On 29 June 2018 the Australian Government announced the selection of BAE’s Global Combat Ship – Australia as the design for the Hunter class frigate program. The government planned to build nine new frigates in three batches at Osborne, South Australia.

This is the latest in a series of audits on the Department of Defence’s (Defence) naval shipbuilding program. It provides independent assurance to Parliament on Defence’s procurement, decision-making and advising, contracting, and delivery to date.

The audit found that Defence’s management to date of its procurement of Hunter class frigates has been partly effective. Defence’s procurement process and related advisory processes lacked a value for money focus, and key records, including the rationale for the procurement approach, were not retained. Contract expenditure to date has not been effective in delivering on project milestones, and the project is experiencing an 18-month delay and additional costs due in large part to design immaturity.