1.3 Project Context

Project

Explanation

Background

In 1999, Government sponsored the 'McIntosh and Prescott Report' into submarine capability, which was followed by a subsequent review by Head Submarine Capability Team (HSMCT) who identified capability, reliability and sustainability issues with the Collins Class platform and associated shore infrastructure. In 2000, Government approved project funds to design and implement engineering enhancements for as many of these capability and materiel deficiencies as possible within the allocated budget. Government also approved a "global budget" whereby Head Maritime Systems could approve transfer of funding between SEA 1439 Phase 3, SEA 1439 Phase 4B (Improvements to Collins Sensors), SEA 1439 Phase 4A (Replacement Combat Systems) and SEA 1429 (Replacement Heavyweight Torpedo) to achieve optimum capability. Under the global budget there have been reductions in funding allocations to SEA 1439 Phase 3 in favour of SEA 1439 Phase 4A and SEA 1429, with a commensurate reduction in the number of engineering enhancements to be implemented through SEA 1439 Phase 3.

The scope of this project is limited to the reliability and sustainability issues identified in the1999 review and not the more contemporary reliability and sustainability issues relating to diesel engines, generators, batteries or the main motor; those issues are being addressed under the submarine sustainment program.

Many of the engineering enhancements can only be installed during the submarine FCD program and although most design and development activities are complete, submarine upgrades are contingent on the FCD program, which will run to 2022.

A total of 24 platform upgrades, consisting of two new capabilities and 22 engineering enhancements, have been identified for action under the project. Five engineering enhancements have been completed and the two new capabilities are being implemented. However, completion of the remaining 17 engineering enhancements is priority driven and will be continually reassessed throughout the project.

The two new capabilities and core engineering enhancements managed by the SEA 1439 Phase 3 project, which represent the highest priority and spend profile, and specifically disclosed in this report include:

• Special Forces Upgrade (New Capability): To provide three basic levels of capability and to further enhance the capabilities to a fully deployable state in two submarines.

• Torpedo Counter Measures Internal Stores (Torpedo Decoy) (New Capability): To provide a programmable counter measure against torpedos.

• Fire Fighting Upgrade (Engineering Enhancement): Upgrade to the fire fighting systems onboard, including greater protection from fire and its toxic by-products.

• Sewage System Upgrade (Engineering Enhancement): Automation of the sewage discharge system and thereby reduce the risks of exposure to toxic gases.

• Fast-Track mods to SM1,2,3&6 (Engineering Enhancement): Address platform build deficiencies in a holistic get-well program.

Details outlining the remaining 19 platform upgrades (engineering enhancements) were provided in ANAO Report No. 17 2010-11: 2009-10 Major Projects Report.

Uniqueness

Project SEA 1439 Phase 3 installs prioritised engineering enhancements and acquires replacement materiel as a part of ensuring continuous improvement of the boats. Engineering enhancements are undertaken by ASC under an annualised cost-plus Through Life Support Agreement (TLSA) contract, with the complex matrix of designs across the submarine fleet, scheduled for completion in 2022. Implementation of the ASC contract scope of work is linked to the boat FCD schedule and driven by availability requirements mandated by Chief of Navy and Program Manager Collins.

Major Challenges

Engineering enhancements are managed on a prioritised basis within the limited funding available, with implementation aligned to the Integrated Master Schedule (IMS) which is not controlled by the project. Where schedule slippage occurs, there is the potential for impact on project cost performance.

A further challenge is to obtain capability sponsor acceptance of delivered supplies, given that the full range of engineering enhancements has not been supported with Capability Definition Documentation that enables ready acceptance of the delivered supplies. Project staff have developed Statements of Work (SOW) for contractor work. The SOWs have driven the development of System Requirement Specifications by contractors, thus allowing more conventional requirements management.

Other Current Projects/Sub-Projects

N/A