Defence, Boeing, Lockheed put F-111 support in place

The RAAF is now the sole operator of the F-111; at the same time it is outsourcing the deeper maintenance and support of this and other aircraft. So Defence has grabbed the opportunity to re-engineer the business processes and relationships underpinning that support.

Boeing Australia and the DMO have signed the 10-year, $500 million contract for commercialisation of the RAAF's 501 Wing Weapon System Business Unit (WSBU) at Amberley. This will see Boeing assume responsibility for deep-level maintenance and weapon system upgrades to the RAAF's fleet of 35 F-111C/Gs in an ongoing business partnership with the DMO and RAAF.

The Weapons Systems Business Unit contract is believed to be the largest and most far-reaching defence support contract let so far by the Commonwealth. Boeing Australia will be responsible for airframe maintenance, associated through-life support activities and management of a series of F-111 upgrade programs designed to increase the capability of Australia's frontline strike aircraft.

"This is the first time that the RAAF has engaged industry to provide such a depth of support and we believe the first time in the world where Boeing has signed a through-life cycle support agreement with a major customer," said Colin Giles, Boeing's General Manager Military Aerospace Support. "This program is indicative of the comprehensive, affordable, customer-focused logistics services we can provide."

The company employs over 250 staff at Amberley responsible for the F-111 Weapon System Support Facility, Block Upgrade projects and support of various workshops on the base. The new contracts will see staff numbers increase to about 500.

Boeing Australia was prime contractor on the F-111 Avionics Upgrade Program (AUP) and holds Design Authority status for F-111 as the Original Equipment Manufacturer for the post-AUP avionics systems.

"Our vision for Boeing Australia is to become the only world-class Military Aerospace Support organisation in the Asia-Pacific region," Giles said. "We are aggressively pursuing this vision through the establishment of a Boeing Military Aerospace Support Centre (BASC) at Amberley as the regional node in a worldwide network, joining the established centres in the USA, Britain and Saudi Arabia.

"The cornerstone of our business plan for BASC Amberley is the F-111 Weapon System Business Unit and the Block Upgrade Program. We are committed to strengthening this strategic partnership with a focus on sustaining the F-111 strike force in defence of Australia for the next 20 years."

The RAAF's F-111 WSBU contract reinforces US parent Boeing Military Aircraft & Missiles' aerospace support business. This in turn is one of the fastest-growing parts of Boeing's military aerospace business in the US. As well as manufacturing aircraft, the company has targeted the support market as a key growth area. According to Boeing the design, development and production of a military aircraft system make up only about 30 per cent of the customer's total ownership cost. The majority of that total cost, some 70 per cent, is in sustainment and support - program planning and management, training, technical manuals and support equipment, maintenance, modifications, upgrades and other ageing-aircraft sustainment initiatives.

Boeing has integrated its previously-fragmented support and maintenance capabilities into what it terms a broad-based Life Cycle Customer Support capability designed to reduce total ownership costs while maintaining high levels of readiness.

The company's vision for LCCS is an integrated, "through-life" product and service package delivered through a single point of accountability, with one organization responsible for, as Boeing defines it, putting in the hands of the warfighter what is needed, when it is needed, at an affordable price.

This approach has met some success in Australia. The 501 Wing Weapons System Business Unit (WSBU) is one of five business units at 501 Wing and the Richmond-based 503 Wing to have been commercialised over the last 12 months. The market testing program for RAAF deeper maintenance activities so far includes:

* 501 Wing, Amberley - Weapon System Business Unit - contract awarded to Boeing Australia Ltd

* 501 Wing, Amberley - F-111 Workshop Business Unit - contract awarded to Tasman Aviation Enterprises (TAE)

* 501 Wing, Amberley - F-111 Engine Business Unit - awarded to in-house bid

* 501 Wing and 503 Wing, Amberley and Richmond - F-111 and C-130H Avionics Business Units - single contract for both business units awarded to Honeywell Australia

* 503 Wing, Richmond - C-130H Workshop Business Unit - awarded to Qantas Airways

Engine maintenance for the C-130E/H's Allison T-56 engine has been outsourced for many years; the current incumbent is Qantas.

ADM understands that the RAAF and DMO are also looking now at the long-term logistics support arrangements for the F/A-18 Hornet, in partnership with Boeing, and separately at the AP-3C Orion.

The duration of the 501 Wing WSBU and of the C-130-related contracts is determined in part by Life of Type (LOT) issues. Notwithstanding that the current 10-year Defence Capability Plan is based on an F-111 LOT to 2020, current studies under the early phases of Project Air 6000 - New Aerospace Combat Capability, might conclude that the F-111 should be retired early, at around the same time as the F/A-18, and both aircraft replaced with a new mix of platform and weapons. So the WSBU contract runs for 10 years with two subsequent five-year renewal options if it is decided that the F-111 fleet should remain in service to 2020.

Similarly, the 503 Wing business unit commercialisation contracts to support the C-130H Hercules are designed to see this aircraft through to the next break-point in its service life: these contracts, for airframe and avionics support, have a life of seven years. By 2008 the C-130Hs will either be undergoing a refurbishment or slated for replacement by the newer-generation C-130J or by a mix of these and a larger heavy-lift transport aircraft such as the Boeing C-17 or Airbus A400M.

By Gregor Ferguson, Adelaide