Project

Explanation

Description

The $4,154 million Air 5077 Phase 3 project will provide the ADF with an airborne early warning and control capability, with the provision of six aircraft and associated supplies and support. As an integral part of a layered ADF Air Defence System, the airborne early warning and control capability will enhance surveillance, air defence, fleet support and force coordination operations in defence of Australian sovereignty and national interests.

Background

Government gave the equivalent of first pass approval for Phase 3 of this project in December 1997. Following a competitive Initial Design and tendering activity, the Government gave the equivalent of second pass approval in December 2000 and a contract was signed with The Boeing Company (Boeing) the next day for supply of four aircraft and associated supplies and support. In April 2004, Government gave approval to amending the contract for supply of an additional two aircraft.

The airborne early warning and control 'Wedgetail' is based on Boeing's next generation 737 aircraft, modified to accommodate various sophisticated mission systems. The primary sensor on the aircraft is a phased-array radar - with no moving parts - that can scan through 360 degrees.

In March 2007, Boeing presented the results of the schedule replan to the Commonwealth following the company's announcement, in February 2007, of a two-year slip in the program. This slippage results from problems associated with sub-system integration; supplier hardware availability; mission computing, radar and electronic support measures maturity and stability; and aircraft modification. In May 2008, Boeing advised a further delay to the program resulting from ongoing problems with radar and electronic support measures development and system integration.

In December 2008, Boeing and the Commonwealth agreed, under a Deed, to enter into a modified test and operational evaluation program aimed at determining the extent to which the aircraft system meets the specification and how well it will perform operationally. The DMO Program Office, Boeing and Northrop Grumman, supported by DSTO and US Government agencies, also cooperated in the conduct of an independent assessment of radar performance by Massachusetts Institute of Technology (MIT) Lincoln Laboratories to determine the extent of the performance shortfall based on flight test data. An operational utility demonstration was successfully conducted in Australia in April 2008 and provided insight into the operational potential of the AEWC capability. These activities are planned for completion by October 2009 at which time an Executive Summit will be held to determine the way ahead for the project.

Uniqueness

Project Wedgetail is a highly developmental project. The phased array radar, the heart of the surveillance capability, has never previously been integrated into an operational system. Northrop Grumman Corporation, the suppliers to Boeing of the phased array radar, has worked to an extremely tight schedule of putting into production and integrating this unique radar, which was still undergoing initial design at the time of contract signature. Similar schedule acceleration issues have also been encountered on other mission critical systems.

The ADF will be the first to operate an aircraft of this configuration and capability and significant effort has been devoted by the Royal Australian Air Force in developing operational doctrine and tactics for its deployment.

Major Challenges

Integration of the radar and other mission critical systems such as electronic support measures, communication systems and data links has proved to be more complex than originally anticipated. Initial planning for the project was optimistic, resulting in an aggressive schedule that had been compressed to such a high level that there was no margin for re-work or risks being realised. Continuing challenges are being realised in BAESYSTEMS Australia ESM development and execution against schedule and remains under close scrutiny by the both the Program Office and Boeing. Technical challenges with the Radar and Identification Friend or Foe subsystem have continued to drive completion of Test and Evaluation in 2009.

The outcomes of the modified test and operational evaluation program, together with the MIT Lincoln Laboratories review, will be key to assessing the overall project progress and technical risk. Overall technical and schedule risk remains high to very high.

Current Status

Cost Performance

The project remains within current approved budget. The DMO has invoked the payment withhold provisions of the contract. This situation will not improve until we have a stable and agreed schedule, and agreed Earned Value baseline.

Schedule Performance

Under the agreement to enter into a modified test and operational evaluation program, acceptance testing was planned to commence in January 2009. However, due to ongoing problems with system maturity and stability, the start of test was delayed and has continued at a slower rate than planned. Consequently, the Executive Summit to decide the way ahead for the project, which was originally planned for June 2009, is now planned for October 2009.

Boeing plans to deliver an initial capability to support training and initial operations in November 2009, and full capability aircraft from March-May 2010. Defence believes that there is still residual risk in these delivery dates but continues to work with Boeing to achieve the earliest possible in-service date.

The revised prime contract schedule remains highly dynamic and has still not been agreed by the Commonwealth.

Capability Performance

Integrated system performance, particularly in respect of the radar, electronic support measures and mission computing sub systems, is currently not meeting specification. Boeing and its subcontractors are continuing to work on remediating the shortfalls and the Commonwealth has not granted any relief to Boeing on meeting contracted technical performance. However, remediation of all radar performance shortfalls is not expected to be achieved by final delivery of the system.