The Australian National Audit Office (ANAO) examined the procurement process conducted by the Australian Department of Defence (DoD) in its performance audit report titled “Defence’s Procurement of Infantry Fighting Vehicles (LAND 400 Phase 3),” published on March 30, 2026. The audit results for the LAND 400 Phase 3 project characterized the project’s management style and decision-making mechanisms as “partly effective.”
Deviation from Strategic Objectives and Technical Risks
The audit findings revealed that the Department of Defence deviated during the process from its initial strategy of procuring a low-risk, “mature and proven” off-the-shelf platform. The report explained that the preferred AS21 Redback platform possesses a “developmental” nature, requiring significant design and integration work. Furthermore, it stated that the high technical risks accompanying this situation were not sufficiently emphasized in the documents presented to decision-makers. The impact of these high technical risks on the project is highlighted as a significant detail within LAND 400 Phase 3. Additionally, it was noted that inconsistencies occurred in the analysis of cost and risk factors during the tender evaluation phase. Moreover, specific deficiencies were recorded in the cost calculations of the selected bid.
129 Redbacks and Delivery Schedule
Within the scope of the program planned to replace the veteran M113 armored personnel carriers in the Australian Army inventory, the procurement of a total of 129 AS21 Redback infantry fighting vehicles developed by Hanwha Aerospace is foreseen. The LAND 400 Phase 3 program also plans for these vehicles to be produced at local facilities in the Australian state of Victoria. Furthermore, the army aims to achieve “Initial Operational Capability” (IOC) by 2027-2028. Following strategic reviews, the updated project cost is expected to be between 7 and 11 billion dollars. In conclusion, it is emphasized that the LAND 400 Phase 3 project is of critical importance for the Australian defense industry.
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Source: C4Defence– ANAO
