1.3 Project Context

Project

Explanation

Background

Government gave the equivalent of first pass approval for Phase 3 of this project in December 1997. Following a competitive Initial Design and tendering activity, the Government gave the equivalent of second pass approval in December 2000 and a contract was signed with The Boeing Company (Boeing) the next day for supply of four aircraft and associated supplies and support. In April 2004, Government gave approval to amending the contract for supply of an additional two aircraft.

The airborne early warning and control 'Wedgetail' is based on Boeing's next generation 737 aircraft, modified to accommodate various sophisticated mission systems. The primary sensor on the aircraft is a phased-array radar - with no moving parts - that can scan through 360 degrees.

In March 2007, Boeing presented the results of the schedule replan to the Commonwealth following the company's announcement, in February 2007, of a two-year slip in the program. This slippage results from problems associated with subsystem integration; supplier hardware availability; mission computing, radar and electronic support measures maturity and stability; and aircraft modification. In May 2008, Boeing advised a further delay to the program resulting from ongoing problems with radar and electronic support measures development and system integration.

In December 2008, Boeing and the Commonwealth agreed, under a Deed, to enter into a modified test and operational evaluation program aimed at determining the extent to which the aircraft system meets the specification and how well it will perform operationally. The DMO Program Office, Boeing and Northrop Grumman, supported by DSTO and US Government agencies, also cooperated in the conduct of an independent assessment of radar performance by Massachusetts Institute of Technology (MIT) Lincoln Laboratories to determine the extent of the performance shortfall based on flight test data. An operational utility demonstration was successfully conducted in Australia in April 2009 and provided insight into the operational potential of the AEW&C capability.

Based on the outcomes of these activities, the Commonwealth entered into formal negotiations with Boeing in August 2009 seeking a commercial settlement addressing, among other things, the key issues of: project delays; incremental delivery; and compensation for projected performance shortfalls. The parties reached agreement on the way ahead for the program in November 2009.

In April 2010, the Commonwealth accepted two aircraft in an initial operating capacity in order to commence training and initial operations. A third aircraft was accepted in this initial operating capacity in June 2010 and a fourth in December 2010.

Boeing failed to deliver the first aircraft in a final operational configuration in December 2010, as agreed in the settlement reached in November 2009, due to ongoing issues with Communications and ESM Subsystems technical maturity and integrated system stability. The Commonwealth entered into contract negotiations with Boeing in November 2010 to refine the path to final acceptance and reached agreement in April 2011.

Uniqueness

Project Wedgetail is a highly developmental project. The phased array radar, the heart of the surveillance capability, has never previously been integrated into an operational system. Northrop Grumman Corporation, the suppliers to Boeing of the phased array radar, has worked to an extremely tight schedule of putting into production and integrating this unique radar, which was still undergoing initial design at the time of contract signature. Similar schedule acceleration issues have also been encountered on other mission critical systems.

The ADF will be the first to operate an aircraft of this configuration and capability and significant effort has been devoted by the RAAF in developing operational doctrine and tactics for its deployment.

Major Challenges

Integration of the radar and other mission critical systems such as electronic support measures, communication systems and data links has proved to be more complex than originally anticipated. Initial planning for the project was optimistic, resulting in an aggressive schedule that had been compressed to such a high level that there was no margin for re-work or risks being realised.

Radar performance was subject to detailed independent analysis and operational assessment in preparation for the contract settlement negotiations held in late 2009, resulting in a determination that performance will not achieve specification at final delivery and further development will be required.

Subsequently, a radar remediation program was establishedThis program includes a radar collaborative research and development program. A contract for the collaborative program was signed on 21 June 2010. The program is progressing well and is expected to be completed by the end of 2011. Radar performance improvements appear feasible and have the potential to recover the radar performance to close to specification, with additional growth potential. Four technical options have been sufficiently proven for implementation, and agreed through the April 2011 commercial settlement for incorporation by the end of 2011.

Further technical challenges in the development of the ESM, Electronic Warfare Self Protection (EWSP) and ground support systems are still being encountered and resolution of these will drive the schedule to final acceptance.

Overall technical and schedule risk remains high.

Other Current Projects/Sub-Projects

N/A