Defence enlists contractors for shipbuilding reform

The Government has taken the next major step to put the $8.5 billion Air Warfare Destroyer program and other shipbuilding projects back on track to deliver critical capability for the Royal Australian Navy.

The Government has produced a three point plan that will create a sustainable naval shipbuilding industry that supports shipbuilding jobs.

Firstly, the Government will work with industry to fix the Air Warfare Destroyer program.

Following a competitive procurement process, BAE Systems, Navantia SA and Raytheon Australia will take on increased roles in the Air Warfare Destroyer program for an interim period.

No decisions have yet been made about the long term arrangements for the Air Warfare Destroyer program.

The Air Warfare Destroyer Alliance Industry Participants – ASC Shipbuilder and Raytheon – will continue to be responsible for the construction and delivery of the three ships.

AWD Alliance CEO Rod Equid said the injection of additional expertise, knowledge and experience will ensure the project’s success and set the basis for future naval shipbuilding work in Australia.

“I have every confidence that this fresh start will improve the efficiency, effectiveness and accountability of our operations,” Equid said.

“We are entering a new phase of productivity and collaboration, and we will embrace change and demonstrate marked improvements over the coming months.

“The Alliance mission remains the same.  We are focused on delivering the next generation AWD capability to the Navy. This is a project of national significance to protect Australia, keep our service men and women safe, and deliver future shipbuilding capability.  We will continue to work as one collaborative team as part of the AWD Alliance.”

The AWD Alliance is responsible for delivering three ships to the Royal Australian Navy.  The Alliance is made up of lead shipbuilder ASC, mission systems integrator Raytheon Australia and Government representative the Defence Materiel Organisation.

Secondly, the Government will create a sovereign submarine industry and avoid a submarine capability gap.

Thirdly, the Government will create a naval shipbuilding industry around a fleet of future frigates – provided industry productivity continues to improve.

Announcements about specific programs will be made in due course.