1.3 Project Context

Project

Explanation

Background

The Additional Troop Lift project was first foreshadowed in the Defence White Paper 2000.

The MRH Program consists of Phases 2, 4 & 6. Phase 2 was approved initially, providing 12 additional Troop Lift helicopters for Army. Phases 4 & 6 were approved subsequently with Phase 4 as the replacement of the Australian Army's fleet of 34 S-70A-9 Black Hawk helicopters, again for troop lift capability, and Phase 6 as the replacement of the RAN's fleet of six Sea King helicopters, providing maritime support capability for Navy. In total, the Air 9000 MRH Program will acquire 46 MRH90 aircraft and support systems.

Support capabilities, such as Electronic Warfare Self Protection Support System, MRH Software Support Centre, MRH Instrumentation System and a Ground Mission Management System, will be acquired along with training systems and in-service support.

The Phase 2 Acquisition Contract was signed with Australian Aerospace (AA) in June 2005 with the subsequent Sustainment and Program Agreement contracts signed in July 2005.

In November 2005 the Defence Capability and Investment Committee agreed that the way forward was to seek a combined first and second pass approval for both Phases 4 and 6 as part of a single approval process.

Cabinet endorsement was gained in April 2006 in a combined first and second pass process for Phase 4 and Phase 6. The agreed method of procurement, a two stage Contract Change Proposal (CCP), resulted in the execution of options contained in the Program Agreement for the procurement of additional aircraft approved under Phases 4 and 6. The Air 9000 MRH Program Office signed an initial CCP for the Acquisition, Sustainment and Program Agreement Contracts in June 2006.

A further CCP for development of associated systems including: Electronic Warfare Self Protection Support System, MRH Software Support Centre, MRH Instrumentation System and a Ground Mission Management System, as well as two part task trainers and a number of aircraft options were signed in October 2006.

The three Air 9000 Phase 2/4/6 contracts viz. Program Agreement Contract, Acquisition Contract and Sustainment Contract incorporate both of the above CCPs. On acceptance of two MRH90, appropriate training, maintenance and supply support, an In-Service Date of December 2007 was achieved with aircraft operating under a Special Flight Permit granted by the Chief of Air Force. This triggered the Sustainment Contract to come into effect and all three contracts are now currently active.

In February 2011 the Defence Minister announced that the project would undergo an independent high-level diagnostic review, known as a Gate Review. On 28 April 2011 the Minister for Defence Materiel announced that the review had been completed and the project would not be added to the Project of Concern list at that time. The Project would need to continue to work with the contractor, Australian Aerospace, to implement a remediation plan (Deed of Agreement and CCPs) to improve the availability of the helicopters by addressing engineering and reliability issues. The project would be the subject of a further diagnostic review later in the year (anticipated September 2011) to examine the effectiveness of the action taken and whether further action was necessary.

Uniqueness

The MRH90 aircraft is based upon the German Army variant of the NH90 Troop Transport Helicopter. The MRH90 design uses well established aerospace technologies, but will introduce new technologies into Army and Navy, primarily in the areas of composite structure, helmet mounted sight and display and fly-by-wire flight control systems.

The MRH Program is providing an MRH90 capability to two main users - Army and RANThe capability delivery complexity this introduces has been mitigated through an agreement between Chief of Army and Chief of Navy.  This provides the project with a single interface for introduction into service issues.

The MRH Program Office Design Acceptance Strategy is dependent on French Military Airworthiness Authority, Direction Générale de l'Armament (DGA), prior acceptance of the NH90 variants and certification recommendation for the MRH90. The DGA and other National Qualification Organisations' prior acceptance of European NH90s provides confidence in the MRH90 platform for the ADF to leverage off common certification evidence.

Major Challenges

The reliability and Rate of Effort of MRH90 is well below the contracted requirement and has impacted the training of MRH90 aircrew. Key contractual and capability milestones have been impacted by the reduced Flying Rate of Effort.

Aircraft system immaturity has affected the certification schedule of the MRH90. Several aircraft components, including the cabin floor panels and windscreens do not meet the contracted capability.

Aircrew Information Set. The current version of the NH90 common Aircrew Information Set has been assessed as unsuitable for Australian operations.

Other Current Projects/Sub-
Projects

N/A