Outcome Performance

Sustainment involves the management and provision of services and products needed to meet the capability, preparedness and performance requirements of a materiel system. Typical services include maintenance, engineering, supply, configuration management, replenishment of consumable items and disposal action. Common products include spares, technical data, support and test equipment, training equipment and materials.

The DMO's sustainment services to Defence, and the price the DMO receives for these services, is formalised in Materiel Sustainment Agreements between the DMO and Defence capability managers. Currently, 93 Materiel Sustainment Agreements exist. Sustainment agreements are based around the DMO sustainment products, which have been defined by each of the DMO Systems Divisions in consultation with the Defence capability managers to reflect the output of the DMO sustainment activity.

Products have been designed around key platforms, systems or fleets supported by the DMO. For example, key products include sustainment of F/A-18 Hornet aircraft, replenishment and sustainment of explosive ordnance, sustainment of Collins-class submarines, sustainment of navigation warfare systems, and supply of ADF clothing.

Aerospace Systems

Sustainment of aerospace weapon systems is managed in seven System Program Offices and three System Support Offices, which support fixed and rotary wing aircraft and systems and a range of aircraft simulators. In 2006–07, a Helicopter Systems Division will be formed and assume responsibility for helicopter acquisition and sustainment.

Implementation of the support philosophies outlined in the Australian Defence Aerospace Sector Strategic Plan continued to be a focus of activity. The plan, endorsed by the Government in June 2004, focused on moving over time to outcome and incentive-based contracts that improved sustainment support of Defence aviation capabilities.

Aerospace Systems Division adopted new approaches to acquisition and sustainment during the year. Central to this was a commitment to performance-based contracting with industry, and the development of greater business acumen and financial management skills among Aerospace Systems Division staff, to support a more commercial approach to contract management.

Major challenges for sustainment addressed during 2005–06 included:

• negotiation and implementation of performance-based contracts for elements of acquisition and sustainment support of the P-3 Orion aircraft, and the next five years of through-life support arrangements for the A-27 Hawk Lead In Fighter;
• management of ageing aircraft platforms, including the F-111, F/A-18 Hornet, C-130H Hercules, B707, Iroquois and PC-9/A Pilatus; and
• logistics support for F/A-18 Hornet, C-130J and C-130H Hercules, P-3 Orion, PC-9/A Pilatus, Seahawk, Sea King, Super Seasprite and Black Hawk weapon systems.

Significant achievements during 2005–06 included:

• signing an alliance agreement with Tenix and Australian Aerospace and establishing the joint management office and a number of project teams to provide life-of-type support to the P-3 Orion weapon system;
• signing the Hornet Aircraft Support Agreement with Boeing Australia, BAE Systems and L-3 Comms (Canada) to provide contracting terms and conditions for future Hornet upgrades and support;
• signing a performance-based contract with Raytheon for maintenance of P-3 Orion repairable items;
• completing the first year of the Caribou performance-based through-life support contract with Australian Aerospace;
• signing a performance-based maintenance contract with Airflite for supply, repair and engineering services for life-of-type of the PC-9 aircraft;
• continuing efforts to improve sustainment of the air lift fleet, including optimisation of the C-130J Hercules deeper maintenance cycle, improved availability of B707 refueller aircraft, and commencement of C130H Hercules aircraft maintenance at Canberra airport to mitigate against increased maintenance time as a result of ageing aircraft issues;
• continuation of an ongoing program to improve F-111C engine reliability, safety and availability and decrease support costs; and
• rapid modification of two Chinook helicopters subsequently deployed to Afghanistan for the demands of combat operations.

Closed Activities during 2005–06 included:

• completion of a project to deliver the capability to reduce fuel tank repair times, enhance quality control and provide a deployable fuel tank repair capability.

Projects transitioned into service during 2005–06:

• Project AIR 5391 Ph 6 delivered full fleet modification and transitioned management to in-service agencies. The project delivered an interim electronic warfare self protection capability for the F-111C which significantly improved its ability to survive in a hostile environment.
• Project AIR 5416 Ph 3 delivered an upgraded radar warning receiver capability in the F-111C. The project upgraded the electronic warfare self protection suite to ensure support out to at least 2010 and upgrade the radar warning receiver capability in the aircraft, mission simulator and support areas to both the F-111C and F/RF-111C.
• Project Air 5398 Phase 1A/2 achieved its initial operational capability and obtained service release, a supplementary type certificate. The project acquired the AGM-142E stand-off weapon, improving survivability of the F/RF-111C aircraft.
• AIR 87 accepted six aircraft into service and commenced pilot training in Australia.
• Eight B300 navigation training aircraft became fully operational for the Air Force.
• Three B300 aircraft were accepted in the Army.
• The electro-optic consolidated automated support system was accepted into service to test and fault-isolate the F/A-18 Hornet Forward Looking Infra-Red/Laser Targeting Ranger system.
• The Intermediate Avionics Test Set Deployable Workshop, a mobile facility designed for deployment in support of F/A-18 Hornet aircraft squadron operations, was accepted into service.

New projects accepted during 2005–06 included:

• Air 9000 Phases 4 and 6, which achieved second pass approval for the acquisition of a further 34 MRH 90 multi-role helicopters in addition to the 12 MRH 90 already being acquired under Phase 2 of the project. A contract change proposal was signed with Australian Aerospace for the additional aircraft and in-service support;
• JP129 Phase 2 second pass approval for Tactical Unmanned Aerial Vehicle system for the Army; and
• F/A-18 Hornet Air Combat Manoeuvring Instrumentation System (minor project for F/A-18).

Other new activities and significant milestones reached in 2005–06 included:

• delivery of the first Airbus A330 ahead of schedule from the Airbus factory in Toulouse, France to the EADS CASA Aircraft Conversion Centre in Madrid, Spain for prototype conversion to the multi-role tanker transport configuration;
• signing of an order for the acquisition and support of a full flight mission simulator for the A330 multi-role tanker transport;
• completion of development, test and evaluation of the prototype F/A-18 Hornet AIR 5276 Phase 2.2 upgrade in the United States, and commencement of the production phase at RAAF Williamtown. The upgrade provided new multi-function colour displays, a moving map, a helmet-mounted cueing system for the advance short-range air-to-air missile, and improved datalinks;
• a performance-based contract was signed in August 2005 with Rosebank Engineering Pty Ltd to provide maintenance, engineering and supply support for the F/A-18 Hornet hydraulic and undercarriage systems and associated components providing the Commonwealth with asset availability and reliability;
• a modification program to improve the reliability of the F/A-18 Hornet Generator Control Units with the final kits being received and 48 out of 170 units being modified;
• the operational test and evaluation of a new aircraft / stores configuration, which will enable the F-111C to carry up to 10 GBU-12 500lb laser guided bombs; and
• planning for a major F-111C fuel tank refurbishment program was finalised.

Maritime Systems

The sustainment of maritime materiel is managed by ten System Program Offices located near to the ship classes supported and generally aligned with the Navy's outputs.

All depot-level maintenance is contracted out. In-service support management is conducted by a variety of arrangements varying from integrated logistics support and maintenance through a single prime contractor, to the system program office acting as the prime with separate contract and in-house support. The Logistic Support Agency–Navy provides the majority of inventory and repairable item management for most classes (except the hydrographic ships, the Armidale-class patrol boats and the Huon-class coastal mine hunters).

The major challenges for sustainment that were addressed during 2005–06 included:

• managing the obsolescence of equipment and repair parts for most classes of Navy ships to address increasing levels of broken down for spares vital components;
• good progress on the stabilisation of the Collins-class submarine through-life support contract, including completion of certification extension and full-cycle dockings;
• additional support for the increased number of Anzac-class frigates as a direct result of the increased operational tempo of the frigates since introduction into service, including installation of improved force protection equipment;
• the return to service of two Huon-class coastal mine hunters, of which one had been fully laid up and the other being prepared for laying up; and
• taking delivery of the first six Armidale-class patrol boats, with four now in service, supported from Darwin by Defence Maritime Services, the prime contractor.

The major achievements in sustainment during 2005–06 included the following:

• new integrated materiel support strategies were successfully developed in 2005–06 and implemented for Huon-class coastal mine hunters with substantial progress on a new alliance-based arrangement for the Anzac-class frigates. Continued implementation of these performance-based contracts during 2006–07 will include the Leeuwin-class hydrographic ships, Adelaide-class guided missile frigates, and the Amphibious and Afloat Support major units.
• a performance-based integrated materiel support variation to the contract for the Huon-class coastal mine hunters was signed in April 2006. It anticipates a saving of $3m in the first year that the provisions are fully implemented and a 2.5 per cent improvement each year after that. The length of the contract is also linked to key performance indicators. This contract variation also includes the reactivation of two ships for northern Australia patrol operations;
• the trialing of an E-business software gateway in order to streamline spares procurement was successfully demonstrated. The Logistic Support Agency-Navy demonstrated improved supply chain effectiveness by automating many procurement functions while maintaining appropriate controls making the processing of purchase and repair orders virtually instantaneous compared to the traditional 30–90 days.
• the establishment of the Australian Asset Management Collaboration Group comprising members of the Cooperative Research Centre for Integrated Engineering Asset Management was achieved in June 2006, with Maritime Systems Division representing Defence at this stage. This outcome grew from work between the Division and the Defence Science and Technology Organisation, under a logistic cost of ownership research and development activity.
• improved logistics management at sea. Successful trials were completed in June 2006 using a personal digital assistant-based asset management system. The system links the personal digital assistant and software to a ship's central logistics system and provides the mechanism for capturing crucial information at the site and time of repair, enabling a greater visibility of the maintenance and life cycle issues concerning a class of ship.
• Joint Fuels and Lubricants Agency successfully provided the logistics support necessary to conduct overseas operations at short notice. Of note is the delivery of aviation quality fuel in Darwin for operations in Timor-Leste (Operation Astute) using innovative containerised fuel tanks.
• The development of improved main stowage batteries for the Collins-class submarines. The improved battery will deliver extended operational life and is anticipated to reap considerable savings and operational availability for the class.

Electronic and Weapon Systems

The sustainment of electronic and weapon systems materiel is managed in 20 System Program and System Support Offices. These cover command and control systems, communications, airspace surveillance and control systems and their supporting radars, electronic warfare systems (including self-protection), guided weapons and explosive ordnance of all types.

The various System Program and System Support Offices maintained a high level of availability of the various systems within the level of resourcing provided during the year. This was achieved during a period of exceptionally high ADF operational tempo, with a large number of high priority, short notice support taskings being achieved to meet the increasing number of deployments. The following are examples of enhanced in-service support achieved over the reporting period.

• The centralised support model for command and intelligence systems and deployable networks has continued to mature. As the extant deployable data networks are becoming obsolete, a replacement program known as the Next Generation Deployable Local Area Networks has progressed through design and acceptance and will go into production in 2006–07. Software maintenance of command support and intelligence applications is being rationalised. The sustainment office introduced a number of additional command support systems to support new deployments during the year. While the tempo of operations has continued to challenge the System Support Office, demands from the ADF continued to be met in a responsive and coordinated manner.
• The availability and serviceability of the Nulka Active Missile Decoy System fitted to Australian warships remained excellent over the period. The serviceability of these systems was clearly demonstrated by the successful test firing of missiles in an international naval exercise.
• During the period, the ADF's Over the Horizon Radar wide area surveillance capability which includes the Jindalee Operational Radar Network continuously exceeded the operational availability requirements of the Air Force. This support involved extended surveillance operations in support of Operation Astute (Timor-Leste). ANAO Report No. 24 of 2005–06 Acceptance, Maintenance and Support Management of the JORN System concluded that the Jindalee Operational Radar Network had successfully transitioned from the acquisition to the in-service support phase and that the radars, along with the Jindalee radar at Alice Springs, were effectively maintained and operating within their design parameters. The ANAO found key factors that contributed to the effective support included the application of well-designed maintenance plans and procedures, supported by suitably defined performance targets, as well as the use of a maintenance management system with extensive functions covering inventory management, maintenance scheduling, records management, and maintenance management reporting.
• Improvements in the management of the $2.6 billion guided and non-guided explosive ordnance inventory were achieved during the financial year. Under the explosive ordnance remediation program, a far higher standard of administrative control was implemented, including computerising stock movement and configuration change. The program has succeeded in pricing the majority of the current stock holdings, including items purchased over 20 years ago. An in-house, major upgrade to the Comsarm computing system that logistically manages ADF explosive ordnance was successfully completed without disruption to the storage and delivery of this key element of capability. These and a number of other smaller process and procedural improvements have combined enabling the delivery of a material improvement to the accuracy and confidence of Defence's explosive ordnance accounting and systems processes.
• The ADF's Guided Weapons Sustainment—West organisation provided assistance during the period to ensure that a Joint Armaments Cooperative Program between Australia and the United States for the development and introduction of an advanced torpedo capability remained on track. A torpedo production, maintenance and weapon turn-around service in support of developmental and operational test firings of the enhanced torpedo was provided. That enabled the cooperative program's master schedule to be preserved at a critical phase of the development program. United States Navy and Royal Australian Navy submarines were involved in this series of successful tests conducted off the West-Australian coast.
• The new facility for the MU-90 Lightweight Torpedo in-service support activities was completed in Western Australia, which will enhance the ADF's ability to support this new capability. In addition, the Evolved Seasparrow Missile maintenance and certification facility was completed at Defence Establishment Orchard Hills in New South Wales.
• The delivery of the 13 upgraded Combat Net Radio Medium Repair Facilities has been completed. These facilities provide a significantly improved and more reliable ability to support combat net radio equipment in Australia and while deployed on operations.
• A contract for the sustainment of the initial Maritime Communications modernisation system components has been signed. The system will support the new equipment provided under Project SEA 1442 Phase 3 for a period of five years.
• The future support of two critical naval communications facilities has been assured with the signing of a new contract for the maintenance of the Navy Transmission Station in Sale, Victoria and the completion of revisions to the contract for the maintenance and engineering services for the Naval Communications Station Harold E Holt in Exmouth, Western Australia.
• A wide variety of sustainment mechanisms continue to support the extensive and diverse satellite communications equipment in service with the ADF. A mixture of commercial-off-the-shelf and military terminals from narrowband handheld to wideband ground stations are supported across the Middle East Area of Operations, in Afghanistan, Timor-Leste and in other areas where the ADF is operating. Extremely high levels of availability are being maintained in spite of the harsh environments and the remoteness of the locations to the Australian support base.

Major challenges for sustainment during 2006–07 include:

• Responding to the increased ADF operational tempo and the increasing number of operationally deployed information technology-based Command Support Systems, by adapting existing support models to accommodate the shortened acquisition timeframes and the short product lifecycles.
• Addressing the impending obsolescence of a number of land-based communications fleets to ensure continuing availability of these capabilities.
• Integrating recently procured capabilities to support operations under 'rapid acquisition' into existing, proven sustainment processes to ensure quality support for that equipment for the life of the military operation and beyond. This is particularly true, though not limited to, the many electronic warfare self protection equipment types recently procured to support operations in the Middle East Area of Operations, Afghanistan, Timor-Leste and elsewhere. A new Land Self-Protection System Program Office is being established to address some of these issues.
• Dealing with a number of key cryptographic fleets that are nearing their end of life. Through a series of acquisitions, working with Australian and international agencies and manufacturers on the ongoing capabilities which will need to be sustained through fleet replacement.
• Adapting sustainment models for existing ADF air traffic control systems whose management will transition under the Defence/Air Services Australia initiative to integrate military and civil facilities under Project Genesis.
• Acquisition and through-life support of explosive ordnance requiring unique competencies and processes. Training and development programs are being developed to overcome the loss of trained and experienced personnel resulting from an ageing workforce.
• Transitioning of multiple new guided weapons will require the allocation of sufficient resources to ensure that the capability can be sustained. An effective 'Acceptance into Service' framework for guided weapons is being developed to ensure all aspects of sustainment are addressed.

Land Systems

The sustainment of land systems is managed through eight System Program Offices. Land materiel products span more than 1,200 equipment fleet types and tens of thousands of consumable line items. Land materiel is supported throughout Australia and in several concurrent overseas operational theatres. During 2005–06, these products were managed across 29 separate Materiel Sustainment Agreements.

The range of land materiel is significant and includes: armoured vehicle fleets; a diverse range of wheeled vehicles fleets; engineer plant; bulk liquid distribution and storage systems; electrical equipment fleets; a range of weapon systems, from small arms to mobile guided missile systems; medical and dental equipment; tentage and defence stores; and uniforms and consumable stores, such as combat rations.

Support to Operations

The greatest challenge for land materiel sustainment during 2005–06 has been support to operations. The ADF has significant quantities of land materiel deployed on operations in two separate theatres in the Middle East, and in Timor-Leste and Solomon Islands. Significant operational support achievements include:

• the short notice development, manufacture and installation of bar armour and spall liner kits for the Australian Light Armoured Vehicle (ASLAV) fleet. DMO personnel and contractors performed some of this work within the area of operations;
• the development and manufacture of armoured crew cabins for both Unimog and Mack trucks;
• the integration of remote weapon stations for the ASLAV fleet;
• the deployment and support of Bushranger Infantry Mobility Vehicles prior to formal introduction into service;
• the deployment and continuous support of weapon locating radar;
• the development of armoured crew cabins for various items of engineer plant;
• a total of 26 rapid acquisition projects were undertaken at a total cost of $29m;
• the satisfaction of 24,000 demands per month for combat clothing and 150 demands per month for personal protective equipment (body armour);
• the short-notice deployment and support of 38 M113A1, 240 wheeled vehicles and other ancillary equipment to Timor-Leste under Operation Astute; and
• the satisfaction of over 2,000 SDSS demands from overseas operations per month.

Significant Achievements

In addition to the considerable support provided to operations, other significant achievements included:

• planning and loading 31,516 jobs by Joint Logistic Command using 532,881 hours of labour;
• the refurbishment of more than 280 vehicles under the operational remediation program, including:
  • 140 Landrovers,
  • 50 specialist patrol vehicles,
  • 59 Unimog trucks, and
  • 31 Mack trucks;
• the refurbishment of a further 580 vehicles and 2,378 major assemblies under the B-vehicle logistics supplementation program;
• increased small arms maintenance with over 7,000 weapons being loaded to ADI Limited for repair. Of these, 3,000 were fully rebuilt to the latest build standard and a further 360 heavy machine guns were overhauled;
• the achievement of an average daily operational availability of the deployed ASLAV fleet in excess of 90 per cent;
• the improvement in ASLAV powerpack replacement time by 80 per cent;
• the publication of ASLAV technical data as interactive, online technical manuals; and
• significant improvement in the operational availability of M113A1 vehicles at the School of Armour; increasing from 45 per cent to above 90 per cent. Similar improvements have been achieved in Leopard tank availability; increasing from 50 per cent to over 85 per cent.

Significant Closures

Support activities that have been completed, include:

• the withdrawal from service of the Rapier Ground-based Air Defence System, including the disposal of more than 36,000 line items of spare parts and supporting equipment; and
• the withdrawal from service of the Armoured Vehicle Launcher Bridge fleet including the commencement of disposal action.

Projects Transitioned into Service

The delivery of the following capabilities occurred in 2005–06:

• The Infantry Mobility Vehicle Bushmaster was introduced into service and a new contractor support facility was commissioned in Brisbane.
• Project Land 19 Phase 6 was completed, resulting in the doubling of the RBS-70 Short Range Air Defence (SHORAD) fleet.
• A state-of-the-art, third generation SHORAD dome trainer was commissioned at the 16th Air Defence Regiment, Woodside, South Australia. The system was supplied and will be operated and maintained by Tenix Defence Systems.
• Project Land 53 Phases 1E and 1F, Ground Surveillance Radar and Thermal Surveillance Systems respectively, were successfully introduced into service.

Other Significant Activities

Other significant activities:

• Land Systems Division undertook significant management-initiated reforms to the clothing program that were informed by the independent Review into the ADF Combat Clothing Procurement Program. This involved the creation of a new structure, the rotation of new and qualified staff into the clothing program and the adoption of new business processes.
• A large proportion of the M113A1 fleet was withdrawn from service and the first batch of 30 vehicle hulls were stripped in preparation for the M113 Upgrade Project.
• The phased withdrawal from service of the Leopard tank fleet commenced while maintaining agreed levels of operational availability for the residual capability.
• Preparation for the introduction into service of the M1A1 tank, with logistics support agreements being established and initial holdings of repair parts being delivered.
• The provision of support to the Queensland Recovery Operation after Cyclone Larry.
• Transition of the Materiel Support Agreements to a ten-year model and improving the quality of performance reporting.

Chief Operating Officer Division

The sustainment of logistics information systems includes support for the SDSS, the computer-aided maintenance management system and a number of smaller logistics information systems.

The major challenge for sustainment of logistics information systems in 2006–07 will be the continuing development and upgrade of the Standard Defence Supply System to support enhanced tracking and management of ADF inventory items across the country.

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