Treasury's Major Projects Report released yesterday is a mixed bag for defence.
http://www.treasury.govt.nz/statese...ublications/majorprojects/pdfs/mppr-jun15.pdf
Of most interest is the FAMC project which has moved to an adverse status of delivery confidence of mixed red/amber. The reporting date was until the end of June and it seems that this project was going along swimmingly until in mid June Qatar bought 4 of the 5 last C-17A's. An amber light or mixed amber/green at that stage obviously went to amber/red.
The agency (MoD) and Treasury assessments were positive until that point. It was an open secret that the C-17 was the front runner FAMC as part of the strategic component and that it was the keystone in the capability planning.
The MPR notes that:
"There is a risk that alternatives to C-17s cannot be explored effectively in a reduced timeframe. Defence’s bringing forward of decisions on Future Air Mobility
Capability will also likely have a significant impact on achievability of the Defence Capital Plan.
The MoD notes:
The current focus of the project is supporting the consideration of the Boeing C-17 aircraft, including support, training and introduction into service should procurement proceed. Consequently resources are committed to the C-17 effort at the expense of the routine progression of Future Air Mobility project outputs. Whilst C-17 would meet the strategic element of the Future Air Mobility Capability, it will not satisfy all airlift requirements. Other aircraft will be needed, particularly
for tactical missions and also to provide concurrency. The composition of the balance of the fleet will be further considered once a decision on C-17 is reached. As current aircraft could continue to operate into the 2021 – 2025 period, there is ample time to allow this. Should the decision be made not to proceed with C-17
at this time, consideration of the strategic component of future airlift will revert to the overall project time-frame.
So the project is now at amber / red status and the fact that 5 months later from the end of the reporting period to yesterdays publication that the powers that be have not expunged the C-17 from the record - that it has not entirely gone to Red status must mean that not all hope has been given up. There are options to explore and I have a feeling those options will be given an airing first before being ruled in / ruled out and having to move onto other options.