Identified Risks (risk identified by standard project risk management processes)

Description

Remedial Action

Workforce - There is a chance the NACC project will not have access to sufficient pilots and maintainers for initial JSF training and transition into service of the new capability because of the requirement to simultaneously support and operate multiple platforms.

Pro-active careful coordination between all the organisations with a responsibility for the workforce to ensure that people are recruited, released, and trained or re-skilled at the right time to meet critical project milestones.

Technical Risks - The JSF is a highly complex project and will carry high technical risk through the design, production and implementation phases. Software development is seen as the major risk and schedule driver.

The analysis being undertaken by the TBR and IBR of the JSF Program will provide greater understanding and certainty of software development risk. The revised program plan (expected late 2011) will incorporate this understanding through appropriate application of treatment strategies and resources.

Independent DSTO analysis of technical risks will be undertaken and incorporated into project planning.

Should software development risks be realised, consideration will be given to using an earlier software release to meet IOC schedule requirements.

US Programmatics - There is a chance that current and potential future US Defense and Congressional reviews result in a delayed US schedule that does not meet the ADF's required 2018 IOC date.

Australia has secured provisions that, pending formal approval, will enable participation in US Operational Test and Evaluation (OT&E) activities. Participation in OT&E will yield information to support an Australian IOC declaration that would otherwise not be available until completion of the USAF IOT&E.

Australia will work with the US on other arrangements necessary to accommodate the new development dates as they become available.

Aircraft Production Costs - With annual contracting, aircraft costs are exposed to uncertainties relating to variations in procurement quantities and Lockheed's ability to meet projected production learning curve efficiencies.

The US has moved from a 'cost plus' to a 'fixed price' incentive contracting approach two years earlier than originally planned. New fixed price contracts together with cost data from established contracts are progressively reducing cost uncertainty. In addition, the NACC project continues to review US Government and contractor estimates and conduct independent sensitivity analysis to assess NACC funding and contingency provisions - these are currently assessed as adequate.

System Integration. A significant task for the NACC project will be integration of the JSF Air System into the Defence environment, including;

•  Integration of the Autonomic Logistics Information System (ALIS) ground support system with existing ADF hardware and software systems, and

•  platform to platform integration of the combat system necessary for optimum interoperability.

The inherent complexity of software intensive integration and multiple stakeholders make this a high schedule risk activity.

Ongoing analysis of interfaces with other ADF platforms to ensure optimal interoperability.

Participation in the US test activities will enable Australia to obtain greater understanding of the systems integration risks and issues and thereby develop appropriate treatment strategies. This may include the incorporation of Australian platforms and systems into the test program.

US Government Release Approvals. Previous acquisition programs with the US, have experienced delays due to excessive processing time to acquire the necessary US Government release approvals. These approval processes are complex, inconsistent and in some cases are classified and not releasable to Australia. Given the highly sensitive and classified nature of the JSF capability, and Australia's position as an early acquirer of JSF, there is a probability of delays in the delivery of data and materiel to Australia in the early phases of the acquisition program.

Prior to Stage 2 approval the NACC Project Office will complete a comprehensive information needs analysis necessary to effectively operate and maintain the JSF aircraft. The needs analysis will be compared against the proposed suite of information and data to be provided through the MOU procurement process. Information and data release deficiencies, uncertainties and/or issues will be addressed though the engagement of senior US Government officials and the establishment of agreed, predictable and documented processes.

Emergent Risks (risk not previously identified but has emerged during 2010-11)

Description

Remedial Action

N/A

N/A