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Projects of Concern Update

Terry Turner

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In a Joint Media Release, the Minister for Defence Industry & Minister for Defence has today provided a Projects of Concern Update

Project AIR 5431 Phase 1 Deployable Defence Air Traffic Management and Control System and Project AIR 5431 Phase 3 Civil Military Air Traffic Management System have been added to the Projects of Concern list.

Although the projects are under the same program, there is no dependency between the two and their inclusion on the Projects of Concern list is unrelated.

AIR 5431 Phase 1 was awarded to Indra Australia in 2014 to deliver a mix of mobile and transportable air traffic control radars and supporting equipment to allow Defence to control and monitor air traffic while deployed on operations.

The project has experienced schedule delays since approval, and initial delivery is expected almost two years later than originally planned.

AIR 5431 Phase 3 was approved in 2014, to deliver the Defence aspects of a harmonised civil/military air traffic management system under the OneSKY banner—collectively being led and managed by Airservices Australia.

This is a highly complex, inter-departmental project of national significance that has experienced some substantial challenges getting into contract. The challenges revolve around issues with ensuring value for money for the taxpayer.

The Projects of Concern process has delivered proven results through the remediation of 17 troubled projects with a combined value of around $17 billion.

Terry Turner is Senior Editor for Defence.com.au and Editor in Chief for the entire stable of CYBER PRESS magazines.CYBER PRESS is an Australian media business specialising in multi-channel broad audience online digital publishing. Our company is the evolution of Eco Magazines, Australia's premiere dedicated online publisher of full-format digital magazines. Put simply, we specialise, where many merely dabble.

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Defence - Media Releases

Marking the end of RAMSI

The Regional Assistance Mission to Solomon Islands (RAMSI) will come to a close on 30 June 2017 after nearly 14 years

D+I Newsroom

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RAMSI

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Defence - Media Releases

Australian Industry Capability Plan Template

The Turnbull Government moves to increase Australian involvement in Defence project with new Australian Industry Capability Plan Template

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The Turnbull Government moves to increase Australian involvement in Defence project with new Australian Industry Capability Plan Template

Minister for Defence Industry, the Hon Christopher Pyne MP, today announced changes that will strengthen the requirement for Australian involvement in Defence projects.

“We are changing the process companies undergo when responding to tenders for defence equipment,” Minister Pyne said.

“The Australian Industry Capability Plan Template has been strengthened in line with Government’s defence industry policy of maximising Australian industry involvement in meeting Australia’s defence capability goals, creating thousands of long-term jobs across the country and economic growth.

“This new template demands more than ever before from defence companies, driving them to outline how and where they will involve Australian industry, before we will even consider their bid”.

Selection and Tailoring of ASDEFCON Templates

Each ASDEFCON template is tailored to meet a different procurement need and profile, depending on the size, complexity and nature of the procurement activity. The Contract Template Selection and Tailoring Guide (the Guide) is available to assist with the selection of an appropriate contracting template and also outlines the process for tailoring the selected template. The Guide contains decision matrices and detailed descriptions of each template. The Guide also considers non-ASDEFCON contracting templates.

The changes have been made to explicitly address:

  • the tenderer’s strategy for maximising Australian industry involvement in the project and enduring Australian industry capability benefit beyond the work period,
  • maximised inclusion and evidence of having positively engaged Australian Small to Medium Enterprises and Indigenous Business Enterprises,
  • proposed investment in innovation, and collaborative research and development efforts in Australia,
  • establishing, transitioning or enhancing skills, knowledge, systems, technology and infrastructure within Australian industry, and
  • identification and promotion of Australian defence export opportunities and as a contributor to the global supply chain.

”We have already used the new template in our Offshore Patrol Vessel and Future Frigate Requests for Tender and are now rolling it out across all relevant materiel procurements,” Minister Pyne said.

“This reflects the seriousness with which this Government takes ensuring we are maximising Australian industry involvement in our Defence capability and the thousands of jobs that will flow from this commitment,”

“It is also a clear signal to overseas large contractors wishing to do business in Australia that they need to take Australian defence industry capability seriously,” he said.

Minister Pyne said this improved approach to Australian industry content is fully aligned with the 2016 Defence White Paper, the Integrated Investment Program and the Defence Industry Policy Statement and shows the Government’s commitment to supporting Australian industry.

Further information is available on Defence’s website: http://www.defence.gov.au/casg/DoingBusiness/ProcurementDefence/ContractinginCASG/ASDEFCON/

Minister for Defence Industry, the Hon Christopher Pyne MP, today announced changes that will strengthen the requirement for Australian involvement in Defence projects.

“We are changing the process companies undergo when responding to tenders for defence equipment,” Minister Pyne said.

“The Australian Industry Capability Plan Template has been strengthened in line with Government’s defence industry policy of maximising Australian industry involvement in meeting Australia’s defence capability goals, creating thousands of long-term jobs across the country and economic growth.

“This new template demands more than ever before from defence companies, driving them to outline how and where they will involve Australian industry, before we will even consider their bid”.

The changes have been made to explicitly address:

  • the tenderer’s strategy for maximising Australian industry involvement in the project and enduring Australian industry capability benefit beyond the work period,
  • maximised inclusion and evidence of having positively engaged Australian Small to Medium Enterprises and Indigenous Business Enterprises,
  • proposed investment in innovation, and collaborative research and development efforts in Australia,
  • establishing, transitioning or enhancing skills, knowledge, systems, technology and infrastructure within Australian industry, and
  • identification and promotion of Australian defence export opportunities and as a contributor to the global supply chain.

”We have already used the new template in our Offshore Patrol Vessel and Future Frigate Requests for Tender and are now rolling it out across all relevant materiel procurements,” Minister Pyne said.

“This reflects the seriousness with which this Government takes ensuring we are maximising Australian industry involvement in our Defence capability and the thousands of jobs that will flow from this commitment,”

“It is also a clear signal to overseas large contractors wishing to do business in Australia that they need to take Australian defence industry capability seriously,” he said.

Minister Pyne said this improved approach to Australian industry content is fully aligned with the 2016 Defence White Paper, the Integrated Investment Program and the Defence Industry Policy Statement and shows the Government’s commitment to supporting Australian industry.

Further information is available on Defence’s website: http://www.defence.gov.au/casg/DoingBusiness/ProcurementDefence/ContractinginCASG/ASDEFCON/

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$70 million contract for C-17A Globemaster sustainment

Twelve new jobs will be created in Queensland after the Minister for Defence Industry announced today that a $70 million contract had been signed with Boeing Defence Australia to sustain C-17A Globemaster aircraft.

Terry Turner

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Twelve new jobs will be created in Queensland after the Minister for Defence Industry; the Hon Christopher Pyne MP announced today that a $70 million contract had been signed with Boeing Defence Australia to sustain Australia’s fleet of C-17A Globemaster aircraft.

Minister Pyne said the $70 million C-17A Australian Sustainment Services Contract was a key initiative for the ongoing support to the Royal Australian Air Force’s (RAAF) Heavy Air Lift capability.

“The RAAF C-17A provides a nimble fleet of transport aircraft which have the ability to land on some of the harshest airfields in the world,” Minister Pyne said.

This $70 million contract between Boeing Defence Australia and the Capability Acquisition and Sustainment Group (CASG) supplements Australia’s membership to the Boeing Globemaster III Integrated Sustainment Program (GISP), providing additional support services tailored to the unique needs of the RAAF.

“The arrangements to maintain the C-17A aircraft have been in place since 2006 when the first C-17A was delivered to Australia, however, as the size of the fleet has since doubled – to eight – this new arrangement will create new jobs in Queensland,” Minister Pyne said.

“The new arrangement replaces some elements of the existing sustainment arrangements with the US Government, while keeping Australia in the global supply system for C-17.”

“This contract rationalises Australian unique support services and ensures a cost effective, flexible and modern sustainment management arrangement both now and into the future.”

Boeing Defence Australia vice president and managing director Darren Edwards said the new contract reinforced Boeing’s commitment to being a responsive in-service support partner of choice for the RAAF.

“Boeing Defence Australia has a proven model for optimal in-service support, operating under a single-management framework that sees Boeing and Commonwealth employees working in close collaboration to manage all current and future fleet requirements,” said Edwards.

“This contract builds on Boeing’s position as a leader in sustainment services, providing support to more Australian Defence Force aircraft than any other company.”

Director Heavy Air Lift Systems Program Office Adrian Morrison said, “This contract with BDA gives us the best of both worlds, the continuing strength and support from the United States Air Force through the Globemaster Integrated Sustainment Program, and the flexibility, through this contract, to respond and grow with changing local Australian needs over time.”

The Australian C-17 Sustainment Services Contract is for an initial five-year term with options out to the retirement of the aircraft based at RAAF Base Amberley. It includes management of services, provision of integration, engineering, and maintenance.

The contract will commence in October 2017.

 

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