“The vehicles will be sold by Australian National Disposals, a new Australian-owned business based in New South Wales,” Mr Clare said. 

Mr Clare said sale of the vehicles gives Australians a chance to buy their own part of Australian military history. 

“The Army vehicles being sold include the Army Land Rovers, Mack trucks, Unimogs, motorcycles, trailers and all terrain vehicles,” he said. 

“The sale of these vehicles is expected to raise more than $100 million. Their average age is 25 to 30 years old and they have average of 125,000 kms on the clock.” 

The vehicles will be sold to Australian and overseas markets in order to maximise the financial return to the Commonwealth. 

The first vehicle sales are expected to begin March 2013 and will progressively be sold to Australian National Disposals as the vehicles are retired from the Army over the next decade. 

A number of vehicles will be reserved and offered exclusively to community and heritage organisations, including the Australian War Memorial, RSLs and other historical organisations. 

Interested parties can register their interest with the Defence Disposals Agency at www.defence.gov.au/dda or via e-mail to disposals@defence.gov.au. 

The B vehicles will be replaced by new vehicles under Project LAND 121 – Overlander. 

This is part of the biggest disposal of military equipment since World War II. 

Over the next 15 years the Australian Defence Force will replace or upgrade up to 85 per cent of its equipment. 

Media Contact: Annie Williams 0428 040 522

Mr Clare said two radar systems are currently operating in Tarin Kot. This third system will be used to train troops ahead of their deployment to Afghanistan.

“The Giraffe radars provide our troops with early detection of attacks from enemy rockets, artillery and mortars, protecting Australian and ISAF forces,” Mr Clare said.

“This early warning system has proven to be an important force protection capability for our troops, giving them vital seconds of advanced warning so they can take shelter.

“The addition of a third Giraffe radar to train our soldiers before they deploy means they will be trained to use the full range of the radar’s capabilities from the time they hit the ground.”

Australia assumed responsibility for early detection against rocket, artillery and mortar attacks at Tarin Kot from 28 December 2010.

The new Giraffe radars have replaced leased radars and were manufactured in Sweden by SAAB AB under an $86.2 million contract, which includes support services.

Australia’s C-RAM Sense and Warn capability consists of Giraffe radars, a number of lightweight counter mortar radars, and Command and Control, and warning equipment.

The new radars are the latest in a range of force protection initiatives that over the past few years has delivered $1 billion in equipment to protect our troops in Afghanistan including:

• Up-armouring the Bushmasters;
• New combat body armour;
• Heavier calibre weapons; and
• New ground-penetrating radar trucks to clear roads of IEDs before troops travel on them.

Media contact:

Minister Clare’s Office: Annie Williams 0428 040 522

“Aerospace Logistics have over 30 years experience as an international specialist in the supply, refurbishment, exchange, maintenance, repair and overhaul of aircraft parts,” Mr Clare said.

ASL will use the Sea King inventory to sustain and support capability of international military and search and rescue fleets.

The ASL bid provided the greatest return to the Commonwealth.

“The Sea Kings were known as the workhorse of the Navy, large enough to pick up loads heavier than a Land Rover,” Mr Clare said.

“They have played a significant role in naval aviation over the last 36 years.”

The Sea Kings were withdrawn from service in December 2011 and are being replaced by MRH-90 helicopters under Project Air 9000 Phase 6.

“In September 2011 I also announced that Sea King Shark 07 would be preserved at the Fleet Air Arm Museum in Nowra,” Mr Clare said.

Shark 07 was chosen because it has the most operational history of all the Sea King helicopters, having served in the Middle East and East Timor.

“Displaying this aircraft for public viewing ensures as many Australians as possible have access to this piece of Australia’s aviation history.”

The Sea Kings have flown in excess of 60,000 hours in a range of operations both at home and abroad and come to the assistance of many Australians.

In 1994, the Sea Kings were involved in one of the largest fire fighting efforts in Australia’s history. The aircraft used water buckets to fight fires raging near Grafton, Gosford, Bulahdelah and Sydney’s western suburbs.

The Sea Kings have also been used for rescue operations at sea.

In 1998, two of the helicopters were involved in rescuing yacht crews in disastrous weather conditions during the Sydney to Hobart Yacht Race.

One of the Sea Kings’ last operations was to south-west Queensland to provide response and recovery efforts during the Queensland floods.

The contract is subject to International Traffic in Arms Regulations (ITAR) approval.

Media contact:

Minister Clare’s Office: Annie Williams 0428 040 522

Mr Clare said the two blocks, manufactured by BAE Systems, arrived into Adelaide by tug and barge from Williamstown, Victoria.

“The blocks will be located in the front third of the ship and once consolidated will house the 48 cell MK 41 Vertical Launch System (VLS),” Mr Clare said.

“The VLS can store and then fire SM-2 or Evolved Sea Sparrow missiles in quick succession and is an important element of the combat system that will be installed into the Hobart Class destroyers.”

The three guided-missile destroyers are being constructed using a modular method where blocks are manufactured across four shipyards and consolidated at the South Australian Government’s Common User Facility at Techport Australia.

The first destroyer Hobart is expected to be delivered to the Royal Australian Navy in early 2016. Consolidation of second ship Brisbane is due to start in early 2014. Fabrication has begun on the blocks for the third destroyer Sydney.

“BAE has significantly improved the quality of their manufacturing performance and delivered blocks that are virtually defect free,” Mr Clare said.

“This is testament to the hard work and skill of the team at BAE’s shipyard in Williamstown.”

The AWD is based on a proven Navantia design used by the Spanish Navy and when complete will be one of the most capable warships of its size in the world.

The ships will be equipped with the Aegis Weapon System, making them capable of assuming a leading command and control role within the Australian Defence Force as well as coalition forces.

The AWD project is being delivered by the AWD Alliance. The AWD Alliance is made up of the Defence Materiel Organisation, ASC and Raytheon Australia.

BAE are currently constructing 11 blocks for the AWD project, including seven blocks for the first destroyer and two for the second.

The AWD project directly employs more than 2500 people, with 200 employed by BAE in Melbourne.

Imagery is available at: http://images.defence.gov.au/12132458

Media contact:

Minister Clare’s Office: Annie Williams – 0428 040 522

The Standard Combat Uniform is the disruptive pattern camouflage printed shirt and trousers worn by Australian Defence Force members deployed on operations, during training and as normal daily dress.

Mr Clare said he has made it clear that the standard combat uniform worn by our soldiers should be made in Australia.

“That means the fabric is woven in Australia and the garment is stitched together in Australia,” Mr Clare said.

Local companies Australian Defence Apparel in Bendigo, Victoria and Pacific Brands Workwear Group in West Footscray, Victoria will produce the uniforms in a five-year contract, worth an estimated $14.5 million per year.

“I have seen the dedication and pride of those who work for these companies. The high-quality uniforms they manufacture support our troops serving at home and overseas.”

Fabrics used in these uniforms will also be made in Australia, by Bruck Textiles in Wangaratta, Victoria and by Technical Fabric Services Australia in South Stapylton, Queensland.

“This is an outstanding result for the men and women of our Defence Force, ensuring quality, Australian-made combat uniforms into the future,” Mr Clare said.

Media contact:

Ryan Hamilton 0414 599 468

“There are no more important skills than those contained within our Priority Industry Capabilities – they are the capabilities that we can’t do without,” Mr Clare said. 

“Last year I announced that the Defence Materiel Organisation would conduct health checks on each of the PICs.” 

Six PIC Fact Sheets have already been released for: 

• Infantry Weapons –  5 September 2011;
• Ship Dry Docking and Common User Facilities – 5 September 2011;
• Combat Clothing – 1 February 2012;
• Acoustic Technologies and Systems – 1 February 2012;
• Signature Management – 21 February 2012; and
• Through-life and Real-Time Support of Mission and Safety Critical Software – 21 February 2012. 

Mr Clare today released two more health checks – In-Service Support of the Collins Class Combat System (CCCS) and Electronic Warfare (EW). 

Priority Industry Capabilities identify elements of broader industry capabilities that confer an essential strategic advantage by being resident in Australia and which, if not available, would undermine defence self-reliance and Australian Defence Force operational capability. 

PICs are defined in terms of industrial capabilities rather than specific companies and, ideally, healthy PICs should function without any special form of Government subsidy or intervention in the market. 

“The health checks are an important tool for assessing the capacity of Industry, the forecast demands of the Australian Defence Force and any Defence or Government intervention that might be necessary,” Mr Clare said. 

“The findings of these health checks will feed into the development of the 2013 Defence White Paper.” 

The health checks were undertaken following consultation with an extensive range of Industry and Defence stakeholders. 

In-Service Support of the Collins Class Combat System (CCCS) 

This PIC has important implications for the effective operation of Australia’s submarine fleet. 

It focuses on the ability of Australian-based companies and the Defence Science and Technology Organisation (DSTO) to assist in developing, upgrading, modifying and maintaining aspects of the on-board computer hardware and software which allow Collins Class submarines to identify a military threat and apply appropriate countermeasures. 

“The health check has found that the health of the PIC, now and in the foreseeable future, is satisfactory and that no special or unusual forms of assistance to industry or DSTO are required,” Mr Clare said. 

The health check found that certain elements were critical to the health of the PIC including: 

• The ability of industry to attract and retain suitably qualified engineers and technicians;
• Contractual certainty for companies to allow them to invest in staff training;
• The ability to integrate the CCCS with the submarines’ platform and its ancillary systems; and
• The capacity of DSTO to engage in various forms of CCCS development and evaluation. 

The health check recommends that – given the high dependency of Defence on a very small number of Australian-based companies – the position of the companies involved in the CCCS should be monitored closely. 

Electronic Warfare (EW) 

This PIC has important implications for the development, testing, installation and upgrade within Australia of a range of electronic warfare systems, primarily through the combined efforts of both Defence and local industry. 

“The health check has found that while the health of the PIC is satisfactory, a number of measures can be taken by Defence to further support domestic industry,” Mr Clare said. 

It also found that, in recent years, a number of factors have pushed Australia towards a heavy and increasing reliance on EW equipment produced overseas, these include: 

• the ADF’s desire to strengthen interoperability and data exchange with allies;
• the very high costs and risks of EW equipment development; and
• a growing tendency for major weapons platforms to be designed and supplied with EW systems as integral components rather than options to be added—potentially from domestic sources—at a later date. 

The health check recommended: 

• Providing Australian-based companies with proven EW expertise with preferential access to Defence’s existing range of industry assistance programs, especially those relating to industry innovation; and
• Defence look at establishing a Masters level university course in Electronic Warfare in Australia, with attendees drawn from both Defence and Industry. 

Steps are already underway within Defence to more closely integrate PICs with Defence’s range of grants programs for industry in the areas of skilling, innovation and market development. 

Factsheets that provide a summary of the findings of the health checks are available at http://www.defence.gov.au/dmo/id/pic/

Media contact:

Annie Williams 0428 040 522

Training will begin in Queensland in April 2013. Troops will train using Australia’s second Shadow 200 system which was delivered 12 months ahead of schedule in April 2012.

“This contract means we will now be able to train our soldiers to use the Shadow 200 right here in Australia,” Mr Clare said.

The Shadow 200 system captures full motion video during both day and night operations which can be sent back to a ground control station up to 125 kilometres away. It can recognise targets on the ground while operating at an altitude of up to 8000 feet.

Each Shadow 200 System comprises five aircraft, ground control stations, a launch and recovery element, and associated equipment, logistics and training.

The two Shadow 200 systems were acquired through Joint Project 129 (Phase 2) at a total cost of over $90 million.

The first Shadow 200 system began operations in Afghanistan earlier this year, providing enhanced intelligence capability to the International Security Assistance Force.

The US Army and Marines first used the system in Iraq and have been using it operationally in Afghanistan. Other nations such as Sweden and Italy are also procuring the Shadow 200 system.

The training will be delivered through AAI Corporation’s Australian-based subsidiary Aerosonde Pty Ltd.

Melbourne-based Aerosonde will initially provide three training instructors, increasing to the full contracted requirement of six as Australian instructors gain experience.

Imagery is available at: http://images.defence.gov.au/fotoweb/Grid.fwx?archiveId=5003=&search=11122502

Media contact:
Minister Clare’s Office: Annie Williams 0428 040 522

This prototype is the first to be delivered under Stage 2 of Project LAND 121 Phase 4. 

Made by Thales Australia, the Hawkei was selected in December 2011 as the preferred vehicle for development and testing under the Manufactured and Supported in Australia option of Project LAND 121 Phase 4.

Mr Clare said the Hawkei protected mobility vehicle combines speed with safety for Australian soldiers on the battlefield. 

“This year the Government allocated $38 million for further development and testing of the Hawkei,” Mr Clare said. 

“Under this agreement Thales will supply six prototype Hawkei vehicles and one trailer for testing and evaluation.” 

The delivery of the Hawkei prototype vehicle and trailer is an important milestone for Project LAND 121 Phase 4. 

“The Hawkei was manufactured at Thales’s Bendigo facility, which has been producing Bushmasters since 2003,” Mr Clare said. 

“The team of 50 working on the Hawkei are part of a team of 210 here at Bendigo. They do a very important job. The work done here in Bendigo is saving lives in Afghanistan.” 

The remaining five Hawkei vehicle prototypes are expected to be delivered by June 2013. 

Over the next year these vehicles will undergo an extensive testing program, including communication system integration testing, reliability growth trials, survivability testing and user assessments. 

Project LAND 121 Phase 4 is a $1.5 billion project that seeks to provide up to 1,300 protected and unprotected light vehicles. 

Imagery is available at: http://images.defence.gov.au/11123032

Media contact:

Minister Clare’s Office: Ryan Hamilton 0414 599 468

Supacat was selected earlier this year to develop a prototype vehicle for the Special Operations Vehicle – Direct Action (SOV-DA) requirement under Project JP2097 Phase 1B. The prototype will be used to inform capability options for Second Pass project approval by the Government.

The SOV-DA will contribute to the overall land mobility capability for Special Forces. It can carry a range of weapons systems, communications and surveillance equipment.

Supacat has previously supplied a number of Special Operations Vehicles – Special Reconnaissance (SOV-SR) to Special Operations Command (SOCOMD).

These vehicles are named the ‘Nary’, in honour of Warrant Officer Class Two David Nary, an Australian Special Forces soldier who died during a training operation in the Middle East in 2005.

The SOV-DA will provide a different capability effect for SOCOMD, to that provided by the SOV-SR. It has a range of unique features including improved rollover protection, a remote weapon station, an ability to carry a Javelin Anti-Tank missile system, improved self recovery capability and it can be carried underslung by a CH-47 Chinook.

“Supacat’s vehicles are used by the Australian Army and other land forces around the world,” Mr Clare said.

“Australia will be the first country outside the United Kingdom where Supacat provides complete in-country support. Its establishment here in Melbourne shows the strength of our local industry.

“The Supacat facility employs 18 staff, whose jobs range from design, analysis and systems engineers as well as project management and support personnel, for the existing fleet and prototype evaluation for these important vehicles.”

To deliver the Special Operations Vehicle, Supacat formed “Supacat Team Australia”, which is a partnership involving 15 Australian companies, including Broens, Marand, Haulmark and Tectonica.

Supacat vehicles are also used by United Kingdom, United States and Danish Special Forces, as well as the UK Army.

Media contact:
Minister Clare’s Office: Ryan Hamilton 0414 599 468

Acceptance of Fifth and Final KC-30A MRTT Aircraft

Minister Smith and Minister Clare announced Defence’s acceptance of the fifth and final KC-30A Multi Role Tanker Transport (MRTT) aircraft. The aircraft was delivered to Defence at the Airbus Military MRTT facility at Madrid, Spain.

This aircraft, to be designated A39-005, is the fourth aircraft to be converted in Australia from a commercial A330 airliner to a state-of-the art military tanker by Qantas Defence Services (QDS) at Brisbane Airport. One aircraft was modified in Spain, and remains in Spain for testing of the military avionics and boom refuelling systems.

The final aircraft completed Australian conversion in July 2012 before being flown to Europe by Airbus Military to undergo painting and final preparation for delivery. 

The aircraft will now be flown back by an all Australian crew to its home base at No. 33 Squadron at RAAF Base Amberley.

The excellent performance of the aircraft and crews at the recent Pitch Black exercises in Darwin has shown the good progress that has been made on the KC-30As.

Australia is the lead customer of the MRTT aircraft which integrates a new Advanced Refuelling Boom System and pod based hose and drogue refuelling system into a commercial Airbus A330 to create the world’s most advanced tanker aircraft.

King Air Simulator 

Minister Smith and Minister Clare also announced that CAE Australia (CAE) will provide Hawker Beechcraft King Air 350 simulator training services in Sale, Victoria.

CAE will establish a full-flight simulator of the King Air 350 operated by the Royal Australian Air Force (RAAF).

The King Air 350 is a modern glass cockpit, twin-engine turboprop with two front seat crew capable of carrying up to four backseat crew or nine passengers.

The King Air is used to train students for low-level tactical fast-jet operations and maritime surveillance operations. Low-level tactical and maritime training flights are typically conducted 250 to 1000 feet above ground level.

The contract, worth $14.2 million, will provide over 1500 simulator hours each year through to the planned withdrawal of the King Air 350 in mid-2018.

CAE will also build the facility to house the simulator and provide training which is currently undertaken in the United States. This training has been done in CAE’s Dallas Simuflite Training Centre because of a lack of such a facility in Australia.

Simulation is an increasingly important method of training for Defence personnel as combat systems become more complex.

Using simulator services in Australia will mean a greater training capability for the RAAF and savings of both time and money.

The simulator will be used by the RAAF’s No. 32 Squadron and the School of Aviation Warfare to train pilots, air combat officers and Royal Australian Navy observers at RAAF Base East Sale.

The procurement of King Air Simulator Services is an important capability addition in the training of Australian Defence personnel.

The simulator and facility will be owned and operated by CAE Australia.

Naming of the new training squadron to operate the Navy’s MH-60R ‘Romeo’ helicopters

Minister Smith and Minister Clare today also announced that the name of the new training squadron to operate the Navy’s MH-60R ‘Romeo’ helicopters would be 725 Squadron.

725 Squadron will form as the operational training squadron, while 816 Squadron, which currently operates the S-70-B2 Seahawk, will transition to the MH-60R as the operational support squadron.

In June 2011, Government announced that 24 MH-60R “Romeo” naval combat helicopters and supporting systems would be acquired under Project AIR 9000 Phase 8.

Australia is the first foreign customer for the MH-60R helicopter which will offer the latest in anti-submarine and surface sensors and weapons, including the Mk 54 torpedo and the Hellfire air-to-surface missiles.

The designation 725 Squadron has been chosen as it has long lineage of helicopter and anti-submarine operations and training. Notable exploits of the Squadron include the rescue of sailors following the collision of the aircraft carrier HMAS Melbourne with HMAS Voyager on the night of 10 February 1964, escort duties in the 1960s for HMAS Sydney in her resupply missions to Vietnam and flood relief operations in Nowra in July 1974 where the Fleet Air Arm rescued some 352 people.

The Squadron was last decommissioned on 27 December 1975.

Media contacts:

Minister Smith’s Office: Sacha Fenton 0467 784 528

Minister Clare’s Office: Annie Williams 0428 040 522

“Australia’s Air Combat Capability is a vital part of our national security framework.  The Government will not allow a gap in our Air Combat Capability to occur,” Mr Smith said. 

In May this year, Minister Smith announced that the Air Combat Capability Transition Plan, an assessment of the F-35A Joint Strike Fighter project progress and any potential capability gap, would be presented to Government by the end of 2012 to inform Government decisions about Air Combat Capability.  

The Air Combat Capability Transition Plan prepared by Defence includes an assessment of whether alternative options need to be implemented to ensure continuity in Australia’s Air Combat Capability in light of Joint Strike Fighter project delays and the ageing of Australia’s Classic F/A-18 Hornet fleet. 

The Air Combat Capability Transition Plan considered the process for managing the Royal Australian Air Force’s (RAAF) transition from the current mix of Classic Hornet and Super Hornet to a future Air Combat Capability fleet, including the Joint Strike Fighter. 

The plan includes an assessment of progress of the Joint Strike Fighter project, the life of the existing 71 ‘Classic’ F/A-18 Hornets, any potential capability gap and management of the Super Hornet and Growler capabilities. 

It includes options to purchase additional Super Hornet aircraft. 

The Classic Hornet fleet, which originally comprised 75 aircraft, entered service in Australia between 1985 and 1990.  The fleet has undergone an intensive maintenance program to ensure the fleet is able to operate until around 2020. 

In September this year, the Australian National Audit Office (ANAO) completed a performance audit on the management of the F/A-18 fleet upgrades and sustainment.  The ANAO found that Defence’s management of the aircraft has been effective thus far in identifying the risks to their continued operation, that effective mitigation measures have been put in place for these risks, and outlined those that will require ongoing close management by Defence. 

The Government has now considered the Air Combat Capability Transition Plan and has directed Defence to undertake further work on a range of Air Combat Capability options, including seeking from the United States up-to-date pricing information on Super Hornets. 

RAAF currently has a fleet of 24 F/A-18F Super Hornet aircraft.  The fleet was introduced between March 2010 and October 2011. 

The F/A-18F Super Hornet was a major step forward in technology for Australia’s Air Combat Capability. 

The Super Hornet gives the RAAF the capability to conduct air-to-air combat, to strike targets on land and at sea, to suppress enemy air defences and to conduct reconnaissance. 

The Super Hornet is vital to ensuring Australia’s regional Air Combat Capability edge is maintained until the introduction into service of the Joint Strike Fighter capability. 

The Government is also acquiring the Growler electronic warfare system for the Super Hornet.  

Growler is an electronic warfare system that gives the Super Hornet the ability to jam the electronics systems of aircraft and land-based radars and communications systems.  

Australia will now send a Letter of Request (LOR) to the United States seeking cost and availability information for up to an additional 24 Super Hornet aircraft through the United States Foreign Military Sales program. 

The Australian Government has not made a decision to purchase more Super Hornets.  The sending of this LOR does not commit Australia to purchase more Super Hornets.  It is being sent so that the Australian Government can further consider all options in 2013 with the latest and best cost and availability information.  This has been made clear to both US officials and to the Defence industry. 

Following receipt of the LOR response, Government will further and fully consider Australia’s Air Combat Capability in 2013. 

Media contact:

Minister Smith’s Office: Sacha Fenton 0467 784 528

Minister Clare’s Office: Annie Williams 0428 040 522

This is a major milestone for the Super Hornet fleet and is a major step forward for Australia’s Air Combat Capability.

The Super Hornet fleet enhances Australia’s Air Combat Capability and ensures Australia’s Air Combat Capability regional edge is maintained until the introduction into service of the F-35A Joint Strike Fighter.

FOC is declared when the entire capability can be deployed on Defence operations. FOC takes into account not only the aircraft itself but also logistics, management, sustainment, facilities and training.

The Super Hornet is built by Boeing at its production line in St Louis, Missouri and has been flown by the United States Navy since 2001.

The Super Hornet gives the RAAF the capability to conduct air-to-air combat, strike targets on land and at sea, suppress enemy air defences and conduct reconnaissance.

The Super Hornets have been delivered on budget and ahead of schedule because of the teamwork of the manufacturer Boeing, the US Navy, the RAAF and the Defence Materiel Organisation.

The RAAF Base Amberley F/A-18F Super Hornets also form the basis for the transition to an EA-18G Growler capability later this decade.

Growler is an electronic warfare system that gives the Super Hornet the ability to jam the electronics systems of aircraft and land-based radars and communications systems. The Growler electronic warfare aircraft was used very effectively by the US Navy during air operations in Libya last year.

In 2009, the Government made the decision to wire 12 Super Hornets for potential conversion to the Growler configuration at a cost of $35 million.

In May this year the Government announced more than $19 million would be spent to purchase long lead item electronic equipment for the potential conversion of 12 of Australia’s F-18 Super Hornet’s to the EA-18G Growler variant.

In August, the Government announced that it would acquire the Growler electronic warfare system at an estimated cost of around $1.5 billion, including funding to acquire the Growler conversion kits, supporting equipment and systems, spares and training and initial training systems.

Media contacts:

Mr Smith’s Office: Sacha Fenton 0467 784 528
Mr Clare’s Office: Annie Williams 0428 040 522

Defence gets new Tugs 

Two new East Coast Tugs have arrived in Australia to replace MSA Bandicoot and Wallaro. 

The new tugs will be named Elwing and Waree following a tradition that they are named after tugs that previously served in the Royal Australian Navy.  

The new tugs mark the start of transition from Bandicoot and Wallaroo to a new tug capability that will allow the Navy to provide a greater level of tug service to its own vessels as well as visiting ships. 

The new tug capability achieved an Initial Operational Capability (IOC) to provide support to visits by nuclear-powered warships last month. 

The transition process is expected to finish early next year, with the achievement of Final Operational Capability. 

The original Elwing was built at Rockhampton in 1933 and purchased by the Navy in 1943. She operated in Port Moresby before being sold out of service in May 1949. 

The original Waree was commissioned in 1942 and served in Port Moresby and Northern Australian waters. She was paid off in 1946 and was returned to her owners, Waratah Tug & Salvage Co. 

Defence will now commence disposal arrangements for MSA Bandicoot and Wallaroo. 

Phased Array Radar In Service Support Contract Signing  

Minister Smith and Minister Clare today also announced the signing of a contract with CEA for the In Service Support (ISS) of the Phased Array Radarcurrently being installed on the Royal Australian Navy’s eight ANZAC Class Frigates.  

The Phased Array Radar is the new technology and equipment that underpins the Anti Ship Missile Defence (ASMD) Project.  

This AMSD upgrade will enable the Navy’s eight ANZAC Class ships to identify, track and guide missiles to multiple targets simultaneously instead of the current single target capability. 

The initial three-year ISS Contract provides through life maintenance support for the advanced, fourth generation fully digital active radar developed by CEA. 

It also covers developing, maintaining and enhancing skill sets and capabilities, including training on-board Navy technicians. 

The ISS Contract will initially support HMAS Perth, which has already been successfully upgraded with the Phased Array Radar. 

The upgrade of HMAS Perth as the lead ship for the ASMD program was successfully completed last year. 

Following exhaustive testing, including in the United States, the Chief of Navy agreed to the operational release of the system in July 2011. 

The total project cost is in excess of $650 million for the upgrade of all eight ANZAC Class frigates. 

The Government, late last year, approved the installation of the system on the remaining seven ships of the ANZAC class by 2017. 

Media contacts:

Minister Smith’s Office: Sacha Fenton 0467 784 528

Minister Clare’s Office: Annie Williams 0428 040 522

The Collins Class Submarine fleet of six submarines is an essential part of Australia’s national security. 

HMAS Collins was the first submarine to be commissioned in July 1996 and HMAS Rankin was the last to be commissioned in March 2003.  The Collins Class was designed with a theoretical platform life of 28 years, which provides for an on paper indicative service life for the fleet of 2024 to 2031. 

The Service Life Evaluation Program was undertaken by Defence to identify any issues that would prevent Australia’s fleet of Collins Class Submarines from achieving their current theoretical platform life and planned withdrawal dates. 

Additionally, the study also considered the possibility of a service life extension for the Collins fleet beyond the current on paper service life for the fleet of 2024 to 2031.  

The study found there is no single technical issue that would fundamentally prevent the Collins Class submarines from achieving their theoretical platform life, their planned withdrawal dates, or a service life extension of one operating cycle for the fleet, which is currently around seven years, excluding full cycle docking periods.  As well, under the Coles Review into Submarine Sustainment, improved management of the Collins Class is expected to extend the operating cycle.  

Using a similar approach, other Navies have successfully extended the theoretical life of their submarine fleets.  For example, the United States Navy has extended the life of the Ohio Class submarine fleet from 30 to 40 years.  

The service life evaluation examined 145 platform and mission systems across the Collins Class Submarines to determine long-term supportability.  

Four major Australian companies that are currently contracted to support the Collins Class Submarines assisted in the study.  The United States Navy was also engaged to provide an independent review of the key evaluation outputs.  

The outcomes will also be included as part of the implementation of the Coles Review into Submarine Sustainment recommendations.   

Media contacts:

Minister Smith’s Office: Sacha Fenton 0467 784 528

Minister Clare’s Office: Annie Williams 0428 040 522

The Conference will bring together members of Defence industry from across the country and the globe.

The Defence and Industry Conference has seen a steady growth in participation since the first such Conference was held in the 1990s.

The last Conference in 2011, the seventeenth Conference, was also held in Adelaide and attracted 630 companies and over 1700 attendees.  Seventy-five per cent of delegates were from industry. 

Attendance is expected to increase to 2000 in 2014.  

The Conference is an opportunity for Industry to discuss with Defence officials acquisition and sustainment investment opportunities.  It is also an opportunity for Industry to present its ideas and concepts to the Defence community.

The 2014 Defence and Industry Conference is expected to contribute around $3.5 million to the South Australian economy.

“The Conference is an important opportunity for Industry to discuss the latest developments in Defence policy and programs,” Mr Clare said.

“Defence is a crucial industry for South Australia and securing the Defence and Industry Conference cements the strong record we have of delivering Defence projects,” Mr Snelling said.

“Securing major Defence projects remains vital to the growth and sustainability of our defence workforce. That’s why it’s so important that Future Submarines will be assembled here in South Australia.”

“We currently have the Air Warfare Destroyer program and the AP-3C Orion aircraft maintenance and upgrade project under way in Adelaide.  As well, planning continues for the Future Submarine Project,” Mr Smith said.

“The Australian Government understands the importance of Defence Industry to South Australia. That’s why the Government has announced today that the Future Submarine project Land Based Test Site will be based in Adelaide.”

More than 3700 South Australians are directly employed in Defence Industry jobs.

Media contacts:

Minister Smith’s Office: Sacha Fenton 0467 784 528

Minister Clare’s Office: Annie Williams 0428 040 522

The Airborne Early Warning & Control (AEW&C) Wedgetail Aircraft Project and the Lightweight Torpedo Project have been removed from the Projects of Concern list and the Mulwala Redevelopment Project and the Direct Fire Support Weapon Project have been added to the list.

The two projects removed together represent a combined value of $4.5 billion, bringing the total value of projects removed from the list to over $14 billion since the Projects of Concern process was created in 2008.

The Projects of Concern process was established by the Government to focus the attention of the highest levels of Government, Defence and Industry on remediating problem projects.

Since the Projects of Concern process was established, 21 projects have been put on the list. Fifteen have since been removed – 13 due to remediation and two due to cancellation.

In June 2011, Mr Smith and Mr Clare announced reforms to strengthen the Projects of Concern process, including:

• The establishment of a more formal process for adding projects to the list;
• The establishment of a formal process for removing projects from the list;
• The development of agreed remediation plans, including formal milestones for the removal of a project from the list;
• Increased Ministerial involvement and oversight of the process; and
• Incentives for companies to fix projects on the list by taking into account the performance of companies in addressing Projects of Concern when evaluating their tenders for other projects.

Airborne Early Warning & Control (AEW&C) Wedgetail Aircraft

Wedgetail was approved in 2000 with a budget of $3.8 billion (in today’s dollars) to procure six 737-700 commercial aircraft which were then fitted with an advanced multi-role electronically scanned radar and 10 mission crew consoles.

The project was listed as a Project of Concern in January 2008 due to schedule delays and increasing complexity of the technical development of the project.

A formal remediation plan was agreed to in 2011, with a number of key objectives identified, including the achievement of Initial Operating Capability ( IOC).

IOC was declared by the Chief of Air Force last month and the project has now delivered all six aircraft.

Following the declaration of IOC, the Chief Executive Officer of the Defence Materiel Organisation has recommended the removal of this project from the Projects of Concern list.

The Government has agreed to this recommendation.

Joint Project 2070 (Lightweight Torpedo)

JP 2070 was approved to acquire the MU90 Anti-submarine Lightweight Torpedo to replace the existing MK46 torpedo, and integrate it with the ANZAC and ADELAIDE Class frigates.

JP 2070 was added to the Projects of Concern list in 2008 due to delay in weapons testing, integration challenges and emerging cost risks.

A formal remediation plan was agreed to in 2011, with a number of key objectives identified, including the achievement of Initial Operating Capability (IOC).

Following the declaration of IOC by Chief of Navy last month, the Chief Executive Officer of the Defence Materiel Organisation has recommended the removal of this project from the Projects of Concern list.

The Government has agreed to this recommendation.

JP 2086 Ph 1 (Mulwala Redevelopment Project)

JP 2086 was approved in 2006 to deliver a propellant manufacturing facility in Mulwala NSW to replace the existing facility.

Last year technical and equipment issues during the commissioning phase resulted in a significant delay. A comprehensive Gate Review recommended the project not be added to the Projects of Concern list pending a status review in late 2012.

Since that Gate Review JP 2086 has fallen further behind schedule and there is an increasing risk that the current budget will not be enough to complete the project.

Based on the importance of this national capability project, the Chief Executive Officer of the Defence Materiel Organisation has recommended the project be listed as a Project of Concern.

The Government has agreed to this recommendation.

Land 40 Ph 2 (Direct Fire Support Weapons)

Land 40 Ph 2 was established in 2006 to provide weapons with specific range and target effects to improve Defence’s close combat capability. This included an advanced version of the M3 Carl Gustav and a new Light Weight Automatic Grenade Launcher.

While the M3 Carl Gustav has been successfully procured, the Light Weight Automatic Grenade Launcher was rejected due to non-conformances identified during contract negotiations.

Initial Operating Capability for the Light Weight Automatic Grenade Launcher has now slipped by almost five years

Due to the troubled commercial history of this project the Chief Executive Officer of the Defence Materiel Organisation has recommended Land 40 Ph 2 be listed as a Project of Concern.

The Government has agreed to this recommendation. 

A summary of the current Projects of Concern list is below:

Projects removed from Projects of Concern list:

Media contacts:

Minister Smith’s Office: Sacha Fenton 0467 784 528

Minister Clare’s Office: Annie Williams 0428 040 522

In December 2011 the Government announced that the Defence Materiel Organisation (DMO) would develop a Future Submarine Industry Skills Plan to identify what is required to build and sustain the skills required to successfully deliver Australia’s Future Submarine capability.

The Skills Plan has been developed by a team led by the Chief Executive Officer of the DMO, Mr Warren King and supported by an Expert Industry Panel headed by Mr David Mortimer, AO.

The Expert Industry Panel included representatives of DMO, Navy, the Department of Industry, Innovation, Science, Research and Tertiary Education, Skills Australia, relevant Unions, the CEOs of the four principal Australian naval shipbuilding companies (ASC, Austal, BAE Systems and Forgacs Engineering) and the CEOs of the principal naval systems integration companies (Lockheed Martin, Raytheon, Boeing, Thales, Saab Systems and BAE Systems).

The Panel has consulted widely with State Governments, Australian industry, Industry Associations, Universities, academic organisations and think tanks to develop this Plan.

The key findings of the Plan are:

• the Australian shipbuilding industry is capable, but important white collar skills are spread thin;
• while some Australian companies can reach back into their parent international organisations for design work, our indigenous design capability for submarine and surface ships is weak;
• the current blue collar work force is limited, with production supervisors and electrical trades being the weakest skill areas; and
• the key to building these skills is a continuous ship building plan with long term, predictable work.

The Government will release the Plan and its response to the Plan next year. 

Media contacts:

Minister Smith’s Office: Sacha Fenton 0467 784 528

Minister Clare’s Office: Annie Williams 0428 040 522

The Government received the Final Report at the end of November.

The sustainment of the Collins Class submarine fleet is an essential part of Australia’s national security. It is a complex task that has proven very challenging since the first Collins Class submarine, HMAS Collins, was commissioned in July 1996. The sixth and last of the Collins Class, HMAS Rankin, was commissioned in March 2003.

Sustainment of the Collins Class submarines is at the top of the Government’s Projects of Concern list.

In August 2011, the Government announced the Coles Review, a Study into the Business of Sustaining Australia’s Strategic Collins Class Submarine Capability.

Mr John Coles, an expert from the United Kingdom, was commissioned to undertake a detailed examination of the complex engineering issues associated with submarine sustainment and to develop a plan to improve the repair and management of Australia’s submarine fleet.

In December 2011, the Government released the report of Phase 1 of the Coles Review, which set out a number of interim recommendations about how to address longstanding and entrenched difficulties.

In May this year, the Government announced that a senior Department of Defence position would be dedicated to focusing exclusively on the oversight of all existing and future materiel-related submarine activities in Defence.

Mr David Gould was appointed as General Manager Submarines and is responsible for all materiel-related aspects of submarine support across Defence. Mr Gould reports to Mr Warren King, Chief Executive Officer of the Defence Materiel Organisation (DMO).

In May, the Government also allocated an additional $700 million for Collins Class submarine sustainment as part of the 2012-13 Defence Budget.

In June, consistent with the recommendations of Phase 1, a new maintenance and support contract for the Collins Class Submarines was signed following negotiations between the DMO and ASC Pty Ltd.

This In Service Support Contract will deliver more efficient and effective sustainment services that will improve the availability and reliability of the Collins Submarine fleet.

In June, the Government received Phase 2 of the Coles Review. Phase 2 was a highly technical and classified examination of commercial, operational, sustainment and management issues around Collins Class sustainment. Over 2500 separate pieces of evidence were examined and over 150 interviews were conducted.

The Final Report of the Coles Review, released today, found that although the Collins Class Submarine fleet of six was competently designed and is well crewed by the Royal Australian Navy, there has been no proper sustainment system in place since the Collins Class entry into service in 1996, some 17 years ago.

Mr Coles has made a number of observations which include:

• Submarines designed in the 1980s and 1990s, which conduct distant and long patrols such as the Collins Class, are maintenance heavy and will spend around half of their lives in maintenance;
• Attaining acceptable availability and reliability of the Collins Class is achievable within about three years;
• Expectations for Collins Class submarine availability have in the past been optimistic; and
• Establishing the necessary logistical arrangements now and sustaining them into the future will be more challenging than it would have been to establish them when the Collins Class first entered service in 1996.

The Report recommends the target levels of availability for a fleet of six submarines should be:

• Two submarines available 100 per cent of the time;
• Three submarines available 90 per cent of the time; and
• Four submarines available 50 per cent of the time.

The Report made 25 recommendations to restore the Collins Class fleet to an international benchmark by 2016. These recommendations include:

• Reducing the length of Full Cycle Docking from three to two years;
• Implementing a maintenance cycle comprising a two-year Full Cycle Docking, one year Mid Cycle Docking and six-month Intermediate Docking;
• Having only one submarine at a time undertaking a Full Cycle Docking; and
• A 100-day plan, including the appointment of a Transformation Program Manager, to implement the Report’s recommendations.

The implementation of these recommendations are expected to deliver a consistently higher level of availability for the Collins.

Implementation also continues on the recommendations of Phase 1 of the Coles Review, which included:

• Resources should be directed to the provision of spares leading directly to increased availability (implemented);
• The classification of Priority 1 Urgent Defects by the submarine commander should be moderated by Commander Submarine Force to avoid over classification purely to increase priority of spares (implemented); and
• As part of the crew training program, Commanding Officers, Marine Engineering Officers and Weapons Electrical Engineering Officers should undertake a pre-joining course at ASC and other key suppliers to gain a better insight into some of the intrinsic submarine design and equipment characteristics (implemented).

Lessons learnt from Defence’s experience with the Collins Class submarines along with the outcomes of the Coles Review will also importantly inform development of the Future Submarine project.

The Coles Review into Submarine Sustainment is available at: http://www.defence.gov.au/dmo/publications/coles.cfm.

Media contacts:

Minister Smith’s Office: Sacha Fenton 0467 784 528
Minister Clare’s Office: Annie Williams 0428 040 522

In November last year, the Government commissioned a feasibility study into the establishment of a Submarine Propulsion, Energy, Support and Integration Facility, generally referred to as a Land Based Test Site.

The study was undertaken for the Future Submarine Program by Babcock Pty Ltd with input from the Defence Science and Technology Organisation (DSTO). The study identified four functions that could be considered in a facility of this type:

• research and development;
• system integration testing;
• pre-build and assembly testing; and
• training.

Babcock Pty Ltd has now delivered its report. The key finding is that a Land Based Test Site is essential and that it should be located where these functions could be undertaken most efficiently and cost-effectively.

While specific details of the scope of the facility are still under consideration, the Government has decided that the Land Based Test Site will be based in Adelaide, South Australia, where the Future Submarines will be assembled.

The propulsion, energy and drive-train system is a key part of any submarine. The Land Based Test Site will enable this system to be integrated, tested and proved before it is installed into a submarine.

Elements of the facility will also be located in Western Australia (where Navy will have easy access for training purposes) and Victoria (where DSTO maritime specialists are based).

The establishment of a Land Based Test Site is a significant step towards understanding propulsion systems for Australia’s Future Submarines.

The Future Submarine Program will be the largest and most complex Defence project ever undertaken by Australia and with this complexity comes risk.

Regardless of the submarine design option that is ultimately chosen, the establishment of the Land Based Test Site will significantly reduce the risk of delay and cost overruns, poor availability and increased operating and sustainment costs, loss of capability and most importantly, the risk of a catastrophic accident caused by a failure of the power and energy systems.

The Land Based Test Facility will also help ensure that challenges encountered from the maintenance of the Collins Class fleet are addressed.

Further decisions on the form and function of the Land Based Test Site will be announced next year.

Media contacts:

Minister Smith’s Office: Sacha Fenton 0467 784 528

Minister Clare’s Office: Annie Williams 0428 040 522

Australia is acquiring two Landing Helicopter Dock (LHD) ships at a total cost of over $2 billion.

The hulls for these ships are being built in Spain with the superstructure construction and integration work being undertaken at Williamstown.

BAE Systems is the Prime Contractor for the LHD project and is managing the overall project in cooperation with subcontractors Navantia, Saab and L-3 Communications.

Construction of the first LHD began in September 2008. The first three blocks were laid down in September 2010 and the hull was launched in February 2011.  The hull arrived in Williamstown in October this year.

Work is now underway to complete this ship.  This year alone, BAE has completed more than 750,000 hours of work and plans to have one million hours of work completed by the end of this year.

The Ministers took the opportunity to see Block 811, weighing over 300 tonnes, which has recently been lifted onto the hull of the first LHD for consolidation.

The remaining superstructure blocks are expected to be consolidated on the hull before the end of this year.

This ship will enter RAN service in 2014 and will be commissioned as HMAS Canberra. The second is expected to enter service in 2016 and will be commissioned as HMAS Adelaide.

The hull of the second LHD was launched in July and is due to arrive in Australia for superstructure completion and fitting out in early 2014.

The introduction into service of these ships will mark a significant change in the way the Australian Defence Force (ADF) deploys its land forces and conducts amphibious operations.

Each ship with its crew of around 300 personnel can carry and embark a combined armed battlegroup of more than 1100 personnel, 100 armoured vehicles, 12 helicopters and features a 40-bed hospital.

“The construction of the LHD is a significant milestone and is ensuring a new era for Defence’s amphibious force capability,” Mr Smith said.

“As the ADF draws down from Afghanistan, East Timor and the Solomon Islands, the ADF will be developing a ship to shore amphibious capability through the use of our LHDs.

“This will further enhance our interoperability with United States forces.”

“The LHDs are bigger than Australia’s last aircraft carrier HMAS Melbourne,” Mr Clare said.

“The flight deck on the LHD is as big as 24 tennis courts and could fit four ANZAC Class frigates.

“The LHD will be equipped with a hospital that could treat a town the size of Warrnambool and it generates enough electricity to power a city the size of Darwin.”

“It’s fantastic to have Ministers Smith and Clare visit BAE’s Williamstown shipyards.  BAE Systems are well placed to lead this important project that is delivering jobs to Melbourne’s West,” Ms Roxon said.

“Local businesses including Able Engineering in Kingsville, Pronto Cement in Sunshine and Kennedy Plumbing Services in Williamstown have all contributed to the production of some of the most advanced warships in the world.”

Media Contact:

Minister Smith: Andrew Porter (02) 6277 7800 or 0419 474 392

                        Sacha Fenton (02) 6277 7800 or 0467 784 528

Minister Clare: Annie Williams (02) 6277 7290 or 0428 040 522

Defence Media Operations: (02) 6127 1999

To celebrate its arrival, a flypast was conducted over Brisbane and the Gold Coast by four C-17As, including the latest aircraft. Each aircraft carried a different cargo load, showcasing the versatility of the C-17A – an Abrams tank, a pair of Tiger Armed Reconnaissance Helicopters, a specialist medical team and equipment and four Bushmasters. 

The decision to acquire a sixth C-17A through the United States Foreign Military Sales program at a total cost of around $280 million was announced in March with an expected delivery date of early 2013. 

The Government was able to acquire this aircraft in around one third of the time it would usually take, less than 12 months from approval to purchase to acceptance.  A C-17A aircraft usually takes about 34 months to produce. 

The delivery of this aircraft ahead of schedule was made possible by the United States’ willingness to redirect an aircraft already in production for use by the US Air Force to RAAF. The aircraft’s construction was completed at the Boeing production plant at Long Beach in California in October.  

In March 2011, the Government announced the purchase of a fifth C-17.  That aircraft was delivered in September 2011. 

The acquisition of a fifth and sixth C-17A effectively doubles the number of C-17A aircraft available for operations at any one time from two to four. The additional aircraft gives the Government increased options to support the wide range of contingencies that might require heavy-lift aircraft and will extend the life of the C-17 fleet by reducing the use of each aircraft. 

The C‑17A aircraft can lift very large and heavy cargoes over long distances providing a significant contribution to Australia’s ability to reach and respond to events. 

One C‑17A can carry up to four times a C-130 Hercules load in a single lift and cover twice the distance of a C-130 in three-quarters of the time. The C-17A can carry three Black Hawk helicopters or a Chinook helicopter or five Bushmasters.  

The additional C-17A will greatly increase Australia’s capacity to respond to natural disasters and provide humanitarian aid. The additional aircraft will significantly enhance Australia’s strategic heavy airlift capability, enabling the ADF to rapidly deploy its current and future operational vehicles, helicopters and heavy equipment. 

Prior to the acquisition of the first C-17A aircraft, Defence relied on USAF C-17As or chartered civilian aircraft for its strategic airlift. 

The Royal Australian Air Force’s first four C-17A aircraft were delivered over the period 2006 to 2008. The first aircraft became operational in 2007, providing the Australian Defence Force with a global airlift capability. 

The Government’s decision to acquire a fifth and sixth aircraft effectively doubles the capability of Air Force’s C-17A fleet.  The original fleet of four aircraft provided two operational aircraft, and the remaining two for scheduled maintenance and training.  A fleet of six aircraft enables up to four operational aircraft, and the remaining two for training and scheduled maintenance.  

Events in Queensland, Christchurch and Japan in 2011 have highlighted that the C‑17s are an essential part of Australia’s capacity to respond to natural disasters both within Australia and within our region.  

Last year C-17 aircraft flew more than 1.2 million nautical miles (2,222,400 km) on approximately 141 missions.

The ability of C-17s to move equipment and people played a vital role in the aftermath of Cyclone Yasi in north Queensland in February 2011, helping to transport ADF personnel, civilians and equipment including Army Resupply Vehicles.  They also airlifted more than 320 tonnes of cargo, including more than 200 tonnes of food supplies. C-17s also helped evacuate to safety in Brisbane more than 250 patients from Cairns Hospital and Cairns Private Hospital. 

They were also used to transport sandbags, levees, and ADF personnel and equipment to support flood relief efforts in Victoria in 2011.

C-17s also delivered much-needed equipment, stores, civilian urban search and rescue personnel, paramedics and other emergency services personnel to New Zealand in the wake of the terrible February 2011 earthquake in Christchurch and returned more than 100 Australian civilians to Australia.

In March 2011, following the earthquake and tsunami in Japan, C-17s moved more than a million pounds (450 tonnes) of cargo, including 41 vehicles, as well as 135 passengers as part of Australia’s relief efforts in Japan.  At one stage during the relief operation, Australia had three C-17 aircraft in Japan providing humanitarian assistance and disaster-relief support. 

The C-17s transported humanitarian relief supplies and helicopters to Burma/Thailand following Cyclone Nargis (2009) and the Pakistan Floods (2010). 

While disaster relief has been a recent public focus for C-17 operations, they also continue to support Australian and International Security Assistance Forces in Afghanistan and the Middle East, meeting their primary purpose in providing military long-range heavy airlift. 

During its relatively short service with RAAF, the C-17A has made a tremendous impact on Defence operations by deploying troops, vehicles, helicopters and cargo to Operations Slipper (Afghanistan), Catalyst (Iraq), and Astute (East Timor). 

Media note:
When available, imagery will be at: http://images.defence.gov.au/12131949

Media contacts:
Mr Smith’s Office: Ellen Shields (02) 6277 7800 or 0400 347 473
Mr Clare’s Office: Annie Williams (02) 6277 7290 or 0428 040 522
Media Operations: (02) 6127 1999

In February 2011 Mr Clare committed to holding biannual face-to-face meetings with industry and Defence.

The first round of meetings was held in February 2011, the second round in September 2011, followed by a third round in April 2012.

“The purpose of these meetings is simple – to make sure there is focus from the top of Government, Defence and industry to remediate these projects,” Mr Clare said.

“It ensures that the senior Defence and industry people responsible for these projects are doing everything necessary to remediate them.

“The Projects of Concern list was cut in half from 12 projects to six in late 2011. This demonstrates that the Projects of Concern process works.

“It brings the right people together and focuses them on getting these projects back on track and off the list.”

On 29 June 2011, Mr Clare and Minister for Defence Stephen Smith announced a range of reforms to strengthen the Projects of Concern system.

These reforms included:

• the establishment of a more formal process for adding projects to the list;
• the establishment of a formal process for removing projects from the list;
• the development of agreed remediation plans, including formal milestones for the removal of a project from the list; and
• increased Ministerial involvement and oversight of the process.

Since the Projects of Concern process began in 2008, 19 projects have been listed as Projects of Concern. Since then, 13 of those have been removed with a total value of over $10 billion – 11 due to remediation and two due to cancellation.

The current Projects of Concern list is below.

Projects of Concern List:

Projects removed from Projects of Concern list:

Media contact:

Annie Williams 0428 040 522

Mr Clare said this achievement is the result of a lot of hard work by the Royal Australian Air Force, the Defence Materiel Organisation, Boeing and their subcontractors working together.

“I particularly want to thank the team at Boeing for their commitment to this project. This is a very complex piece of military hardware. The project faced a lot of challenges. We have met these challenges by working together,” Mr Clare said.

“Australia now has one of the most advanced air battlespace management capabilities in the world.”

The Wedgetail is named after the Wedge-tailed Eagle, Australia’s largest bird of prey. The Wedge-tailed Eagle can fly high for hours on end and has exceptional eyesight which can extend to the infrared and ultraviolet spectrum.

The Wedgetail aircraft can fly 10,000 metres above the earth’s surface and maintain surveillance over a surface area of 400,000 square kilometres at any given time. Over a 10-hour mission the Wedgetail can cover over 4 million square kilometres.

“The Wedgetail is the big brain in the battlespace. It knows more about what’s going on in a war zone than anything else,” Mr Clare said.

Since 2011 Wedgetail has participated in Exercise Bersama Lima in Malaysia, Exercise Cope North Guam, Exercise Bersama Shield, Exercise Red Flag, Alaska and most recently Exercise Rim of the Pacific (RIMPAC).

The project was approved in 2000 with a budget of $3.45 billion to procure six 737-700 commercial aircraft which were then fitted with an advanced multi-role electronically scanned radar and ten mission crew consoles.

IOC is the minimum standard required by Defence to operate the fleet and takes into account not only the aircraft itself, but also logistics, sustainment, as well as training of aircrews, ground crews and technical support staff.

The formal removal of the project from the POC list will occur shortly.

Media note:

When available, imagery can be found at http://images.defence.gov.au/12131886 

Media contact:

Annie Williams 0428 040 522

Mr Clare said Brisbane-based TAE will supply advanced liquid cooled electronics chassis assemblies for the F-35A.

“This work is potentially worth in excess of $15 million over the life of the Joint Strike Fighter Program,” Mr Clare said.

“TAE has shown it is a globally competitive manufacturer which has won work on the most advanced fighter aircraft in the world.

“The parts made here will be installed on every Joint Strike Fighter. That means there will be a little bit of Queensland in every plane.”

Australia’s first two F-35As are being manufactured by Lockheed Martin at its Fort Worth facility in Texas.

The planes are due to be delivered to a United States-based training facility in 2014/15. Royal Australian Air Force pilots will then travel to the United States for initial training.

Australian companies have won $300 million in Joint Strike Fighter work to date. Almost 10 per cent of that work will be done by Queensland-based companies.

Over the life of the Joint Strike Fighter Program there is more than $1.5 billion worth of potential work for Australian industry.

Annie Williams 0428 040 522

The contract will involve replacing obsolescent electronic components to improve reliability and help to reduce space, weight and power requirements. 

Mr Clare said the majority of specialist engineering and logistics work will be performed in the Thales facility at Rydalmere, NSW. 

“The sonar system on the Collins Class submarines uses acoustic signals to safely navigate and operate effectively underwater,” Mr Clare said. 

“The updating of this equipment is key to ensuring our Collins Class submarines remain operationally capable and reliable.” 

Thales currently holds the contract for in-service support for the Collins sonar system and is the original manufacturer of the equipment. 

The Government has allocated an additional $700 million over the next four years for Collins Class submarine sustainment. 

The Collins Class submarine provides maritime surveillance, maritime strike and interdiction, reconnaissance and intelligence collection capability to the Australian Defence Force. 

Media contact: Annie Williams – 0428 040 522

The Minister attended a ceremony at the Multi-National base in Tarin Kot with serving Australian Defence Force (ADF) personnel.

“More than 100,000 Australian Defence Force personnel have died in the last 100 years – including 39 here in Afghanistan,” Mr Clare said.

“It is our solemn duty never to forget this. The best way we can honour them is to live a life worthy of the sacrifices they made for us.”

The Minister was joined by Major General Michael Crane, Commander Joint Taskforce 633 and Australian Federal Police Assistant Commissioner Mandy Newton, National Manager of the International Deployment Group.

The Minister met with ADF and International Security Assistance Force (ISAF) commanders and troops at the Multi-National Base Tarin Kot, ISAF Headquarters in Kabul and Al Minhad Air Base in the United Arab Emirates.

In Kabul the Minister met with his counterpart the newly appointed Minister for the Interior General Patang.

The Minister also met with Brigadier Peter Short, Assistant Commander Joint Taskforce 633 (Afghanistan) and Commander Wayne Buchorn, head of ANP development at the International Police Coordination Board.

The Minister also participated in a roundtable discussion with senior Australian officers embedded within ISAF and met with Australian Federal Police based in Kabul.

In Tarin Kot the Minister was briefed by the Commander of Combined Team Uruzgan, Colonel Simon Stuart, the Commanding Officer of the Special Operations Task Group, the Commanding Officer of 3RAR Task Group, Lieutenant Colonel Trent Scott and the head of the Uruzgan Provincial Reconstruction Taskforce, Mr Adrian Lochrin.

The Minister was also briefed by Diggerworks and the CASPEAN (Casualty and Protective Equipment Analysis) team at Tarin Kot on the work they are doing to improve soldier equipment and force protection.

Media contact:

Mr Clare’s Office (Ryan Hamilton) – 0414 599 468

The Cantabria deployment is a unique opportunity for both Navies and will strengthen the bilateral relationship between Spain and Australia.

“I am very pleased that the project arrangement for this innovative activity has been signed,” Mr Smith said. “It is a very sensible sharing of resources with positive training and capabilities for both the Armada and for the RAN.”

“Many of Cantabria’s ship systems are similar to the new Canberra Class Landing Helicopter Dock (LHD) ships and the Hobart Class Air Warfare Destroyers (AWD),” Mr Clare said. “This arrangement will provide an opportunity for RAN personnel to train and familiarise themselves with Cantabria before they go on to crew the LHD and AWD.”

Vice Admiral Ray Griggs said, “The deployment as well as providing important training and capability assessment outcomes for both the Spanish Armada and the RAN is the way Navies will operate in the future. Navies have traditionally conducted mutually beneficial activities with each others’ nations so this is just smart defence.”

The Cantabria will augment the capabilities provided by HMA Ships Success and Sirius in providing support to the RAN during domestic and international training and exercises.

The Cantabria is a modern auxiliary oil replenishment ship, similar to HMAS Success, which is capable of supplying fuel, food, stores and ammunition to ships underway.

This will be the longest deployment undertaken by Cantabria and will allow the Spanish Armada to trial the ship’s full range of capabilities including the operating/maintenance cycle of the ship’s systems, and the logistics and maintenance support mechanisms for the ship.

Cantabria’s deployment will culminate with the ship’s participation in the Australian International Fleet Review in October 2013.

Media contacts:

Mr Smith’s Office: Andrew Porter 0419 474 392

Mr Clare’s Office: Annie Williams 0428 040 522

“I am pleased to announce that a second round of SADI funding is now open, covering the first semester of the 2013 academic year,” Mr Clare said.

“The SADI Program is designed to upskill existing workers and create new skilled jobs in the defence industry.”

Mr Clare said the program would continue to boost Australia’s defence industry skills base by enlarging the pool of qualified engineers, technicians, tradespeople and project managers.

The first round for financial year 2012-13 provided over $8 million in grants for eligible skilling activities, taking place between 1 July and 31 December 2012.

Since 2005 SADI has funded more than 26,500 training places, including more than 2,600 apprentices.

This year, for the first time, applicants can apply for SADI funding using an online tool which will make the application process simpler and faster. Company information will be stored, so companies making applications in the future will only need to check and update their information.

Applications close at midnight 30 November 2012.

Companies wishing to apply for SADI funding for Round Two 2012-13, or access more information can visit http://www.defence.gov.au/dmo/ID/SADI/ or contact the Industry Programs Hotline on 1800 651 292.

Media contact:
Mr Clare’s Office: Annie Williams 0428 040 522

The F1 in Schools program is an international initiative that encourages high school students to design, develop and build futuristic model Formula One race cars.

“Australian teams placed first, fourth and fifth in the international competition which involved teams from 25 nations – an outstanding result,” Mr Clare said.

The team from Engadine High School in Sydney came fourth and also won the ‘Best International Collaboration’ award.

“I visited the team at Engadine High School in May and saw the hard work that goes into a successful team,” Mr Clare said.

“They have to work together, develop marketing material, explain their plans to the judges and manage their project.”

An Australian team made up of students from Trinity Grammar and Kyabram College in Victoria placed fifth.

This is the third time in the event’s history that an Australian team has been crowned World Champions. It is also the second year in a row that an Australian school has won – last year the team from Brooks High School in Tasmania won the World Championship in Kuala Lumpur, Malaysia.

Mr Clare said that the F1 in Schools program is a great way to get Australian students interested in engineering as a future career path. Since 2008 the Defence Materiel Organisation has provided more than $982,000 in funding to Re-Engineering Australia to conduct the F1 in Schools program.

“Over the next 10 to 15 years, the Australian Defence Force will replace or upgrade about 85 per cent of its equipment and a lot of that work will be done here in Australia,” Mr Clare said.

“We’ll need engineers to design, produce and maintain that equipment and that’s why Defence is supporting this program.”

Media contact:

Annie Williams 0428 040 522

“We welcome the Universities Australia response to the passage of the Bill and its support for the Bill’s implementation arrangements. The Government will work constructively with the sector to ensure Australia retains its innovative and competitive edge,” Mr Smith and Mr Clare said.

Universities Australia, the peak body representing Australia’s 39 universities, said that amendments to the Bill supported by the Government “secured a number of important procedural changes, including a minimum two year trial period to be overseen by an independent Steering Group chaired by the Chief Scientist, together with strong Parliamentary oversight”.

The Government thanks the University and research sectors for constructive participation in the Roundtable consultation process chaired by Australia’s Chief Scientist, Professor Ian Chubb, as well as consultations conducted by Dr Alex Zelinsky, the Chief Defence Scientist, and Mr Ken Peacock.

On the recommendation of the Roundtable the Government supported important amendments to the Bill to ensure Australia’s export regime struck the right balance in protecting our national security interests, while ensuring Australia’s innovative University and research sector retains its competitive edge.

Universities Australia welcomed the outcomes of the Chief Scientist’s Roundtable, which are reflected in the Bill and include:

• a two year transition period;
• the appointment of a Steering Group chaired by Australia’s Chief Scientist;
• a Pilot Program to monitor the effects of strengthened export controls.

The Steering Group will provide regular reports to Government and make recommendations on whether Australia’s export control arrangements are not more restrictive than US regulations in relation to University activities.

Universities Australia media release on the passage of the Bill can be found at: http://www.universitiesaustralia.edu.au/page/media-centre/2012-media-releases/defence-trade-controls-research-trial-an-improvement/

Media contacts:

Mr Smith’s Office (Sacha Fenton): (02) 6277 7800 or 0467 784 528

Mr Clare’s Office (Annie Williams): (02) 6277 7290 or 0428 040 522

The Bill implements the Australia-US Defense Trade Cooperation Treaty and strengthens Australia’s export controls to bring them into line with international best practice.

The Treaty was signed in 2007. In September 2010, the US Senate recommended that the Treaty be ratified.

The Treaty will improve the structure for two-way trade between Australia and the US in Defence goods, services and technology without the need for individual export permits.  This will be achieved by establishing an Approved Community of Government facilities and private companies in both countries.

The Treaty will mean: reduced delivery time for new Defence projects; improved sustainment by permitting transfers within the Approved Community without further US approvals; improved business opportunities by permitting Australian and US companies to share technical data without permit, and greater opportunities for Australian companies to participate in US contracts.

Eliminating identified gaps in Australia’s export control system will align Australia with the accepted best practice of the export control regimes that Australia belongs to, and contribute to international efforts to prevent proliferation.

The strengthened export controls relate to those Defence and strategic goods that already require a Defence permit if exported from Australia in physical form due to the risk they pose to international security and weapons proliferation.  

The legislation introduces a permit system for the electronic supply (such as by email or fax) of technology to a person overseas that would enable them to develop, produce or use these goods. This includes technology that could be used to make Weapons of Mass Destruction such as chemical, biological, nuclear and other weapons. Brokering the supply of these goods and technology will also require a permit.

A draft Bill was released for public consultation in July 2011.  The Bill was introduced into the House of Representatives on 2 November and passed the House on 21 November 2011.

In August this year, the Foreign Affairs, Defence and Trade Legislation Committee asked Defence to enter into further consultations with the academic and research sectors to consider concerns raised by them.  The Government appointed Dr Alex Zelinsky, the Chief Defence Scientist, and Mr Ken Peacock to lead this further consultation.

Australia’s Chief Scientist, Professor Ian Chubb, conducted an additional Roundtable process that included University, research and Government agency representatives.  The Roundtable achieved broad support for a way forward, which was welcomed by the Government. 

The legislation reflects in full the outcomes of the Chief Scientist’s Roundtable, including:

• a two year transition period. 
• the appointment of a Steering Group to advise Government on the implementation of legislation.  Chaired by Australia’s Chief Scientist, it will include representatives from industry, universities and the research sector.
• The Steering Group will oversee a Pilot Program which will monitor the effects of strengthened export controls on industry and the academic and research sectors during the Bill’s transition period.
• The Steering Group will provide six-monthly reports to the Minister for Defence and the Minister for Tertiary Education, Skills, Science and Research.  The Steering Group will be able to make recommendations on whether Australia’s export control arrangements are not more restrictive than US regulations in relation to University activities.
• The Bill will no longer include domestic controls.  This means that permits will not be required to supply controlled technology to foreign persons in Australia. 

The legislation is good for Defence industry, strengthens Australia’s export controls for sensitive defence technology and ensures Australia’s innovative University and research sector retains its competitive edge.

Media contacts:

Mr Smith’s Office: Sacha Fenton 0467 784 528

Mr Clare’s Office: Annie Williams 0428 040 522

The CEO Finmeccanica Group Services, Mr Riccardo Napolitano, signed the Deed on behalf of the Finmeccanica Group which has major facilities inItaly, theUnited Kingdomand theUnited States.

Finmeccanica has 70,000 employees and a revenue of $24 billion. The high technology company manufactures products and provides services ranging from cyber security, radios and electronic systems, torpedoes, helicopters, aircraft and fighter trainers, to satellites.

“Finmeccanica is a big addition to our Global Supply Chain program and I’m pleased to welcome them on board,” Mr Clare said.

“Australian small and medium businesses have a range of quality products and services. This Deed will help them get access to more work across Finmeccanica’s global supply chain.”

A number of multi-national Defence companies have already signed GSC agreements with the Australian Government including Boeing, Raytheon, Thales, Lockheed Martin, BAE Systems and Northrop Grumman.

Through these agreements, the Government funds multi-national Defence companies to hire a team of people to identify and certify Australian companies as part of their global supply chains.

Global Supply Chain Agreements are designed to outline activities and engagement strategies to increase additional opportunities and scope for Australian industry to compete for work within the supply chains of multinational Defence companies.

The Government has invested over $20 million in the program over the past five years.

“When the program was established everyone agreed that if it could provide a 10-fold return on the Government’s investment it would be a roaring success,” Mr Clare said.

“To date it has delivered an excellent return on investment with more than $463 million in contracts awarded to Australian industry.

“Australian SMEs have been the big winners, winning about 90 per cent of the value of these contracts.”

Imagery is available at: http://images.defence.gov.au/121311613

Media contact:

Minister Clare’s Office: Annie Williams – 0428 040 522

The tests were part of acceptance testing of the weapon systems for the second destroyer Brisbane and involved firing an MU-90 practice delivery torpedo from an MK32 Mod 9 Surface Vessel torpedo tube. 

The system is made up of three main components – a launcher, an air charging panel and a torpedo loading tray.

“All three destroyers will have MK32 Mod 9 torpedo launchers installed in the port and starboard magazine compartments of the ship,” Mr Clare said.

“The launch system will be capable of deploying lightweight torpedoes against enemy submarines.”

The AWD Alliance has already taken delivery of the first shipset of torpedo launchers for the first destroyer Hobart from subcontractor Babcock after Factory Acceptance Testing was successfully completed in June.

The testing took place at the Techport Australia facility and  included launching the MU-90 practice delivery torpedo from the surface vessel torpedo tubes into a custom designed test rig.

The AWD Alliance is responsible for delivering three of the most complex surface combatants ever built in Australia and is made up of Defence Materiel Organisation, ASC and Raytheon Australia.

The Hobart Class destroyers will provide a significant increase in Australia’s defence capabilities. The destroyers will be the most capable surface combatants ever operated by the Navy.

Video footage of the testing is available at www.defence.gov.au/video

Media contact:

Minister Clare’s Office: Annie Williams – 0428 040 522

This is the second round of grants on offer under the $45 million Priority Industry Capability Innovation Program.

“These grants will help strengthen priority industry capabilities in Australia,” Mr Clare said.

“The program will help boost investment in local industry and drive innovation.

“Capabilities that could benefit from this program include infantry weapons, acoustic technologies and electronic warfare.”

Companies can apply for up to $4 million in matched funding for innovative projects that will improve or enhance a Priority Industry Capability.

This funding delivers on a commitment made in the 2010 Defence Industry statement.

The program will be overseen by the Defence Industry Innovation Board.

Applications close on 7 December and the successful recipients will be announced in mid-2013.

Companies wishing to apply for PIC Innovation Program funding, or access more information can visit http://www.defence.gov.au/dmo/id/picip/ or call the Industry Programs hotline on 1800 651 292.

Media contact: Annie Williams – 0428 040 522

The Lithgow factory has played a significant role in supplying weapons for the Australian Defence Force since it opened its doors in 1912.

“In every major conflict we have been involved in for the last 100 years our troops have carried weapons made right here in Lithgow,” Mr Clare said.

“From the Short Magazine Lee-Enfield rifles and sword bayonets used in World War One to the Vickers and Bren machine guns in World War Two, to the L1A1 used in Vietnam and the Austeyr rifles carried today by our troops in Afghanistan, they have been made here.”

“Over the past 100 years, this factory has produced over 1 million firearms.”

During periods of Australian history when demand for weapons was low, the factory produced everything from spanners to handcuffs, golf irons and pencil sharpeners.

“The factory employs 170 skilled employees or approximately 12 per cent of the Lithgow area workforce. It is an important part of the Lithgow community.”

Lithgow was selected in 1908 as the ideal site for a small arms manufacturing facility because the town already had coal mines and a steel mill and its distance from the coast provided protection from naval bombardment. 

One of the longest serving employees at the Small Arms Factory, Ted Ferguson, joined the celebrations today. Mr Ferguson worked at the factory for almost 50 years. He started in 1939 working on the sight ramp componentry for the .303 rifles, when he retired in 1989 he was working on the latest Austeyr rifles. He only stopped working at the factory during that time to serve in the Australian Army during World War 2.

“The expert craftsmanship and skilled tradesman who have worked in this facility have helped protect our soldiers for over a century.” Mr Clare said.

Media contact: Ryan Hamilton – 0414 599 468

The new uniforms have been issued to soldiers from 7RAR in Adelaide and RAAF Airfield Defence Guards who will deploy to Afghanistan in the near future. 

In November 2010 the Chief of Army ordered that Australian troops operating ‘outside the wire’ in Afghanistan were to wear the MultiCam combat uniform. 

Versions of the MultiCam combat uniform are worn by US, British and Australian troops in Afghanistan. It provides a greater level of concealment across the range of terrains in Afghanistan – urban, desert and green. 

The uniforms have: 

•          Integrated elbow and knee pads to reduce soft tissue injuries;
•          Shirts which are cooler and designed to be worn under body armour;
•          Trousers with a padded waist band to make them more comfortable under webbing or a field pack; and
•          Trousers with more pockets and a stretch fabric at the joints for ease of movement. 

To get the uniforms to Australian troops quickly, they were originally purchased from the US manufacturer Crye Precision. 

Last year Defence purchased a license from Crye Precision to manufacture this uniform in Australia. Crye Precision was also engaged to develop our own unique version of the MultiCam camouflage pattern. 

Three options for an ‘Australianised’ MultiCam pattern were developed, each with equivalent performance to the US MultiCam. Based on initial feedback from soldiers, the preferred design underwent testing in a range of environments and terrains prior to final selection. 

The new uniform is produced by Pacific Brands WorkWear Group in West Footscray. The camouflage fabric is produced by Bruck Textiles in Wangaratta. 

Approximately 3,600 sets of the new Australian MultiCam uniforms have been ordered. The value of this work is approximately $780,000. A further 5,500 uniforms will be ordered later this year to equip soldiers deploying next year. 

“This is the best uniform for the work we do in Afghanistan. It provides better concealment and makes it easier for our soldiers to do their job.” Mr Clare said. 

“The feedback I have received from troops has been very positive. They have told me this is the uniform they want, and Australian industry has delivered.” 

Several changes have been made to the original US design, based on feedback from Australian troops in Afghanistan. 

This includes stronger fabric and modifications to a number of pockets and other parts of the uniform to improve functionality and durability.
 

Media contact: Annie Williams – 0428 040 522

The hull of the first of two Landing Helicopter Docks (LHD) has been transported from Spain to Australia by a Heavy Lift Ship, Blue Marlin.

The Canberra Class LHDs are bigger than Australia’s last aircraft carrier HMAS Melbourne.

 The hull is 230m long and 32m wide, making it the same length as the Rialto Tower in Melbourne.

The height from waterline to the aft mast is just 40cm lower than the deck of the Sydney Harbour Bridge.

The flight deck on the LHD is as big as 24 tennis courts and could fit four ANZAC Class frigates.

The LHD will be equipped with a hospital that could treat a town the size of Warrnambool and it generates enough electricity to power a city the size of Darwin.

The arrival is a significant milestone and marks the next step towards a new era for Defence’s amphibious force capability.

Construction of LHD 01 began in September 2008. The first three blocks were laid down in September 2010 and the hull was launched in February 2011.

The hull was constructed in Spain by shipbuilder Navantia and has taken around nine weeks to complete the 13,000 nautical mile voyage to Australia.

The hull will now be unloaded and moved by tug to the BAE Systems’ Williamstown dockyard for consolidation of the superstructure and other critical fitout work.

LHD 01, to be commissioned HMAS Canberra, is the first of two LHDs being built for the Royal Australian Navy.

The introduction into service of these ships will mark a significant change in the way the Australian Defence Force (ADF) deploys its land forces and conducts amphibious operations.

The LHDs are the largest ships ever built for the RAN.

Each ship with its crew of around 300 personnel can also carry and embark a combined armed battlegroup of more than 1100 personnel, 100 armoured vehicles and 12 helicopters, and features a 40-bed hospital.

Work on LHD 02, to be commissioned as HMAS Adelaide, began in February 2010. The first hull blocks were laid down in February 2011.

The hull of LHD 02 was launched in July 2012 and is due to arrive in Australia for superstructure completion and fitting out in early 2014.

The LHD 01 is expected to be introduced into RAN service in 2014. LHD 02 is expected to follow in 2016.

BAE Systems is the Prime Contractor for the LHD project and is managing the overall project in cooperation with subcontractors Navantia, Saab and L-3 Communications.

Media note: Still imagery will be available this afternoon from http://images.defence.gov.au/12131398.

Media Contacts:

Minister Clare’s Office: Annie Williams 0428 040 522

Minister Smith’s Office: Sacha Fenton 0467 784 528

In February 2011, the Senate referred the procurement procedures for Defence capital projects to the Committee for inquiry and report. The Committee was asked, in particular, to:

• assess the procurement procedures utilised for major Defence capital projects currently underway or foreshadowed in the Defence White Paper;
• assess the timeline proposed for Defence modernisation and procurement outlined in the Defence White Paper;
• assess proposals arising from the Defence accountability reviews in regards to enhancing accountability and disclosure for Defence procurement;
• make recommendations for enhancing the availability of public information and parliamentary oversight and scrutiny of Defence procurement; and
• undertake an assessment of the effectiveness of the Defence Materiel Organisation.

The Committee tabled its Report on 30 August 2012.

The report makes 28 recommendations relating to:

• strengthening accountability and realigning responsibilities;
• increasing contestability and independence of advice to Government on major projects;
• improving skills across all areas involved in the capability development and acquisition process;
• increasing public transparency of financial detail for capital projects;
• building an improved test and evaluation capability;
• providing industry with greater certainty about Defence’s intentions to enable it to invest with confidence; and
• two specific projects, SEA 1000 Future Submarines and AIR 8000 Phase 2 Battlefield Airlift (the Caribou Replacement project).

The Government agrees with the Committee’s assessment that it is important to continue to reform Defence’s capability procurement processes. The Government has already initiated action on a number of procurement reforms, including:

• project management accountability;
• progress with the Projects of Concern process;
• reforms to Support Ship Repair and Management Practices (the Rizzo Report);
• capability and procurement reforms; and
• reforms in the sustainment of Australia’s Collins Class submarines (the Coles Review).

The Government has also today announced a further range of important reforms to Defence procurement to specifically improve reporting and accountability mechanisms.

The Government remains committed to progressing further capability development and procurement reforms that will enhance the delivery of Defence capability projects, strengthen Australian Defence industry and improve accountability.

The Government has carefully examined the Report to see what further reforms might be adopted. Of the report’s 28 recommendations, the Government has:

• agreed in full to 13 recommendations relating to realigning responsibilities in Defence, improving contestability of advice, skilling Defence, capability development processes, test and evaluation and Defence industry (Recommendations 1, 7, 8, 12, 14, 18, 21, 22, 23, 24, 25, 27 and 28);
• agreed in principle to four recommendations (Recommendations 5, 10, 11 and 19);
• agreed in part to seven recommendations (Recommendations 2, 3, 4, 6, 15, 16 and 26).

The Government has not agreed to four recommendations (Recommendations 9, 13, 17 and 20). These recommendations are either inconsistent with the Kinnaird capability development reforms, have been previously considered and rejected by Government or would not contribute to improving procurement outcomes.

The Government’s response to the Report can be found below.

The Senate Standing Committee’s report is available at: http://www.aph.gov.au/Parliamentary_Business/Committees/Senate_Committees?url=fadt_ctte/procurement/report/index.htm

Media contacts:
Minister Smith’s Office (Andrew Porter): 02 6277 7800 or 0419 474 392
Minister Clare’s Office (Annie Williams): 02 6277 7290 or 0428 040 522

SENATE STANDINGCOMMITTEEONFOREIGN AFFAIRS, DEFENCE AND TRADE REFERENCES COMMITTEE’S FINAL REPORT

PROCUREMENT PROCEDURES FOR DEFENCE CAPITAL PROJECTS

GOVERNMENT RESPONSE

Executive summary

1.    The Government welcomes the Senate Standing Committee on Foreign Affairs, Defence and Trade References Committee’s final report Procurement procedures for Defence capital projects. Government understands the importance of reform to Defence’s capability procurement. This is why Government has already initiated action on a number of procurement reforms, including:

a. project management accountability;

b. progress with the Projects of Concern process;

c. reforms to Support Ship Repair and Management Practices (the Rizzo Report);

d. capability and procurement reforms; and

e. reforms in the sustainment of Australia’s Collins Class submarines (the Coles Review).

2.      This is also why the lessons learnt from the Coles Review will also play an important role in the development of the Future Submarine Project, including the need to take a long term view of maintenance and sustainment of the Future Submarine from the outset of the project.

3.      The Government remains committed to progressing further capability development and procurement reforms that will enhance the delivery of Defence capability projects, strengthen Australian Defence industry and improve accountability. In this light, Government has carefully examined this 334 page report to see what further insights might be offered. From this review, of the report’s 28 recommendations, the Government has:

a.       agreed in full to 13 recommendations;

b.      agreed in principle to four recommendations (Recommendations 5, 10, 11 and 19);

c.       agreed in part to seven recommendations (Recommendations 2, 3, 4, 6, 15, 16 and 26).

4.      The Government notes the report’s emphasis on increasing the role of the Capability Managers, which is why the Government has also agreed Recommendations 2, 3 and 4 in part. These recommendations relate broadly to increasing and enhancing the role of Capability Managers in capability acquisition, and Defence supports this intent. In this respect, Defence has already undertaken a range of initiatives to strengthen the role of Capability Manager’s in this process. However, Defence does not agree to the aspects of these recommendations that suggest transferring financial resources for acquisition to Capability Managers. Funding following government approval is provided to Defence Materiel Organisation (DMO) to improve DMO’s authority and accountability for outcomes (that is, the delivery of the materiel equipment elements of a project).

5.      Apart from agreeing to these 24 recommendations, for the remaining four recommendations, these were not agreed as follows:

a. Recommendation 9 (DMO’s independence). The Committee’s recommendation is inconsistent the Government’s previous public advice. The DMO will continue as it is, as a prescribed agency. Both the Kinnaird and Mortimer reports have previously recommended DMO become an executive agency. However, governments of both political persuasions have not accepted these recommendations.

b. Recommendation 13 (Capability Managers have sole responsibility for acquisition projects). Having the Capability Managers with sole responsibility for acquisition projects is contrary to the current business model approved by Government following the Kinnaird Review. A recent review undertaken by Independent Project Analysis Inc, an independent international benchmarking organisation, made the observation the current organisational structure with materiel equipment acquisition centralised in DMO is consistent with best practice. Nevertheless, cognisant of the intent of this recommendation, Defence will examine Recommendations 2, 3 and 4 to ensure the primacy of the Capability Managers is maintained in the acquisition process.

c. Recommendation 17 (Respond publicly to the Committee’s criticisms about lessons not learnt and current planning on submarines). As SEA 1000 is still pre‑first pass, it is premature to respond to criticisms raised by the Committee. The project will be brought through the normal first and second pass process to ensure appropriate lessons are applied and the necessary contestability is applied to affirm this.

d. Recommendation 20 (Publish as an addendum to its portfolio budget statements). The reporting requirements proposed by this recommendation would mix data from pre‑second pass activities, when option sets are being developed, against costs detailed in an acquisition contract versus the evolving costs for the sustainment of a capability as it matures and ages. The existing Portfolio Budget Statement reporting enables data to be appropriately compared via the extant reporting mechanisms and avoids creating significant overheads with little obvious benefit.

Overview of report

1.      The Senate Standing Committee on Foreign Affairs, Defence and Trade References Committee’s final report Procurement procedures for Defence capital projects was reviewed based on the eight specific areas and 28 recommendations contained in the report. Table 1 summarises the report’s structure and the Government’s response to each recommendation.

Table 1: Summary of Recommendations

Analysis of report’s findings

2.      The report suggests there is a growing disconnect between strategic guidance and capability development, confused accountabilities, poor appreciation of risk, and a need for structural reform in Defence procurement. Government supports the thrust of the report’s findings and Defence is already implementing a number of initiatives which will address some of the Committee’s concerns. 

3.      In particular, Government has already initiated action on a number of procurement reforms, including:

a. project management accountability;

b. progress with the Projects of Concern process;

c. reforms to Support Ship Repair and Management Practices (the Rizzo Report);

d. capability and procurement reforms; and

e. reforms in the sustainment of Australia’s Collins Class submarines (the Coles Review).

4.      This is also why the lessons learnt from the Coles Review will also play an important role in the development of the Future Submarine Project, including the need to take a long term view of maintenance and sustainment of the Future Submarine from the outset of the project.

5.      Nevertheless, Government will draw upon the advice in the Committee’s report and integrate this advice into existing reforms. Within Defence, the Capability Development and Materiel Reform Committee will progress such matters.

Areas of agreement

6.      The following are areas where there is broad agreement with the report:

a. The need for continuous improvement, as evidenced already with a range of capability development and acquisition reforms.

b. Providing personnel with the right skilling to perform their duties.

c. Recognising there are critical skills (eg engineers) where Defence needs to attract these skilled personnel.

d. Where possible, encouraging longer tenures.

e. As per the Black Review, Defence agrees there is a need for an alignment of accountability and responsibility.

f. While risk management policies and procedures are in place, further training in the application of these may be worth exploring.

g. Building an improved test and evaluation (T&E) capability, including the development of an equal stakeholder relationship between the Services T&E organisations and the Defence Science and Technology Organisation (DSTO), enabling the early engagement (pre-first pass) of T&E activities for the identification and mitigation of risks.

7.      The rationale for agreeing in principle to these four recommendations is as follows:

a. Recommendation 5 (Mandatory gate reviews). Recommendation 5 reflects current practice as defined in Gate Review policy documentation. However, Gate Reviews have not been held for ‘DCP Entry’ as there is currently no clear milestone for this event and at that point there is often little for the Defence Materiel Organisation (DMO)  to review. The first clear and useful milestone is Project Initiation and Review Board (PIRB) and corresponding Project Initiation and Options Definition Gate Reviews have been instituted.

b. Recommendation 10 (DSTO’s independent advice). While, there is no precedent for a Ministerial Directive to a Defence group head, the Chief Defence Scientist (CDS) is currently required by government to advise on technical risks for all major capability submissions. This was confirmed in the government’s response to the Mortimer Report. Defence’s existing processes ensure that DSTO advice is both independent and available without modification and CDS’s advice on technical risks is included verbatim in the submission to Cabinet.

c. Recommendation 11 (DSTO and risk assessments). Defence agrees to strengthen the role of the Technical Risk Assessment (TRA) in test and evaluation (T&E) by ensuring the TRA addresses the potential for T&E. Defence is of the view that the TRA is best conducted by technical experts in DSTO and should remain as independent advice. All submissions currently presented to Government on major capital projects include advice on technical risks that are provided directly by the Chief Defence Scientist. To ensure that the risks are appropriately described and presented, DSTO provides training in technical risk assessment and has implemented a review group to ensure the quality of TRAs.

d. Recommendation 19 (2013 White Paper). Recommendation 19 contends that, in developing the 2013 White Paper, Defence should ensure that all procurement proposals are costed and scheduled realistically, and that industry should be comprehensively consulted prior to the inclusion of procurement proposals.  Defence notes that the approach taken in the development of this White Paper is somewhat different to that used to develop the 2009 White Paper, and that procurement proposals will continue to be developed and considered through the current two-pass capability development process.  Defence also considers that the way in which in the 2013 White Paper is developed, the inclusion of capability proposals and the consultation processes are properly decisions for Government.

8.      The seven recommendations agreed in part are as follows:

a. Recommendations 2, 3 and 4 (Capability Managers, DMO and Capability Development Group (CDG)). Both Kinnaird and Mortimer recommended that service chiefs should be accountable for service specific procurements in the context of a stronger assurance role to ensure that there is appropriate oversight and coordination of all elements necessary to introduce a capability. For example, Kinnaird stated that “Capability managers will be accountable for monitoring and reporting to Government for the whole of capability from the point where government approves a particular capability option, that is at second pass approval, through to the time that the capability is retired from service. During the acquisition phase, the capability manager monitors the development of all capability elements, including equipment delivery by the DMO. This responsibility does not imply any authority to directly instruct the DMO on any aspect of its function as the manager of equipment acquisition.” In addition, a recent review undertaken by Independent Project Analysis, an independent international benchmarking organisation, made the observation that the current organisational structure with materiel equipment acquisition centralised in DMO is consistent with best practice. However, Defence does not agree to the aspects of these recommendations that suggest transferring financial resources for acquisition to Capability Managers.  Funding following government approval is provided to DMO to improve DMO’s authority and accountability for outcomes (that is, the delivery of the materiel equipment elements of a project). This approach has previously been agreed by Government following the Kinnaird review and reinforced by the Mortimer review.

b. Recommendation 6 (Relocation of Independent Project Performance Office). The Independent Project Performance Office (IPPO) was specifically formed in the DMO following the Mortimer Review to improve DMO’s project management performance through the provision of expert analysis, advice and assistance to DMO projects. This ensures the necessary commercial, engineering and project management expertise is readily available and brought to bear in an environment of management ownership, accountability and follow through. The relocation of the IPPO outside of DMO would diminish the effectiveness of this arrangement. The remainder of Recommendation 6 is agreed.

c. Recommendation 15 (streamlining and consolidation of skills). Defence does not agree to adopt in full the recommended organisational changes specified in Recommendation 13. However, Defence agrees that Strategic Policy Division and CDG should have more strategic analytical skills. Defence agrees that DMO has the resources and support to build on the efforts already under way to develop its multi-discipline skills base. Following from the recommendations of the Black review, further work is currently being undertaken to build the skills base of CDG and DMO, including optimising the utilisation of the Capability andTechnologyManagementCollege to provide better and more focused support to CDG and DMO. The Australian Public Service (APS) Job Families and business skilling initiatives will drive skill development of the military as well as the APS Strategy workforce.

d. Recommendation 16 (Chief of Navy to manage SEA 1000). As you announced on 6 September this year, Mr David Gould has been appointed as General Manager Submarines and he has been given responsibility for the oversight of the maintenance of the current Collins Class fleet and the Future Submarine Project. Hence, the intent of this recommendation has been met, but management of SEA 1000 will be overseen by Mr Gould rather than Chief of Navy. The remainder of Recommendation 16 is agreed.

e.  Recommendation 26 (Planning for investment). Defence recognises the importance of certainty to industry and continues to improve the planning for the Public Defence Capability Plan within the inherent limitations of the project development environment. The Public DCP is intended to provide as much information as is known within the four year Forward Estimates period. The DCP and Defence Capability Guide seek to provide as much information as possible, noting that an increasing level of uncertainty is inevitable in the outer years. The Department will engage with industry to address the level of information that can be generated and published about projects plans at early stages of their development. Although Defence regards continuity as an important aspect of maintaining the supply chain, the timely delivery of required military capabilities must remain the key feature of capability planning. Defence agrees that to the extent permissible to protect sensitive information, data on the reasoning and analysis underlying Defence’s demand can be published. Defence agrees to publish information based on the most reliable cost estimates it is able to generate, noting again the inherent uncertainty for projects in the outer years.

9.      Notably, Defence has agreed to Recommendations 2, 3 and 4 in part. These recommendations relate broadly to increasing and enhancing the role of Capability Managers in capability acquisition, and Defence supports this intent.  In this respect, Defence has already undertaken a range of initiatives to strengthen the role of Capability Manager’s in this process, as outlined in paragraphs 14 to 16 below.

Aspects of report not agreed

10.  Defence has not agreed to four recommendations on the basis that some activities are no longer undertaken for very sound reasons or that, even reflecting the Committee’s considered views, there are sound reasons to adopt an alternative approach in some cases.

11.  The four recommendations not agreed are as follows:

a. Recommendation 9 – DMO becoming a statutorily independent agency. The Government has previously considered whether DMO should be an executive agency, as has past governments. In each case, the decision has been made after careful consideration to have DMO as a prescribed agency.

b. Recommendation 13 – Service Chiefs as sole client with the contracted suppliers. The report envisages the accountability for all service specific procurement items should be exclusively transferred with budgets to Service Chiefs, who should be responsible for all procurement and sustainment of their materiel. The Committee also envisages the movement of individuals between DMO and the Capability Manager at varying times in the project phases. This recommendation is quite contrary to the current business model approved by Government following the Kinnaird Review. A recent review undertaken by Independent Project Analysis Inc, an independent international benchmarking organisation, made the observation the current organisational structure with materiel equipment acquisition centralised in DMO is consistent with best practice. Whilst not agreeing to Recommendation 13, Defence will examine Recommendations 2, 3, 4 and 13 to ensure the primacy of the Capability Managers’ role is maintained. Defence’s Capability Development and Materiel Reform Committee will progress this matter.

c. Recommendation 17 – Respond publicly to the Committee’s criticisms about lessons not learnt and current planning on submarines. As SEA 1000 is still pre‑first pass, it is premature to respond to criticisms raised by the Committee. The project will be brought through the normal first and second pass process to ensure appropriate lessons are applied and the necessary contestability is applied to affirm this.

d. Recommendation 20 – Additional PBS reporting. The reporting requirements proposed by this recommendation would mix data from pre-second pass activities, when option sets are being developed, against costs detailed in an acquisition contract versus the evolving costs for the sustainment of a capability as it matures and ages. The existing Portfolio Budget Statement reporting enables data to be appropriately compared via the extant reporting mechanisms and avoids creating significant overheads with little obvious benefit.

Clarifications

12.  Report contradictions. Defence considers that the report contains some internal contradictions which means that accepting one recommendation would have an adverse impact on another of the report’s recommendations. For example, the recommendations to empower the Capability Managers (Recommendations 2, 3 and 13) are contrary to ensuring DMO’s independence, with adequate resources (Recommendations 9 and 14). The Government understands the intent of the report and intends to take a holistic perspective to both the report’s recommendations and extant reform measures. Thus, for example, Defence is already updating the Memorandum of Arrangements (MOA) between Defence and DMO. This MOA will be used to ensure the relationship between the Capability Managers and DMO is adequately described and agreed.

13.  Capability Manager roles and joint capabilities.  The report identifies that “capability managers have been sidelined with CDG and DMO assuming key positions during the acquisition phase” and “capability managers require the authority that now resides with CDG as departmental coordinator and centre of power” (both quotes from para 15.39 of the report).

14.  Defence has recognised that there is room for improvement in this areas and has made a number of changes to its practices over the past six months to address these issues, including:

a. providing authority to Capability Managers through including them as a signatory, together with CDG and DMO, on Materiel Acquisition Agreements (MAAs); and

b. the implementation of Capability Manager Steering Groups to assist Capability Managers to review, monitor and control the process and progress for their post-second pass projects as these projects progress through the acquisition process.

15.  The report’s discussion on Capability Managers focuses on each of their capability areas.  In this context, Defence is also taking a number of steps to better integrate capability to support Joint Force Operations and the Joint Force-in-Being. It is also important to recognise that while the Service Chiefs and Deputy Secretary Intelligence and Security have clear and easily identifiable responsibilities for the delivery of capabilities and materiel that will be operated in the maritime, land, air and intelligence environments, there are some joint capabilities that do not fit neatly within any one of their areas of responsibility alone.

16.  This is particularly the case for joint command, control, communication, computer, intelligence, surveillance, reconnaissance, electronic warfare and ICT-dependent operational capabilities. Under Defence’s Capability Coordination Model, a Capability Coordinator is designated to ensure delivery of a cohesive joint capability that will meet the needs of the Capability Managers and Chief of Joint Operations. Where this model is invoked, the Capability Coordinator is required to engage closely with the Services and Groups to ensure their requirements are understood, and that all parties are kept informed of any issues and the status of the capability. The Vice Chief of Defence Force, as the Joint Capability Authority, is responsible for:

a. ensuring that new and extant capabilities are developed in accordance with joint concepts and doctrine;

b. appointing Capability Coordinators to be responsible for the delivery of joint capabilities that service the ADF and Defence; and

c. providing the conceptual basis for the future joint force and integration of its component capabilities.

17.  Recommendation 18 – AIR 8000 Phase 2 Statement of Operational Requirement (SOR). This recommendation implies Air Force did not intend to conduct T&E against the approved SOR. This is not correct. As part of the acquisition process, T&E results from the United States Air Force (USAF) for the capability will be reviewed and the Aerospace Operational Support Group will conduct T&E against key requirements to provide early identification of potential issues with the AIR 8000 Phase 2 project that could delay introduction into service. Whilst formal T&E against the SOR was not conducted prior to second pass, evaluation of the capability against the requirements was completed using evidence available from both the manufacturer and USAF to further mitigate risk of any non-compliance with the SOR.

18.  Paragraph 8.54 – DSTO moral hazards and conflicts of interest. Paragraph 8.54 of the report states “there is another matter of concern with potential conflicts of interest or moral hazard in that the opportunities for collaborative activities and funding have in the past driven DSTO to recommend a course of action that may not be in Defence’s best interest”, without any reference or further details to validate this statement. Defence refutes this statement. As both a developer and an adviser on technology to Defence, DSTO recognises the potential conflict of interest and has established an independent Probity Board to advise the Chief Defence Scientist on how to manage any potential conflicts, including through independent review of DSTO’s advice.

Way ahead

19.  There are aspects of this report where its advice can be incorporated into existing reform activities. The governance and oversight of all these activities will be provided by the Capability Development and Materiel Reform Committee, which is chaired by the Chief Executive Officer Defence Materiel Organisation. Such an approach avoids creating unnecessary, duplicative reporting mechanisms.

Over the past 18 months, the Government has announced a series of reforms to strengthen procurement processes within Defence.

These include:

• Reforms to Project management accountability (announced in May 2011);
• Reforms to strengthen the Projects of Concern process (announced in June 2011);
• Reforms to Support Ship Repair and Management Practices – the Rizzo Report (announced in July 2011);
• Reforms in the Sustainment of Australia’s Collins Class submarines – the Coles Review (announced in August 2011);
• Reforms to the Defence Capability Plan (announced July 2, 2012)

Implementation of all these reforms is well underway, with the majority already implemented.

An update on the implementation of these reforms is attached.

Today, the Ministers announce the next phase of reforms to improve Defence’s procurement processes.

Strengthened project accountability and reporting

Poor management of projects has included failure on a number of occasions to keep Government fully informed about changes to a project’s approved scope, cost or schedule.  It is not appropriate for Defence to vary from the approved scope, cost or schedule, without approval from the original decision maker or delegated approval authority.

Earlier this year, at Government direction, Defence conducted an acquisition baseline review audit of all approved projects within the DMO to ensure they were being progressed within approved scope, cost and schedule.  This review found that while all projects were within approved budget, two projects reported variation against the approved scope and around 20 percent of projects were late against the approved schedule.

This audit identified a number of projects which have not met the reporting standards expected by Government, including:

• Land 144 Phase 1– Countermine Capability;
• Land 134 Phase 1–Combat Training Centre – Live Instrumented System;
• Joint Project 2059 Phase 2–Bulk Liquid Distribution;
• Joint Project 2059 Phase 3–Water Purification and Desalination; and
• Land 40 Phase 2 – (Direct Fire Support Weapon – Lightweight Automatic Grenade Launcher)

In response to this audit, the Government has directed that Defence implement a new regime of reporting on variations to original project approvals. Project approval submissions will include clear thresholds for reporting to Government and the approval authority for variations to cost, scope and schedule. Variations that breach these thresholds must be referred for consideration to the original decision maker, whether that is the Minister, the Minister and the Minister for Finance and Deregulation or the National Security Committee of the Cabinet.  These thresholds will be incorporated into individual Project Directives as announced in May last year.

Managing Contractors

The Defence Materiel Organisation (DMO) will pilot the use of a managing contractor model for the delivery of Defence capability. The managing contractor model has been used successfully throughout Australia by both public and private sector organisations, particularly for the delivery of infrastructure projects. It has proved a highly flexible delivery model and could be tailored for defence capability projects, including the delivery of both acquisition and sustainment activities.

DMO intends to recommend the first project to pilot the managing contractor delivery model by the end of this year. In the first instance, the pilot will focus on a land acquisition project at the lower end of complexity to test the delivery model. Subject to the outcomes of the pilot, DMO will consider the application of the model for other acquisition and sustainment activities. 

The managing contractor model will further develop the close working relationship between Defence and industry and seeks to improve effectiveness and efficiency in project delivery.

Strengthened Performance Assessments

In August last year, the Minister for Defence released the “Review of the Defence Accountability Framework” (the Black Review) which was commissioned by the then Secretary of the Department of Defence and the then Chief of the Defence Force and conducted by Dr Rufus Black. 

The Black Review was the first comprehensive review to examine personal and institutional accountability in Defence as a whole.

It found that there were significant problems with performance in many parts of the Defence Organisation. 

The Black Review stated “…Defence has reached a point in its history where there is a strong case to redesign its accountability system…. the current arrangements are under stress and their failure damages Defence.”

These failures damage Defence, weaken ADF capability and cost taxpayers money.

To further improve performance and enhance accountability in the DMO, in addition to the reforms announced last year, the Chief Executive Officer (CEO) of the DMO, Mr Warren King, will implement strengthened personal accountability by requiring personal accountability reports from each DMO senior executive on a quarterly basis. These reports will require senior executives to certify their performance to the CEO over the previous quarter.

Early Indicators and Warning

In May 2011, the Ministers announced the establishment of an Early Indicators and Warning

(EI&W) system for the assessment of all major capability projects.

The EI&W system was initially focussed on DMO and Capability Development Group (CDG) major capability equipment acquisition projects.  Under today’s further reform, this system has now been extended to all major projects across the Defence Portfolio, including facilities projects and IT projects managed by the Chief Information Officer.

A number of further improvements to the EI&W system have also been made. These include:

• enhanced monitoring and internal management processes;
• closer scrutiny of projects that have been reported more than once;
• improvements to the project management ICT monitoring systems; and
• the introduction of automated alert mechanisms when a warning is triggered.

Negotiation Cell to Improve Commercial Outcomes for Defence

Defence will establish a highly skilled negotiation cell within DMO to significantly improve the DMO’s conduct of commercial negotiations.

The cell will include members from outside the DMO who have significant commercial experience, particularly in major contract negotiations. The DMO will initially draw on a number of highly regarded external members who currently assist DMO as part of the Gate Review process. It is intended that the external members will assist in mentoring and developing Departmental personnel in the conduct of contract negotiations.

The cell members will be assigned to oversight or participate in negotiations, potentially as lead negotiator, to drive better commercial outcomes for Defence when dealing with industry.

A pilot program is currently underway, utilising an external lead negotiator and external technical adviser for negotiations with Rheinmetall MAN on Project Land 121Phase 3B.

Structural Reform

Minister Smith and Minister Clare have asked the CEO DMO to undertake a review of the structure and functions of the various Divisions within DMO which manage capability projects.

The review will seek to establish the optimal structure for these Divisions to drive improved performance, accountability and reporting in relation to projects.

This reform follows identification by the Government of a number of projects that have not been managed as effectively as they should have been, including:

• LAND 106, the upgrade of the M113 armoured vehicle fleet;
• LAND 112, upgrade of the ASLAV armoured vehicle fleet;
• JP 2070, the acquisition of lightweight torpedos; and
• AIR 5418, the acquisition of a new missile, the Joint Air Surface Standoff Missile (JASSM).

The first review will be a structural review into Land Systems Division, which has responsibility for a number of problem projects, including:

• LAND 106, the upgrade of the M113 armoured vehicle fleet;
• LAND 112, upgrade of the ASLAV armoured vehicle fleet;
• Land 144 Phase 1 – Countermine Capability;
• Land 134 Phase 1– Combat Training Centre – Live Instrumented System; and
• Land 40 Phase 2 – (Direct Fire Support Weapon – Lightweight Automatic Grenade Launcher)

 The review will be led by CEO DMO and will build on current business reforms being implemented across the Division.

Attachment: Reform Implementation Update
An effectively functioning Defence organisation, including the Australian Defence Force (ADF), is a critical part of protecting and defending Australia’s national security interests.

There will always be risk in complex, costly procurements involving cutting edge technology.

To minimise that risk and to manage it effectively, we need to continue to instil greater rigour and greater individual and institutional accountability to our consideration and management of major capability projects, both acquisition and sustainment.

This in particular applies to the early stages of projects – 80 per cent of problems with Defence capability projects emerge in the first 20 per cent of the project’s life.

Project Management Accountability

In May last year, we announced a number of reforms to increase the level of project management accountability including:

• project directives issued by the Secretary of the Department of Defence and the Chief of the Defence Force to ensure Defence acquisitions progress according to Government direction;
• benchmarking all acquisition proposals against off-the-shelf options where available;
• the introduction of a two-pass approval system for minor capital projects valued between $8 million and $20 million;
• implementation of an Early Indicators and Warning system;
• the expansion of the Gate Review system; and
• the introduction of Quarterly Accountability Reports.

All of these reforms have now been implemented.

Projects of Concern

The Projects of Concern process was established by the Government in 2008 to focus the attention of the highest levels of Government, Defence and industry on remediating problem projects.

This includes the establishment of a Project of Concern summit involving the Minister for Defence Materiel meeting with senior Defence officials and CEOs of companies which have projects on the Projects of Concern list.

In February last year, Minister Clare committed to holding biannual face-to-face meetings with industry and Defence.

The first round of meetings was held in February 2011, followed by a second round in September 2011 and a third round in April this year. The next round of meetings is scheduled for the end of November.

The purpose of these meetings is simple – to make sure there is focus from the top of Government, Defence and industry to remediate these projects.

It ensures that the senior Defence and industry people responsible for these projects are doing everything necessary to remediate them.

Since inception, 19 projects in total have been placed on the list. Of those, 13 have been removed, 11 due to remediation and two cancelled (Watercraft for Amphibious Ships and Sea Sprite Helicopters).

In December 2011, a further three projects were removed from the Projects of Concern list – halving the number of projects on the list in one year.

This cut the number of projects on the Projects of Concern list from 12 at the beginning of 2011 to the current six.

In June last year, we announced a number of reforms to strengthen the Projects of Concern process, including:

• the establishment of a more formal process for adding projects to the list;
• the establishment of a more formal process for removing projects from the list;
• the development of agreed remediation plans, including formal milestones for the removal of a project from the list;
• increased Ministerial involvement and oversight of the process; and
• incentives for companies to fix projects on the list by taking into account the performance of companies in addressing Projects of Concern when evaluating their tenders for other projects.

All of these reforms have now been implemented.

Reforms to Support Ship Repair and Management Practices

In July last year, we announced a number of reforms to support ship repair and management practices through the Rizzo Report.

Since then a number of reforms have been implemented including:

• the establishment of a two star Navy Admiral as Head of Naval Engineering;
• the Defence Materiel Organisation (DMO) Amphibious and Afloat Support Systems Program Office has been restructured and core maintenance practices strengthened;
• a significant reduction in the backlog of incomplete maintenance and engineering activity across the fleet;
• the development of a Maritime Capability Business Model;
• increased resourcing to key enablers of maritime capability; and
• the establishment of Fleet Support Unit – Australia.

On 1 July this year the Defence Seaworthiness Management System commenced its phased implementation with the Chief of Navy as the Defence Seaworthiness Authority. Work to increase the interaction and decision making between Navy and DMO has also resulted in a new Materiel Sustainment Agreement, reinforcing the necessity of productive working relationships between the two groups.

The Rizzo Reform Program is entering the next phase of activity and is implementing change. This involves inculcating a culture that identifies the seaworthiness of ships, submarines, and maritime mission systems as a fundamental enabler of maritime capability.

Capability and Procurement Reform

These reforms complement a number of other important initiatives that were announced last year.

In 2011, we also accelerated the full implementation of all the Kinnaird and Mortimer recommendations previously agreed by Government.

In 2003, the Kinnaird Report strengthened the two-pass approval system, the creation of the Capability Development Group and the Defence Materiel Organisation as a prescribed agency under the Financial Management and Accountability Act.

Most of the Kinnaird reforms have been implemented and have had a positive impact.

In 2008, the Mortimer Review into Defence Procurement and Sustainment made 46 recommendations.

The Government agreed to 42 of them in full and three in part.

Many of these recommendations have been implemented, including increased investment in Defence industry skills and incorporation of improved commercial practices into Defence procurement.

Defence has accelerated the implementation of all outstanding agreed recommendations made by Mortimer as a matter of priority.

This includes:

• project directives issued by the Secretary of the Department of Defence and the Chief of the Defence Force to ensure acquisitions progress according to Government direction; and
• benchmarking all acquisition proposals against off-the-shelf options where available.

Implementation of these important reforms to capability development and procurement continues, with specific action including:

• introducing new rigour into the management of so called ‘minor’ projects, including a modified two-pass approval system for minor capital equipment projects valued between $8 million and $20 million.
• implementing an Early Warning and Indicator system to address the early stages of capability planning and prevent problems early in the life of a project;
• expanding the use of the Gate Review process for mature projects to ensure that the desired operational capability is being delivered; and
• providing enhanced and more rigorous reporting to Government on high priority projects.

These reforms include the Government’s response to the Coles Review of the Sustainment of Australia’s Collins Class submarines.

Defence Capability Plan (DCP)/Defence Capability Guide (DCG)

The Minister for Defence and the Minister for Defence Materiel Jason Clare announced on July 2 reforms to the Defence Capability Plan based on consultation with Australian Defence Industry.

On 10 July the Ministers released the DCP 2012.

Earlier this year, Minister Smith and Minister Clare met with Australian Defence industry representatives and sought advice on ways to improve the DCP. 

Based on Defence industry feedback, future public versions of the DCP will contain those priority projects planned for either first or second pass approval over the four year Forward Estimates period.

The purpose of this reform is to align the DCP with the four-year Forward Estimates period in the Budget and provide greater certainty for industry.  This reform reflects consultations undertaken with industry and aligns with industry’s focus on projects approaching Government consideration. 

The public DCP will provide information for industry on project cost, schedule and local industry content.

As the public DCP will include only those projects approaching either first pass or second pass in the four year Forward Estimates period, it will be a much more reliable guide of the Government’s priorities for investment in Australian Defence Force (ADF) capability. 

A new document to complement the public DCP, the 2012 Defence Capability Guide (DCG), was released on October 5 and provides general guidance for industry on projects over the six year period following the four years of the DCP.

The DCG will ensure that industry has information about the Government’s longer-term capability intentions, noting that beyond the four year DCP, there is more uncertainty, and historically projects are less well defined and have been subject to change, in terms of scope, cost and schedule.

Together the DCP and the DCG provide a 10 year program for defence capability acquisition, which we are doing at the request of Australian Defence industry.

Media Contacts

Mr Smiths Office: Andrew Porter (02) 6277 7800 or 0419 474 392

Mr Clare’s Office: Annie Williams (02) 6277 7620 or 0428 040 522

The cost of the additional 19 howitzers is around $70 million. 

In October 2009, then Defence Minister Faulkner announced the Government would acquire four batteries of 35 M777A2 155mm Lightweight Towed Howitzers (M777s).

In May, the Government announced the cancellation of the acquisition of self-propelled howitzers, proceeding instead with additional towed artillery.

The additional acquisition announced today means Army will now have six batteries of M777 Lightweight Towed Howitzers.

The M777 Lightweight Towed Howitzer is the most advanced towed artillery system available in the world.  It has a titanium and aluminium alloy structure able to fire up to 5 rounds per minute.  It is capable of being transported by Chinook helicopters and C130 aircraft.  The full mission system comprising of the howitzer, towing vehicle and crew transport vehicle is able to be transported by C‑17 aircraft. 

The M777 Lightweight Towed Howitzers are also in service with the United States Army and Marine Corps and are currently supporting US operations inAfghanistan.

The use of the M777 Lightweight Towed Howitzers by US forces strengthens interoperability with ourAlliancepartner. There are also significant efficiencies in sustainment and training through the fielding of a single fleet of howitzers.

This acquisition decision means that the additional M777 Lightweight Towed Howitzers will be acquired off the current production line in theUnited Statesand avoids potential additional costs to restart such production.  Government will consider additional support and facilities costs associated with this acquisition later in the 2012-13 Financial Year.

Media Contacts

Mr Smiths Office: Andrew Porter (02) 6277 7800 or 0419 474 392

Mr Clare’s Office: Annie Williams (02) 6277 7290 or 0428 040 522

The blast gauges measure the impact of blasts, particularly from Improvised Explosive Devices (IEDs). They display a yellow, green or red light to indicate the level of pressure from a blast. 

The gauges will help medics in Afghanistan treat injured soldiers by detecting and capturing data from blasts that will then be used to guide treatment. 

“The trial will enable medics to access data to immediately assess the effects of blast pressure and acceleration from an IED or other explosion on a soldier,” Mr Snowdon said. 

“We all know the injuries footballers and boxers get from a big hit. Being hit by the blast of a bomb is much worse,” Mr Clare said. 

“Bomb blasts can put enormous force and pressure on the brain. These devices measure that and help our medics treat our soldiers who have been hit.” 

The new blast gauges are being rolled out by the Army’s Diggerworks Team, which is responsible for developing combat solider capability and are similar to the United States Marine Corps’ Gruntworks. 

The blast gauges have now begun to roll out. Over 10,000 gauges will be rolled out to troops over the next 12 months. 

Soldiers will wear three blast gauges – on the outside of their helmet, on their non-firing shoulder and on their chest. The gauges are designed to withstand tough weather conditions and weigh less than 29g each. The technology was developed by the United States Defence Research Projects Agency (DARPA). 

United States troops in Afghanistan are also trialling these gauges – and have collected information from more than 250 blasts to date. 

Mr Snowdon first saw this technology applied to equipment worn by troops from the US when he visited DARPA headquarters in Washington in 2011. 

“This is part of making sure we continue to apply world class technology to our defence force, giving health professionals the latest technology to treat brain injuries resulting from a blast,” Mr Snowdon said. 

The Government has committed over $1 billion in equipment to protect our troops in Afghanistan, including; 

• new combat body armour,
• upgraded Bushmaster vehicles,
• enhanced mine and IED detection equipment,
•  the CRAM counter rocket, artillery and mortar system,
• Maximi machine guns and a new combat uniform. 

Media contacts:

Minister Clare’s Office: Annie Williams – 0428 040 522
Minister Snowdon’s Office: Lidija Ivanovski – 0407 108 935

Australian companies Akubra Hats Pty Ltd and Mountcastle Pty Ltd have been selected to supply the hats for the next 5 years, under standing offers worth around $2 million per year. 

“The Slouch Hat is a national treasure. But you don’t have to go to a museum to see one – they are worn with pride by members of the Australian Defence Force every day,” Mr Clare said.

“Akubra has been making hats in Australia since 1874 and Mountcastle is Australia’s second oldest registered company – it’s been operating here since 1835.”

The Slouch Hat tender sought two suppliers to ensure surety of supply, weighted towards the company with the highest level of Australian industry content.

As the Akubra Slouch Hats have a higher level of Australian content than those made by Mountcastle, Akubra was awarded a majority of the work in this tender.

In December 2011, an exemption was made from the application of the non-discrimination provisions of the then Commonwealth Procurement Guidelines to allow the Commonwealth to mandate that the Slouch Hat is to be made in Australia. This exemption was approved on the basis that the Slouch Hat is a ‘national treasure of historic value’.

Media contact: Annie Williams – 0428 040 522

The LHD01 hull has been transported from Spain to Australia by a Heavy Lift Ship, Blue Marlin. The trip has taken around eight weeks.

“The Heavy Lift Ship, Blue Marlin has now travelled around 10,000 nautical miles,” Mr Clare said.

“The LHDs are the largest ships ever built for the Royal Australian Navy and will provide the Australian Defence Force (ADF) with one of the most capable and sophisticated amphibious ships in the world.”

The Canberra Class LHDs are bigger than Australia’s last aircraft carrier HMAS Melbourne. When completed they will be more than 230 metres long, 27.5 metres high and weigh around 27,500 tonnes.

Each ship can carry a combined armed battlegroup of more than 1100 personnel, 100 armoured vehicles and 12 helicopters and features a 40-bed hospital. 

The Blue Marlin will transit to Port Phillip Bay in the coming week. The LHD hull will be unloaded and moved by tug to the BAE Systems Williamstown Shipyard for consolidation of the superstructure and other critical fitout work. The LHDs are being built by Prime Contractor BAE Systems.

“BAE are Australia’s largest Defence contractor and will play a key role in the consolidation and fitout of the LHD once it arrives in Australia,” Mr Clare said.

The LHD is expected to be introduced into Royal Australian Navy service in 2014.

Media Contact:
Mr Clare’s Office: Annie Williams (02) 6277 7290 or 0428 040 522

In August, the Government announced that it had decided to acquire the Growler electronic warfare capability for the Super Hornet at a cost of around $1.5 billion.

The Growler is a specialised version of the Super Hornet.  The Growler electronic warfare aircraft was used very effectively by the United States Navy during air operations in Libya last year.

The United States Navy are regular visitors to Australian as part of longstanding aircraft cooperation arrangements between Australia and the United States. This however is the first time EA-18G Growler aircraft have visited Australia.

The Growler capability will provide Australia with an ability to disrupt or jam a range of military electronics systems, including radars and communications systems.

Electronic threats are an inherent part of modern combat and Growler will provide options for the Royal Australian Air Force (RAAF) to undertake electronic threat suppression operations in support of Australian Defence Force (ADF) operations.

The Growler capability can also undertake intelligence, surveillance and reconnaissance.

The USN EA-18G Growler visit will allow Australia to learn more about how the capability works alongside our F/A-18F Super Hornets.

The Growlers will undertake training flights and simulation activities while in Australia, alongside Australian F/A-18F Super Hornets.

Images will be available at: http://images.defence.gov.au/12131152

 
 
Media contacts:

Minister Smith’s Office: Sacha Fenton (02) 6277 7800 or 0467 784 528

Minister Clare’s Office: Annie Williams (02) 6277 7290 or 0428 040 522

Defence Media Operations (02) 6127 1999

The signing formalises Australia’s participation in the development of the Increment 3 P-8A Aircraft and marks Australia’s continued commitment to the $5 billion project to acquire a new manned Maritime Patrol Aircraft.

The P-8A is a fundamental element of Australia’s future maritime patrol and response strategy in replacing the current AP-3C Orion fleet, due for withdrawal around 2019.  The Air Force currently operates 19 AP-3C Orion aircraft, with two having been on operational deployment in the Middle East.

The P-8A is a modern, highly reliable aircraft based on the commercially-proven Boeing B737, modified to incorporate the latest maritime surveillance and attack capabilities.

It has an unrefueled range of over 4000 nautical miles (7,500km) or the ability to remain on station conducting low level Anti Submarine Warfare (ASW) missions for over 4 hours at a range of more than 1,200 nautical miles (2,200 km) from base.

The P-8A is also air-to-air refuelable from the boom of tanker aircraft such as the KC-30A, pushing its endurance out to over 20 hours – making it possible to patrol Australia’s isolated Southern Ocean territories.

The P-8A has 11 weapon hard points (five in the bomb bay, four under the wings and two under the fuselage) and can carry over 22,000 pounds (10,000kg) of weapons. All the hard points have digital weapon interfaces. The aircraft has an extensive communications suite of over 10 separate radios and data links across the VHF, UHF, HF and SATCOM spectrums.

Like the Orion, the P-8A has advanced sensors and mission systems. These include advanced multi-mode radar, a high definition electro-optic camera, an acoustic system (that has four times the processing capacity of the current AP-3C Orion’s system) and an advanced electronic support system.

The Increment 3 Project Arrangement falls under the Production, Sustainment and Follow-on Development Memorandum of Understanding between Defence and the United States Navy, which was signed in March this year and provides the framework by which the P-8A will be acquired, sustained and developed thought it service life.

The Increment 3 Project Arrangement is the first planned upgrade to the Australian P-8A fleet and aims to provide a range of new upgraded capability to the Increment 2 aircraft, including a networked maritime strike weapon, air-sea rescue kit and enhanced target tracking.

This Project Arrangement represents the first real opportunity for Australia to influence the future capability of the P-8A, as Australia will be involved in the Increment 3 upgrade from the requirements determination phase.

Images will be available at: http://images.defence.gov.au/12131259

Media contacts:

Minister Smith’s Office: Sacha Fenton (02) 6277 7800 or 0467 784 528

Minister Clare’s Office: Annie Williams (02) 6277 7290 or 0428 040 522

Defence Media Operations (02) 6127 1999

The 2012 DCG is a new document and provides general guidance for industry on projects for the six year period following the four years Forward Estimates period of the Defence Capability Plan (DCP). The most recent DCP was released by the Government in July.

Together the DCP and the DCG provide a 10 year program for defence capability acquisition, which we are doing at the request of Australian Defence industry.

Earlier this year, Minister Smith and Minister Clare met with Australian Defence industry representatives and sought advice on ways to improve the information on defence capability provided to industry.

Australian Defence industry asked for this model, which the Government has now produced.

The DCG will ensure that industry has general information about the Government’s longer-term capability intentions, noting that beyond the four year DCP, there is more uncertainty, and historically projects are less well defined and have been subject to much more change, in terms of scope, cost and schedule.

The level of information on projects in the DCG for the general guidance of industry is necessarily less definitive than that in the DCP. 

Projects in the DCG will enter the DCP as they become better defined and if Government decides that they are of sufficient priority to be included in the Forward Estimates years and funded in the Budget.

The current DCP contains 111 projects, or phases of projects, worth over $150 billion.

These projects will deliver key capabilities for modernising and enhancing the Australian Defence Force (ADF).

Again, the release of a four year DCP was based on consultation with Australian Defence Industry which has resulted in a significant reform of Defence’s key capability acquisition document.

The purpose of the reform was to align the DCP with the four-year Forward Estimates period in the Budget and provide greater certainty for Industry.

The public DCP provides information for industry on project cost, project schedule and local industry content.

Both the four-year DCP and the six-year DCG will be subject to change as strategic circumstances evolve, new technologies emerge and priorities are updated to reflect the changing needs of the ADF.

The DCG is available at http://www.defence.gov.au/Publications/CapabilityGuide2012.pdf

Media contacts:
Minister Smith’s Office: Sacha Fenton (02) 6277 7800 or 0467 784 528

Minister Clare’s Office: Annie Williams (02) 6277 7290 or 0428 040 522

Defence Media Operations (02) 6127 1999

“The iconic F-111s were the front line of the Australian Defence Force for almost four decades,” Minister Clare said.

“The F-111s were affectionately known as ‘Pigs’ because of their ability to hunt at night and fly low in the weeds thanks to their terrain-following radar.”

“They were perhaps best known for their fiery dump and burn exhibitions at air shows around Australia.”

“They could fly at two-and-a-half times the speed of sound and when they retired were still one of the fastest strike aircraft in the world.”

“Loaning these mighty planes to Australian air museums and historical organisations will help preserve this important part of our military heritage.”

The successful organisations are:

• Aviation Historical Society of the Northern Territory (Winnellie NT);
• Evans Head Memorial Aerodrome Heritage Aviation Association (Evans Head NSW);
• Fighter World (Williamtown NSW);
• Historical Aircraft Restoration Society (Albion Park Rail NSW);
• Queensland Air Museum (Caloundra QLD); and
• South Australian Aviation Museum (Port Adelaide SA).

The Australian Flying Corps and Royal Australian Air Force Association – WA Division Inc (Bull Creek WA) will receive a crew module display. F-111 aircraft are already on display at the Aviation Heritage Centre, RAAF Base Amberley in Queensland and at the RAAF Museum, RAAF Base Point Cook in Victoria.

Two F-111 aircraft are also at RAAF Base Edinburgh and RAAF Base Wagga. These aircraft will also be put on display.

The aircraft loaned to aircraft museums and historical organisations are expected to be delivered from early 2013.

The RAAF retired the F-111 in 2010 after 37 years of service, with a flypast of Ipswich, Brisbane, and the Gold and Sunshine Coasts by six F-111s accompanied by four F/A-18Fs, and a final F-111 display overhead RAAF Amberley.

The F-111 was replaced by the current squadrons of F/A-18F Super Hornets.

The aircraft museums and historical organisations must comply with a number of conditions to ensure the safety of the aircraft.

Imagery of F-111s is available at: http://images.defence.gov.au/12131225

Vision of the F-111s was fed to the press gallery at Parliament House in Canberra this morning.

Media contact:

Annie Williams – 0428 040 522

The Chora Valley Lines will train more than 10,000 Australian Defence Force personnel over the next 10 years to operate next generation of field vehicles and trailers. This includes the new Mercedes Benz G-Wagon.

Chora Valley Lines was named in recognition of the many men and women of the ADF who have served in Afghanistan, especially those soldiers who have made the ultimate sacrifice.

The facility cost approximately $11 million, and took nine months and more than 52,000 hours of construction work to complete.

The G-Wagons have now started to roll out to Army and Air Force units across Australia.

“These vehicles have been built and tested to exacting standards. They are as tough as the Army and Air Force personnel that they will carry,” Mr Clare said.

The G-Wagons are part of LAND 121 or “Project Overlander”, a $7.5 billion program providing more than 7,500 new protected and unprotected vehicles to the ADF over the next decade.

The new fleet will comprise 2,146 unprotected Mercedes Benz G-Wagons and 1,799 trailers manufactured by Haulmark in Brisbane.

The G-Wagon fleet also comprises eight mission system variants ranging from station wagons and carryalls to ambulances and surveillance and reconnaissance vehicles. These specialist modules are manufactured by G.H. Varley in Newcastle.

Media contact:
Annie Williams 0428 040 522

“The Iroquois helicopters served in the Australian Defence Force for nearly half a century. They were affectionately known as Hueys, and featured prominently in the battle of Long Tan,” Mr Clare said.

“During the Vietnam War, the helicopters provided vital support to troops on the ground. They were used for casualty evacuations, patrols and resupply.

“Today’s announcement means they will be preserved to ensure their contribution to our military heritage is not forgotten.”

The six successful organisations are:

• Australian Flying Corps RAAF Association West Australia Division;
• Vietnam Veterans Associations of Australia Mitchell Sub-branch Victoria;
• Caboolture Warplane and Flight Heritage Museum Queensland;
• Port Pirie RSL Sub-branch South Australia;
• Merredin Military Museum West Australia; and
• Scottsdale RSL Sub-branch Tasmania.

Following their service in Vietnam, the Iroquois went on to serve on many peacekeeping and humanitarian missions.

“The Iroquois’ final deployment was to Sumatra in Indonesia to provide assistance following the 2004 Boxing Day Tsunami,” Mr Clare said.

“The helicopters flew from dawn to last light every day, delivering food water, medical supplies and aid workers to affected areas.

“The air and ground crew worked tirelessly in Banda Aceh for six weeks. By the time they were withdrawn in late February, they had completed approximately 300 missions and delivered 150 tonnes of vital supplies.

“The helicopters evacuated close to 500 people who had lost their homes to the tsunami,” Mr Clare said.

Iroquois helicopters were withdrawn from service in December 2007.

Defence will now commence negotiations with the preferred recipients.

The helicopters will need to be demilitarised, and the display is subject to approval by United States Government under its International Traffic in Arms Regulations.

Imagery of the Iroquois helicopters is available at

http://images.defence.gov.au/12131150

Media contact:

 Annie Williams 0428 040 522

“The Giraffe radars provide our troops with early detection of attacks from enemy rockets, artillery and mortars, protecting Australian and ISAF forces,” Mr Clare said. 

“This early warning system has been a proven force protection capability for our troops, giving them vital seconds of advanced warning so they can take shelter.”

Australia assumed responsibility for early detection against rocket, artillery and mortar attacks at Tarin Kot from 28 December 2010. 

The new Giraffe radars have replaced leased radars and were manufactured inSwedenbySAABABunder an $86.2 million contract, which includes support services.

A third Giraffe radar will be delivered toAustraliain January 2013 and will be used as a training support system.

Australia’s C-RAM Sense and Warn capability consists of Giraffe radars, a number of lightweight counter mortar radars and Command and Control and warning equipment.

The deployment of the new radars is the latest in a range of force protection initiatives that over the past few years has delivered $1billion in equipment to protect our troops in Afghanistan including:

• Up-armouring the Bushmasters;
• New combat body armour;
• Heavier calibre weapons; and
• New ground penetrating radar trucks to clear roads of IEDs before troops travel on them.

Media contact: 
Mr Clare’s Office: Annie Williams (02) 6277 7290 or 0428 040 522
Defence Media Operations: (02) 6127 1966