Project

Explanation

Description

The $926 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 (RAAF) 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 and External Composite Armour 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 Protected Weapon Stations, Automatic Fire Suppression Systems and purpose-design Spall Curtains which are being progressively fitted to vehicles under a Rapid Acquisition Framework. These are funded outside 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

A major challenge for the project has been the acquisition and installation of the Signal Onboard Two-Wire Audio System internet protocol (SOTASip) communications harness, a replacement for the current obsolescent in-service harness. This is primarily due to the contractor experiencing difficulties in meeting the Commonwealth's specified requirements. Resolution of outstanding issues is expected late 2010. To date, delays are impacting on the project achieving Final Operational Capability for PP1 (Ambulance Variant only) and PP2 vehicles.

In addition, managing the integration and configuration of the baseline vehicle while incorporating upgrades to meet current operational threats will continue to be a challenge.

Current Status

Cost Performance

The project remains within approved budget. Some SOTASip payments to the

contractor have been rescheduled as a result of delays.

Schedule Performance

All PP1 and PP2 vehicle deliveries are now complete; however FOC has not been achieved due to delays in introducing the SOTASip communications harness into service. The project has delivered 136 PP3 vehicles at 30 June 2010.

Capability Performance

All variants are meeting their required specifications. The specifications for the Air Defence variant have been finalised, and the contractor is now producing a prototype.

The project is currently working with Thales in relation to the development of an External Composite Armour solution for approximately 160 PP3 vehicles.

The PMV Trailer tender response from Thales on 22 May 09 was evaluated and deemed non-compliant and not value for money. The project is currently determining the most appropriate way forward to achieve the trailer capability.