5 This audit examined the effectiveness of the Department of Defence’s (Defence) procurement of Hunter class frigates to date and the achievement of value for money through Defence’s procurement activities.ĥ. The audit builds on previous Auditor-General work on Defence’s acquisition and sustainment of Navy ships and implementation of the Australian Government’s 2017 Naval Shipbuilding Plan, to provide independent assurance to the Parliament on Defence’s planning, procurement, decision-making and advising, contracting and delivery of the Hunter class frigates to date. 3 Rationale for undertaking the auditĤ. The acquisition of nine Hunter class frigates is a key part of the Australian Government’s substantial planned expenditure on naval shipbuilding and maritime capability 4 and contributes to the ongoing capability of the Australian Defence Force. The Australian Government’s 2020 Force Structure Plan publicly reported that the cost of the Hunter class frigates was $45.6 billion out-turned. 2ģ. Construction of the Hunter class frigates is part of the Australian Government’s continuous naval shipbuilding program intended to develop sovereign Australian shipbuilding and sustainment. The Hunter class will begin entering service in the late 2020s replacing the eight Anzac Frigates, which have been in service since 1996. This $35 billion program will create 4,000 Australian jobs right around the country and create unprecedented local and global opportunities for businesses large and small. The Future Frigates, named the Hunter class, will be built in Australia, by Australians, using Australian steel. The frigates, to be designed by BAE Systems and built by ASC Shipbuilding, are central to our plan to secure our nation, our naval shipbuilding sovereignty and create Australian jobs.īAE’s Global Combat Ship – Australia will provide our nation with one of the most advanced anti-submarine warships in the world – a maritime combat capability that will underpin our security for decades to come. 1Ģ. On 29 June 2018, the Australian Government announced the outcome of the competitive evaluation process, which had assessed designs by three shipbuilders: The future frigates will be built in South Australia following completion of a Competitive Evaluation Process. A continuous build of the Navy’s future frigates will commence in 2020. The Government is bringing forward the future frigate program to replace the Anzac Class frigates. The 2016 Defence White Paper stated that:
1. The Royal Australian Navy (the Navy) currently has eight ANZAC class frigates.
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