supply
- the strategic plan for Defence, including Townsville’s role in this, i.e. the location of the RAAF Base and the capability and aircraft types in the region
- the security of RAAF Base Townsville
- queries regarding whether upgrades would be required to Townsville Airport to accommodate the proposed works
- general environmental matters associated with the RAAF Base, such as fumes from aviation fuel, per- and polyfluoroalkyl substances (PFAS) and flood mitigation
- general questions around Australia’s security.
Cost of the works
2.23The project budget is $518.3 million (excluding GST). This includes management and design fees, construction, information and communications technology, furniture, fittings, equipment, contingencies and a provision for escalation.
2.24There will be ongoing operating and sustainment costs resulting from the proposed works at both RAAF Base Townsville and the Townsville Field Training Area. This is due to the additional maintenance, cleaning and utilities costs associated with operating the new facilities.
2.25Defence advised that the design life of the works varied from 15 to 40 years depending on the facility or infrastructure, and was not identical to the expected operating life of the Apaches. However the proposed works were likely to be able to be re-purposed for any future changes in the aircraft fleet:
…we expect the Apache aircraft will continue to operate in Townsville until the late 2040s or early 2050s. The facilities that are there right now, particularly the aircraft hangarage, were constructed for our previous variant of the Black Hawks. We've seen it adapted for use with the Taipan multirole helicopter, and now we will readapt it again, for the Apache. Again, we've tried to look at these facilities very much through a lens of it being able to service multiple aircraft over the course of time.
Revenue
2.26There will be no revenue generated by the project.
Public value
2.27Defence has identified the following aspects of the works provide public value:
- Economic impacts – The project expenditure will support the Australian economy, in particular in the construction and professional services sectors in Townsville and surrounding regions.
- Employment opportunities – Defence anticipates approximately 275 full-time equivalent jobs will be filled during the peak construction period of the project.
- Local industry and Indigenous business involvement opportunities – Defence and the Managing Contractor will actively promote opportunities for small to medium local enterprises through construction trade packages, and there may be opportunities for Indigenous business involvements in accordance with the Government’s Indigenous Procurement Policy. Works to be undertaken must comply with the Government’s Policy for Local Industry Participation, which requires successful tenderers to provide detailed commitments on how they will utilise and develop Australian industry. These commitments will become contract deliverables and successful tenderers will be required to report on their performance against them. While the policy does not mandate or preference local suppliers, it is expected there will be opportunities to engage local suppliers on the project.
- Meeting capability needs – The 2024 National Defence Strategy reaffirmed the high priority for acquisition of the Apache helicopter capability as part of the continued investment in Defence capability. The project will provide facilities and infrastructure to support the introduction into service of the Apache helicopter capability.
Committee comment
2.28The Committee did not identify any issues or concerns with the proposal, and it is satisfied that the project has merit in terms of need, scope and cost.
2.29Having regard to its role and responsibilities contained in the Public Works Committee Act 1969, the Committee is of the view that this project signifies value for money for the Commonwealth and constitutes a project which is fit-for-purpose, having regard to the established need.
2.30The 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 works: Department of Defence — Army Aviation Omnibus Program of Works.
2.31Proponent entities must notify the Committee of any changes to the project scope, time, cost, function or design. The Committee also requires that a post implementation report be provided within three months of project completion. A report template can be found on the Committee’s website.