Project

Explanation

Description

The $3,755 million Multi-Role Helicopter (MRH) Program is a key component of the Australian Defence Force (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 Australian Army's fleet of 34 S-70A-9 Black Hawk helicopters, again for troop lift capability, and Phase 6 as the replacement of the Royal Australian Navy's fleet of six Sea King helicopters, 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 with Australian Aerospace in June 2005 with the subsequent Sustainment and Program Agreement contracts signed in July 2005.

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 Simulators was signed with CAE Australia in December 2007. Sustainment of the Full Flight and Mission Simulators 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 to be developed during 2010. 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, and the 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.

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 French Military Airworthiness Authority, Direction Générale de l'Armament (DGA), prior acceptance of the NH90 variants and certification recommendation for the MRH90. The DGA and other National Qualification Organisations' prior acceptance of European NH90s provides confidence in the MRH90 platform for the ADF to leverage off common certification evidence

Major Challenges

Insufficient Flying Rate of Effort. Since In-Service Date (ISD) (December 2007), the reliability of some MRH90 systems has been sub-optimal. Flying rate of effort has been significantly reduced as a result of varying aircraft systems' unserviceability. The low rate of effort has impacted the training of MRH90 aircrew and some of the planned test and system validation activities. Key contractual and capability milestones have been impacted by the reduced Flying Rate of Effort.

Aircraft System Maturity. Aircraft system immaturity has affected the certification schedule of the MRH90. Aircraft are being delivered in progressive capability configurations as systems are matured and options introduced in the Phase 4/6 contract change, are certified for use in the aircraft. Several aircraft components, including the cabin floor panels and windscreens will require product improvement to meet the contracted capability outcomes.

Engine failure. A failure of an engine on an in-service MRH90 occurred in flight on 20 April 2010. MRH90 flying operations were temporarily suspended pending the outcome of an investigation into the cause of the failure. This suspension in flying has interrupted testing and aircrew training activities. The suspension remained in place at 30 Jun 10; however, the Industry and Defence investigation was nearing completion with an expectation that flying operations would recommence shortly into the new financial year.

Aircrew Information Set. The current version of the NH90 common Aircrew Information Set has been assessed as unsuitable for Australian operations. The MRH Project Office is exploring options with Industry for the development and provision of a dedicated Australian Flight Manual and Flight Crew Checklist. These dedicated documents are intended to be interim documents only as the DMO will continue to work with Industry to bring the common Flight Manual and Flight Crew Checklist to a standard suitable for Australian operations. A key aim of the MRH System is to maintain commonality with the general NH90 program as far as is practicable.

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

Major contract milestones remain on schedule and the project remains on schedule to deliver the final aircraft in mid-2014. However, as discussed above, the lower than expected flying rate has delayed some testing and aircrew training activities which has led to the Navy Initial Operational Capability (IOC) and the Army IOC milestones being delayed by approximately 12-18 months to June 2011 and October 2012 respectively.

To date, eleven MRH90 helicopters have been accepted by the DMO and are operating with Army's 5th Aviation Regiment in Townsville. These first eleven 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 the second half of 2010.

Capability Performance

Following achievement of ISD (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 since ISD. This poor flying rate has delayed aircraft system development and training. These issues are generally common with the entire NH90 fleet and are being addressed, and are unlikely to affect the Final Operational Capability.