Senator Michaelia Cash certainly stole the show yesterday with comments she made during her performance before the Education and Employment session of Senate Estimates; by comparison the Foreign Afairs, Defence and Trade hearing barely raised an eyebrow, but there were a few points of note.
Labor Senator Kim Carr embarked upon a bizarre fishing expedition (you would be correct in thinking these are par for the course at Senate Estimates) where he tried to catch out CASG Deputy Secretary Kim Gillis on details surrounding the conduct of the tender for Sea 1180 OPVs. Gillis had said the Commonwealth’s allowance by the successful tenderer (Luerssen) to negotiate its own contracts with builders ASC, Austal and Civmec (Forgacs Marine and Defence) would yield positive outcomes hitherto unseen. This only served as a red rag to a bull, with Carr desperately attempting to prove publically announced tender arrangements had been altered behind the scenes.
The session covering Projects of Concern was of more interest. Gillis confirmed he was no longer having sleepless nights over JP2008 Phase 3F – his grandchildren were now doing a good job of that – but he readily agreed it was an example of how not to do defence acquisition. He said the settlement deed negotiated with BAE Systems had involved the termination of the east coast ground station requirement which would now be accomplished by another project.
“It was a case study in how not to do things, selecting a company that did not have strong pedigree in delivering ground based satellite stations,” Gillis said.
Regarding MRH-90 and its path to FOC with Army (6th Aviation Reg will not receive the aircraft until early 2019), work is progressing with adjustments to improve the type’s ability to support a multiple rappelling capability – if the current schedule is not met by August, Army training will be adversely impacted.
In response to Defence Minister Payne's announcement last week that Air 5431 Phase 3 (OneSKY) would be removed from the list, Senator Alex Gallacher questioned whether Defence was satisfied the project’s woes were a thing of the past.
CASG head Joint Systems division Rear Admiral Tony Dalton confirmed the “late” program’s IOC/FOC was now set for 4th quarter 2020/22 and said the length of time taken to achieve contract signature had meant, somewhat ironically, that it was well progressed with some advanced work orders and the systems requirements review already completed.
He added the definition of what Thales Australia was required to deliver “is very well described” and both it and Airservices Australia had moved to a target price incentive contract, within which incentive clauses were enshrined to exhort delivery according to schedule at the risk of incurring financial penalties.
Rumours Senator Rex Patrick had heard that suggested a Sea 5000 Future Frigate contender was still intent on building Ship 01 in its overseas yard were roundly quashed by the Defence panel – all nine would certainly be built in Australia and any such suggestion by a contender would have resulted in its bid being dismissed.
In an aside, the seventh and final KC-30A Multi-Role Tanker Transport (MRTT) to be delivered to the RAAF has completed its air-to-air refuelling conversion in Madrid (the aircraft is an ex-Qantas A330) and is now in Hamburg care of Lufthansa Technik undergoing its VIP conversion to shore up the ultra-long haul deficiency in the current Special Purpose Aircraft (SPA) fleet.
CASG head Aerospace Systems division Air Vice Marshal Cath Roberts said the aircraft would be in Australia in late 2019 following the additions of the improved communications suite and “modest Australian” first, business, and economy class cabins, and a conference area.
Two second-hand A380-equivalent first class pods similar to those aboard Qantas aircraft will be situated at the ‘pointy end’ for use by the ‘Principal’ with separate bathroom facilities. A total of 24 business and 54 economy class seats, again second-hand and Qantas equivalent, will also be installed for use by support staff and media accompanying the Principal on a foreign visit.
Full video of the proceedings can be viewed here.