Minister for Defence Stephen Smith and Minister for Defence Materiel Jason Clare today announced that the Government has made a record number of approvals for Defence capability projects in 2011.

Mr Smith and Mr Clare today announced the approval of another four major Defence projects.

This brings the total number of first pass, second pass and other approvals for major projects in 2011 to 46.

The previous record was 39 in 2006.

The total value of the projects approved in 2011 is more than $6 billion.

The four approvals announced today are:

• Intermediate Pass for the Maritime Patrol Aircraft Replacement (Project Air 7000 Phase 2B);
• Second pass approval for Digital Terminal Control Systems (Project Land 17 Phase 1B);
• Approval for the release of funds to complete the Lightweight Anti-Submarine Torpedo Replacement (Joint Project 2070 Phase 2 Stage 2); and
• Woomera Test range Upgrade.

A complete list of the year’s approvals is attached.

Maritime Patrol Aircraft Replacement (Air 7000Phase 2B):

The Government has provided an intermediate pass approval for Phase 2B of the Maritime Patrol Aircraft Replacement Project.

This project will acquire a military-off-the-shelf (MOTS) maritime patrol aircraft to replace the current AP-3C Orion fleet.

The Orion aircraft undertake surveillance, reconnaissance and response roles, strengthening Australia’s border protection operations against people smuggling, illegal fishing and piracy.

The Royal Australian Air Force AP-3C Orion fleet has performed exceptionally in Australian domestic operations, as well as in South East Asia and the Middle East.  However, the fleet is expected to reach its planned withdrawal date around 2019.

First pass approval for this project, and funding of around $150 million, was provided by Government in June 2007.

This approval allowed Defence to join the United States Navy’s (USN) P8-A program.

The P-8A design is based on the commercially proven Boeing 737-800 airframe and is capable of conducting extended missions over large areas and at extended range from its operating base.

The intermediate pass approval announced today will allow Defence to expand the co-operation it is undertaking with the USN, including the establishment of a Production, Sustainment and Follow-on Development Memorandum of Understanding (MOU).

The Government has approved additional funding of almost $100 million for activities that will now be conducted up to second pass.

The Government is expected to make a final decision on the Maritime Patrol and Response platform in the period 2013-14 to 2015-16. The new aircraft systems are expected to be operational in the period 2017-18 to 2019-20.

The overall budget for Phase 2B of Air 7000 is identified in the Public Defence Capability Plan as being between $3 to $5 billion (middle of band).

This new aircraft will complement the high altitude, long endurance unmanned aircraft systems that will be acquired under Phase 1B of Project Air 7000.

Digital Terminal Control Systems

The Government has provided second pass approval for Land 17 Phase 1B of the Artillery Replacement project, with funding of around $90m.

This approval is subject to the establishment of acceptable commercial terms with the preferred contractor, Rockwell Collins Australia.

This project will modernise the Australian Defence Force’s indirect fire combat capability through the provision of modern digitised artillery systems that will increase precision, range and rate of fire.  The project will acquire 96 systems.

The Government has previously approved the acquisition of 56 of the same Digital Terminal Control Systems (DTCS) under an Operational User Requirement.  This approval was provided in July 2010 at a cost of around $29 million, and the systems have been fielded by the ADF in Afghanistan.

The DTCS is capable of supporting operations undertaken by each of Navy, Army and Air Force.

Lightweight Anti-Submarine Torpedo Replacement

The Government has approved the release of funding of around $70 million to allow completion of Phase 2 of the Lightweight Anti-Submarine Torpedo Replacement.

The project was initiated in 1998 and due to a range of technical and schedule difficulties, has been managed as a Project of Concern since 2008.

Stage 1 of Phase 2 of this project was approved in February 2009, at a cost of $29.5 million.

The new approval provided by Government will allow a comprehensive test program to be completed, will see the establishment of through life support systems for the capability and will allow completion of the integration activity on all the ANZAC and ADELAIDE class frigates.

There is extensive local industry involvement in this project, including through integration work on the frigates, the establishment of production facilities to manufacture and assembly torpedo components, and the establishment of a maintenance facility in Western Australia.

Woomera Test Range Upgrade

The Government has given first pass approval to upgrade theWoomera Test Range (Joint Project 3024 Phase 1).

Woomera is an essential Defence testing and evaluation asset and plays an important role in our national security and Defence capability.

Its remoteness and size makes it a unique location for large scale and long range weapons testing.

The Test Range upgrade will provide Defence with the ability to conduct sophisticated test and evaluation, and research and experimentation activities in a safe, secure and networked environment.

It will enable Defence to independently test manned and unmanned aircraft, weapons, explosive ordnance, electronic warfare systems and navigation warfare systems.

The project will deliver improvements to the Range’s command, control, safety and data acquisition systems.  In particular, outdated analogue radars and optical tracking equipment will be replaced with modern networked systems.

Improved range systems will also provide for better utilisation of a scarce resource and enable greater access to the Woomera prohibited area by non Defence users.

The Government has approved $7 million to develop the project for Second Pass approval, which is scheduled for the period 2012-13 to 2013-14.

The total cost of Joint Project 3024 Phase 1 is identified in the Public Defence Capability Plan as being between $100 and $300 million.

Attachment – project approvals