- RAAF Base Learmonth Redevelopment Enabling KC-30A Operations, Exmouth, Western Australia
Department of Defence
3.1The Department of Defence (Defence) seeks approval from the Committee to proceed with its proposed airfield redevelopment at RAAF Base Learmonth.
3.2The project will upgrade the airfield at RAAF Base Learmonth to support KC-30A aircraft operations and improve overall airfield resilience. RAAF Base Learmonth is part of the network of northern airbases which have been listed as an immediate upgrade priority for the Commonwealth following the Defence Strategic Review.
3.3The KC-30A is the largest aircraft in the Australian Defence Force (ADF) fleet and provides the functions of airlift and air-to-air refuelling. The KC-30A is a modified Airbus A330 classified as a Code E aircraft and is currently unable to land at RAAF Base Learmonth with a full payload due to limitations on the current runway.
3.4The works will strengthen the runway and parallel taxiway, construct new connecting taxiways, as well as dedicated parking aprons for KC-30A and other large aircraft which will support the loading and unloading of cargo and explosive ordnance. Aprons (aircraft parking spaces) will incorporate high-volume in-ground hydrant refuelling points connected to a new six million litre aviation fuel installation.
3.5The estimated cost of delivery of the works is $662.2 million (excluding GST).
3.6The project was referred to the Committee on 28 November 2023.
Conduct of the inquiry
3.7Following referral, the inquiry was publicised on the Committee’s website and via media release.
3.8The Committee received one submission and one confidential supplementary submission. A list of submissions can be found at Appendix A.
3.9On 21 February 2024, the Committee conducted a private briefing, and public and in-camera hearings. A transcript of the public hearing is available on the Committee’s website.
Need for the works
3.10The 2023 Defence Strategic Review identified the critical need to upgrade northern bases. These works will enable the ADF to hold an adversary force ‘at risk’ if it were to approach northern Australia. A network of northern bases that provides platforms for operations and logistics support is required for this capability.
3.11The ability of the ADF in the north will be enhanced by the capability to provide air-to-air refuelling. This extends the endurance of aircraft undertaking critical air capabilities such as surveillance, reconnaissance, intelligence collection, anti-submarine warfare, and defensive counter-air and maritime strike.
3.12The KC-30A’s maximum payload for operations out of RAAF Base Learmonth is currently constrained due to the existing airfield infrastructure. As Defence explained at the public hearing:
At the moment, the KC-30 can operate from Learmonth, but it is limited in the amount of fuel that it can carry when operating from Learmonth. In the absence of facilities and infrastructure at Learmonth, it would either operate from RAAF Base Darwin, which is 2,000 kilometres to the north-east, or Perth international airport, which is 1,200 kilometres to the south.
3.13This constraint reduces the aircraft’s range, endurance and the fuel that can be off-loaded to receiver aircraft when conducting air-to-air refuelling operations. The proposed upgrades to RAAF Base Learmonth will increase base resilience and the airfield’s operational utility as the key node for air logistics and air-to-air refuelling operations in Australia’s north-west.
Options considered
3.14Defence undertook master planning, site investigations, stakeholder consultation, whole-of-life cost analysis and design development to establish the capital facilities and infrastructure works required to address the project need. Defence developed the following four options:
- Option 1 – Do nothing: This option would not undertake any upgrade works. Due to the age of the existing aircraft pavements, Defence would be required to undertake a comprehensive program of resurfacing works on all aircraft pavements, but without any improvement to the current operational constraints.
- Option 2 – In-budget: This option includes creating nodes for large wide-bodied aircraft at each end of the runway, a single bay parking apron for Code E aircraft with an in-ground hydrant refuelling point, taxiway widening and strengthening to access the new apron. This option would support KC-30A and other large aircraft transiting through RAAF Base Learmonth, however, operational constraints would remain due to runway strength and limited apron space.
- Option 3 – Minimum viable capability: This option includes strengthening of the runway, widening and strengthening of the parallel taxiway to support larger aircraft, an additional two-bay aircraft parking apron with in-ground hydrant refuelling points, and improved flood resilience. The upgrade to the parallel taxiway will enable it to be used as an alternate runway for military and civil aircraft up to the size of Boeing 737 (Code 4C) aircraft. This option will enable RAAF Base Learmonth to serve as the key node for air logistics and air-to-air refuelling operations within Australia’s north-west region.
- Option 4 – Enhanced resilience: This option includes all works listed in Option 3 and additionally the retainment of the proposed construction workers’ camp to function as additional transit accommodation at an area located away from existing operational areas which would enhance resilience.
- Defence’s preferred option is Option 3 as it meets essential capability requirements and aligns with immediate actions in response to the Defence Strategic Review.
Scope of the works
3.16At the public hearing, Defence explained the scope of the works:
The project proposes to upgrade critical infrastructure on the airbase. These upgrades will enable larger and heavier aircraft to operate from the airbase—in particular, the KC-30A Multi-Role Tanker Transport Aircraft. The proposed works include: strengthening and widening of the main runway and some key taxiways; strengthening of the parallel taxiway to be able to operate as a temporary runway for when the main runway is offline for maintenance or repairs; additional parking aprons for large military aircraft, including a new ordinance-loading apron and new air movements apron; upgrade of the airfield drainage network to allow continuous operations during storms events, up to a one-in-100-year flood event; upgrade of the airfield lighting, including new cabling across the airfield; and a temporary construction camp on the base to accommodate a workforce of up to 300 workers.
3.17Specifically, Option 3 includes the following elements:
- strengthening and widening of Runway 18/36 to support KC-30A operations
- strengthening and widening of the parallel taxiway to support KC-30A and to function as an alternate runway for Code 4C aircraft
- construction of new taxiways, as well as the strengthening and widening of existing taxiways, across the airfield to provide connection to new aircraft parking aprons
- construction of new aircraft parking aprons with in-ground hydrant refuelling points. These will support loading and unloading of cargo and explosive ordnance
- refurbishment of airfield lighting and new aircraft apron flood lighting
- relocation and compliance works across the airfield to increase flood resilience, including raising of the levee bank
- upgrades and extension to critical services and infrastructure, including potable water, fire water, sewer, power and roads.
- If savings are achieved through tendering or retiring risk provision, Defence proposes to also deliver:
- additional parking apron space to support the loading and unloading of cargo and explosive ordnance; and
- retention of the temporary construction workers’ accommodation facilities to meet the longer-term surge accommodation needs of the Base.
Potential impacts
3.19There are four identified Aboriginal heritage sites located near RAAF Base Learmonth. The works to build new aircraft parking aprons and taxiways may disturb undocumented Aboriginal and historic heritage values. It may not be possible to alter the works while meeting capability requirements. This would necessitate the relocation of artefacts with the co-operation of Traditional Owners. At the public hearing, Defence explained this process:
…we have engaged specialist heritage consultants to undertake surveys of the proposed development areas. A lot of the project site is being built over existing infrastructure, so it's over the existing runway or over the existing taxiway networks. That obviously limits those impacts, but there are Greenfields elements to the works. So those heritage surveys focused on those Greenfields areas. They found very minor instances of Aboriginal archaeological sites, which didn't meet the Commonwealth Heritage List criteria, but they're still worth noting. The plan moving forward is that we will continue to engage with traditional owners about how we capture those artefacts and how we correctly catalogue and store them, to align with their cultural heritage requirements. The contract will also be required to establish and maintain an unexpected finds protocol throughout the works, which will be supported by the traditional owners. There is also the requirement by the contractor to undertake cultural awareness training of staff before they commence works so that they're able identify any unexpected finds that might occur.
3.20The works may have a hydrological impact on the Cape Range subterranean waterways due to water abstraction during construction. The Cape Range subterranean waterways may support populations of subterranean fauna that have significant conservation value. Hydrological impact surveys and underground habitat surveys are being progressed, but the initial assessment is that the risk is low. The project will not exceed current water extraction limits and habitats are primarily in the lower aquifer levels where the bores draw water from elevated aquifer levels.
3.21The Shire of Exmouth operates a terminal on the eastern side of the runway that supports commercial passenger transport and general aviation. The runway works will impact civil aircraft operations, requiring runway closures at times. This has the potential to impact the local economy. Defence has held preliminary discussions with the Shire, the airport operator and Qantas, and does not anticipate the works to disrupt scheduled services.
3.22The project is anticipated to require a peak Fly-In-Fly-Out (FIFO) workforce of around 300 people. The FIFO workforce will be accommodated in a temporary camp on the base to minimise any adverse impact upon the community, given the limited availability of short-stay accommodation in Exmouth.
Community and stakeholder consultation
3.23Defence consulted with the following stakeholders:
- The Member for Durack – The Honourable Melissa Price MP
- The Shire of Exmouth Chief Executive Officer – Mr Ben Lewis
- The Representative for North West Central – Ms Merome Beard MLA
- The Nganhurra Thanardi Garrbu Aboriginal Corporation who are the Traditional Owners for the lands occupied by RAAF Base Learmonth
- The Exmouth Chamber of Commerce representing Local Businesses
- QANTAS which operates daily services to and from RAAF Base Learmonth for the Exmouth community
- The Royal Flying Doctor Service which relies on RAAF Base Learmonth to operate medical evacuation and emergency responses.
- Defence advertised community information sessions in relevant local newspapers in the North West and Pilbara regions and held one community information session on 19 December 2023 in Exmouth, Western Australia. This session was attended by 3 members of the State Government, 1 representative from the CEO Chamber of Commerce and 9 local residents. Information about the proposed works was well received at the community information session and Defence has not been made aware of any objections to the proposed works.
- Key points raised included:
- Impact of project works on the operation of the RAAF Base Learmonth civilian airport and availability of flights.
- Accommodation arrangements for the construction workforce.
- Impact on local tourism.
- Construction material and fuel transportation to the site.
- Opportunities for local industry participation in the proposed works.
- At the public hearing, Defence provided the following information about how they had addressed community concern over accommodation arrangements for the construction workforce:
… the community was particularly interested in how the workforce would be accommodated over the works. There was a lot of concern around the temporary housing accommodation in Exmouth, particularly as that contributes to their significant economic driver being tourism. The project was able to provide details regarding the onsite construction camp, and this assisted in alleviating some of those concerns. They also had concerns regarding the civilian operations on the airfield and the ability for people to visit the town. The plan to upgrade the parallel taxiway to a temporary runway provided a lot of assurance for them that that economic driver could continue.
Cost of the works
3.27The estimated total capital out-turned cost of the Project is $662.2 million (excluding Goods and Services Tax). This cost estimate includes project management and design fees, construction, information and communications technology, furniture, fittings, equipment, contingencies and a provision for escalation.
3.28There will be an increase in ongoing operating and sustainment costs of $6.3 million per annum resulting from the proposed works. This is due to the increase in infrastructure elements at RAAF Base Learmonth that require maintenance. At the public hearing, Defence provided details on the nature of these ongoing operational costs:
The ongoing works include maintaining the runway service to check it for cracks and joint sealing during the life of the airport; remarking the airfields and runways as required; removal and inspection of general debris and fallen objects; inspection of the drainage systems, including cleaning and CCTV works; regular inspections of the aeronautical ground lighting, AGL, to ensure it's working correctly and as needed; and regular maintenance and upkeep of the fuel systems and the building.
3.29An Early Contract Involvement Head Contractor has been engaged for the development phase to provide input to the design, construction schedule and cost. The contractor will be extended to deliver the works under a Head Contract, subject to a value for money assessment of their cost proposal. The Head Contract form of delivery provides the Commonwealth with direct control over the design and quality of the Project. This delivery methodology will also help promote opportunities for small to medium enterprises in construction.
3.30Defence provided further details on project costings in their confidential submission and during an in-camera hearing. The Committee is satisfied with the rationale underpinning the project costing.
Revenue
3.31There will be no revenue generated by the project.
Public value
3.32The project will fulfil strategic Defence requirements, enhancing the capability and resilience of the ADF in the north of Australia.
3.33Project expenditure will support the broader Australian economy and in particular the construction and services sectors within the Shire of Exmouth and surrounding regions.
3.34The project will employ a diverse range of consultants, contractors and construction workers, and is expected to generate opportunities for up-skilling and job training to improve individual skills and employability on future projects.
3.35The Head Contractor will promote opportunities for small and medium sized local enterprises through construction trade packages. The Head Contractor will develop a Local Industry Capability Plan and an Indigenous Participation Plan to detail how it will engage with and maximise opportunities for local industry and Indigenous businesses on the Project, while providing value for money to the Commonwealth. At the public hearing, Defence provided information about their local industry participation targets:
…the current local industry participation target set by CPB is 36 per cent for the Gascoyne region and a further 61 per cent for the remainder of Western Australia. So that brings it to 97 per cent across the state of Western Australia. But we are going to provide a workers construction camp on the base because the contractor anticipates the majority of the workforce will be a fly-in fly-out workforce—that's the day-to-day workforce. However, wherever possible, suppliers will come from the Gascoyne region.
3.36Defence also provided information about how they balance their Indigenous Participation Plan with value for money:
We follow the Commonwealth Indigenous Procurement Policy for all of our projects. The minimum mandatory requirement on our projects is a minimum four per cent target for a combination of Indigenous employees and Indigenous businesses providing goods or services to the projects. So, in this instance, CPB has nominated a minimum target of four per cent of the workforce to be Indigenous and a minimum of two per cent through direct engagement and purchases with Indigenous companies. So that's a little bit above the four per cent minimum. However, when it comes to value for money…what the contractor will do is look at what Indigenous businesses are available in the local area. If there's more than one then there will be a competitive bidding environment set up. Also, whatever price we receive from Indigenous businesses will be compared to the cost plan that is prepared by, in this instance, WT Partnership. They prepare a very detailed cost plan for us. The contractor, CPB, will also prepare their own cost plan. So we have a pre-tender estimate—let's call it that. That is prepared, and that estimate will then be compared to the price that we receive or that the contractor receives from the Indigenous business to determine whether or not the price they put forward does offer value for money to the Commonwealth.
3.37Defence states they are committed to ecologically sustainable development and reducing greenhouse gas emissions and will implement the following sustainability conscious measures:
- Design items which reduce energy and water use (LED fittings to replaces halogen fittings for airfield lighting, passive design for acoustic shelter, natural ventilation for the switch room)
- Re-use of existing structures (the Airport Lighting Equipment Room will be retained)
- Re-use of waste products (reclaimed asphalt will be re-used in new pavement layers of as quality fill in earthworks).
Committee comment
3.38The Committee did not identify any issues or concerns with the proposal, and it is satisfied the project has merit in terms of need, scope, and cost.
3.39The Committee recognises the importance of these works in supporting the seven KC-30 aircraft in the Royal Australian Airforce and their force multiplier effect.
3.40The Committee understands that Option Three is the preferred option for this project, but that Defence will deliver the below-the-line options to retain the temporary accommodation in the event of cost reductions or the retirement of risk provisions. The Committee supports this, as this will increase the longevity of the site, given the limited accommodation currently available in the region.
3.41The Committee understands Defence will endeavour to provide opportunities for local organisations, including Indigenous businesses, while also ensuring value for money, and commends them for their pragmatic approach.
3.42The Committee appreciates that the airfield is primarily a RAAF base, and that commercial and private use of the airport is limited (Qantas currently operates two flights from Perth each weekday and one each weekend day). Flight disruption to the broader community during the construction period will be minimal.
3.43Having regard to its role and responsibilities contained in thePublic 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.
3.44The Committee recommends that the House of Representatives resolve, pursuant to section 18(7) of thePublic Works Committee Act 1969, that it is expedient to carry out the following proposed works: Department of Defence — RAAF Base Learmonth Redevelopment Enabling KC-30A Operations, Exmouth, Western Australia.
3.45Proponent entities must notify the Committee of any changes to the project, scope, time, cost, function, or design. The Committee also requires that apost-implementation report be provided within three months of project completion. A report template can be found on the Committee’s website.
Mr Graham PerrettMP
Chair