The Morrison Government has approved a new approach to tackle massive cost blowouts in the procurement of new vessels and equipment by the Royal Australian Navy.
A government spokesperson said the new purchasing system would end uncertainty over the cost of major new naval vessels and the timing of their delivery.
Significant cost escalations and delivery delays were identified by a $3 million review conducted by the international Boston Consulting Group which reportedly recommended major changes to procurement processes for naval vessels including the RAN’s proposed new $90 billion submarine fleet, new frigates worth $45 billion, and a planned new fleet of offshore patrol boats.
“The latest news stories on the cost increases and delivery delays forced us to act swiftly,” the government spokesperson said. (pictured)
“We called in the RAN’s top brass and asked them to come up with a workable solution, and fast.
“They’ve come back to us with the idea of using the online marketplace website Gumtree for all current and future procurement programs. (main picture)
“It’s a brilliant solution and one that makes you think why it has never been thought of before.
“We now hope to see real savings for taxpayers and early delivery of all the vessels we’re seeking to acquire.”
As a result of the probe by the Boston Consulting Group the head of procurement for the RAN, Commodore Holden Calais (pictured), was stood down this week and ordered to take leave pending a full audit of major acquisition programs, especially the Adelaide-based submarine building project.
He could not be contacted at what The Bug was told was his recently acquired villa outside Paris.