Project

Explanation

Description

The $931 million Land 116 Phase 3 project is to deliver 737 vehicles in seven variants; troop, command, mortar, assault pioneer, direct fire weapon, air defence and ambulance as well as up to 184 trailers. These vehicles will provide protected land mobility to Army units and Royal Australian Air Force Airfield Defence Guards. In addition to the acquisition of the vehicles through the Approved Major Capability Investment Program, a number of enhancements are being made to the vehicles through the Rapid Acquisition process. These enhancements do not form part of the Project Land 116 Phase 3, but do impinge upon the project

Background

The Bushranger Project is being conducted in three phases:

Phase 1 involved the motorisation of the infantry battalions of 6 Brigade, with 268 interim infantry mobility vehicles, based on the in-service Land Rover PERENTIE 4x4 and 6x6 vehicles and the procurement of an additional 25 support vehicles.

Phase 2 consisted of Phase 2A the development of the infantry mobility vehicle specification and the release of an Invitation to Register Interest and Phase 2B the release of a Request for Tender and the trialling and evaluation of successful contender vehicles.

Phase 3 is the full rate production of the protected vehicles. The Production Contract Option was executed on 1 June 1999 with Australian Defence Industries for the supply of 370 Bushmaster vehicles by December 2002. A range of problems emerged with design enhancements, cost, and schedule slippage in the contract, shortly after the Production Option was exercised, leading to renegotiation of the Contract in July 2002 for 299 vehicles. This phase has been divided into three separate production periods that reflects the increase over time in the quantity of vehicles being acquired. The Production Periods are as follows:

Production Period One (PP1): During this period 300 vehicles in six variants were acquired; troop, command, mortar, assault pioneer, direct fire weapon and ambulance. This period reflects the final position of the original protected mobility requirement.

Defence had contracted for 299 vehicles; however, it then sold 25 vehicles back to Thales for sale to the Netherlands and received 26 vehicles from Thales as consideration.

Production Period Two (PP2): During this period 144 vehicles were acquired in five variants consisting of; troop, command, mortar, direct fire weapon and ambulance. This period reflected the change to the Army's structure under the Enhanced Land Force Phase 1. Defence had contracted for 143 vehicles; however, it then allowed Thales to divert 24 vehicles from the production line for sale to the United Kingdom, thereby delaying delivery to Defence. Defence received one additional vehicle from Thales as consideration.

Production Period Three (PP3): Currently in progress, this is the acquisition of an additional 293 vehicles to meet the Medium Protected Mobility vehicle component of Land 121 Phase 3 Project Overlander. This will include all six variants and an air defence variant. In addition purpose designed Bushmaster trailers will also be acquired.

As a result of operational experience a number of enhancements are being made to the Bushmaster vehicle to enhance crew survivability. This includes 116 Protected Weapon Stations, 116 Automatic Fire Suppression Systems and 116 purpose-design Spall Curtains which are being progressively fitted to vehicles under a Rapid Acquisition. These additional items are being acquired through Thales using the acquisition contract but are not part of Land 116 Phase 3.

In December 2007 the Chief of Army redesignated the Bushmaster Infantry Mobility Vehicle as the Bushmaster Protected Mobility Vehicle.

This report relates to Land 116 Phase 3 only

Uniqueness

The Bushmaster Protected Mobility Vehicle has been developed and built in Australia by Thales to meet a niche requirement of Australian forces.

Major Challenges

In 2008/09 challenges for the project included the negotiations with Thales for the procurement of additional vehicles for the PP3 requirement, and the subsequent contract amendment. This challenge was overcome collectively by the Project Office working with Thales.

The obsolescence of the in-service communications harness and the identification of a replacement became an issue impacting on the rollout of vehicles to Army.

It is expected that Operational Deployments will continue to have an impact on enhancements to vehicles in 2009/10. Challenges will include the integration of new requirements into the PP3 vehicles (i.e. Automatic Fire Suppression System and enhanced Protection).

Current Status

Cost Performance

As at 30 June 2009 the project achieved expenditure in accordance with the forecast plan. The project scope will be achieved within the approved budget.

Schedule Performance

The project is on schedule with all 144 PP2 vehicles delivered. Negotiations for the acquisition of additional Bushmaster vehicles to meet the PP3 requirement were completed in August 08 and 41 vehicles have been delivered. The Request for Tender for the procurement of Protected Mobility Vehicle compatible trailers was issued in December 2008 and closed in May 2009. Tender evaluation is currently being conducted.

Capability Performance

All variants are meeting their required specifications. The specifications for the Air Defence variant have been finalised. As a result of operational experience all vehicles are in the process of being enhanced to incorporate additional safety and protection measures such as Automatic Fire Suppression System.