New icebreaker not value for money

The purchase of a replacement icebreaker for the Australian Antarctic Division has not represented value for money for the taxpayer.

The Australian National Audit Office has slammed the federal environment department's procurement process.

It says it is largely non-competitive and significantly greater than the current chartering costs for the Aurora Australis which is approaching the end of its usable life.

"The department therefore can not demonstrate that its procurement is providing value with public resources," the audit report said.

The report said the total cost of the replacement icebreaker project in April 2016 was $1.912 billion over the next 34 years.

This included $529 million for the design and construction of the replacement vessel, which is expected to arrive in Australia in mid-2020.

Initially, there had been two tenderers but one withdrew before the tender closed.