Annual Report 2013-14

Aerospace Systems Division provides through-life support to 13 aircraft types, including the F/A-18A/B Classic Hornet, F/A-18F Super Hornet, E-7A (airborne early warning and control), AP-3C Orion, C-17A Globemaster, KC-30A (multi-role tanker/transport), C-130J and PC9. The Division also supports a number of advanced flight simulators and ground-support equipment fleets.

Achievements in 2013–14 included:

• implementing efficiency initiatives, including incentive-based support contracts
• managing the ageing Classic Hornet to maintain the capability until at least 2021
• supporting operationally deployed weapon systems, such as the C-17A, C-130J and AP-3C
• continuing to finalise in-service support arrangements for the F/A-18F, KC-30A and E-7A
• developing acquisition and sustainment strategies for future aerospace projects
• providing support to emergent operational capabilities, such as the Heron unmanned aerial system
• replacing the ageing aircraft cargo loader fleet.

Airborne Early Warning and Control System (CAF20)

The Airborne Early Warning and Control system, comprising six E-7A Wedgetail aircraft, fixed and deployable mission support systems, flight deck and mission simulators and two software laboratories, is sustained principally through a performance-based commercial support and training service arrangement.

Performance against sustainment levels agreed with the Air Force improved as support systems matured towards final operational capability in 2015. This work included the development and release of the second in-service software build, and maturing the logistics system to support the increasing flying rate of effort.

The prime in-service support contract was novated from Boeing Defence, Space and Security in the United States to Boeing Defence Australia, providing both efficiencies and greater Australian industry involvement. A five-year contract extension was negotiated during the year and became operative in July 2014.

F/A-18 Hornet Weapon System (CAF02)

Seventy-one F/A-18 Classic Hornet 9 (CH) aircraft and associated training systems are supported by a range of commercial contracts and Air Force workshops. The major challenge in supporting the CH is the increased maintenance requirements of an ageing aircraft fleet.

The CH Logistics Management Unit continued to work closely with the Air Force and industry partners to remediate ageing issues, ensuring that required aircraft serviceability levels were achieved. Effort centred on bedding in the CH deeper maintenance contract, which merged all deep maintenance events in one contractor venue incorporating a combined contractor and military workforce. The CH Structural Refurbishment Program also concluded after the last aircraft completed modifications in early 2014.

F/A-18F Block II Super Hornet Weapons System (CAF21)

The sustainment of 24 F/A-18F Super Hornets and their systems, weapons and support infrastructure has continued to mature. Current performance targets for aircraft availability have been consistently achieved. Flying program requirements have been met despite the lack of some long-lead spares that are yet to be delivered.

As a result of adjustments to the Air Combat Capability Plan, there have been a number of initiatives to assess and develop enhanced support arrangements in recognition of the extended planned withdrawal date for the Super Hornet, as well as the introduction of the AIR 5349 Phase 3—Growler Airborne Electronic Attack Capability.

P-3C/AP-3C Orion Weapons System (CAF04)

The P-3 capability includes 17 aircraft and a range of ground-based systems. The capability is supported through the P-3 Accord and a range of commercial and foreign military support arrangements.

The fleet continues to be maintained under the more resource-intensive ‘safety-by-inspection’ program, comprising additional targeted structural inspections, repairs and/or structural element replacements. Boeing Defence Australia completed the P-3 aircraft repaint program in June 2014.

C-130J-30
Weapon System
(CAF06)

The C-130J fleet comprises 12 aircraft that provide air logistics support, aero-medical evacuation, airborne operations, and search and survivor assistance and training.

During 2013–14:

• revised product support arrangements were established for the C-130J spares previously managed under C-130H arrangements
• a new performance-based contract was entered into that reduced the cost of the propulsion system support
• aircraft maintenance efficiencies were implemented by the C-130J through-life support contractor and operational squadron to further reduce costs and increase aircraft availability
• upgrades to the self-protection capability through project AIR 5416 4B1 achieved final materiel release
• the Selective Availability Anti-Spoofing Module compatible embedded Global Positioning System trial installation was completed.

Lead-In Fighter Hawk 127 Weapon System (CAF03)

The Hawk 127 Lead-in Fighter weapon system comprises 33 Hawk Mk 127 aircraft, a full-scale fatigue test article, mission planning systems, a computer-based training system and a tactical weapon system training system.

The aircraft and training devices are sustained through a prime contract with BAE Systems Australia and a number of smaller contracts that focus on specific areas of Hawk sustainment, such as fatigue testing and repainting. The main performance-based contract provides all in-service support other than operational maintenance, which is currently performed by the Air Force. The in-service support contract, which commenced on 1 July 2013, transitioned during 2013–14 and all key performance metrics were met.

The fleet corrosion control and repaint program continued throughout the year.

KC-30A
Weapon System
(CAF22)

Five KC-30A multi-role tanker/transport aircraft were accepted by the Commonwealth between June 2011 and November 2013. Transition of the KC-30A into service continues. The in-service support arrangements are maturing as the acquisition project office continues to deliver remaining capability requirements.

An additional aircraft was committed to support the completion of remaining acquisition project flight test activities. One aircraft is assigned continuously to an acquisition-managed modification program.

Sustainment performance in 2013–14 against the agreed Air Force requirements was limited by hail damage to two aircraft in December 2013.

C-17 Heavy Air Lift
Weapons System
(CAF19)

The Australian C-17 fleet comprises six aircraft, an aircrew training simulator and other training devices. Primary support for the C-17 is through foreign military sales arrangements with the US Air Force, which provides comprehensive engineering, maintenance and global supply support to the US and all international operators of the C-17.

The new cargo compartment trainer was accepted in November 2013, increasing the scope of training for loadmasters in Australia.

The C-17 fleet achieved final operational capability in February 2014.

Special Purpose Aircraft (CAF09)

The current special-purpose aircraft fleet consists of two Boeing business jets and three Bombardier Challenger CL604 aircraft. The aircraft are secured under a commercial lease arrangement with General Electric Capital Holdings and maintained by Northrop Grumman Integrated Defence Services.

The aircraft leases and maintenance support arrangements were extended until mid-2017, ensuring the continued delivery of the capability while Defence manages the acquisition of, and transition to, a replacement capability.

PC-9/A
Weapon System
(CAF10)

The PC-9/A system comprises 63 aircraft. The fleet requires significant management attention to treat problems such as fatigue, parts obsolescence and corrosion, which are customary in an ageing fleet.

To ensure that the fleet can operate to its planned withdrawal date, the DMO began a range of reliability assessment and correction measures in 2013–14.

Electronic systems are sustained through 17 system program and system support offices based on materiel sustainment agreements with five capability managers. The offices cover command and control systems, communications, satellites and tactical interoperability, airspace surveillance and control systems, and electronic warfare systems.

Achievements in 2013–14 included:

• the safe delivery of required sustainment despite growth in demand and increasing obsolescence
• analysis, planning and execution of a major radio fleet transition phase as the second tranche of JP 2072 (Future Combat Net Radio) equipment is delivered and rolled out
• the management of sustainment of all ADF large aircraft infra-red countermeasures systems, covering multiple current and future airborne programs
• the sustainment of the joint counter improvised explosive device capability
• remediation of air traffic control and air defence support arrangements in preparation for possible life-of-type extensions and to achieve reform
• the treatment of obsolescence issues at the Woomera Test Facility, South Australia
• the development of support concepts for narrowband satellite communications, the identification of further efficiencies and the remediation of obsolescence issues effecting tactical satellite terminal equipment
• the sustainment of maritime, land and air tactical electronic warfare capabilities, including continued support to address changes in targeted technologies and the remediation of systems returning from operations.

Wide Area Surveillance (CAF13)

The wide area surveillance capability consists of three over-the-horizon-radars based in Longreach, Queensland; Laverton, Western Australia; and Alice Springs, Northern Territory, and is known as the Jindalee Operational Radar Network (JORN). The capability is remotely operated by the Air Force from an operations centre at RAAF Base Edinburgh, South Australia.

The JORN Priority Industry Capability Support Program was implemented. The aim of the program is to retain specialised engineering skills through minor capability enhancements, urgent remediation of obsolescence issues, system improvements and risk reduction for future major acquisitions.

Command and Intelligence Systems (CA40)

The product schedule addresses the sustainment of a suite of hardware and software products used to support Defence’s specialised command and control environment. It includes modular deployable local area networks (DLANs); geospatial stand-alone and deployable systems; special operational command support systems; and command, control and intelligence products, along with the associated deployable standard operating environment (DSOE) upon which many of the applications function.

Systems deployed on operations were supported, including through transition and remediation action on systems as the ADF progressively withdraws from operations. The design of the next-generation DLAN and its supporting DSOE was completed. Subject matter advice was provided on DLANs, the DSOE design and build and geospatial architecture to emerging and current projects with deployable components. Sustainment was also begun on a range of deployable network equipment being acquired by the Chief Information Officer Group’s Strategic Communications Modernisation Program—Land.

Air Traffic Control Capability (CAF12)

The air traffic management capability consists of fixed and deployable radars, navigation aids, display and data processing systems, communications systems and related training aids at Defence sites throughout Australia.

The required sustainment outcomes and strategic reform targets were met, while system obsolescence was mitigated.

Naval and Shore Communication Systems (CN22)

This product provides sustainment services for the Defence high frequency (DHF) and very low frequency (VLF) communications systems, modernised maritime communication systems and ship–shore communications.

The delivery of contracted support for the naval and shore communication operational systems, the change out of antenna guy wires for the VLF system and the remediation of workshop equipment and hazardous chemical products across the product suite continued. Multiple-platform baseline software upgrades for the maritime communications system were undertaken, the Navy’s global maritime distress and safety-at-sea-system radios began to be replaced, and obsolete components in some of the Navy’s communication switching equipment were replaced.

The fleet-wide support and service delivery contract for the Satellite TV @Sea capability for naval platforms as part of an overall Quality of Life at Sea program for deployed personnel was established. Changes were made to extend the network operation support contract and support services contract to provide for the continued support of the DHF communications system, inclusive of the integrated Nullarbor capability, until May 2019.

Battlespace Communications Systems (CA33)

The capability consists of two primary fleets of communications equipment. The combat net radio fleet is a range of man-portable and vehicle-mounted radios for use by ground forces on the battlefield. The battlefield telecommunications network fleet is a satellite and trunking system that provides a voice and data capability to a deployed brigade. These fleets are maintained through sustainment contracts with Thales Australia, Saab Australia and BAE Systems Australia.

Planning for the transition of the first phase of the JP 2072 generation of communications equipment from acquisition to sustainment occurred. Planning for the establishment of mature maintenance and support contracts with Harris Corporation and Raytheon Australia began. Concurrently, elements of the old-generation fleet were identified for retirement as the new-generation radios are introduced into service. This activity is critical to minimise longer term sustainment costs.

Helicopter Systems Division provides through-life support to seven rotary-wing weapons systems through system program offices based at Nowra, New South Wales, for Navy Aviation; and Brisbane and Oakey, Queensland, for Army Aviation. The offices provide fleet-wide engineering, repair parts, and manage contracts for deeper level maintenance and replacement of ageing and obsolescent equipment for the helicopters. In addition, a combined project and sustainment team to manage the through-life support of the Army’s tactical level unmanned aerial systems has been established within the Division in Brisbane.

The highest priority sustainment task in 2013–14 remained the support of operational deployments, including the embarked Seahawk Classics in ships serving in the Middle East. Chinooks and Shadows were supported on operations in the Middle East until late 2013.

Achievements in 2013–14 included:

• improved MRH-90 availability as a result of the implementation of significant contractual reforms negotiated in 2013
• recognition of the requirement for a ‘step-change’ in industry’s Tiger sustainment performance
• the establishment of the new MH-60R Seahawk Romeo logistic support framework
• the commencement of Black Hawk and Seahawk Classic withdrawal from service
• the integration of Guided Weapons Branch into the division.

In April 2014, the Guided Weapons Branch of Explosives Ordnance Division was transitioned into Helicopter Systems Division.

Multi-Role Helicopter (CA48)

MRH-90 availability and flying rate of effort continued to improve steadily during 2013–14, but remained below contracted levels. Prime contractor performance has been sharply focused on improving outcomes following the introduction of significant reforms to the sustainment contract agreed in May 2013 and effective from 1 July 2013.

Armed Reconnaissance Helicopter Weapons System (CA12)

As a result of continuing maintenance and supply-chain problems, the Tigers underflew the 2013–14 plan by 7 per cent. A strategic review of the Tiger sustainment contract, focusing on reducing the cost of ownership and improving support to the Army, has begun.

S-70A-9 Black Hawk Weapons System (CA11)

The fleet of 34 Black Hawks contributes to the Army’s air mobile and special operations capabilities. The Black Hawk is being phased out of service in lock step with the introduction of the MRH-90. Black Hawk operations at the School of Army Aviation in Oakey, Queensland, ceased in December 2013, and the drawdown of Black Hawks from the 5th Aviation Regiment in Townsville, Queensland, commenced. Black Hawk operations with the 6th Aviation Regiment in Holsworthy, New South Wales, will continue until the mid-2018 planned withdrawal date.

The Black Hawk was supported throughout 2013–14 by a combination of maintenance contracts, mainly held with BAE Systems Australia and Asia Pacific Aerospace, Army in-unit maintenance, and support from helicopter manufacturer Sikorsky.

S-70B-2 Seahawk Weapons System (CN03)

The fleet of 16 Seahawk Classic helicopters contributes to the Navy’s anti-surface and antisubmarine warfare capabilities. The Seahawk was supported throughout 2013–14 by a combination of maintenance contracts, mainly with BAE Systems Australia and Asia Pacific Aerospace, Navy in-unit maintenance, and support from helicopter manufacturer Sikorsky.

The phase-out of the Seahawk Classic fleet has begun, ahead of the introduction of the new Seahawk Romeo capability.

Guided Weapons Branch acquires and sustains ADF guided weapons. Two guided weapons system program offices provide sustainment logistics, engineering and maintenance support at RAAF Base Amberley, at Defence Establishment Orchard Hills and at the Torpedo Maintenance Facility in Western Australia.

ADF guided weapons include maritime and land strike missiles, air combat missiles, land and air defence missiles, aerial smart bombs and underwater weapons, including light- and heavy-weight torpedoes. The majority of these weapons are supported by a combination of US Government Foreign Military Sales arrangements, commercial contracts and Commonwealth in-house maintenance activity. Varying degrees of industry support are provided by Thales, MBDA, Boeing, Raytheon and Euro Torp.

Achievements in 2013–14 included:

• the satisfaction of all Navy, Army and Air Force demands for guided weapons
• the continuing remediation of the Harpoon missile inventory
• the completion of facilities upgrades at the Surface Warfare Complex, Defence Establishment Orchard Hills, New South Wales, for maintenance of the Block IIIB Standard missile, and at the Torpedo Maintenance Facility, Fleet Base West, for maintenance of the Mark 54 lightweight torpedo.

Guided Weapons Navy, Army and Air Force (CN38, CA60, CAF33)

Navy guided weapons products include the Harpoon missile, Standard missile, Evolved Sea Sparrow missile, Mark 48 heavyweight torpedo, Mark 46 lightweight torpedo, MU90 lightweight torpedo, Encapsulated Harpoon Certification test vehicle, Danish mine disposal charge and Stonefish exercise mine.

All operational and raise, train and sustain demands for Navy guided weapons were met.

Army guided weapons products include the FGM-148 Javelin missile, RBS70/Bolide missile and AGM-114 Hellfire missile.

All operational and raise, train and sustain demands for Army guided weapons were met.

Air Force guided weapons products include AIM-132 advanced short range air-to-air missile, AIM 120 advanced medium-range air-to-air missile, AIM-9M and X Sidewinder missiles, AGM-154 C/C1 joint stand-off weapon, AGM-158 joint air-to-surface stand-off missile, joint direct attack munitions, high-explosive and inert bombs and laser-guided bomb kits.

All operational and raise, train and sustain demands for Air Force guided weapons were met.

The Munitions Branch, which transitioned to Land Systems in April 2014, is responsible for the acquisition and sustainment of non-guided explosive ordnance systems for the ADF, including the management of strategic contracts for munitions supply with Thales and Chemring. In addition, it is responsible for JP 2086 Mulwala Redevelopment Project and the Domestic Munitions Manufacturing Arrangements Project.

Achievements in 2013–14 included:

• the development and implementation of a detailed plan to transition out of the current arrangements for domestic manufacture of munitions, propellant and high explosives
• the repatriation of a significant quantity of munitions from Afghanistan in preparation for a reduction in Australian forces
• a revision of munitions target stockholdings to reflect greater confidence by the Services in effective inventory management
• ministerial consideration of options for future domestic munitions manufacture.

Explosive Ordnance—Navy, Army & Air Force (CN37, CA59, CAF32)

All munitions demands in support of operations were met within the required timeframes. Navy, Army and Air Force requirements for munitions in support of training were mostly met. The exceptions were invariably due to unforeseen supply-chain disruptions resulting from a dramatic reduction in global munitions production. The exceptions were managed in conjunction with the Navy, the Army and the Air Force to minimise their impact on training. Improvements in inventory management and reporting facilitated reductions in target stockholdings, which enabled planned strategic reform savings targets to be met.

Land Systems Division is responsible for the sustainment of the following materiel, managed in conjunction with the Army, the Navy, the Air Force and Joint Health Command as the lead capability managers:

• armoured fighting, combat support and field vehicles
• commercial and general service vehicles
• engineer, surveillance and simulation systems
• weapon systems, from small arms to missiles
• medical and dental equipment, health systems and combat rations
• ADF clothing and personal combat equipment
• the national inventory of munitions.

Achievements in 2013–14 included:

• meeting the support requirements of forces on operations and conducting post-operational equipment remediation in accordance with agreed plans
• delivering the agreed level of support to the ADF, within budget
• completing a comprehensive review of key performance indicators and health indicators in consultation with Defence capability managers
• progressing the development and training of the division’s sustainment workforce
• commencing trials to optimise vehicle fleet sustainment by using vehicle health usage monitoring systems
• absorbing Munitions Branch from Explosive Ordnance Division.

ADF Clothing (CA39)

ADF clothing comprises about 21,300 line items of personal clothing, footwear and other items manufactured by the textile, clothing and footwear industry.

During 2013–14, new clothing lines introduced included new parade footwear for the three Services, including RM Williams boots for the Army; a new general-purpose jacket for the Army; a new general-purpose uniform for the Air Force; cadet footwear; and wet and foul-weather garments. Continuing procurement to meet the ADF’s clothing and footwear requirements was undertaken to support operations as well as for raise, train and sustain activities.

General Service B Vehicle Fleet (CA45)

The general service vehicle fleet consists of approximately 8,700 light, medium and heavy wheeled vehicles, including protected (up-armoured) and unprotected variants, used in Australia and on operations overseas. Defence is progressively replacing most vehicles in the fleet under Project LAND 121.

During 2013–14, full support continued to be provided for operations, including the procurement of deployable all-terrain vehicles and the acquisition of additional up-armoured sports utility vehicles. In addition, work continued to upgrade 135 stores and ammunition modules to improve operator safety and functionality.

A key focus for the fleet has been to ensure that the required capability levels are maintained, and the fleet reduced in size as new capability is delivered under Project LAND 121. As part of the fleet reduction program, about 1,350 vehicles were removed from service.

Australian Defence Organisation Commercial Vehicles Fleet (CA19)

The Defence Commercial Vehicle Program uses commercially available motor vehicles for administrative purposes. Currently, the fleet has around 5,600 vehicles and trailers under management. The fleet ranges from passenger sedans through to heavy rigid trucks and touring coaches. The whole-of-government fleet services provider, sgfleet, supports the fleet.

During 2013–14, the fleet replaced around 1,200 vehicles as part of its normal replacement cycle. This included 880 passenger and light commercial vehicles, 39 medium cargo trucks, 250 light trailers and 25 medium buses. Under the program, around 880 vehicles were released for disposal during the year.

Health Systems (JHC01)

The health systems fleet is made up of pharmaceutical, medical and dental consumables and medical and dental equipment. These are generally commercial off-the-shelf items.

During 2013–14, a prime vendor contract for the provision of medical and dental consumables was established to achieve efficiencies in their management, the replacement of defibrillators was completed, and ADF health requirements for operations and raise, train and sustain activities were satisfied.

The DMO supports maritime capability through cost-effective materiel design, maintenance engineering and logistic support to platforms, equipment and systems. These sustainment services are provided under a structure of system program offices that are collocated regionally with the Navy forces and groups by ship class. The offices manage the delivery of services through a variety of outsourced commercial contracts.

Under the Rizzo Review, the Maritime Capability Business Model Health Check program has been used to assist the Navy and the DMO business units to embed policy, procedural and cultural changes and assess the maturity and effectiveness of their processes to deliver end-to-end sustainment.

Implementation of the Navy Inventory Procurement Office strategic sourcing initiative continued. In 2013–14, there was progress in the formalisation of through-life support for Navy life-rafts and the development of support contracts for LM2500 gas turbines and MTU diesel engines and components.

Improvement of configuration management and the maintenance baseline of major surface ships and other platforms continued.

Other achievements in 2013–14 included:

• the awarding of the guided missile frigate FFG class group maintenance contract
• the awarding of the Garden Island dock operating and reticulated services contract
• the transfer of the Ocean Shield to the Australian Customs and Border Protection Service on 1 July 2014
• the awarding of the Canberra class landing craft heavy capability support coordinator contract.

Fuels and Lubricants—Navy, Army & Air Force (CN26, CA43, CAF18)

Petrol, oil and lubricant products are procured under long-term contracts and provided to Defence operational and support elements and visiting foreign forces. The Fuels Technical Regulatory and Quality Control Framework is maintained for the conduct of Services’ operations and technical data integrity.

Provision of these products was completed to meet requirements. Under the implementation of the Wraith Review of the petroleum supply chain, Joint Logistics Command has assumed control of the fuel supply chain for the ADF. The DMO’s Joint Fuels and Lubricants Agency will now formally transfer to Joint Logistics Command.

Anzac Class Frigate (CN02)

Planned outcomes were the provision of continuing sustainment of materiel capability to meet the Navy’s operational requirements, the continued implementation of the Anzac class group maintenance contract, continued inventory management reforms and the continuation of anti-ship missile defence refit work on the designated ships under Project SEA 1448 Phases 2A and 2B.

Planned maintenance was completed, including additional pre-anti-ship missile defence work in HMAS Warramunga. Materiel support to capability was provided to the Anzac class frigates undertaking activities associated with operations Slipper, Sovereign Borders and Southern Indian Ocean. HMAS Arunta is undergoing sea trials following the completion of an anti-ship missile defence upgrade and refit program.

Adelaide Class Frigate (CN01)

The support objective is to maintain the materiel capability of the Adelaide class frigates through the provision of materiel support and continuing maintenance of the ships and associated equipment, systems and operator training facilities.

Planned maintenance was completed in the four guided missile frigates. A contract for combat system support, the signing and commencement of the group maintenance contract and the extension of the integrated materiel support contract were achieved; together, they will provide the long-term contracted support required to sustain the class.

Mine Hunter Coastal (CN14)

The support objective is to maintain the materiel capability of the Huon class coastal mine-hunter vessels and associated training equipment through the provision of materiel support and continuing maintenance of the in-service ships.

Scheduled ship maintenance was completed during 2013–14, along with additional maintenance. Detailed designs for the upgrade of the firefighting system and the upgrade of the combat systems are progressing as planned.

Armidale Class Patrol Boat (CN09)

The objective is to provide the agreed support services required for the sustainment of 14 Armidale class patrol boats.

While operational requirements were largely achieved during 2013–14, boat availability was affected by a class-wide structural design defect that required extensive rectification work. Along with significant growth in corrosion, this caused maintenance overruns.

There has been increased effort to address the root cause of system failures and to instigate the upgrade program for the boats to reduce the level of operational damage. A sustainment reform program is being conducted to improve the delivery of materiel support to the ships and to provide options to optimise supply. Implementation of an improved asset management regime commenced with the development of a rolling hull-survey program.

Performance:

• Availability: 105 per cent of an increased availability target was achieved on the path towards benchmark performance, despite three unscheduled dockings and the significant impact associated with a fire in HMAS Waller.
• HMAS Rankin full-cycle docking was completed early against the integrated master schedule.
• HMAS Collins main generator room and motor room hull cuts were completed (proving new maintenance techniques as part of continuing sustainment reforms).
• HMAS Farncomb full-cycle docking commenced (the first of the new two-year full-cycle dockings).

Reforms:

• The two-year transition phase of the in-service support contract with ASC Pty Ltd was completed on schedule on 30 June 2014; the DMO and ASC entered the first performance period of this contract on 1 July 2014.
• Substantial improvements were made to the combat system support contract with Raytheon Australia, paving the way to evolve this contract into a performance-based contract.
• Substantial improvements were made to the sonar support contract with Thales Underwater Systems, paving the way to evolve this contract into a performance-based contract.
• Industry management responsibility for Collins class inventory increased to 98 per cent (by line item).
• Increased engineering authority was awarded to industry members operating within the Collins authorised engineering organisation, including an expansion of platform engineering authority and the introduction of combat system and sonar engineering authority.

Collins Class Submarine (CN10)

Reforms to improve Collins class sustainment were catalysed by the Coles Report of November 2012. The report’s recommendations will take a number of years to implement fully; however, after returning to Australia for a progress review in early 2014, Coles assessed the turnaround in Collins sustainment as ‘remarkable’.

Sustainment experienced several setbacks in 2013–14, including a merchant vessel colliding with HMAS Sheean while the boat was berthed in July 2013 and a fire in HMAS Waller in February 2014. The repair of HMAS Waller is still being scoped, but is expected to continue well beyond 2013–14. The achievement of the agreed aggregate 2013–14 submarine availability target despite these setbacks reflects the emerging resilience of Collins sustainment. While the impact of the HMAS Waller fire is expected to be felt beyond the end of 2013–14, it is not expected to delay the restoration of Collins class sustainment to Coles’s benchmark by 2016–17.