Defence: Joint Strike Fighter

Senator Johnston asked the Minister for Defence, upon notice, on 11 January 2010:

1. With reference to the acquisition of the first 14 F-35 Joint Strike Fighter (JSF): (a) what is the expected expenditure on the acquisition; (b) what is supplied as equipment, supporting systems, weapons, services or infrastructure to the Australian Defence Force (ADF); (c) when will these aircraft be delivered; (d) when will they become fully operational; and (e) what is the estimated through‑life support and operating costs for these aircraft over an expected 30 year period of operation.
2. When will the remaining 86 F-35 JSF be purchased [Defence White Paper 2009, p. 78, paragraph 9.60, ‘The Government has decided that it will acquire around 100 F-35 JSF, along with supporting systems and weapons. The first stage of this acquisition will acquire three operational squadrons comprising not fewer than 72 aircraft’].
3. Has the commitment of, acquiring three operational squadrons comprising not fewer than 72 F-35 JSF aircraft, given in the Defence White Paper 2009, been broken not more than 6 months later; if so, why.
4. With reference to the acquisition of the remaining 86 F‑35 JSF: (a) what is the expected expenditure on the acquisition; (b) what will be supplied as equipment, supporting systems, weapons, services or infrastructure to the ADF; (c) when will the aircraft be delivered; (d) when will they become fully operational; and (e) what is the estimated through‑life support and operating costs for the remaining 86 F-35 JSF over an expected 30 year period of operation

Senator Faulkner - The answers to the honourable Senator’s questions are as follows:

1.  
   1. The first 14 JSF, with infrastructure and support required for initial training and testing, will be acquired at an estimated cost of $3.2 billion. However, it should be noted that this figure is in ‘Then Year’ dollars, i.e. it takes inflation into account, is based on a conservative AUS/US exchange rate, includes a considerable amount of contingency, and the proportion of the funds for aircraft is considerably less for this phase than for the overall project because of the higher proportion of broader project support elements for this first stage of the project.
   2. The first stage of acquisition comprises:
      • 14 Conventional Take-Off and Landing aircraft, including significant provision for known and unknown cost risks;
      • auxiliary mission equipment such as weapons adaptors;
      • initial support equipment;
      • weapons for operational testing;
      • funding for initial training in the US;
      • initial contribution to global spares pool and initial deployment kit;
      • initial flight and maintainer simulator capability to support operational testing;
      • facilities and environmental planning activities;
      • information technology integration;
      • contribution to electronic warfare reprogramming facility;
      • ferry of aircraft to Australia;
      • ongoing contribution to the JSF Program shared costs;
      • operational test activities in Australia;
      • ongoing industry support initiatives;
      • ongoing Defence Science & Technology Organisation support activities; and
      • administrative costs.
   3. On current plans:
      • Australia’s first two aircraft will be delivered in 2014 to commence training in the United States.
      • The next eight aircraft will also be based in the United States for a number of years.
      • The next four will be delivered in Australia in 2017 to conduct Australian operational testing.
   4. 2017. However, Australian specific operational test and evaluation will not have been conducted at that time.
      
      Australian-specific operational test and evaluation - primarily to ensure effective integration with Australian ground and air systems - will take place during 2017 and 2018, leading to Initial Operational Capability in 2018 (i.e first squadron ready for deployed operations).
      
      Subsequent aircraft deliveries will lead to Full Operational Capability of the first three operational squadrons being achieved by 2021.
   5. In broad terms the operational cost of each aircraft as a component of a mature fleet of three squadrons would be in the order of $200-250 million  per aircraft (using a reasonably conservative exchange rate) over a 30 year life at the currently expected rate of effort or about $2.8–3.5 billion for the 14 aircraft currently approved.
2. A decision on acquiring the next batch of aircraft and all necessary support and enabling capabilities - leading to a total of no fewer than 72 to form the first three operational squadrons and a training squadron - is planned for 2012.
   
   A decision on the fourth operational squadron—bringing the total number of JSF aircraft to around 100—will be taken on a later date in conjunction with a decision on the withdrawal date of the 24 Super Hornets.
3. No. The commitment remains the same, the decision process is now occurring in two stages.
4.  
   1. Full provisions for acquisition of the remaining approximate 86 aircraft are included in the Defence Capability Plan.
      
      The actual costs of the remaining aircraft and associated support and enabling systems for the first three operational squadrons and a training squadron will be finalised when Government considers this stage of acquisition in 2012.
      
      The actual cost of a fourth squadron will be determined later, in conjunction with a decision on the replacement of the Super Hornet fleet.
   2. The acquisition breakdown is broadly similar to the first stage but comprises the full support capability:
      • remaining (approx 86) Conventional Take-Off and Landing aircraft, including significant provision for known and unknown cost risks;
      • additional auxiliary mission equipment such as weapons adaptors;
      • additional support equipment;
      • weapons for training;
      • additional contribution to global spares pool and initial deployment kit;
      • additional flight and maintainer simulator capability to support operational testing;
      • facilities construction;
      • information technology hardware;
      • remainder of contribution to electronic warfare reprogramming facility;
      • ferry of aircraft to Australia;
      • ongoing contribution to the JSF Program shared costs;
      • ongoing operational test activities in Australia;
      • ongoing industry support initiatives;
      • ongoing Defence Science & Technology Organisation support activities; and
      • administrative costs.
   3. The bulk of the aircraft to form the first three operational squadrons and training squadron will be delivered over the period 2018 to 2021. These aircraft are planned to be acquired as part of the JSF Program’s first multi-year buy—comprising over 1000 JSF across the JSF partnership with deliveries commencing in 2017.
   4. Please see response to part 1(d) of the question.
      
      Delivery of the fourth operational squadron—bringing the total number to around 100—will be dependent on the withdrawal date of the Super Hornets.
   5. Operational costs for a total fleet of about 100 aircraft would be in the order of $20 billion over a 30 year life based on the currently expected rate of effort and assuming the economies of scale of an eventual all JSF fleet. Proportionally the final 86 aircraft would cost in the order of $17 billion.

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