Australia's air force chief ticked off on a $16bn Joint Strike Fighter program clearing a major milestone despite acknowledging "deficiencies" with the aircraft and support systems.
The defence department has also revealed that a much-trumpeted upgrade to the Jindalee Operational Radar Network is running "several years" behind schedule, a year after the Morrison government announced plans to expand surveillance of Australia's eastern approaches.
The disclosures follow moves by the defence minister, Peter Dutton, to dump the trouble-plagued MH90 Taipan helicopters early and replace them with Black Hawks from the US in coming years.
A detailed new report on Australian's defence acquisitions outlines problems with other major projects, including the Joint Strike Fighter program.
Australia is acquiring 72 F-35A JSF aircraft to replace the F/A-18A/B Hornet. Forty have already arrived with the final ones expected to be delivered by late 2023.
The then defence minister, Linda Reynolds, announced last December that the F-35A fleet had "accomplished all the required testing and materiel delivery" to declare an "important milestone" known as Initial Operational Capability (IOC).
When she announced the "remarkable" achievement on 28 December, Reynolds described them as "the most advanced, multi-role stealth fighter in the world".
However a new major projects report - released by the Australian National Audit Office (ANAO) and which compiles information supplied by the defence department - added a note of caution about known "deficiencies".
"The capability manager declared IOC on schedule acknowledging a number of known acceptable deficiencies with the aircraft and support systems," said the report, tabled in parliament this week.
The chief of the air force, Air Marshal Mel Hupfeld, is listed as the capability manager for the Joint Strike Fighter program.
The report said this was "not unusual for capabilities being introduced into service". It said the joint strike fighter "continues to track toward" achieving another key milestone - final operating capability - in 2023.
"Delivery of aircraft remains largely in line with the capability manager's expectation. Aircraft availability remains a concern, however, the fleet is currently able to generate sufficient flying hours to achieve all essential tasking."
Guardian Australia has asked defence to clarify the nature of the "deficiencies" and how they can be considered "acceptable".
The total approved budget for the Joint Strike Fighter program is $15.6bn, with military giant Lockheed Martin contracted to the US government to develop and produce the aircraft.
Australia is one of the JSF's "partner" members, alongside the United Kingdom, Canada, Italy, Denmark, Norway and the Netherlands.
The report describes the program as "large and complex with varying challenges", including that Australia is reliant on the international JSF arrangements.
It notes the Covid-19 pandemic "has increased the uncertainty and complexity of delivery of the F-35 Program", with travel restrictions "limiting the ability of US-based staff to install specialist equipment in Australia and for Australian and US staff to conduct verification and validation activities".
The major projects report also warns of delays to the $1.1bn upgrade of a long-range "over-the-horizon" radar network.
The Jindalee Operational Radar Network (Jorn) supports the Australian defence force's air and maritime operations, including search and rescue, while also providing "strategic surveillance".
The upgrade includes plans to modernise the command and control system at the Royal Australian Air Force base in Edinburgh, South Australia and three radar sites at Longreach in Queensland, Laverton in Western Australia and Alice Springs in the Northern Territory.
The reports says the upgrade project has "experienced persistent lag" in delivering the systems engineering program, mainly due to underestimatng how complex it would be. These delays are "considered unrecoverable".
The upgrade was meant to be complete by 2029, but the dates of all of the key milestones are now listed as "to be advised".
The report said the contractor, BAE Systems Australia, had delivered new plans to the government in April and these were currently being evaluated. "However, the delays are anticipated to be several years," it said.
The government announced last year that it was expanding the Jorn site in Longreach, Queensland "to provide wide area surveillance of Australia's eastern approaches and enhance Australia's strategic situational awareness".
Defence has been asked to clarify the length of the expected delays, and whether they would have any implications for the government's surveillance announcement.
The report also confirms delays to the $6bn future frigates program.
The ANAO said delivering major projects on schedule continued to "present challenges" for defence.
It said $58bn was the total value of the 21 defence major projects covered in this year's report, with five of those experiencing "slippage" - or delays - in the schedule.
"Total schedule slippage for the Major Projects, as at 30 June 2021, was 405 months when compared to the initial schedule. This represents a 23 per cent increase since Second Pass approval," the ANAO said.
Labor defence spokesperson, Brendan O'Connor, and assistant shadow minister, Pat Conroy, blamed the government's "revolving door" of defence ministers.
"With six defence ministers in eight years - and four defence ministers under prime minister Morrison alone - it is clear that the government is comprehensively mismanaging billions of dollars of acquisitions that ADF personnel need to carry out their missions," O'Connor and Conroy said.
Last week's move to scrap the Taipans was the second major project scrapping on Dutton's watch, after plans for French-designed conventional submarines were axed in September. A major difference, however, is that these helicopters are already in service.
