Project

Explanation

Description

The $535 million Sea 1444 Phase 1 project is to deliver 14 Armidale class patrol boats (ACPB) and provide 15 years in-service support. In addition the project is providing funding to DSG to deliver patrol boat facilities at Cairns and Darwin.

The new patrol boats will improve the Navy's capability to intercept and apprehend vessels suspected of illegal fishing, quarantine, customs or immigration offences.

Background

In June 2001 Government required Defence to analyse private finance and direct purchase options and to recommend a preferred procurement strategy. Defence requested tenders for private finance and/or direct purchase. After Government approval of the preferred acquisition strategy, Stage 1 short-listing occurred, then a Stage 2 Request For Tender was released to the short-listed companies.

In June 2002 after the Stage 1 bids from nine tenderers were evaluated, Government decided not to proceed with private financing as there was no clear financial advantage in pursuing that option.

The Stage 2 Request For Tender for direct purchase closed in November 2002 and in August 2003 the Minister for Defence announced the preferred tenderer as Defence Maritime Services (DMS). In December 2003 Defence signed a contract with DMS for the supply and support of 12 ACPB. The scheduled delivery for the vessels was to be from May 2005 to June 2007.

In May 2005 additional funding was provided for an additional two vessels to be acquired under Project Sea 1444, to operate as part of the Government's Securing the North West Shelf policy.

All 14 vessels have been delivered, achieved IOC and commissioned into the Navy, with the 14th vessel achieving Initial Operational Release in November 2007 and commissioned in February 2008.

Uniqueness

The contractor had to propose the number of vessels required to meet the operational requirements and their maintenance obligations. In the original tender, 12 vessels was the minimum that could be supplied to meet the proposed requirement. This approach also involved Navy moving to a multi-crewing (per vessel) philosophy.

Also, following Government direction (equivalent to first pass) the acquisition strategy considered both private finance and ownership models for the acquisition of the required capability. This strategy meant that with either model DMO contracted for the acquisition and support of the fleet in one single contract rather than the traditional acquisition model followed by a separate support contract.

Major Challenges

Fuel system. The problem of water contamination causing fuel pump failures has been resolved. Water separability of the fuel onboard is only a problem if the fuel system is not operated in an alternative mode. Trials continue on a modified fuel separator system.

Sea-boat davit hydraulics. Hydraulic piping modifications have not been entirely successful and further design changes, probably to the hydraulic pumps and motors, will be necessary to achieve the desired sea-boat davit performance. Austal is currently redesigning the power pack to meet contractual specifications.

Current Status

Cost Performance

Project remains within budget.

Schedule Performance

Progress continues towards achievement of FOC, which remains dependent on rectification of outstanding build defects.

Capability Performance

All vessels continue to meet the Navy's operational requirements. The Systems Program Office continues to close extant issues, moving towards achieving Operational Release of the first vessel in the Class by the end of 2009 and the final vessel by the end of 2011. Closure of the acquisition phase of the project is delayed accordingly until 2012.