Defence: Project Sea 1229

Senator Chris Evans asked the Minister for Defence, upon notice, on 16 May 2002:

With reference to Project Sea 1229:

1. (a) Has the Nulka System been fully accepted into service; and (b) can the Minister confirm that the target date for full acceptance was the end of 2001, as noted on the Defence Materiel Organisation website.
2. If full acceptance has not been achieved: (a) why not; and (b) when is it anticipated that it will be fully accepted into service.
3. Have there been any additional costs associated with the process of fully accepting the system, for example, modifications required to the ship or system.
4. If fully accepted, is the Nulka System now fully meeting all requirements in the Detailed Operational Requirement.
5. In terms of phases 2 and 3 of this project, what is the total contracted price for installing the Nulka System on all frigates.
6. To date, what has been spent on: (a) phase 1 of the project; and (b) phases 2 and 3 of the project.
7. Has the Nulka System been installed on all three commissioned ANZAC Frigates; if not, when will all ANZAC frigates have this system installed.

Senator Hill - The answer to the honourable senator's question is as follows:

1. 1. No - The Nulka System has only been provisionally accepted (this occurred on 5 September 2001).
   2. Yes.
2. Full acceptance has not been achieved because the Prime Contractor (BAE SYSTEMS Australia Ltd) has not delivered a number of configuration items nor completed the rectification of software deficiencies as required by the Contract. However, the system successfully completed operational evaluation in October 2001 and it is expected that full acceptance will occur by the end of 2002.
3. The cost to retrofit Nulka to HMAS Anzac and HMAS Arunta is higher then originally estimated by of the order of $700k per ship. The cost to fit Nulka to other ANZAC ships during their build is higher than originally estimated by of the order of $300k per ship. The original estimates were based on costs to fit Nulka to Guided Missile Frigates. The project will still be completed within the current approved project funding.
4. Not applicable.
5. Noting that phases 2 and 3 have been combined, the total contract price for phase 2/3 is A$73.1m. The cost of acquiring the system ready for installation is $60.5m. The cost of actually installing the system in the Frigates and ANZAC ships is $8.0m.
6. The following amounts have been spent:
   1. Phase 1 – A$26.7m.
   2. Phase 2/3 – A$60.7m.
7. HMAS Warramunga and HMAS Arunta have been installed with the Nulka System. HMAS Anzac is due to be fitted in June/July 2002. Remaining ANZAC ships will have the Nulka system installed as part of the ANZAC ship build program with the last ship expected to be delivered to the RAN in 2006.

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