Project

Explanation

Description

The $2,879.2 million LAND 121 (Overlander) Phase 3 project will replace the current fleet of Australian Defence Force (ADF) field vehicles and trailers. These vehicles will enhance the ground mobility of the ADF through the provision of Field Vehicles, Modules and Trailers (FVM&T).

A total of up to 3,895 vehicles, 2,888 trailers and 4,976 modules will be acquired, including;

•  Light/Lightweight (LLC): 1,200 unprotected vehicles, 315 modules, 973 trailers and six prototype trailers (currently in contract).

•  Medium/Heavy (MHC): The current formal Basis of Provisioning (BOP) seeks to acquire up to a total of 2,695 Vehicles (1,506 protected vehicles and 1,189 unprotected vehicles), 4,661 modules (1,785 modules and 2,876 flatracks) and 1,915 trailers.

Background

The Overlander Project is a multi-phased Project that will provide the ADF with the FVM&T and associated support it requires beyond the life of type of the current assets in order to meet ADF mobility requirements. Phase 3 will acquire and support a new range of Military- Off-The-Shelf (MOTS) vehicles, trailers and integrated modules to replace the ADF's current FVM&T capability. In Australia and in operational theatres FVM&T fleets are used on a dayto- day basis to perform a range of roles including logistic distribution, command and liaison, casualty evacuation, troop lift, and the provision of mobility to specialist assets such as command shelters and communications terminals.

Support contracts will be established with each original equipment manufacturer (OEM) to ensure support to the FVM&T throughout their service life (supports contracts have a term of 15 years, with two 7-year options for extension). Support services covered by the support contracts include: Configuration Management, Engineering Support, Maintenance Support, Supply Support, and Quality Management.

Overlander represents the Army's largest capital program and will be of significant interest to Government and Industry. Although the Australian Regular Army (ARA) is the principal operator and beneficiary of the capability, the Royal Australian Air Force (RAAF) will also benefit from the new ground mobility.

The ADF's existing FVM&T fleets has assets of some 7,300 vehicles and 3,700 trailers acquired progressively between 1959 and 1994. By 2008, 98% of the current assets had exceeded life of type and are increasingly costly to maintain, repair and operate. Furthermore, heavy operational usage since 1999 has increased the challenge of sustaining an aging fleet. The new FVM&T fleet is expected to reduce whole of life costs and rationalise vehicle types and numbers.

A contract was signed with Mercedes Benz Australia Pacific in October 2008 for the provision of 1,200 Light/Lightweight (LLC) vehicles and 315 Modules.

In April 2010 a contract was signed with Haulmark Trailers for the provision of 973 LLC trailers (plus six prototypes trailers) as part of the total Phase 3 requirement of approximately 2,888 trailers.

In October 2007, BAE Systems was announced as the preferred tenderer to proceed to Offer Definition Refinement Process (ODRP) for the Medium Heavy Capability (MHC) requirement. ODRP identified an increased level of technical, cost and schedule risk and gave rise to significant concerns with BAES' capacity to deliver against their tendered offer. Combined with probity concerns arising from additional vehicle and module requirements, the program determined to exercise its discretion under the conditions of tender and invite all initial tenderers back into the evaluation process, and initiate a tender resubmission process. The MHC resubmissions tender process comprises of three stages. The first stage released an amended Conditions of Tender in December 2008, and comprised vehicle Comparative Evaluation Testing (CET) against a key requirement matrix and a limited desktop analysis to inform the down selection of tenderers to proceed to Stages 2. In February 2010 MAN Military Vehicles Systems Australia, Mercedes-Benz Australia/Pacific and Thales Australia were announced as the down selected tenderers to proceed to Stage 2 of the resubmission process. Stage 2 of the resubmission process commenced with release of the amended RFT to the three down selected tenderers in May 2010. The tender closes August 2010 and tender evaluations are planned to be completed by the end of 2010. Contract negotiations with the preferred tenderer are planned to begin early 2011. Final MHC vehicle and trailer numbers are dynamic and will depend on the final negotiated contract prices.

Uniqueness

Overlander is to roll-out the FVM&T capability to multiple locations throughout Australia and on operational service overseas. This presents a unique logistic challenge to have in place a robust Support System that will achieve stated availability requirements at a reduced life cycle cost (LCC).

Major Challenges

Challenges for LLC include the integration of the new generation Command, Control, Communication, Computer and Intelligence (C4I) systems into production vehicles and modules.

Challenges for MHC vehicles during the acquisition process include evolving protection requirement changes resulting from operational lessons; and affordability of capability within a capped budget project.

Current Status

This was a Project of Concern in 2009-10 (Medium Heavy Capability only).

Cost Performance

As at 30 June 2010 the LLC project achieved expenditure in accordance with the forecast plan.

Schedule Performance

The LLC project is on schedule to deliver against its MAA milestone date of December 2011 for First Delivery to Units, which is defined as the delivery and acceptance of a Land 121 Phase 3 Production Vehicle to a Land Command Unit. In LLC, eleven prototypes were delivered in early February 2010.

Introduction into Service Date (ISD) for the MHC vehicles and remaining trailers will be subject to contract negotiations. As at 30 June 2010, the planned date for entry into the MHC contract is November 2011.

Capability Performance

The first production batch of G-Wagons for LLC remains on schedule. The need to retrofit C4I onto selected vehicles is being actively addressed through engagement with the Contractor. There are no current capability issues for the LLC trailers.

The BOP affordability will have an effect on the final MHC component, with DMO looking to constrain cost by maximising off-the-shelf solutions for Vehicles and Modules.