Project

Explanation

Description

The $4,199 million Multi-Role Helicopter (MRH) Program is a key component of the ADF Helicopter Strategic Master Plan, Air 9000, that seeks to rationalise the number of helicopter types in ADF service. The MRH Program consists of three phases of Air 9000. Phase 2 is the acquisition of an additional Squadron of troop lift aircraft for Army. Phase 4 will replace Army's Black Hawk helicopters in the Air Mobile and Special Operations roles, and Phase 6 will replace Navy's Sea King helicopters in the Maritime Support Helicopter role. All three phases are grouped under the Air 9000 MRH Program.

Background

The Additional Troop Lift project was first foreshadowed in the Defence White Paper 2000.

The MRH Program consists of Phases 2, 4 & 6. Phase 2 was approved initially, providing 12 additional Troop Lift helicopters for Army. Phases 4 & 6 were approved subsequently with Phase 4 as the replacement of the Black Hawk fleet, again for the troop lift capability, and Phase 6 as the replacement of the Sea King fleet, providing maritime support capability for Navy. In total, the Air 9000 MRH Program will acquire 46 MRH90 aircraft and support systems.

Support capabilities, such as Electronic Warfare Self Protection Support System, MRH Software Support Centre, MRH Instrumentation System and a Ground Mission Management System, will be acquired along with training systems and in-service support.

The Phase 2 Acquisition Contract was signed in June 2005 with the subsequent Sustainment and Program Agreement contracts signed in July 2005.

Air 9000 Phase 4 addresses the replacement of the Australian Army's fleet of 34 S-70A-9 Black Hawk helicopters. Air 9000 Phase 6 addresses the replacement of Navy's six Sea King helicopters in the Maritime Support Role. In November 2005 the Defence Capability and Investment Committee agreed that the way forward was to seek a combined first and second pass approval for both Phases 4 and 6 as part of a single approval process.

Cabinet endorsement was gained in April 2006 in a combined first and second pass process for Phase 4 and Phase 6. The agreed method of procurement, a two stage Contract Change Proposal (CCP), resulted in the execution of options contained in the Program Agreement for the procurement of additional aircraft approved under Phases 4 and 6. The Air 9000 MRH Program Office signed an initial CCP for the Acquisition, and Sustainment and Program Agreement Contracts in June 2006.

A further CCP for development of associated systems including: Electronic Warfare Self Protection Support System, MRH Software Support Centre, MRH Instrumentation System and a Ground Mission Management System; as well as two part task trainers and a number of aircraft options were signed in October 2006.

The three Air 9000 Phase 2/4/6 contracts viz. Program Agreement Contract, Acquisition Contract and Sustainment Contract incorporates both of the above CCPs. On acceptance of two MRH90, appropriate training, maintenance and supply support an In-Service Date of December 2007 was achieved with aircraft operating under a Special Flight Permit granted by the Chief of Air Force. This triggered the Sustainment Contract to come into effect and all three contracts are now currently active.

Training Aids to support the (mature) sustainment training capability such as Full Flight and Mission Simulator and Ground Training Devices will be procured under separate contracting arrangements. A contract for the design, development and delivery of two MRH90 Full Flight and Mission Simulator was signed with CAE Australia in December 2007. Industry solicitation for the procurement of Ground Training Devices is scheduled for first half of 2009. Sustainment of the Full Flight and Mission Simulator will be under the existing ADF- CAE Australia simulator sustainment contract.

Further ground-based training devices will be subject to supply and support under a separate procurement process. A training service contract will also be let to provide Air 9000 mature stage training using the Full Flight and Mission Simulator and Ground Training Devices procured by Air 9000.

Uniqueness

The MRH90 aircraft is based upon the German Army variant of the NH90 Troop Transport Helicopter. The MRH90 is a four-bladed, twin engine, primarily composite structure, military utility helicopter. The MRH90 design uses well established aerospace technologies, but will introduce new technologies into Army and Navy, primarily in the areas of composite structure, helmet mounted sight and display and fly-by-wire flight control systems. The certification of the MRH90 and its systems is based on prior certification programs run for other NH90 variants, primarily the German Army variant.

The MRH Program includes four prime contracts with two prime contractors. Acquisition, Sustainment and Program Agreement contracts are with Australian Aerospace Ltd, and Full Flight Mission Simulator Acquisition contract is with CAE Australia. Future contracts for Ground Training Devices and Sustainment Training have not yet been put in place. The management of this number of inter-related contracts provides a high level of project complexity.

Note: The only contract covered by this Major Project Report is the Acquisition Contract with Australian Aerospace.

The MRH Program is providing an MRH90 capability to two main users - Army and Navy. The capability delivery complexity this introduces has been mitigated through an agreement between Chief of Army and Chief of Navy for the Director of Aviation Capability Implementation - Army to manage transition into service for both Army and Navy. This provides the project with a single interface for introduction into service issues.

The MRH Program Office Design Acceptance Strategy is dependent on Delegation Generale pour l'Armament prior acceptance of the NH90 variants and certification recommendation for the MRH90, noting that Delegation Generale pour l'Armament is the Military Airworthiness Authority of the French Republic. Delegation Generale pour l'Armament's and other National Qualification Organisations' prior acceptance of the NH90 provides confidence in the MRH90 platform for the ADF to leverage off as much of the MRH90 certification evidence will be the same as that provided for other variants of the NH90 family.

Major Challenges

Immaturity of the MRH90 capability: as an outcome of the June 2008 Airworthiness Board, a significantly increased level of MRH90 aircraft and system maturity needs to be demonstrated prior to applying for an Australian Military Type Certificate and Service Release. Insufficient aircraft systems' reliability, spares availability (see Note 1) and technical documentation (see Note 2) have combined to reduce the MRH90 capability maturity to date.

Note 1: The initial provision of breakdown spares was insufficient to support MRH90 operations. Significant effort by both DMO and Industry has mostly mitigated this issue.

Note 2: Initial versions of the Interactive Electronic Technical Publications have not been sufficiently mature to support efficient and effective maintenance activities and flight operations. Significant effort by both DMO and Industry has mostly mitigated this issue.

Insufficient flying rate of effort: since In-Service Date (December 2007), the MRH90 system reliability has been sub-optimal. Flying rate of effort has been significantly reduced as a result of varying aircraft systems' unserviceability. Key contractual and capability milestones may be impacted by any continued reduced flying rate of effort.

New capability and maintenance capacity: The MRH90 capability and maintenance support system are being introduced through Army's 5th Aviation Regiment (5 Avn Regt). 5 Avn Regt also continues to support Black Hawk and Chinook aircraft on operations and its priority on operations necessarily impacts on the MRH90 introduction into service and the development of MRH90 maintenance support system and capacity. This conflict of priorities has a consequent knock-on effect on MRH90 flying rate of effort.

Delay in aircrew Transition Stage Training: due to the inability to generate adequate aircraft flying rate of effort, aircrew training is delayed. If increased flying rate of effort is not achieved the conduct of the pilot training courses scheduled for 2009 may be impacted. The first pilot training course is now to be completed as an Australian Military Type Certificate and Service Release pre-requisite.

Current Status

Cost Performance

The project is currently progressing within the approved budget and the capability is anticipated to be delivered within the approved budget. Some payment milestones have been replanned to reflect the progressive delivery of capability.

Schedule Performance

The Air 9000 MRH Program remains broadly on schedule. However, the delivered aircraft have achieved a lower rate of effort (hours flown) than planned and this has increased the risk to the program schedule for the transition of the MRH90 capability into service. Major milestones remain on schedule including the Navy Initial Operating Capability (IOC) June 2010, however, it is likely that the Army IOC planned for April 2011, may be delayed by up to six months.

To date, five MRH90 helicopters have been accepted by the DMO and are operating with Army's 5th Aviation Regiment Townsville. A further seven MRH90 are scheduled for delivery in Calendar Year 2009. The first 12 aircraft will require an in-service retrofit (at Contractor expense) to bring them up to the full Phase 2/4/6 capability baseline. The first fully compliant Phase 2/4/6 aircraft are due for delivery in early 2010.

Capability Performance

Following achievement of In-Service Date (and acceptance of the first five aircraft) with agreed partial achievement of the contracted MRH capabilities, there has been significant work by both Industry and the MRH Program Office to define and implement a series of capability block enhancements to bring the MRH90 to contracted standards. This includes a retrofit program, at no additional cost to the Commonwealth, to progressively bring all aircraft up to the contracted standard.

Aircraft system reliability and support system issues have contributed to a poor flying rate during 2008 and 2009. This poor flying rate has delayed aircraft system development and training. These issues are being addressed and are unlikely to affect the Final Operational Capability.