Chapter Four > Approved Major Capital Equipment Program > Top 20 projects by 2003-04 Expenditure

Approved Major Capital Equipment Program (+$286.6m)

Top 20 projects by 2003-04 Expenditure

Airborne Early Warning and Control

Achieved

Prime contractor: The Boeing Company (United States)

This project will provide Defence with an airborne early warning and control capability, with the provision of six aircraft and associated supplies and support. The contract was signed with The Boeing Company in December 2000 for four aircraft, with an option for an additional two aircraft. The option for an additional two aircraft was agreed in June 2004. Modification of the last four aircraft will take place in South-East Queensland. The project remains on schedule and on budget, with a planned in-service date of 2007.

The first Boeing 737 commenced modification activity in January 2003 and the second in May 2003. The first aircraft flew in May 2004 and commenced certification testing. The second aircraft is undergoing modification and will begin mission system testing in early 2005. The critical design reviews for the mission support segments and mission simulators were completed successfully in late 2003 and Build 5 of the mission computing software entered testing in April 2004. Construction of the squadron headquarters building commenced in May 2003 and was completed in February 2004.

The 2003-04 actual spend exceeded the 2003-04 revised estimate due primarily to a payment required on contractual acceptance of the option to procure an additional two aircraft.

This project contributes to Air Force capability.

Armed Reconnaissance Helicopter

Substantially Achieved

Prime contractor: Australian Aerospace

The new armed reconnaissance helicopter is the most advanced helicopter of its type in the world and will be a huge boost to the Army's capability. The helicopter is a very sophisticated weapons platform and will be used in operations as part of a combined arms team.

This project will provide Defence with 22 Tiger armed reconnaissance helicopters, a training system including simulation devices for aircrew and maintenance personnel, a software support facility and a ground mission management system. The first two interim configuration helicopters are planned to enter service in Australia from December 2004.

The project remains on schedule to achieve the in-service date. Of the four helicopters to be produced in France, the first helicopter is undertaking pre-certification flight testing, the second is in ground test phase, with the remainder on schedule to meet their delivery dates. Production in Australia is also on schedule, with four airframes now under assembly in Brisbane, Queensland.

Initial operational capability is expected to be achieved on schedule by June 2007. Full operational capability is expected to be achieved by December 2008.

Actual expenditure was lower than the 2003-04 revised estimate, due to the delayed delivery of contract milestones primarily associated with aircrew training devices, ground mission equipment and through-life support measures.

This project contributes to Army capability.

top of page

F/A-18 Hornet Upgrade

Substantially Achieved

Prime contractor: The Boeing Company (United States)

This project will upgrade the F/A-18 fleet to incorporate enhancements that will allow the aircraft to perform its air defence tasks more effectively.

The fleet was provided with new radars and upgraded mission software in August 2003 under Phase 2.1.

Phase 2.2 is an avionics upgrade that will increase the situational awareness of the pilot in the air combat role. It involves integration of colour cockpit displays, a digital moving map capability, a Link 16 data link, a helmet mounted cueing system and a new countermeasures dispensing set. Two prototype aircraft were inducted for modification work in June 2004 and Phase 2.2 upgrades remain on schedule with completion due by December 2007. A contract for the provision of the Hornet aircrew training system was signed in May 2004.

Phase 2.3 is the upgrade of the electronic warfare self-protection suite, including a new radar warning receiver, electronic jammer and additional expendables capacity for the countermeasures dispensing system. Options assessments for this phase were progressed on schedule.

The financial outcome was less than the 2003-04 Budget estimate, but higher than the revised estimate. The variations were due to rescheduling of foreign military sales payments and delays in awarding the colour cockpit displays program.

This project contributes to Air Force capability.

Anzac Ship Helicopter

Substantially Achieved

Prime contractor: Kaman Aerospace International Corporation

This project will acquire 11 maritime combat helicopters for the Anzac-class frigates, providing an enhanced capability for surface surveillance, anti-ship warfare and contact investigation. The acquisition includes a full mission flight simulator and software support centre.

Ten of the 11 Super Seasprite maritime combat helicopters are now in Australia, with one helicopter remaining in the United States for ongoing flight tests. Five helicopters have been provisionally accepted. Provisional acceptance of the helicopters with a basic suite of software has allowed the commencement of flight trials and initial squadron training in preparation for the final release of software, which will enable full combat capability after 2004-05. Full mission software ground integration testing is now well advanced and is expected to be ready for flight tests in the first half of 2005.

Full Mission Flight Simulator and Software Support Centre is planned for acceptance in late 2004-05.

The project achieved its 2003-04 revised estimate.

This project contributes to Navy capability.

top of page

P-3C Update Implementation

Substantially Achieved

Prime contractor: L-3 Communications Integrated Systems

This project will provide the Air Force with an improved information gathering capability through the updating of the P-3C avionics system and associated suite of support facilities.

The P-3C Avionics Update project will ensure the effectiveness of the P-3C Orion fleet until the planned withdrawal date of 2015. Under this project, the radar, acoustic system, data management system, navigation and communications equipment are being replaced with integrated systems.

The project has remained on schedule with 14 (of a total of 18) updated AP-3C aircraft now accepted. The remaining four production aircraft are scheduled for progressive delivery by December 2004. The deployable mission replay analysis module and the systems engineering laboratory have been accepted. A number of long lead time spares purchases are yet to be delivered.

The project did not achieve its 2003-04 revised estimate due to delays in anticipated down payments for spare parts ordered from manufacturers and contractor delays in delivering radar spare parts.

This project contributes to Air Force capability.

Anzac Ship Project

Achieved

Prime contractor: Tenix Defence

This project involves delivery of 10 ships, associated shore facilities and logistic support. Two of the 10 ships (02 and 04) were built for the Royal New Zealand Navy. The primary roles of the Anzac-class ships are surveillance and patrol, naval gunfire support for our forces, protection of shipping, disaster relief and search and rescue. Eight ships have been delivered and are in service with the Royal Australian Navy and the Royal New Zealand Navy. Delivery of Ship 08 (Ballarat) occurred in April 2004 ahead of schedule at the request of Tenix Defence and with Government approval. Plans for the other ships remain on schedule with Ship 09 (Toowoomba) and Ship 10 (Perth) planned for delivery in the third quarter of 2005 and the second quarter of 2006 respectively.

Expenditure for 2003-04 was in line with the revised estimate.

This project contributes to Navy capability.

top of page

FFG Upgrade Implementation

Substantially Achieved

Prime contractor: ADI

This project seeks to regain a comparative regional capability for Adelaide-class guided missile frigates (FFGs) and ensure that they remain effective and supportable to the end of their life. The FFG upgrade will improve the anti-ship missile defence and air surveillance capabilities of the ships. An overall schedule delay of up to 24 months has been mutually agreed between the Commonwealth and the prime contractor, ADI.

A contract change was signed in April 2004 for a revised schedule that includes incentives for delivery in a range of not more than 18-24 months later than the original contracted delivery date.

ADI commenced the installation/production phase of the upgrade at its Garden Island facility with the Commonwealth handover of the lead ship (HMAS Sydney) in September 2003. Contractor delivery of the lead ship is now rescheduled for the third quarter of 2005, which is still within the contracted date. The upgrade is scheduled to conclude with the delivery of the upgraded HMAS Darwin by 2008.

As a result of the Defence Capability Plan decision to remove the two oldest guided missile frigates from service from 2006 when the last of the new Anzac-class frigates is delivered, these two ships will no longer be considered for upgrade under this project. The cost impact of this decision is still to be finalised. Savings will be realised from annual operating costs for spare parts, fuel, maintenance and other running costs, whilst other cost savings will be made under the current prime contract. The contract savings will need to be negotiated with the prime contractor, given it is a fixed price arrangement.

The expenditure for 2003-04 was overestimated.

This project contributes to Navy capability.

Collins-Class Submarines Replacement Combat System

Partially Achieved

Prime contactors: Foreign military sales with the United States Government, as well as Raytheon Australia, Thales, Sonartech Atlas and the Australian Submarine Corporation.

This project is to provide a replacement combat system for the Collins-class submarines. This will contribute to the development of the submarines' full capability, in conjunction with other phases of the project that implement a program of modifications and enhancements to the submarine platform.

Acquisition of initial sets of the United States Navy tactical command and control system is progressing satisfactorily under a foreign military sales case. A Memorandum of Understanding will be signed with the United States Navy during 2004-05 to transition the acquisition to an Armaments Cooperative Project that also establishes a joint development process for the system.

All four major Australian-based supply contracts are now in place and progressing satisfactorily. Installation contracts with the Australian Submarine Corporation will be placed progressively to align with submarine docking availabilities.

The supply contracts were established later than planned and this has resulted in delayed expenditure against the budget estimate for 2003-04, but was in line with the revised estimate.

Installation of the first replacement combat system is planned for 2006, with all submarines planned to be upgraded by the end of 2010.

This project contributes to Navy capability.

top of page

Maritime Operations Support Capability

Achieved

Prime contractor: Design and modification contract not yet let

This project will replace HMAS Westralia with a commercial double-hull auxiliary oiler, which will be modified in Australia by 2006-07. The ship will be modified so that it has the latest technology and equipment capable of refuelling a range of Navy vessels, including the Anzac and Adelaide-class frigates and the new air warfare destroyers that will enter into service from 2013.

Teekay Shipping (Australia) Pty Ltd was contracted in January 2004 to assist Defence in identifying a ship suitable for purchase and modification for operation as a naval oiler. Australian Marine Technologies Pty Ltd was also contracted in January 2004 to assist in the assessment of the suitability of double-hull product tankers identified by Teekay Shipping for modification to meet the Navy's replenishment requirements.

During May-June 2004, Defence purchased a commercial double-hulled, environmentally sustainable oil tanker, built in the Republic of Korea by Hyundai Mipo Dockyard Company. Australia took delivery of the ship on 17 June 2004. A competitive contract will be let for the design and modification of the ship.

In order to maximise the ability to support the modified ship, the modifications, including design, integrated logistic support data development, and production, are planned to be conducted in Australia starting in 2004-05.

This project contributes to Navy capability.

Collins-Class Submarine Sustainability and Reliability Improvements

Partially Achieved

Prime contractor: Australian Submarine Corporation

The project consists of a large number of individual platform improvements to the Collins-class submarines. A number of individual modifications are being conducted in HMA Ships Collins and Farncomb during their current full-cycle dockings.

Contracts have been placed for design of the first two new major issues to be addressed; the Special Forces modifications and the sewerage system automation. First implementation of the special forces modifications is planned for HMAS Collins in early 2005.

Planned expenditure for the year was not fully achieved because of competing priorities relating to other Defence work being carried out by the Australian Submarine Corporation. However, expenditure was in line with the revised estimate.

This project contributes to Navy capability.

top of page

Evolved SeaSparrow Missile

Achieved

Prime contractor: NATO SeaSparrow Consortium

The Evolved SeaSparrow Missile has been selected as an element of the anti-ship missile defence system for the Anzac-class frigates and Adelaide-class guided missile frigates (FFGs) under their upgrade program.

This project will continue to incorporate the Evolved SeaSparrow Missile capability into Navy service. Progressive missile deliveries commenced in 2003, and will continue throughout 2004 and subsequent years. Anzac-class ships Warramunga, Stuart, Ballarat and Parramatta have been fitted with the Evolved SeaSparrow missile system. The remaining two Anzac ships under construction are being modified to fire Evolved SeaSparrow missiles and HMA Ships Anzac and Arunta (the first two Australian Anzac ships) will be upgraded during future maintenance periods.

Successful operational test firings were conducted in September 2003.

Expenditure for 2003-04 was less than the revised estimate due to favourable exchange rates.

This project contributes to Navy capability.

Underwater and Surface Warfighting Upgrade Program

Achieved

Alliance agreement: Anzac Ship Alliance between the Commonwealth, Tenix Defence and Saab Systems.

This project will enhance the Anzac-class ships' surface and sub-surface warfare capabilities. This phase of the project has been split into three sub-phases.

Sub-phase 3A is the Harpoon anti-ship missile launch system. Harpoon is the standard ADF anti-ship missile launched by other Navy and Air Force platforms. The Harpoon's launch capability is being acquired through the Anzac Ship Alliance between the Commonwealth, Tenix Defence and Saab Systems. Equipment delivery commenced in mid-2003 and installation of the capability in the first Anzac ship is progressing to schedule and will be completed in late 2004. Missiles will be acquired under a separate project.

Sub-phase 3B, the Sea Defender torpedo self-defence system, was dropped from the Defence Capability Plan in November 2003, so that higher priority Defence requirements could proceed.

Sub-phase 3C is the Petrel mine and obstacle avoidance sonar, which was approved in the 2003-04 Budget. This capability is being acquired through the Anzac Ship Alliance and is progressing to schedule. Installation is planned to commence in late 2004 and delivery of the capability in the first Anzac ship is expected in mid-2005. The Petrel system is also being fitted to the Adelaide-class frigates under the guided missile frigate upgrade project.

Expenditure for 2003-04 was in line with the revised estimate.

This project contributes to Navy capability.

top of page

Mine Hunter Coastal Acquisition

Achieved

Prime contractor: ADI

This project provides for the delivery of six coastal mine hunter vessels and associated supplies, including combat system and platform system trainers at HMAS Waterhen in Sydney.

All six ships, HMA Ships Huon, Hawkesbury, Norman, Gascoyne, Diamantina and Yarra, have been delivered to the Navy and were accepted into Naval service in November 2003.

Expenditure for 2003-04 exceeded the revised estimate due to improved progress on finalisation of prime contract issues.

This project contributes to Navy capability.

Australian Light Armoured Vehicles

Achieved

Prime contractor: General Dynamics Land Systems (Canada)

This project is for the acquisition of wheeled light armoured vehicles that provide the basis of the Army's armoured reconnaissance and surveillance capability.

Phase 3 of the project includes the acquisition of an additional 144 new vehicles and the standardisation of the Phase 2 fleet both by completing Phase 2 elements (surveillance suite, gunnery trainer and commander's weapon station) and by improving it to Phase 3 standard. Also included in Phase 3 is the rapid acquisition of spall liners, a device that increases the survivability for the crew and passengers, and remote weapons systems for vehicles deployed in Operation Catalyst.

The expanded fleet will enable the equipping of a second Land Command unit, 2/14 Light Horse Regiment (Brisbane, Queensland) with these vehicles in addition to the 2 Cavalry Regiment (Darwin, Northern Territory).

Phase 3 is proceeding on schedule. As at 30 June 2004, 140 vehicles had been delivered to the Australian Government. The project's actual expenditure was slightly ahead of target due to improved delivery schedules for vehicles and spare parts.

This project contributes to Army capability.

top of page

Upgrade of M113 Armoured Vehicles

Achieved

Prime contractor: Tenix Defence

This project is upgrading 350 of the Army's fleet of M113 armoured vehicles, which provide mobility and fire support to the Army's mechanised infantry forces, to improve protection, firepower, mobility and habitability. A contract for the upgrade was signed in July 2002 with Australian company Tenix Defence.

The project remains largely on schedule and within budget. Stage one of the contract, for the construction and initial testing of two demonstration vehicles, was successfully completed on time in December 2003. Work is progressing on the construction of the initial production vehicles and continued vehicle testing, with full production planned to commence in 2005 for introduction of the first Company group of vehicles in-service in late 2006. Actual expenditure for 2003-04 slightly exceeded forecast expenditure with the earlier delivery of some major components for the initial production vehicles.

This project contributes to Army capability.

Joint Strike Fighter

Achieved

Memorandum of Understanding: United States Government

This project aims to introduce a new air combat capability with the air dominance and strike functions currently provided by the F/A-18 and F-111 aircraft fleets.

In October 2002, Australia formally joined the system development and demonstration phase of the Joint Strike Fighter program, with the expectation that the F-35 Joint Strike Fighter will meet Australia's future air combat and strike requirements. This represents a new approach to international participation in combat aircraft programs by involving Defence and industry in the design and development phase. A procurement decision is expected in 2006.

Actual expenditure exceeded the revised estimate as a result of system development and demonstration payments being brought forward into 2003-04.

This project contributes to Air Force capability.

top of page

Explosive Ordnance Reserve Stocks

Substantially Achieved

Prime contractors: SAAB Bofors, ADI and Pains Wessex

This project involves the progressive acquisition of a range of explosive ordnance items to increase Defence's reserve stock holdings. This phase of the project is funded at $195m, spread over five years from 2003-04 until 2007-08. Expenditure in 2003-04 was used to procure RBS70 missiles from SAAB Bofors Sweden, small arms ammunition and general purpose bombs from ADI, flares and distress signals from Pains Wessex, as well as a number of other minor items from a range of suppliers.

The balance of Phase 1B will procure some 120 different items of explosive ordnance covering tank and anti-armour ammunition, medium and field artillery ammunition, mortar ammunition, demolition stores, pyrotechnics, naval shells and additional bombs.

Actual expenditure was in accordance with the revised estimate.

This project contributes to Navy, Army and Air Force capabilities.

Lightweight Torpedo Replacement

Partially Achieved

Alliance agreement: EuroTorp and Thales

This phase of the project will acquire the MU90 lightweight torpedo from EuroTorp as a replacement for the aging MK 46 Model 1 and Model 5 shallow water torpedoes. The weapon is to be integrated into the Anzac and Adelaide-class frigates, the Seahawk and Seasprite helicopters and the maritime patrol aircraft.

The first ship to acquire the ability to fire MU90 torpedoes was HMAS Parramatta as part of its build program. Installation into the other frigates will be complete by December 2007, depending on the ship maintenance schedule and the fleet activity schedule, which have already impacted on installations. The schedules for integration into the helicopters and maritime patrol aircraft have yet to be determined.

The initial batch of MU90 torpedoes for test and evaluation is scheduled for delivery in July 2005.

Expenditure was below the revised estimate due primarily to delays in the installation schedule.

This project contributes to Navy and Air Force capabilities.

top of page

Jindalee Operational Radar Network

Achieved

Prime contractor: RLM Systems

The Jindalee Operational Radar Network consists of the radar network coordination centre at RAAF Edinburgh near Adelaide and two over-the-horizon radars: one near Longreach in Queensland, the other outside Laverton in Western Australia. These radars allow coverage of the sea and air approaches to Australia in an arc from Cairns in Queensland around to Geraldton in Western Australia at ranges of 800 to 3,000 km, and are now key contributors to the ADF's capability for wide area surveillance. The radar network is in full operational service with the ADF and the project has moved into the relatively low risk maintenance and support phase.

Actual expenditure for 2003-04 slightly exceeded the revised estimate due to better than expected performance by the contractor.

This project contributes to Air Force capability.

Air-to-Surface Stand-off Weapon Capability

Substantially Achieved

Prime contractor: Precision Guided Systems United States, through foreign military sales with the United States Government.

The project will acquire and bring into service the AGM-142E missile for use on F-111C aircraft. This will provide the ADF with the ability to strike non-hardened and semi-hardened unitary targets while improving the stand-off range for the aircraft, thereby contributing to its survivability. Aircraft integration is being undertaken by Boeing Australia Ltd at RAAF Amberley, Queensland. The integration activities, after delays in 2003, have been renegotiated on a fixed price basis and are proceeding on time against the revised schedule. Formal ground testing was successfully completed in March 2004. Modifications to the F-111 simulator are now under contract and progressing. Deliveries of missiles into Australia are continuing.

Actual expenditure was in accordance with the revised estimate.

This project contributes to Air Force capability.

continue...

| « Previous | Home | Next »