Medium Range Anti-Armour Weapon
Project purpose and history
The purpose of this project was to acquire the Javelin "fire and forget" Medium Range Anti-Armour Weapon to negate threats from tanks and armoured vehicles at a distance of several kilometres.
The 2002 LTDP noted the need for a medium range anti-armour weapon to protect land forces from armoured threats. Cabinet granted Approval to Commence in December 2002 for a sole-source acquisition of this weapon (Javelin) through the United States Foreign Military Sales process. The Ministry started to negotiate with the United States Army in January 2003.
Approval to Commit was sought and obtained in December 2003, with Cabinet noting that the estimated cost had increased from the Approval to Commence point because of a previous reliance on 1998 cost estimates. At the Approval to Commit point, the cost of the project was estimated to be $23.9 million.
There were two separate Foreign Military Sales agreements for the project. The first agreement was signed in December 2003 and covered the purchase and delivery of missile launchers, ammunition, and basic training and support equipment. Delivery was scheduled for July 2006 (31 months after the contract was signed). The second agreement covered the delivery of Javelin simulator equipment, training materials, and special tools. This was signed in June 2004, with delivery scheduled for January 2007 (31 months after the contract was signed). There was an intention to negotiate a third agreement for comprehensive maintenance support, but this was eventually deemed to be prohibitively expensive. Instead, additional spares were purchased.
Cost and time frame changes for the Medium Range Anti-Armour Weapon project
Costs and time frames at the Approval to Commence and Approval to Commit points, and figures forecast as at December 2007
| Approval to Commence point | Approval to Commit point | Ministry's December 2007 forecast to the Committee | |
|---|---|---|---|
| Cost (excluding GST) |
$21.5m 1 | $23.9m | $23.9m |
| Time frame | Mid-2004 2 | Mid-2006 | All equipment except the missiles were delivered in the second half of 2006, with the missiles delivered in October 2007 |
Sources
- We use the figure from the Cabinet approval of 9 December 2002. The Ministry uses the $10 million to $22 million range from the 2002 LTDP.
- The Ministry uses the 2004 LTDP for the Approval to Commence delivery timing (mid-2006) and the 2002 LTDP for the cost reference. The original Cabinet approvals do not give a time frame. Supporting papers for the Cabinet approval say that the acquisitions should ideally take place in the 2003/04 year, to coincide with the new Light Armoured Vehicle. Therefore, we use the end of June 2004.
Changes to costs and time frames as the project has progressed
| Approval to Commence point to the Approval to Commit point | Approval to Commit point to the Ministry's December 2007 forecast | Total change between the Approval to Commence point and the Ministry's forecast | |
|---|---|---|---|
| Cost (excluding GST) |
+$2.4m | 0 | +$2.4m |
| Time (months) | +24 1 | +16 2 | +40 |
Explanatory notes
- We have had to assume the difference between the Approval to Commence point (mid-2004 - so we use the end of June 2004) and the Approval to Commit point (mid-2006 - so we use the end of June 2006).
- We have had to assume the difference between the Approval to Commit point (mid-2006 - so we use the end of June 2006) and the Ministry's December 2007 forecast (delivered October 2007 - so we use the end of October 2007).