Top 30 Projects by 2005–06 Expenditure
Armed Reconnaissance Helicopter | F/A–18 Hornet Upgrade | Additional Trooplift Helicopter | ADF Air Refuelling Capability | Anzac Ship Helicopter | Strategic Airlift Capability | Special Projects
AIR 87 Ph 2
Armed Reconnaissance Helicopter
Prime contractor: Australian Aerospace
Project Air 87 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 Commonwealth signed a 15-year support contract that commenced at in-service date when the first two armed reconnaissance helicopters were delivered on time on 15 December 2004.
As at July 2006, six Tiger Armed Reconnaissance Helicopters have been accepted into service, two of which were assembled in the Australian Aerospace Brisbane facility. Over 1,000 flying hours have been accrued on the Australian fleet.
Primarily due to delays to the Franco-German Tiger program, training of the Australian flying instructors is behind schedule. Defence and Australian Aerospace are working together to minimise this delay which Defence estimates to be 18 months.
In June 2006, three aircraft were deployed to Woomera from the training base in Oakey, Queensland to conduct further testing on the sensors and weapon system culminating with the firing of a live Hellfire missile as well as flight training. This formed the third and final phase of live fire testing of the Hellfire to meet airworthiness accreditation requirements. A total of eight laser-guided Hellfire missiles has now been fired at ranges of up to eight kilometres, including one at night, all striking the target with lethal precision.
The estimated expenditure for 2005–06 was not met, primarily because of the delay in training and delayed acceptance of aircraft and support systems.
This project contributes to Army capability.
AIR 5376 Ph 2
F/A–18 Hornet Upgrade
Prime Contractor: The Boeing Company (United States)
This project seeks to upgrade the F/A-18 fleet to incorporate enhancements that will improve situational awareness, radar and electronic warfare capabilities to allow the aircraft to perform its air defence tasks more effectively. The improved situational awareness aspects address cockpit displays, a moving map, a helmet-mounted cueing system for the advanced short-range air-to-air missile, and improved datalinks.
Assessment of electronic warfare options continued in 2005–06, including the source selection of the radar warning receiver. The proposed solution is dependent on a successful test and evaluation and contracting outcome. A major project milestone was achieved with the project commencing fleet modification of Hornet Upgrade 2.2 elements.
The successful negotiation of the prime contract for the Hornet aircrew training system resulted in acceleration of the schedule, which required additional programming.
This project contributes to Air Force capability.
AIR 9000 Ph 2
Additional Trooplift Helicopter
Prime contractor: Australian Aerospace
On 31 August 2004, the Prime Minister and the Minister for Defence announced that the multi-role helicopter 90 (MRH-90) had been selected as the preferred platform for the ADF's additional troop lift squadron under Phase 2 of the AIR 9000 program.
AIR 9000 Phase 2 will acquire 12 helicopters, the associated support equipment and establish the in-service support contract.
The first delivery of the MRH-90 helicopter is expected in December 2007.
In 2005–06, production commenced on the MRH-90 helicopters at the Eurocopter facilities in France.
Assembly of the first aircraft fuselage occurred in November 2005 with the second and third aircraft fuselage assembled in March and June 2006.
The estimated expenditure for 2005–06 was not met due to a delay in establishing an approved earned value baseline as planned.
On 30 June 2006, a contract change proposal was signed, increasing the scope of the project to include a total of 46 MRH-90 aircraft to the Army and Navy to replace Black Hawk and Sea King helicopters, along with a comprehensive support package that includes instrumented aircraft, full flight mission simulators and a software integration support facility.
This project contributes to Navy and Army capabilities.
AIR 5402
ADF Air Refuelling Capability
Prime Contractors: EADS CASA, Spain (Acquisition) and through-life support (contract under negotiation)
This project will provide five new generation Airbus A330 multi-role tanker transport aircraft, together with through-life support services including engineering, maintenance, spares, technical data, software and training support for the fleet.
The acquisition contract was signed in December 2004. The in-service date (comprising two aircraft, completion of qualification testing and issue of the military airworthiness certificate) is planned for late 2009.
Design of the military modifications to install aerial refuelling equipment, military communications and navigation suite, tactical data link and electronic warfare self-protection was undertaken with the critical design review, achieved in June 2006. A change to the acquisition contract was approved in March 2006 for the procurement of a multi-role tanker transport full mission simulator. Delivery of the first commercial A330 from Airbus to the conversion facility in Madrid, Spain was achieved ahead of time in May 2006.
The higher than expected overall expenditure in 2005–06 was due to early delivery of the first commercial A330 aircraft, offset by lower than expected amounts due to the final simulator payment schedule and re-phasing of the critical design review milestone and other minor payments.
Negotiation of the through-life support contract recommenced in June 2006 and is expected to be completed by the end of 2006. The delay is due to resolution of a critical aspect of the contract but will not affect the in-service date.
This project contributes to Air Force capability.
SEA 1411 Ph 1
Anzac Ship Helicopter
Prime contractor: Kaman Aerospace International Corporation
This project will acquire 11 Super Seasprite maritime combat helicopters for the Anzac-class frigates, providing an enhanced capability for surface surveillance, anti-ship warfare, contact investigation and maritime utility tasks. The acquisition includes a full mission flight simulator and software support centre.
While nine of the helicopters have been provisionally accepted, routine Seasprite flying operations were suspended in March 2006, in response to emerging safety and reliability concerns with the aircraft's automatic flight control system.
Testing of the tactical system software for full functionality by the contractor has continued pending Commonwealth review of the resolution proposed by Kaman to address the automatic flight control system safety concerns.
Of the remaining two aircraft, one is in storage in Australia and one remains in the United States for ongoing flight testing by Kaman under United States Federal Aviation Administration regulations.
The project did not achieve its 2005–06 budget estimate due to a range of technical issues encountered during the year, primarily associated with software integration and the aircraft's automatic flight control system.
This project contributes to Navy capability.
AIR 5216 Ph 1
Strategic Airlift Capability
Prime contractor: Lockheed Martin Aeronautical Systems
Twelve C-130J aircraft have been acquired to replace the C-130E aircraft. The aircraft are in-service and the major elements of the project have been completed. In-service support of the C-130J has been transitioned to the running system.
During 2005–06 additional repairable items were procured to increase spares holdings with further deliveries planned for 2006–07. Incorporation of the Block 5.4 upgrade to the C-130J fleet is under way following successful prototype testing of the modification in February 2006. Four aircraft have been modified to the Block 5.4 standard at RAAF Richmond, NSW with production expected to continue until April 2007.
The Block 5.4 upgrade corrects a number of deficiencies, errors, latent defects and warranty items in the aircraft software. A contract for the installation of an Operational Loads Monitoring System has also been let.
The estimated expenditure for 2005–06 was not met. The shortfall was primarily due to delays in delivery of additional spares, and components required for the Block 5.4 upgrade, changes in the operational loads monitoring system payment schedule, and savings in the C-130J prime acquisition contract milestone payments.
This project contributes to Air Force capability.
Special Project
Rapid Acquisition of the Heavy Air Lift Capability | Airborne Early Warning and Control | Armidale-class Patrol Boat | Anzac Ship Project | Guided Missile Frigate Upgrade Implementation | Collins Replacement Combat System | SM-1 Missile Replacement | New Heavyweight Torpedo | Anti-Ship Missile Defence | Collins-class Reliability and Improvements | Electronic Warfare Self Protection for Selected ADF Aircraft | New Air Defence Command and Control Systems for 2CRU/3CRU 'Vigilare' | Jindalee Operational Radar Network | Explosive Ordnance Reserve Stocks | Light weight Torpedo Replacement | MILSATCOM Ground Infrastructure | High Frequency Modernisation—Remainder of the Network | Bushranger Infantry Mobility Vehicles | Tank Replacement Project | Upgrade of M113 Armoured Vehicles | Australian Light Armoured Vehicles | General Service Field Vehicles—Overlander | Maritime Operations Support Capability | JSF System Development & Demonstration New Air Combat Capability
AIR 8000 Ph3
Rapid Acquisition of the Heavy Air Lift Capability
Prime Contractor: The Boeing Company under a FMS arrangement with the United States Government.
In March 2006, the Government approved the acquisition of four Boeing C-17 Globemaster III aircraft and associated sustainment requirements to meet the heavy air lift and rapid global response capability requirements of the ADF. The C-17 aircraft will significantly enhance the ADF's ability to support national and international operations and major disaster rescue and relief efforts, and has the load capacity and range to rapidly deploy combat and support vehicles.
The FMS case with the United States Government was signed in May 2006 for the delivery of C-17 aircraft and associated support and equipment. The accelerated schedule for this capability is possible due to the 'military-off-the-shelf' nature of the acquisition. The DMO's resources were reprioritised to take advantage of this.
A separate FMS case has been signed to provide initial RAAF C-17 aircrew and maintenance training, with Air Force personnel collocating with the United States Air Force to undergo specialist training. This training commenced in the second quarter of 2006, and will provide a fully operational crew for the first aircraft arrival in Australia, which is expected in December 2006.
Initial operational capability is planned for August 2007. Entire fleet delivery is expected to be completed by mid-2008. A full operational capability will be achieved when the in-country training systems (including the aircrew simulator) and required facilities are established. This is not anticipated to occur before 2011.
This project contributes to Air Force capability.
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AIR 5077 Ph 3
Airborne Early Warning and Control
Prime contractor: The Boeing Company (United States)
This project will provide Defence with an airborne early warning and control capability, through the provision of six aircraft and associated supplies and support. Modification of the last four aircraft will take place in south east Queensland.
Mission system testing began in July 2005. Mission Computing System Software Build 8, the final build, entered the test phase in October 2005. Boeing Australia Ltd commenced modification of the third aircraft at RAAF Amberley in January 2006 and the fourth aircraft in May 2006. Construction of the maintenance hangar and associated aircraft parking areas were completed in January 2006 as part of Stage 1 of the RAAF Williamtown Redevelopment. Upgrading of the Joint Electronic Warfare Operational Support Unit facilities at RAAF Edinburgh was completed in June 2006.
In late 2005, strike action against Boeing in the United States caused slippage of several intermediate milestones. Following a recent detailed review of the program, Boeing has advised that significant schedule deterioration has occurred due to problems associated with sub-system integration, supplier hardware availability, radar and electronic support measures maturity, and aircraft modification. Boeing is now engaged with the Australian Government to replan the program to ensure the successful delivery of the required operational capability. As a result, while the project remains on budget under the fixed price contract with Boeing, the planned in-service date of December 2007 is expected to slip to mid-to-late 2009.
The actual spend in 2005–06 was significantly less than estimated due primarily to delays in the signing of a through-life support contract for the capability and costs associated with the above-mentioned slippage against the prime contract.
The project contributes to Air Force capability.
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SEA 1444 Ph 1
Armidale-class Patrol Boat
Prime Contractor: Defence Maritime Services (ships being built by Austal Ships)
This project will deliver 14 Armidale-class patrol boats, and 15 years of support for each vessel, to replace the ageing Fremantle-class patrol boats. The patrol boats will make a critical contribution to coastal surveillance and enforcement capability.
The contract was signed in December 2003, and will provide a capability for the Navy to achieve up to 3,000 available days per year for Coastwatch and ADF support to operations, plus a surge capacity of up to 600 additional available days per year. The new boat is larger than the Fremantle-class and capable of operating in higher sea states. The first vessel was commissioned as HMAS Armidale in June 2005.
Additional funding, in line with the Government agreeing to an extra two vessels to patrol the North West Shelf, has been endorsed and the contract change proposal has now been signed by both parties. These extra vessels will be built after the current 12 boats, with delivery commencing mid-2007, and will provide an additional 500 available days per year, bringing the total fleet availability to 3,500 days plus a surge capacity of 600 days.
Five vessels, the second to the sixth of the Armidale-class patrol boat program, were delivered to Darwin by the end of June 2006. Three vessels have entered operational service and the other vessels are completing ship and crew work-ups to enter operational service during 2006–07. The remaining eight vessels will be delivered to Darwin and Cairns by November 2007.
Upgrades to facilities in Darwin and Cairns to accommodate the new vessels are expected to be completed by July 2007.
Actual expenditure was lower than the revised estimate due to a transfer of funding for facilities upgrades not occurring when expected, the minor slippage of some significant milestones for boats 6 and 7, and delays in the purchase of primary weapons systems for boats 13 and 14 due to the later than expected approval of the contract change proposal for the extra two vessels. This slippage was somewhat offset by the early achievement of boat 10 milestones.
This project contributes to Navy capability.
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SEA 1348 Ph 2
Anzac Ship Project
Prime contractor: Tenix Defence
This project involved the delivery of ten ships, associated shore facilities and logistic support. Two of the ten ships (02 and 04) were for the Royal New Zealand Navy. All ships have now been delivered. Nine ships are in service with the Royal Australian Navy and the Royal New Zealand Navy.
The tenth ship, NUSHIP Perth, was delivered on the contracted date of 16 June 2006 and was commissioned as HMAS Perth in August 2006.
The project involved some 1,300 Australian and New Zealand companies, in construction, systems and equipment, accounting for some 80 per cent of the project cost.
The increase in expenditure was due mainly to a Ship 10 (Perth) delivery payment being reprogrammed into 2005–06 from 2006–07.
This project contributes to Navy capability.
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SEA 1390 Ph 2
Guided Missile Frigate Upgrade Implementation
Prime contractor: ADI Limited
The project seeks to ensure that the four Adelaide-class Guided Missile Frigates remain effective and supportable through to their end of life in 2013–2021. The prime contractor, ADI Limited, continues the upgrade production and installation at its Garden Island facility, Sydney, NSW.
ADI Limited handed the lead ship for upgrade, HMAS Sydney, back for defined Navy use in April 2006. In May 2006, the Chief of Navy approved the Interim Operational Release of HMAS Sydney, allowing operational use of the ship prior to contractual provisional acceptance in December 2006.
HMAS Melbourne commenced upgrade with the ship docking at the Captain Cook Graving Dock in late February 2006. The docking phase was successfully completed in July 2006, ahead of schedule, and the final equipment installation and set to work will be progressed through until early 2007.
Guided Missile Frigate upgrade contract re-negotiations with the prime contractor, ADI Limited, were completed on 29 May 2006. This formalised the Government's decision to reduce the Guided Missile Frigate upgrade project from six to four ships and settled outstanding commercial and contractual issues on this project resulting in a contract price reduction.
The contract change provides a better framework and improved confidence in the prime contractor's ability to deliver the contracted capability within its project management arrangements and the project's approved financial budget. The adjusted financial estimate for 2005–06 was achieved.
This project contributes to Navy capability.
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SEA 1439 Ph 4A
Collins Replacement Combat System
Prime contractors: United States Department of Defense under a FMS case and an Armaments Cooperative Project. Raytheon Australia, Thales Underwater Systems, Sonartech Atlas, Acoustic Technology and the Australian Submarine Corporation (ASC) Pty Ltd are engaged under separate contracts.
This project will provide a replacement combat system for the Collins-class submarines, contributing to the development of the submarine's full capability.
Integration of the United States Navy Tactical Command and Control System with other sub-systems at the HMAS Stirling integration facility in Western Australia is complete. Initial sets of United States Navy-based equipment for the first two submarines have been delivered. The majority of products from Australian-based suppliers were delivered and progressively integrated by the Australian Government and the contracted System Integration Agent in 2005–06.
The detailed platform design and equipment installation in the first submarine (HMAS Waller) is complete. Set-to-work has commenced with the associated harbour acceptance testing scheduled for completion in December 2006. Installation in all submarines is currently planned to be achieved by 2010.
The project did not achieve the full 2005–06 estimate due to payment delays under the Armaments Cooperative Project with the United States and delays in establishing some minor contracts. These delays will not affect the overall project delivery schedule.
This project contributes to Navy capability.
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SEA 1390 Ph 4B
SM-1 Missile Replacement
Prime contractor: The DMO is the procurement coordinator supported by the United States Department of Defense and commercial suppliers.
SEA 1390 Phase 4B was approved by the Government in July 2004 and provides for the integration of the SM-2 missile into four Guided Missile Frigates, delivery of missiles with mid-course guidance capability, and acquisition of initial ship outfit and inventory stock missiles. SEA 1390 Phase 4B builds on the capability from SEA 1390 Phase 2 and depends on that capability to be sufficiently mature for the inclusion of this additional capability. The initial in-service date for the Guided Missile Frigate SM-2 lead ship is 2009.
The acquisition of the SM-2 capability will be achieved under United States FMS arrangements and a mix of United States commercial contracts and FMS cases for the delivery of the SM-2 missiles and the ship equipment hardware, software development, integration, equipment installation and system testing.
Support items and inertial navigational system equipment are included under contract through United States FMS arrangements. Commercial contracts are established for the development work required for the guided missile launching system and the onboard training and land-based simulation systems. A commercial contract remains to be finalised for the fire control system with contract signature anticipated by the end of 2006.
System integration design work through a Government-to-Government arrangement with the United States remains a work in progress, awaiting completion of the supporting commercial contract negotiations. The preliminary design review is delayed pending completion of these arrangements.
This project contributes to Navy capability.
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SEA 1429 Ph 2
New Heavyweight Torpedo
Prime contractors: Under a Memorandum of Understanding, the United States Department of Defense established an Armaments Cooperative Project, with work being performed by the United States Navy (Naval Undersea Warfare Center) and Raytheon. ASC Pty Ltd is undertaking integration on the platform under a separate contract.
This project will acquire an anti-surface, anti-submarine heavyweight torpedo for the Collins-class submarines to replace the United States Navy Mk 48 Mod 4 heavyweight torpedo currently in Navy service.
The project scope includes the acquisition of the weapons, associated logistic support, weapon system interface equipment, operational support and test equipment, and transition into service. The torpedo maintenance facility upgrade was completed in March 2005.
A platform-design contract was established with ASC Pty Ltd with submarine integration work scheduled for completion by late 2006. This is later than the previous forecast due to delays in finalising the design, and changes to the full-cycle docking schedule for HMAS Waller. Installation in all submarines is currently planned to be achieved by the end of 2010.
The first of several batches of torpedoes will be delivered to Australia in late 2006, before HMAS Waller commences weapon certification trials following the completion of its full-cycle docking. The second delivery of torpedoes to Australia is scheduled for mid-2007 with all weapons to be delivered by 2010.
Successful joint (United States Navy/Royal Australian Navy) trials were conducted on Western Australian ranges, and as a result, the United States Navy approved full production of Mod 7 in June 2006.
The project did not achieve its 2005–06 expenditure as payment delays occurred under the Armaments Cooperative Project and cost savings were made on the ASC Pty Ltd work package. These delays will not affect the overall project delivery schedule.
This project contributes to Navy capability.
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SEA 1448 Ph 2A
Anti-Ship Missile Defence
Alliance agreement: Anzac Ship Alliance—The Australian Government with Tenix Defence and Saab.
This project will deliver an initial Anti-Ship Missile Defence operational capability, providing an improved level of self-defence against modern anti-ship missiles for the Anzac-class frigates. It will also progress a preliminary phased array radar program to mitigate risk, and inform the design and development of a phased array radar system architecture for incorporation in the now approved Phase 2B into the full Anti-Ship Missile Defence suite.
Phase 2A will upgrade the combat management system and fire control system and install an infra-red search and track capability. Initial operation capability delivery into the first Anzac-class ship is now planned for 2009 to accommodate a combined Phase 2A and Phase 2B schedule. The remaining ships will be upgraded progressively over the period 2010 to 2013.
Phase 2B completes the Anti-Ship Missile Defence capability by introducing Australian phased array technology. This technology will support multiple engagements against incoming missile threats.
Anti-Ship Missile Defence Phase 2B is a leading edge technology project, showcasing Australian small-to-medium enterprise prowess in a complex, risky, and high profile project where the capability advantages are potentially very high in terms of ship self-defence capability over that offered by conventional radar technologies.
Milestones achieved in 2005–06 were: approval of Phase 2B in September 2005; award of the preliminary phased array radar contract to CEA Technologies in December 2005; and completion of the Anti-Ship Missile Defence program system readiness review in May 2006.
The successful Anti-Ship Missile Defence program system functional review planned for June 2006 was delayed until the end of August 2006 owing to the late award of the preliminary phased array radar contract. The variation in 2005–06 expenditure was due mainly to the delay in signing the preliminary phased array radar contract. This delay was due in part to negotiation of a strategic deed encompassing protection of defence strategic interests.
This project contributes to Navy capability.
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SEA 1439 Ph 3
Collins-class Reliability and Improvements
Prime contractor: ASC Pty Ltd
This project will provide a large number of reliability, sustainability and safety improvements to the Collins-class submarines through the ongoing implementation of the McIntosh/Prescott Report recommendations and the work of the Submarine Capability Team. It also addresses current shortcomings in the submarine support infrastructure.
Modifications to the second submarine were completed during its full-cycle docking in 2005. Further modifications including fire-fighting and sewage system upgrades are scheduled for completion in late 2006 during the full-cycle docking of the third submarine HMAS Waller. These and additional modifications will be incorporated into other submarines during major planned maintenance periods.
Expenditure for the year was slightly less than the revised estimate due to competing priorities relating to other work being carried out by ASC Pty Ltd.
This project contributes to Navy capability.
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AIR 5416 Ph 2
Electronic Warfare Self Protection for Selected ADF Aircraft
Prime contractor: Phase 2A—BAE Systems; and Phase 2B—Tenix Defence.
This project will acquire electronic warfare self-protection and ballistic protection measures for selected ADF aircraft. The project is being implemented under three distinct sub-phases: Black Hawk and Chinook helicopters, the C-130H Hercules fleet, and Sea King Helicopters.
Phase 2A—The Black Hawk architectural design review has been completed with the detailed design review programmed for December 2006. First article modification for the Black Hawk is expected to commence in April 2007. The Chinook architectural design review was held in September 2006 with the detailed design review programmed for May 2007. Chinook first article modification will be ready to commence in August 2007. The integrated electronic warfare mission support system detailed design review was achieved in June 2006 with factory acceptance testing to be performed in December this year. A number of contracts are expected to be signed in 2007 associated with the electronic warfare upgrade of the Black Hawk simulator, maintenance training aid and simulated maintenance trainers.
Phase 2B—The engineering design activity for the C-130H modifications was completed in December 2005. This followed an approved change in contract scope to incorporate the C-130H satellite communications modification at the same time as the electronic warfare self protection modification. The anticipated in-service date for the first four C-130H aircraft remains on track for mid-2007 with all 12 aircraft completed in early 2008.
Actual expenditure for 2005–06 was lower than planned due to the Radar Warning Receiver (ALR-2002) procurement being placed on hold pending the AIR 5376 Phase 2.3 (Hornet Upgrade Project Phase 2.3 Radar Warning Receiver) source selection decision.
This project contributes to Army and Air Force capabilities.
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AIR 5333
New Air Defence Command and Control Systems for 2CRU/3CRU 'Vigilare'
Prime contractor: Boeing Australia Ltd
This project will replace the ageing Air Defence command and control systems at Numbers 2 and 3 Control and Reporting Units located at RAAF Tindal (Northern Territory) and RAAF Williamtown (New South Wales) and will design and implement an integrated, real-time ADF Air Defence System and communications network. Acquisition and logistic support contracts were signed with Boeing Australia Ltd in March 2004. The first command and control system is expected to be installed and operational at RAAF Tindal by early 2009, some 24 months later than agreed at contract signature.
The project's preliminary design review was held in early 2005, and formally completed at the beginning of 2005–06. The project underachieved against its revised 2005–06 financial projection due to planned payments for communications infrastructure being delayed because work was not finished on time, and delays to the prime contract with Boeing.
The project contributes to Air Force capability.
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JP 2025 Ph 3/4
Jindalee Operational Radar Network
Prime contractor: RLM Management Pty Ltd
The Jindalee Operational Radar Network consists of the network control centre at RAAF Edinburgh near Adelaide, South Australia and two new over-the-horizon radars: one near Longreach, Queensland and the other near Laverton, Western Australia. The previously existing Jindalee radar system near Alice Springs, Northern Territory has also been incorporated to form a three-radar network that is centrally controlled from RAAF Edinburgh. With the successful delivery of the Jindalee Operational Radar Network in April 2003 having resulted in a major enhancement of national surveillance capability, the project's acquisition component is essentially completed.
The remaining project work focuses on maintenance and support activities and engineering services that provide both facility sustainment and higher-end technical upkeep of the network's assets.
Actual expenditure for 2005–06 slightly exceeded the revised estimate due to better than expected performance by the contractor.
The project contributes to Air Force capability.
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JP 2085 Ph 1B
Explosive Ordnance Reserve Stocks
Contractors: Multiple purchase contracts with Australian and overseas munitions suppliers.
Joint Project 2085 Phase 1B covers progressive acquisition from 2005 to 2008 of a range of explosive ordnance items to increase Defence's reserve stock holdings.
Overall, the project will procure quantities of around 120 different items of explosive ordnance covering anti-armour ammunition, Army artillery ammunition, mortar ammunition, demolition stores, pyrotechnics, bombs and Navy shells.
New contracts will be placed in 2006–07 for the procurement of a number of items, including precision guided munitions for Army 155mm artillery, and Mk 83 Bombs for the Air Force. Ongoing deliveries against current contracts of Bolide short range air defence missiles, 81mm mortars, and Mk82/Mk84 Bombs are also expected during the period. Contracts were let during 2005–06 for additional Harpoon missiles, 84mm Carl Gustav ammunition and aerial bombs.
The project did not achieve its 2005–06 expenditure target due to the revision of the annual procurement plan and subsequent payments schedule. The procurement plan for a number of items was rescheduled to combine with planned sustainment buys for those items in 2006–07 and 2007–08 due to lack of a viable economic order quantity.
This project contributes to Navy, Army and Air Force capabilities.
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JP 2070 Ph 2 and Ph 3
Lightweight Torpedo Replacement
Contractors: An Alliance Agreement between the Australian Government, EuroTorp and Thales Underwater Systems Australia.
Phase 2 of this project will introduce the EuroTorp MU90 lightweight torpedo into ADF service to replace the United States Navy Mk 46 lightweight torpedo. The weapon is to be integrated into the Anzac and Adelaide-class Guided Missile Frigates, the Super Seasprite and Seahawk helicopters and the P-3 Orion maritime patrol aircraft. Phase 3 will establish an Australian manufacturing capability and deliver a set number of weapons.
Production quality issues and technical problems identified during European firing trials have delayed the French and Italian torpedo acceptance. The delay in the foreign program by the European contractor has impacted severely on the Australian delivery schedule which has now slipped some 12 months to 2007. Problems discovered during testing in early 2006 have delayed completion of trials. Installation activities in Phase 2 for the Anzac and Adelaide-class frigates are proceeding to schedule and design has commenced for the installation into the P-3 Orion Maritime Patrol aircraft. Helicopter cost estimates for installation are under review. Modification of helicopters has been deferred pending definition of requirements and acceptance of the Seasprite and completion of SEA 1405 Seahawk Forward Looking Infrared Radar Upgrade.
Phase 2 and Phase 3 of the project are being conducted concurrently under the Further Revised Alliance Agreement. Phase 2 of the project did not achieve its 2005–06 expenditure target due to the delayed delivery of the initial batch of MU90 torpedoes. Phase 3 exceeded its 2005–06 expenditure target due to an earlier than expected Phase 3 contract award. Work is continuing on Phase 3, as weapon production is required to support the first of the modified platforms under Phase 2. Phase 3 payments to the contractor have been suspended, pending the successful completion of further firing trials.
This project contributes to Navy and Air Force capabilities.
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JP 2008 Ph 3E
MILSATCOM Ground Infrastructure
Prime contractor: BAE Systems (Australia)
Phase 3E provides high-priority satellite communications ground infrastructure for use with the Optus C1 satellite Defence payload.
Acquisition and through-life support contracts for the maritime element were signed with BAE Systems in November 2003. Eight terminals have been delivered and a contract change proposal to deliver an additional seven terminals was approved by the Government in February 2006. The land terminal contract remains on schedule with the first twelve terminals delivered to the Commonwealth and the remaining terminals due to be delivered by October 2006.
The Project Office is the systems integrator for the overall Phase 3E requirements, which includes (in addition to the maritime terminals and land terminals) broadcast software and a primary injection facility. The initial primary injection facility has been installed into the Defence Network Operations Centre and testing has commenced.
The initial theatre broadcast software was delivered by Ebor Computing in July 2005. A contract with Ebor Computing was signed on 30 September 2005 for the delivery of the mature theatre broadcast software.
The project finished the financial year within target. The variance was attributed to ships being unavailable for installation, as planned, and also some minor delays in delivery of prime equipment from the contractor.
The project contributes to the Command of Operations capability.
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JP 2043 Ph 3A
High Frequency Modernisation—Remainder of the Network
Prime contractor: Boeing Australia Ltd
This project replaces naval high-frequency radio stations at Canberra, Darwin, Exmouth, Sydney, Cairns and Perth and the Air Force high-frequency radio stations at Sydney, Townsville, Darwin and Perth. The new network will provide enhanced high-frequency radio communications capabilities and compatible high-frequency equipment in selected ADF mobile platforms. The project will deliver the new capability in two stages. The first stage, now complete, replaced and rationalised existing facilities. The second stage will provide increased levels of automation, improved capability, enhanced security and survivability, reduced reliance on staff, and will incorporate the new equipment into the mobile platforms.
The second stage is being introduced progressively between 2005 and 2008, with installation into mobile platforms extending to 2010. The preliminary design review for the second stage was completed in August 2005, while the detailed design review is scheduled for completion in September 2006.
This project contributes to the Command of Operations capability.
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LAND 116 Ph 3
Bushranger Infantry Mobility Vehicles
Prime contractor: ADI Limited
Project Bushranger will acquire 299 infantry mobility vehicles from ADI Limited. The infantry mobility family of vehicles will consist of six variants: troop, command, assault pioneer, mortar, direct fire weapon and ambulance. The vehicles will provide protected land mobility to Army combat units and 12 troop variants to the Air Force Airfield Defence Guards.
The key outcomes for the project for 2005–06 were the achievement of full design acceptance of the Infantry Mobility Vehicle in March 2006, the delivery by ADI Limited to the Commonwealth of all the troop variants in May 2006 and the delivery of eight command variants in June 2006. The delivery of the last troop variant is a significant milestone for Defence and Australian Industry.
The Commonwealth negotiated a contract with ADI Limited for the provision of services necessary to support the Bushmaster family of vehicles. Support services commenced in March 2006 at the Brisbane Support Centre, Acacia Ridge.
The Bushmaster vehicle has been well received by the Australian Army soldiers and on operations in Iraq and Afghanistan.
Expenditure exceeded the budget due to the early achievement of contractor deliverables and vehicle production through the solving of some quality issues earlier than planned.
This project contributes to Army and Air Force capabilities.
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LAND 907 Ph 1
Tank Replacement Project
Prime contractor: United States FMS Program
This project will replace the Leopard tank fleet with a modern, more survivable and interoperable tank capability that will be supportable until at least 2020. The project scope includes 59 M1A1 Abrams main battle tanks, seven M88A2 Hercules recovery vehicles, simulators, 14 tank transporters, eight fuel trucks and a logistic package of support equipment, spare parts, ammunition, facilities and initial training.
The new tanks will be operated by the 1st Armoured Regiment (Darwin, Northern Territory), the School of Armour (Puckapunyal, Victoria) and the Army Logistic Training Centre (Bandiana, Victoria).
Production of the M1A1 tanks and M88A2 Hercules recovery vehicles remains ahead of schedule. The first batch of vehicles were delivered for use in the initial training of Army operators and maintainers in the United States. These vehicles arrived in Australia in October 2006. All simulators have been manufactured and delivery to Australia is expected by late 2006. Production of tank transporters and fuel trucks has commenced, with the initial fuel trucks having been delivered.
Expenditure exceeded the budget for the financial year due to the earlier achievement of delivery of spare engines.
Delivery of support equipment will continue during 2006–07 to support the expected initial introduction into service of this capability by July 2007, which is ahead of the original schedule.
This project contributes to Army capability.
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LAND 106
Upgrade of M113 Armoured Vehicles
Prime contractor: Tenix Defence
This project is upgrading 350 of the Army's fleet of M113 armoured vehicles, which provide transport and fire support for the Army's mechanised forces. The upgrade will improve protection, firepower, mobility and habitability. The upgrade includes appliqué armour, a new armoured turret and machine gun, a new engine, drive train and suspension, and the stretching of the Armoured Personnel Carriers and other variants. Acceptance testing of the first three variants is continuing but completion has been delayed by the need to resolve a number of problems identified during the early part of the test program. Although these problems were resolved, final reliability testing identified additional brake system failures, which are now being investigated by the contractor and which have further delayed testing. Consequently, the initial capability in-service date has been rescheduled for July 2007, from December 2006.
Expenditure was less than the 2005–06 budget due to delays in delivery of logistic support products and vehicle equipment due to the development and testing problems and delays.
Full production is expected to commence in mid-2007 once the vehicles have completed testing.
This project contributes to Army capability.
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LAND 112 Ph 3
Australian Light Armoured Vehicles
Prime contractor: General Dynamics Land Systems (Canada)
Phase 3 of this project acquires 144 new wheeled light armoured vehicles, nine crew procedural trainers, up to 59 behind-armour commanders' weapon stations, 18 surveillance suites, and the upgrade of the in-service fleet of 113 vehicles to the Phase 3 build. These capabilities will be delivered to the 2nd Cavalry Regiment (Darwin, Northern Territory), the 2nd/14th Light Horse Regiment (Brisbane, Queensland), supporting logistic units including the Army Logistic Training Centre (Bandiana, Victoria), and the School of Armour (Puckapunyal, Victoria).
All 144 Phase 3 vehicles and 87 of the 113 upgraded vehicles have been delivered. The delivery of upgraded Phase 2 vehicles continued with final delivery of all upgraded vehicles expected to be complete in 2006–07.
A program of rapid acquisitions for the behind-armour commanders' weapons stations, bar armour and spall liners was conducted to support vehicles on operational deployments. Initial introduction into service has been achieved and full introduction into service should be completed during 2006–07.
Delivery of the crew procedural trainers commenced with the remaining trainers expected to be completed in 2006–07. A contract was signed for the development of the prototype surveillance suite for the Australian light armoured vehicles' surveillance variant and this prototype should be delivered in 2006–07.
Expenditure shortfalls against the 2005–06 budget is attributed to the late delivery of the crew procedural trainers by the contractor.
This project contributes to Army capability.
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LAND 121 Ph 2
General Service Field Vehicles—Overlander
Prime contractors: Mack Trucks Australia Pty Ltd; Tieman Industries Pty Ltd; Haulmark Trailers Australia; Crisp-Air Pty Ltd; Comtech Automotive Industries; Royal Wolf Trading Australia Pty Ltd; Smart Engineering And Logistics Solutions Pty Ltd.
This project addresses capability deficiencies within the current field vehicle and trailer fleet and involves the limited upgrade and/or modification of selected in-service field vehicles and trailers and limited procurement of some vehicles and trailers to meet the current capability requirement. This includes new bulk liquid fuel transporters, new recovery equipment for the heavy recovery vehicle, addressing the excessive in-cabin noise levels in some fleets and providing improved occupant safety levels in selected vehicles.
Key outcomes for 2005–06 were:
- on-time completion of the progressive delivery to the Army of 64 heavy recovery vehicles upgraded with new recovery equipment, with priority of delivery to training units and then high readiness units;
- acquisition of an in-cabin noise reduction system for the Mack Truck fleet;
- completion of testing of rollover protective structures, effective seat and seatbelt systems and personnel/cargo segregation systems for 135 Unimog and 26 Mack Gun Tractors; and
- commencement of pre-production activities and design acceptance of a personnel/cargo restraint and segregation system and a rollover protection system into the Land Rover 110 4x4 for the regional force surveillance vehicle.
This project contributes to Army capability.
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SEA 1654
Maritime Operations Support Capability
Prime Contractor: Tenix Defence
This project seeks to replace the Navy's existing afloat support capability (HMA Ships Westralia and Success). Planned withdrawal dates for the ships are 2006 and 2015 respectively (the Westralia was withdrawn from service in October 2006). This afloat support capability increases the effectiveness of the Surface Combatant and Amphibious Forces.
The current afloat support capability is provided by HMA Ships Success and Sirius. These ships support the two-ocean basing policy and provide the sustainment necessary for surface combatant task groups to operate in the expansive waters of the region.
In June 2004, under Project SEA 1654 Phase 2A, Defence acquired the Westralia replacement vessel, the MT Delos, from Hyundai. The Delos is a new build vessel, delivered direct to the Commonwealth from the original owner (Tsakos Energy Navigation) at the Hyundai facility in South Korea immediately after builder's trials.
In March 2005, Defence entered into contract with Tenix Defence for the package of modification work required to the Delos to make it suitable for acceptance into naval service as HMAS Sirius. Delivery from Tenix took place in August 2006, followed by commissioning of the ship (HMAS Sirius) in September 2006.
In addition, contracts were entered into for the supply of replenishment-at-sea equipment for the provision of contracted support services. The replenishment-at-sea equipment was delivered late in 2005.
The variation in 2005–06 expenditure was due to the modification contract spend being more than previously estimated, due to the early submittal of an invoice.
This project contributes to Navy capability.
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AIR 6000
JSF System Development & Demonstration New Air Combat Capability
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 Hornet and F-111 aircraft fleets. While a formal decision on the replacement aircraft has not yet been made, the Government stated its expectation in June 2002 that this capability would be provided by the Lockheed Martin F-35 Joint Strike Fighter. The Joint Strike Fighter is being developed by an international collaborative program, led by the United States, and is in the system development and demonstration phase. AIR 6000 System Development and Demonstration New Air Combat Capability funds Australia's contribution to the United States-led Joint Strike Fighter program. As of 30 June 2006, Australia had contributed $147m to the program.
Under a separate existing phase, the project has undertaken the collection and analysis of system development and demonstration information and the associated studies, risk mitigation and planning activities necessary to support the Government's first pass procurement decision scheduled for late 2006. This phase has also supported Australian industry participation in the Joint Strike Fighter program and negotiation of the Procurement, Sustainment and Follow-on Development Memorandum of Understanding. Formal negotiations were completed in June 2006, with signature planned for December 2006.
The subsequent acquisition stage of the project is expected to commence in 2009 following the Government's second pass procurement decision in late 2008. Procurement will be conducted in a number of phases and will acquire the aircraft and associated systems and transition the capability into service.
The project underachieved slightly against the revised expenditure estimate due primarily to variations in foreign currency exchange rates.
This project contributes to Air Force capability.