🇦🇺Australia

EVMS Assurance Failures

2 verified sources

Definition

Project managers conduct assurance; non-implementation for required contracts triggers reviews and potential contractual remedies[1][2].

Key Findings

  • Financial Impact: AUD 50k-200k per failed EVMS review (typical contract dispute costs)
  • Frequency: Per contract milestone/audit
  • Root Cause: Lengthy validation processes and disbanded EVM Directorate post-2005

Why This Matters

The Pitch: Australian defence suppliers risk AUD 100k+ penalties per audit failure on EVMS. Automated compliance tools secure full payments.

Affected Stakeholders

Compliance Officers, Senior Executives

Deep Analysis (Premium)

Financial Impact

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Current Workarounds

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Methodology & Sources

Data collected via OSINT from regulatory filings, industry audits, and verified case studies.

Evidence Sources:

Related Business Risks

Cost Overrun from EVMS Non-Compliance

AUD 1m+ overruns per $20m+ contract (industry standard 5-10% variance loss)

Decision Errors from Delayed EVMS Data

AUD 20-40 hours/month manual reconciliation + 2-5% budget impact from delayed decisions

Procurement Delays and Cost Escalations

AUD 16-21B allocated over decade with delays risking 10-20% overruns; individual projects like 155mm munitions paused costing millions in sunk tender efforts

Idle Capacity from Compliance Bottlenecks

AUD 5-10M per year in idle equipment for mid-tier firms; targets 15,000 rounds/year delayed to 2028

Export Control Permit Breaches

AUD 100,000+ per breach in fines; 20-40 hours/month in permit delays per project

Compliance Ambiguities & Red Tape

AUD 50,000-150,000 per large project in extended liability and admin costs

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