BAE Systems has worked with the Defence Materiel Organisation (DMO) and 78 Wing, within the spirit of the Strategic Reform Program (SRP), to deliver significant reductions in costs of sustaining the RAAF’s Hawk Lead-in Fighter fleet.
The company has agreed a two-year Contract Change Proposal (CCP) extension with the DMO that will provide more efficient support for the RAAF’s advanced jet trainer fleet without reducing operational availability.
Since the Hawk entered service with the RAAF in 2000, more than 180 BAE Systems personnel have been employed to provide sustainment for the 33-strong fleet based at Williamtown in NSW and Pearce in WA.
Chief Executive Jim McDowell said that the new contract, effective from 1 July 2011, was valued at approximately $150 million.
Mr McDowell said it was the latest example of the efficiencies that could be realised under the SRP when industry and government worked together.
He said BAE Systems had worked very closely with the RAAF’s 78 Wing, the DMO’s Tactical Fighter Systems Program Office (TFSPO), and its global and local supply chain to identify savings across all areas of its sustainment contract.
“This CCP foreshadows what can be achieved through genuine industry-service partnerships and performance-based contracting,” Mr McDowell said.
“Our efforts have resulted in an annual contract saving of greater than 10 per cent.
“Equally important is the fact that we have achieved these savings without any reduction in the capability being delivered.”
Mr McDowell said the reforms introduced by BAE Systems included:
- Revised maintenance strategy resulting in a 18 per cent reduction in total tasks, 24 per cent reduction in maintenance hours and a reduction in Turnaround Time (TAT),
- Improved aircraft overhaul program based upon 10 years of hard engineering data, and
- Deployment of continuous improvement and “LEAN” strategies across all areas of engineering, logistics and supply chain management.
“BAE Systems will continue to work with the DMO and the Air Force, Navy and Army end users wherever possible to achieve the SRP objectives of smarter sustainment,” he said.
“I feel strongly that the SRP will only be achieved across Defence if there is genuine engagement with industry to identify, understand and explore new ways of delivering operational readiness at a reduced cost.”
The BAE Hawk 127 is a tandem, two-seat jet aircraft mainly used for initial training to prepare aircrew for operational conversion to the F/A-18 Hornet.