This is the last Defence Week for the year dear readers, and with that, I would like to take stock of the year that was.
First a look at some of the raw numbers. As of 6 December 2017, the Defence Innovation Hub has executed 26 contracts with a combined value of $43.3 million (GST inclusive) since the program launched on 5 December 2016. Two days after getting these figures from Defence Media, Minister for Defence Industry Christopher Pyne announced a $635,000 Innovation Hub grant to Kord Defence.
Minister Pyne’s office has not been shy about announcements in 2017, with his office releasing 143 industry related announcements in that period. Phew. Minister for Defence Marise Payne made roughly 20 or so industry-centric announcements in 2017, but given her portfolio of responsibilities, this is hardly a surprising number.
There were 74 approvals in financial year 2016-17 and 61 as of Dec 8 in financial year 2017-18. These numbers include First Pass, Second Pass, Other Pass, early access to IIP provisions, and updates to Government/non-project capability related proposals. The numbers also include both Cabinet and Ministerial decisions. This far outstrips the previous record of 46 achieved in 2011-2012 under the old Defence Capability Plan framework that did not include ICT or Defence infrastructure programs.
Soon to be retired ADM Publisher Judy Hinz has once again pulled together the annual Top 40 Defence Contractors Survey with some interesting numbers. Without giving away too much detail (the results will be released in the December 2017/January 2018 edition, which will hit your desk in the first week of 2018), some quick numbers:
- Top 40 revenue – $10.197 billion
- Top 20 revenue – $872.09 million
- Top 40 and Top 20 workforce (minus duplicates between the two lists) – 21,321 people
While this does not account for the entirety of the Defence Industry in Australia as the survey is voluntary, it does give a good indication of scale and scope.
In terms of major project milestones this year, there have been plenty.
The Land 400 Phase 2 RMA concluded and the program is now going through a tender evaluation process.
An announcement on Land 19 Phase 7B saw the Commonwealth exercise the new Smart Buyer framework for the first time, with the $2 billion program bypassing more traditional contracting processes.
Tenders for Sea 5000 are in the box and the three teams led by BAE Systems, Navantia and Fincantieri, along with the Commonwealth, are now in an Offer Definition and Improvement Activity (ODIA) phase as part of the CEP.
The CEP for Sea 1180, the OPVs, saw a decision made on teaming arrangements (the industry applecart got a bit of an upset there) announced, with the industry players now in negotiations with the Commonwealth, and a contract signature expected next month to cut steel next year in Adelaide.
The RAAF saw the Growlers enter service and the first Australia JSFs took to the sky at the Avalon air show this year. The first of the PC-21 trainers are also now gearing up for their role under Air 5428. The HATS EC135 T2+ helicopters are also beginning to get some action in their new training role.
HMAS Hobart joined the fleet and NUSHIP Brisbane is undergoing workup while the MATV MV Sycamore has begun her work based out of HMAS Waterhen. The Romeo helicopters continue their introduction into service while the Bravo Seahawks draw down.
It’s not until you consolidate all these milestones in a single place do you realise that 2017 has been so busy. All this and more has been covered by ADM this year, both in print and online. No wonder we’re all ready for a break over Christmas and New Year. And with that, dear readers, please enjoy the last Defence Week of 2017. Defence Week will be back on deck in 2018 from January 25.