This audit would examine the effectiveness and value for money of the Department of Defence’s (Defence’s) procurement process for the proposed long-term contract for the operation of the propellant facility at Mulwala and the munitions facility at Benalla. The audit would also follow up on Defence’s implementation of a 2016 ANAO recommendation that Defence develop a cost-effective implementation plan for the future operation of the facilities.

The Mulwala and Benalla facilities provide propellant, explosives and munitions to the Australian Defence Force. The Mulwala facility was redeveloped between 2007 and 2015 at a cost of over $415 million.