Project

Explanation

Description

The $1,537 million Sea 1390 Phase 2 Guided Missile Frigate (FFG) Upgrade Project seeks to regain a comparative regional maritime capability by upgrading four (originally six) Adelaide Class FFGs, and to ensure that they remain effective and supportable until their removal from service between 2015 and 2021. RAN FFGs are a derivative of the US Navy Oliver Hazard Perry FFG-7 class Guided Missile Frigates. Each FFG is receiving an improved Anti-Ship Missile Defence system; an On Board Training System; an Electronic Support System; an upgraded Underwater Warfare System, upgraded diesel generators and other ship systems. The upgrade project is also establishing a shore-based Operator and Team Trainer system and a Warfare System Support Centre.

Background

The project's implementation phase commenced in June 1999, when the Prime Contract with Australian Defence Industry (now Thales Australia) was signed. The contract provides for Thales to have total contract performance responsibility and sole responsibility for the upgrade of each FFG. The role of the Systems Program Office in relation to the technical aspects of the upgrade has been and is generally limited to reviewing and commenting upon the activities proposed to be conducted by the prime contractor.

As a result of the contractor taking substantially longer than the original schedule, the project was re-baselined in April 2004 and again in May 2006. The re-baselining deferred the delivery of all FFGs with the last ship being deferred by four and a half years.

In November 2003 the Government determined that the Guided Missile Frigate fleet would be reduced from six to four ships with the two oldest FFGs to be removed from service, prior to their planned upgrade and life extension. In mid 2006 the prime contract was changed with scope reduced from six to four ships (oldest FFGs, HMA Ships Adelaide and Canberra not upgraded), settlement of delay claims, changes to the master schedule and milestones, and changes to provisional acceptance processes of upgraded ships from the prime contractor all contributed to the delays. The financial impact of this global settlement was reflected by a reduction in prime contract price of $40m. This recognises the engineering development investment and six ship sets of equipment were not affected by the reduction in the number of upgraded ships from six to four.

Subsequent difficulties with compliance led DMO to refuse approval of contractors test procedures. In April 2005 Thales elected to proceed 'at its own risk' with a test and trial regime outside of the contractual terms. The contractor saw this as the only feasible approach to completing the project.

The complexity of the program was initially underestimated. The performance specifications were not formalised and agreed before contract signature and this has impacted the delivery and agreement of the offered capability and development of the test program.

Provisional Acceptance of HMA Ships Sydney, Melbourne and the Team Trainer, located at HMAS WATSON were achieved in December 2006, October 2007 and November 2007 respectively. HMAS Darwin achieved Provisional Acceptance in August 2008.

HMA Ships Sydney and Melbourne now operate under Navy control and continue to work towards the achievement of Initial Operational Release by Navy. This has been delayed by performance shortcomings/deficiencies in the underwater warfare systems and electronic support system. The prime contractor continued to rectify these shortcomings/ deficiencies before contractual acceptance.

The combat system Operator and Team Trainers are being used for Navy training.

In October 2007, HMAS Sydney conducted Evolved Sea Sparrow Missiles firings on a US Navy range off Hawaii, US. This demonstrated several key components of the FFG Upgrade; namely, the Evolved Sea Sparrow Missile System, along with the new Vertical Launching System Mk41, Australian Distributed Architecture Combat System and software confirming their capability against hostile air threats.

HMAS Newcastle, the last FFG to be upgraded, commenced its upgrade in October 2007; completing the docking phase of the upgrade in April 2008 and at 30 June 2008 was undertaking combat system installation and production work, with the set to work and initial harbour acceptance trials of the platform systems scheduled for August 2008. The Prime Contractor has continued to maintain the revised schedule approved in June 2006 and achieved Provisional Acceptance of HMAS Newcastle in May 2009

Uniqueness

This project presents challenges due to the complex and extensive weapon, sensor, combat, and command and control systems upgrades that are required to be integrated into an Australian developed combat data system architecture. The integration work includes the world's first FFG installation of a Vertical Launching System for firing Evolved Sea Sparrow Missiles and Mk 92 Mod 12 fire control system into the Adelaide class FFG.

The FFG upgrade project includes the development of the Australian Distributed Architecture Combat System, which contains over one million source lines of newly developed computer code. This software development is occurring in conjunction with electronic system hardware development and integration. The Australian Distributed Architecture Combat System processes and displays radar, sonar and electronic support system data, assisted by a new Australian developed Radar Integrated Automatic Detection and Tracking system.

Major Challenges

The majority of the high risk development and integration of software products have been addressed and have either been retired or are being managed. The majority of the contractual requirements for the electronic support and Underwater Warfare Systems have been met. DMO is working collaboratively with Navy and Thales Australia to deliver an Electronic Support and Underwater Warfare Systems that will meet the requirements of Navy's operations needs.

Current Status

Cost Performance

Project cost estimate remains within the current approved Project budget.

Schedule Performance

The Prime Contractor has continued to perform to the revised schedule approved in June 2006.

Capability Performance

All four FFGs have now received their upgraded equipment. Since Provisional Acceptance, HMA Ships Sydney, Melbourne and Darwin have been in operation with Navy. Contractual acceptance of HMAS Sydney and Darwin and upgraded software was achieved in November 2008 in accordance with the provisions of a Deed of Amendment. The requirements of the Deed were met and Contractual Acceptance of FFG Upgraded Software was achieved in May 2009 following closure of open software problem reports. Contractual Acceptance of HMAS Melbourne was achieved in December 2008. HMAS Newcastle, the last FFG to enter the program, achieved Provisional Acceptance by the DMO and was handed back to Navy in May 2009.

Tactical Data Information Link, LINK 16 functionality testing was achieved in August 08 and assessed suitable for operational use under waiver. The first 'live' LINK 16 Data Link to be established by a RAN unit was achieved in January 2009 between HMAS Melbourne and various US Navy units.

A three phased 'incremental' approach for Initial Operational Release and Operational Release has been agreed by the DMO and Navy as the most pragmatic means by which to bring the FFG class to full operational employment. The first of these phases was achieved in April 2009 and all phases are planned to be achieved by December 2009 by which time full Initial Operational Release by Navy for the FFG Class as well as final Contractual Acceptance from Thales is expected to occur