Cost Performance

The delivery of the materiel capability remains within current approved project cost. Significant savings are identified to be incorporated in a real cost decrease to the current approved Project cost submission and Materiel Acquisition Agreement update.

Schedule Performance

Procurement and delivery of missiles completed February 2010. FFG SM-2 missile Stage 1 Home-All-the-Way (HAW) Material Release (May 2010), Initial Operational Release (IOR) (July 2010) and Initial Operational Capability (IOC) (August 2010) now achieved. Stage 2 (final stage) Mid Course Guidance (MCG) capability Material Release occurred with Stage 2 software installation aboard HMAS Sydney in May 2011.

Subsequent combined Acceptance Test and Operational Test & Evaluation live-fire events for the SM-2 missile test program successfully conducted off Hawaii during June 2011. Final Material Release (FMR) and Final Operational Capability (FOC) (Ship and shore based systems) on schedule to complete third and fourth quarters 2012 respectively.

Materiel Capability Performance

FFG SM-2 Stage 1 HAW capability baseline was established in May 2010 and has been installed in all four FFGs and the land based Team Trainer. An operational firing event aboard HMAS Newcastle was conducted successfully in July 2010, and on 25 August 2010 Chief of Navy (CN) approved IOR of the FFG SM-2 HAW capability. The IOC also achieved coincident with HMAS Melbourne deployment in August 2010. The FFG SM-2 stage 2 MCG capability software baseline was established in May 2011 and installed in HMAS Sydney in preparation for combined Acceptance Test and Operational Test & Evaluation live-fire events that were successfully conducted off Hawaii in June 2011. The SM-2 stage 2 final software baseline and operational capability is scheduled for delivery first quarter 2012.