Projects: 2012: The year that was | ADM December 2012/January 2013

As this edition of ADM came together, the government released a flurry of announcements in very short order on pretty much everything it seems. From an update to the Projects of Concern list to the possibility of more Super Hornets and a response to the second part of the Coles Review into submarine sustainment. But wait, there’s more!

The year that was 2012 was one of ups and downs to say the least. The defence budget hit new lows in terms of budget cuts to the tune if $5.5 billion over the forward estimates, the AWDs and LHDs began to actually look like ships, the MRTT and Wedgetail were accepted into service and special forces vehicles also made an appearance, under budget and ahead of schedule.

This was also the year that Australia left East Timor after 13 years in the country in one form or another, movement out of Afghanistan and the Solomon Islands was confirmed in the very near future and the US announced a pivot back into the Asia Pacific region. The region is undergoing massive geopolitical change as China flexes its new economic and diplomatic powers and nations seek to ride the waves of change in the medium to long term as influences and power structures slowly but surely begin to shift.

But in terms of programs and reviews, 2012 was a mixed bag in many ways. Let’s have a look at the major announcements from the year that was.

Budget

The elephant in the room this year has most definitely been the May budget. With a headline cut of $5.5 billion across the forward estimates, the consequences of a government looking to return to surplus as quickly as possible in a promised timeframe, Defence capability planning has taken a hit.

With a raft of programs moved to the right or even rescoped, the updated Defence Capability Plan and the release of the Defence Planning Guidance document were the result of restrained budgetary times. The implications of the budget this year are beginning to manifest in the short term and the long term consequences are also beginning to become apparent.

Air

The big announcement for the year was that the government has lodged a Letter of Request for the availability of another 24 Super Hornets with the US government. The implications for the JSF program are yet unknown but given that ADM has pointed out in the past that only a minuscule number of FMS requests are not eventually procured after reaching this stage. The Caribou is to be replaced by the C-27J Spartan in the US’ JCA configuration, with an open competition between the C295 and the winner being dismissed by government. The MRTT has also reached some key milestones this year.

On the training front, both HATS and Air 5428 are in a holding pattern, much to the disgust of industry. Both the ARH and MRH90 helicopters continue to have their issues with neither reaching FOC in 2012. Fingers crossed for 2013.

Land

Negotiations have begun for trucks under Phase 3 of Land 121 between Rhinemetall and the Commonwealth while the competition for Phase 4 which seems to be between the Thales Hawkei and the US JLTV program. The disparate timing of the two competitors will make for some interesting times in the year ahead.

The timeline for Army’s centrepiece of the Combined Arms Fighting Systems under Land 400 received a boost when the program was accelerated by six months but progress is still slow and measures. The final upgraded M113 was also handed over this year.

Sea

Both the LHD and AWD build programs are gaining momentum despite the schedule for the AWD being rebased-lined to accommodate the much talked of valley of death between build programs (see P98). The Future Submarine program received $214 million in funding for a range of scoping studies to see how the technology side of the program will come together. There will have to be some big decisions to be made in 2013 for this program to stay on track in terms of schedule.

Reports

The Coles and Rizzo reports into submarines and sustainment were a grim read but a good wake up call for the various agencies involved. Behaviours and contracts have changed in both cases with hopefully a brighter future ahead. Reviews into past occurrences of abuse with the in ADF, promoted by the ADFA Skype scandal have elicited a range of reports with the matter still up in the air at the time of writing.

The Minister also released an updated Projects of Concern list as this edition of ADM was going to press. In a nutshell, both the Mulwala upgrade program and direct fire support weapons under Land 40 Phase 2 were added to the list while Wedgetail and the MU90 torpedo programs were removed as they have both been remediated.

Conclusion

The above sections really only cover the lightest skimming of Defence announcements, trials and tribulations for the year. For more on people, programs and much more, head to the ADM website at www.australiandefence.com.au where you can search by keywords to catch up on the year that was.