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Back in 2009, The Government’s white paper on aviation saw little advantage in Airservices Australia and Defence providing separate air navigation services in Australia. With major equipment upgrades due this year the then Labor Government saw an “ideal opportunity” to synchronise and harmonise these air traffic services.

A national aviation policy white paper the Australian government issued in 2009 called for greater coordination of civilian and military ATC activities and led to the OneSky joint procurement effort.

Enhanced civil and military air traffic management (ATM) system harmonisation would improve safety, better investment in personnel and infrastructure, seamless systems compatibility, and smarter procurement practices.

This month (30 October) will see rival bids filed for the integration of Civil and Military Air Traffic Management System/Air 5431 under tender PRN2932, dubbed OneSky.

Estimated to be worth up to half a billion dollars, the deal involves the Government signing a contract to acquire and support a civil military air traffic management system (CMATS) to meet both military and civilian requirements around the middle of 2015 due for roll out by 2020.

Moreover, Australia could well be the first country to commission a joint civil-military ATM system.

The Rules: “Absolute Discretion”

While Defence’s requirements need to be met it is the civilian agency, Airservices Australia that will be lead agency on the procurement.

For bidders there are up and downsides with this arrangement. The outcome will be less saddled with the usual regulation Defence contractors experience with mainstream public sector agencies. Unlike Defence, AirServices Australia is subject to the Commonwealth Authorities and Companies Act, 1997. As a result, federal procurement rules will not apply to the selection of the successful bidder.

For example, the tender states that Airservices Australia may allow any tenderer to change their tender at any time. It may consider and accept any tender that includes an alternative proposal. It is open to consider late tenders and can accept a tender on such terms as Airservices Australia at its “absolute discretion” accepts, without prior notice to any other tenderer.

Also it can negotiate with “any person” even if they had not submitted a tender and proceed to a contract with that person on such terms as Airservices Australia in its “absolute discretion”.

Furthermore it can undertake or allow any other action or inaction in relation to this RFT, “on such terms as Airservices Australia deems appropriate”.

Ultimately it will still be a Government decision and the process will have to be undertaken and seen to be undertaken as a fair decision according to law.

The legal stoush between Hughes and the former Civil Aviation Authority’s successfully contested decision over the original TAAATS contract back in the 90s will doubtless influence and guide the Airservices Australia and Defence delegates in the months ahead.

Onesky schedule & criteria

Evaluations will take place between 1 November and May next year. Further negotiations, including parallel talks with short-listed bidders are set to run until March 2015, according to the schedule set out in tender documents.

There are five main criteria that rival solution providers need to satisfy.

Firstly, the merit of the technical, operational and safety requirements of the proposed solution.

Secondly, the tenderer’s ability to implement an acceptable solution. This implies a previous record in the implementation of complex acquisitions and support similar in nature.

Third the tenderer’s ability to sustain the solution, again brownie points are given for a previous track record.

Fourth, how well the solution rates under the “total cost of ownership” covering, tendered prices and pricing structure, the proposed payment schedule and financial risks.

Fifthly and separately the “commercial risks” involved in contracting with the tenderer.

Contenders

Likely contenders for the contract include the incumbent suppliers of the current air traffic systems Thales for the civilian side known as The Australian Advanced Air Traffic System (TAAATS) and Raytheon which supplies Australian Defence Air Traffic System (ADATS). Raytheon confirmed to ADM just before publication that they were intending to bid on the program.

Thales Eurocat system consists of 23 radar towers mostly along the Eastern Seaboard.

ADATS is the hardware and software system used by the Royal Australian Air Force for Air Traffic Control services. While its system aids Air Traffic Controllers, it does not control them. Instead it gives the user a display of information about an aircraft’s position and associated information. It also handles communications and other information exchanges.

As a global leader in the design, development and integration of air traffic management systems (ATMS) Raytheon claims to help control more than 60 percent of the world’s air space.

Reports suggest Raytheon has eyed growth opportunities in India and Dubai, two of the world’s fastest growing aviation markets, where it is building on existing contracts.

Thales will pitch its TopSky ATC modular and scaleable system for the new requirement. It also boasts a centre of ATM excellence based in Melbourne, including its Centre for Advanced Studies in ATM, for developing next-generation technology.

This year, Thales won contracts to upgrade all the air-traffic control centres in South Africa and provide radars and other equipment to a dozen other African countries, including the first modern control centre slated in the Democratic Republic of the Congo.

Also known to put their hat in the ring is Lockheed Martin. Lockheed Martin Air Traffic Management has four decades’ experience in delivering advanced air traffic management solutions with a focus on systems integration, engineering design, development, test, delivery and support of Communications, Navigation, Surveillance (CNS/ATM) systems.

For OneSky, Lockheed Martin assembled a team with four leading ATM technology providers based on its Skyline Enterprise solution. These include Australian-based partners Adacel Technologies Limited; Daronmont Technologies; and Frequentis Australasia Pty Ltd. In addition, Airbus ProSky with subsidiary, Metron Aviation.

SkyLine Enterprise uses software operating at 38 en route centres, 121 approach control facilities and four oceanic and procedural facilities that together, it claims nearly 60 per cent of global air traffic management systems already incorporate Lockheed Martin-developed technology.

Adacel Technologies’ offers flight path conflict detection tool and Frequentis Australasia’s voice communications and integrated tower products. Daronmont Technologies, a small-medium enterprise will provide experience in engineering and deployment of complex systems to the Department of Defence. Metron Aviation is the current provider of Australia’s advanced air traffic flow management (ATFM) system.

SkyLine Enterprise enables aircraft to fly more direct flight paths, increasing efficiencies and resulting in associated fuel savings. The system can also quickly change airspace designations to accommodate military or civil aircraft needs, and help controllers re-route aircraft accordingly.

Mix and match?

Though the preferred solution has to be an already proven solution, the broad flexibility and discretion available it is also possible that Airservices Australia may also explore mix and match options.

Last year, for example the Federal Aviation Administration (FAA) awarded a contract to Lockheed Martin for the next generation En Route Automation Modernization (ERAM) program. The first stage of this effort is a $10 million risk mitigation phase. Upon successful completion of this phase, the FAA intended to award the implementation contract to Lockheed Martin for the full ERAM program. The projected value for implementation and support over the FAA’s Operational Evolution Plan period through 2012 worth some USD $1 billion.

However in the wake of a dispute resolution following a Raytheon protest, both companies will work on ERAM with Lockheed Martin as prime contractor with Raytheon joining the Lockheed Martin ERAM team as a subcontractor contributing to the design and development of the critical flight and surveillance data processing subsystems.

Other likely contenders, or sub-contractors, for OneSky are said to include ITT Exelis (which acquired C4I Systems this year with an eye to the program), BAE Systems Australia, Rohde & Schwarz Australia, CSC Australia, IBM, Indra Australia and Saab Systems.

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