Smart sustainment leads to $100 million saving

Minister for Defence Materiel Jason Clare today announced Defence will save $100 million over the next decade under new arrangements for operating the radar network protecting northern Australia.

The savings will be achieved by Defence working in partnership with BAE Systems and Lockheed Martin to deliver more efficient support services to the radar — the Jindalee Operational Radar Network (JORN).

Mr Clare said this was a terrific example of Defence and industry working together to deliver savings to the taxpayer.

“Defence, BAE Systems and Lockheed Martin Australia have done excellent work to deliver these savings,” Mr Clare said.

“This $100 million saving will be achieved without any impact on the operating capability or safety of the radar network.

“This represents a saving of 16 per cent per year.”

Mr Clare said the savings follow an end-to-end review of the JORN system to identify possible savings measures.

“The JORN system was chosen as one of the four initial pilot projects developed in early 2010 for the implementation of Strategic Reform Program – Smart Sustainment Initiatives,” Mr Clare said.

“These revised support contracts represent a significant saving for Defence and would not have been possible without the excellent work put in by both Defence and the industry partners – Lockheed Martin Australia and BAE Systems.”

JORN provides long range surveillance of Australia’s northern sea and air approaches up to 3000km from the three radar sites located near Laverton, WA, Alice Springs, NT and Longreach, QLD.

The revised contracts include an extension to the original contract support periods.  Additionally, the contracts include an option for further extensions should capability outcomes and cost savings continue to be achieved.

Media contact: Korena Flanagan – 02 6277 7620

MS-Word Version

Tags:

Subscribe to our RSS Feed