1.3  Project Context

Project

Explanation

Background

Project SEA 1390 Phase 4B, as a discrete phase of the SEA 1390 Ph2 FFG Upgrade project, will integrate the SM-2 Block IIIA surface to air missile into the four Royal Australian Navy (RAN) ADELAIDE class frigates (FFGs) at the "Mid-Course Guidance" standard, and acquire Initial Ship Outfit and Inventory Stock missiles.

The SM-2 Block IIIA missile is the replacement Area Air Defence (AAD) weapon for the aging SM-1 missile in RAN service with the FFGs. It will provide a modern area air defence missile capability to the RAN FFGs and affording an air defence to escorted vessels and coastal infrastructure or forces deployed nearby.

The SM-2 capability will be progressively delivered in two stages to mitigate technical risk with the development and fielding of the required software. Stage 1 provides an SM-2 HAW capability (which was achieved in August 2010 with the deployment of HMAS Melbourne to Operation Slipper) with the full capability of MCG to be delivered in Stage 2.

The Commonwealth, through the FFG Systems Program Office (SPO), has assumed responsibility as the Prime Systems Integrator (Prime Contractor). This commercial arrangement is important as it provides a sound risk mitigation approach to the projects primary risk - the completion of the production stages of the SEA 1390 Ph2 FFG Upgrade project (particularly the implications of non-availability of the FFG). This level of managerial oversight has allowed the FFG Upgrade project (SEA 1390 PH 2) and the SM-2 Integration (SEA 1390 PH 4B) to occur in parallel without negatively impacting each upon the other.

Uniqueness

Acquisition of the SM-2 capability is being undertaken via a combination of United States (US) Government Foreign Military Sales (FMS) arrangements and US and Australian commercial sources, with overall 'Prime Systems Integrator' responsibility resting with the FFG SPO. There is a strong reliance on Original Equipment Manufacturers (OEM) due either to necessity (sole supplier/ proprietary information/ intellectual property constraints) or to mitigate risk and to maintain technical integrity. In addition, under a Service Level Agreement, Navy Guided Weapons Systems Program Office (NGW SPO) is responsible for the acquisition of the SM-2 missiles, missile support and repair/certification facilities at the Intermediate Level Maintenance Facility (ILMF) Defence Establishment Orchard Hills.

Major Challenges

Ship availability within the RAN Force Generation Plan (FGP) remains a significant challenge and scheduling for installation and test activities is difficult. Navy has accommodated the SM-2 Stage 1 HAW capability test program and the June 2011 SM-2 Stage 2 MCG live-fire events aboard HMAS Sydney to a revised schedule.

Other Current Projects/Sub-Projects

SEA 1390 PH 2.1 - Guided Missile Frigate Upgrade Implementation: Upgrade FFG Anti-Ship Missile defence, air search radar and missile fire control system/radars, Underwater Warfare, Electronic Support and other ship systems, Data Link, ship and shore based Training Systems and establish a Warfare Systems Support Centre.

SEA 1390 PH 4A - FFG SM-1 Missile Replacement Test Station: Purchase of the Mk698 Test Set for logistic support and all up round depot level maintenance of the SM-2.