Cost Performance

Project cost estimate remains within the current approved Project budget.

Schedule Performance

The Prime Contractor has continued to perform to the revised schedule approved in June 2006 and has met the majority of its obligations under the Contract including achieving Acceptance of the FFGs, the WSSC and the Team Trainer.

A Contract Close Out Deed was executed in June 2010 that specifies the Prime Contractor's remaining obligations under the Contract which are to be performed on the terms of the Contract by 28 February 2011.

The FFG Upgrade Prime Contract was successfully completed 2 March 2011 with the Prime Contractor satisfying all its final obligations under the FFG Upgrade Prime Contract by 28 February 2011.

Materiel Capability Performance

All four FFGs have now received their upgraded equipment. Since Acceptance, HMA Ships Sydney, Melbourne, Darwin and Newcastle have been in operation with Navy and are now endorsed for Initial Operational Release (IOR) with the Torpedo Defence System and LeScut decoy excluded.

Contractual acceptance of HMAS Sydney and Darwin and upgraded software was achieved in November 2008 in accordance with the provisions of a Deed of Amendment. The requirements of the Deed were met and Contractual Acceptance of FFG Upgraded Software was achieved in May 2009 following closure of open software problem reports. Contractual Acceptance of HMAS Melbourne was achieved in December 2008. HMAS Newcastle, the last FFG to enter the program, achieved Provisional Acceptance by the DMO and was handed back to Navy in May 2009 prior to achieving Contractual Acceptance in September 2009. The Team Trainer also achieved Acceptance in September 2009 and the WSSC achieved Acceptance in December 2009.

Tactical Data Information Link, LINK 16 functionality testing was achieved in August 2008 and assessed suitable for operational use under waiver. The first 'live' LINK 16 Data Link to be established by a RAN unit was achieved in January 2009 between HMAS Melbourne and various US Navy units.

A three phased 'incremental' approach for IOR and Operational Release (OR) has been agreed by the Defence Materiel Organisation (DMO) and Navy as the most pragmatic means by which to bring the FFG class to full operational employment. Phase 3 was achieved in January 2010 and IOR by Navy for the FFG Class has been achieved except the Torpedo Defence System and by association the Le Scut decoy system were both rejected for IOR. Mitigation for the current torpedo defence capability for FFGs has included the installation of an underwater active decoy system (AN/SLQ-25C, NIXIE) in HMA Ships Melbourne and Newcastle. Work has also progressed with Defence Science and Technology Organisation (DSTO) to further Navy's understanding of the demands of the FFG for torpedo defence in various operational environments.

A Naval Operational Test and Evaluation (NOTE) period was conducted in September 2010 for the Underwater Warfare Systems (UWS) capability. Issues were identified with the availability and serviceability of the UWS capability, human machine interface and operator experience. Remediation of these deficiencies have been undertaken and a further period of testing of the UWS capability, including experimentation with the Torpedo Defence System, is scheduled for third quarter of 2011 and subsequent analysis of trial results in the fourth quarter of 2011.

Similarly, an extensive five week NOTE period to baseline the upgraded FFG Air Warfare capability was conducted in quarter 4 of 2010, and again in June 2011 with HMAS Sydney undertaking the combined Acceptance Test and Operational Test and Evaluation live-fire events for the SM-2 missile test program at the US Navy Pacific Range Facility (Hawaii). System performance for anti-ship missile detection during the combined Acceptance Test and Operational Test and Evaluation period was very good.

The full analysis of the results of both ASMD and UWS NOTE activities will be finalised for a recommendation to Chief of Navy (CN). Chief of Navy consideration of the ASMD and UWS capabilities for Operational Release is anticipated to occur by December 2011.