Top 30 Project Descriptions

Maritime Systems Division

SEA 1390 Phase 2—Guided Missile Frigate (FFG) Upgrade Implementation

Contractor: ADI Ltd trading as Thales Australia

This project is to upgrade combat systems, including sensors, missile launchers and associated platforms systems on the Adelaide class guided missile frigates.

Provisional acceptance of HMAS Melbourne and the shore-based Team Trainer were achieved by November 2007. HMAS Darwin is nearing completion of contractor sea trials. HMAS Newcastle (the last upgrade) completed the docking phase of the upgrade in November 2007 and is currently undertaking in-water installation and production work. HMA Ships Sydney and Melbourne are operated by Navy and are progressing rectification of deficiencies in the underwater warfare, electronic support and combat systems to achieve initial operational release, and contractual acceptance scheduled for November 2008. The project expenditure variation is attributable to early achievement of some prime contract milestones and a high number of price variations evaluated and finalised during October/November 2007.

The main project risk relates to contracted performance of the electronic support system and production, system integration and test/trials activity. Risk is being mitigated by the integration of Commonwealth and contractor product teams to achieve the required performance. These risks are influenced by the availability of experienced, competent and skilled personnel in a limited and very competitive Australian commercial market. To mitigate risk, the prime contractor has implemented recruiting and retention strategies and established a commercial industry alliance for the production work. The overall risk is assessed as medium to high.

SEA 1390 Phase 4B—Standard Missile (SM) -1 Missile Replacement

Contractor: Various commercial contracts under a Foreign Military Sales (FMS) arrangement with the United States Department of Defense

This project is to replace the SM-1 missile with a modern variant of the same missile system (SM-2) and integrate the replacement missile into four guided missile frigates; deliver missiles with mid-course guidance capability, and acquire initial ship outfit and inventory stock missiles.

The contract for the guided missile launching system was awarded in January 2008 with other elements awarded in July 2007. Design reviews for the equipment items have been accomplished and the first installation is planned for end 2008.

The system software development Preliminary Design Review occurred in April 2008. Initial deliveries of SM-2 missiles to the US Navy were made in June 2008. Initial missiles were delivered to Australia in September 2008.

The year end budget variance is attributable to FMS payments ahead of plan, an invoice receipt from US commercial suppliers, and a June 2008 processing not occurring until 2008-09.

The medium risks of schedule slippage in system development and providing interoperable systems and logistics support are mitigated by rigorous schedule monitoring and participation with the US Government and industry in integrated product teams. System installations will be conducted during planned ship maintenance.

SEA 1448 Phase 2A—Anzac Ship Anti-Ship Missile Defence

Contractor: The contract management is under the Anzac Ship Integrated Materiel Support Program Alliance comprising Saab Systems, BAE Systems Australia (formerly Tenix Defence), and the Commonwealth represented by the DMO. The contractor is CEA Technologies Pty Ltd.

This project is to upgrade the combat management system (CMS) from MK3 to MK3E, upgrade the fire control system, and install an infra-red search and track (IRST) capability to provide improved detection of low-level aircraft and anti-ship missiles when ships move close to land. The proposal to combine the project SEA 1448 Phases 2A and 2B remains under review by the DMO.

The preliminary principal design review was completed in August 2007.

The search and track capability and the hardware and software architecture for the MK3E combat management system are achieving the master contract schedule. The first tracking system along with the MK3E combat management system production hardware were successfully integrated and set to work in April 2008.

Combat management system integration into the shore-based systems centre progressed well with software running on the MK3E equipment. Integration testing of the combat management system on both Phases 2A and 2B equipment, and existing ship equipments has been ongoing from April 2008. Part 1 of the critical design review was completed in May 2008 and confirmed that the current approach meets requirements, and that the Anti-Ship Missile Defence system is ready for fabrication and coding.

Phase 2A is a low-risk project due to its procurement and delivery of fielded systems. Production and integration successes with IRST hardware and CMS software continue to support this technical risk assessment. Cost risk is low following a review that confirmed there is sufficient financial provision to deliver the scope of the project.

Schedule risk is medium due to the Phases 2A/2B relationship and the Phase 2B higher risk for phased array radars. The key schedule driver is the ability of CEA to deliver against the Master Schedule. Until CEA is able to demonstrate timely production deliveries, schedule risk is medium.

SEA 1448 Phase 2B—Anzac Ship Anti-Ship Missile Defence

Contractor: The contract management is under the Anzac Ship Integrated Materiel Support Program Alliance comprising Saab Systems, BAE Systems Australia (formerly Tenix Defence) and the Commonwealth represented by the DMO. The contractor is CEA Technologies Pty Ltd.

The project is to deliver a CEAFAR target indication and tracking radar; CEAMOUNT target illuminator; and a replacement for the existing Navigation Radar suite in the Anzac class frigates. A proposal to combine the project SEA 1448 Phases 2A and 2B remains under review by the DMO.

The preliminary principal design review was completed in August 2007 and the first part of the critical design review in May 2008. The first production phased array radar tile tracking capability was successfully demonstrated in December 2007 and included successful demonstration of the digital beam forming capability. This was achieved at least 12 months in advance of expectation.

Due to increasing costs, the project will be unable to be completed within the existing budget. A revised acquisition strategy will deliver project outcomes by retiring risks in the first ship's installation and testing before further commitment is made to a staged investment beyond the first ship. Under the revised strategy, the Government, Defence and the DMO can intervene at specific demonstration milestones during the project.

Technical risk remains at medium to high due to the leading edge, indigenous technology and the introduction of new capabilities to the Anzac class frigates. The procurement strategy will allow the Commonwealth to exit the program if risk becomes unacceptable. The risks are progressively being retired; however, some significant risks have materialised which will require a scope change and cost increase. The DMO is working with industry to reduce costs and develop an optimum risk/investment arrangement.

The medium schedule risk is the ability of CEA to deliver against the Master Schedule for the production of new technology. The risk is mitigated by performance milestones, with first production completed on time in June 2008.

SEA 1348 Phase 2—Anzac Ship Project

Photo of ANZAC class ship.Contractor: BAE Systems Australia (formerly Tenix Defence)

All eight Australian ships and four shore facilities are in service with the Royal Australian Navy and two ships are in service with the Royal New Zealand Navy. The ongoing delivery of spares, documentation and other logistic support deliverables is near completion. Closure of the prime and major contracts is progressing. Minor configuration changes to the ships in service and the finalisation of outstanding design and installation issues were progressed during 2007-08 with implementation of solutions to all issues and first-of-class installations continuing into 2010-11.

Project risk is low as all 10 ships have been delivered, and the majority of final support deliverables received.

SEA 1439 Phase 4A—Collins Replacement Combat System

Contractors: A Foreign Military Sales arrangement with the US Department of Defense and an Armaments Cooperative Project Arrangement. Australian contractors include Raytheon Australia, Thales, Sonartech Atlas, Cerulean Solutions, Acoustic Technologies and ASC Pty Ltd.

The project will provide Collins class submarines with the US Navy Tactical Command and Control System; minor improvements to the combat system augmentation sonar, and shore facilities for integration, testing and training.

System trials in HMAS Waller were completed during post docking sea trials in early 2008 and Waller is now undertaking Navy operational test and evaluation. The second of the installations (HMAS Farncomb) was completed in June 2008 and harbour acceptance trials have commenced.

The next version of the AN/BYG-1 Tactical Control System for installation in the remaining four Collins class submarines is undergoing integration testing. Installation in HMAS Dechaineux will be completed during its current full-cycle docking, with post docking sea trials planned to commence in mid-2009.

The project did not reach the full expenditure target because of cost savings and payment delays under the Armaments Cooperative Project with the United States.

US Navy changes to the baseline tactical system pose a medium level of risk to both cost and schedule. This risk is being mitigated by the joint Australian-US Project Office (co-located in the United States) to monitor scope changes early and minimise adverse impacts on the Collins installation program.

The submarine docking program is subject to changes to enable Navy to achieve operational and maintenance priorities. These changes are a high risk to the schedule for completion of installation and are managed by DMO engaging with Navy to ensure compatibility of the submarine docking and installation schedules.

SEA 1444 Phase 1—Armidale class Patrol Boat

Contractor: Defence Maritime Services

The project has delivered all 14 Armidale class patrol boats within the current approved cost, and will also deliver in-service support until 2020 under the prime acquisition contract.

The new patrol boats improve the Navy's ability to intercept and apprehend vessels suspected of illegal fishing, quarantine, customs or immigration offences.

The fourteenth and final patrol boat HMAS Glenelg, was commissioned by the Navy in February 2008. The upgrade of wharf facilities in Darwin was completed in December 2007.

Although trials of the fuel system reliability continue, the patrol boats are meeting the Navy's availability requirements, as discussed in Outcome Two in Volume 1 of this report.

The project risk is low and relates to implementing permanent improvements to fuel system reliability and to rectifying the design defect in the davit hydraulics.

Fuel system modifications were incorporated into all boats to address diesel engine fuel system issues. Since March 2007, vessel availability has met and sometimes exceeded contractual requirements. A further testing program is underway to evaluate the latest fitted modification.

Hydraulic system changes into HMAS Glenelg overcame problems related to the hydraulic system pipe work, resulted in limitations on sea boat hoist speed and payload, and will remain in place until a revised safety assessment has been conducted and approved. On completion the modifications will be rolled out to the other patrol boats.

SEA 1779 Phase 1—Ships Self Defence Capability

Contractor: Alliant Techsystems Inc for the supply of the 25mm Bushmaster Naval Variant Cannon, and Rafael Armament Development Authority (Israel) for the supply and integration of the Toplite, Mini-Typhoon and Typhoon systems.

The project is to deliver a dual-level ship self-defence capability for HMA Ships Kanimbla, Manoora and Tobruk. The capability consists of an integrated fire control system comprising the Rafael Typhoon (25mm Bushmaster Naval Variant Cannon) and the Mini-Typhoon Browning (50 calibre machine gun) weapon systems, and Toplite electro-optical director system.

The majority of the Amphibious Ships Close Range Weapons Capability in HMA Ships Kanimbla, Manoora and Tobruk was installed by the end of financial year 2007-08. Orders for the Typhoon and Bushmaster cannon hardware were placed in late 2007-08.

Schedule and ship availability risks have retired as the installation nears completion and the equipment manufacturers are to deliver supplies to an agreed delivery date. The low technical risk is mitigated by the conduct of system testing, certification activities and training, including the provision of detailed manuals and operating procedures. The operational effectiveness of the multi-weapon system configuration is progressively being assessed as the systems and weapons are installed.