Project | Explanation |
Description | The $894 million JP2008 Phase 4 project seeks to deliver high priority components of the next generation (NEXTGEN) satellite communication (SATCOM) system that will support the Australian Defence Force (ADF) from 2008 onwards. The NEXTGEN SATCOM system will introduce a flexible and sustainable SATCOM capability that supports a network centric ADF operating independently or as part of a coalition. |
Background | In 2007 the Australian Government considered a range of options to deliver a wideband satellite communications capability for the ADF. One of the options considered was the Wideband Global Satellite (WGS) partnership with the US Government. The US had an approved program for a five wideband satellite constellation, and in early 2007 offered the Commonwealth the opportunity of partnering in the program on the basis that the Commonwealth would fund the production of a sixth WGS satellite in return for a share of the services provided by the expanded constellation of six WSG Satellites (which is approximately 10% of the overall program). |
| Partnering with the US Government on the WGS program was approved as providing the |
| best value for money option to meet the capability requirement. Negotiations of the WGS Memorandum of Understanding (MOU) between the Commonwealth and the US Government began in March 2007, and in September 2007 the JP2008 Phase 4 project received combined First and Second Pass Government Approval for the procurement of the ADF's NEXTGEN SATCOM capability. |
| The first WGS satellite (WGS 1), with a footprint over the Pacific Ocean and Australia, has been operational since early 2008, with progressive launches culminating with the sixth satellite (WGS 6) becoming operational in 2013. |
| Outside the MOU, the project is delivering interim anchoring capability to provide access to the WGS satellite constellation from the Australian Eastern and Western Seaboard. This will be achieved through the delivery of ground stations at Geraldton in Western Australia and HMAS Harman in the ACT. These ground stations are first of type for Australia. Complimenting the onshore anchoring capability is an offshore anchoring capability that is now operational in Hawaii and Germany. |
| The project is also managing the provision of training of ADF personnel to operate the WGS system through a Foreign Military Sales (FMS) Case with the US Government. This will ensure that adequate numbers of ADF personnel can effectively operate the WGS system as part of the integrated US Wideband Satellite Communications Operations Centres (WSOC). |
| The user community is very enthusiastic and motivated to use the WGS system as it is the only military delivered service supporting the ADF's Middle East Area of Operations (MEAO). As additional satellites are launched and the indigenous anchoring capability is rolled out, the use of the system will expand through the use of a range of ADF platforms that will become operational over the coming years. |
Uniqueness | The uniqueness of this project in the main relates to the acquisition strategy that governs the ADF's access to this satellite communications technology. The WGS space segment component of the project will be delivered by the Commonwealth's participation in the US WGS program under a dependable undertaking. Under this arrangement the US Government will manage the contract with Boeing for all satellite production including WGS 6, which will be funded by Australia. The acquisition of the WGS constellation is governed by two contracts, Block I for satellites WGS 1, WGS2 and WGS 3, and Block II for satellites WGS 4, WGS 5 and WGS 6. |
| The steady-state provision of services will occur once WGS 6 is operational under the existing MOU. |
| The MOU agreement between the Commonwealth and US Government invokes the 'Exchange of Notes constituting an Agreement between the Government of the United States of America and the Government of Australia Concerning Certain Mutual Defence Commitments' (known as the Chapeau Defence Agreement) concerning liability and use and disclosure of information. |
Major Challenges | A major challenge of this program is the execution of the program under a dependable undertaking where the US Government is the prime contractor. Under the terms of the MOU, DMO has no legal relationship with the satellite provider (Boeing), and receives only limited insight into the program constrained by pre-existing commercial terms within the MOU and International Traffic in Arms Regulations (ITAR). |
| Although the agreement with the US Government is through a joint production operations and support MOU, none of the WGS satellites and associated supplies will be owned by the Commonwealth. Nevertheless, benefits of this capability are realised through access to a six satellite constellation and the embedding of ADF personnel within the WSOC, which in effect allows the ADF to gain further WGS operational knowledge and realise the full capability potential of the WGS system. |
| Other challenges relate to the equitability regime that underpins the MOU. In this context the project is exposed to a share of the risks and rewards of the program. The capability advantages are underpinned by early satellite access and worldwide global coverage. The risk regime requires the Commonwealth to share the risk of satellite failures and schedule overruns. |
| To control risk exposure the Commonwealth negotiated into the MOU a financial ceiling cap which is designed to ensure the Commonwealth isn't exposed to cost increases above the cost ceiling. |
| To manage the technical and commercial complexities of the WGS program, a number of important management forums have been established to ensure the Commonwealth has a sufficient level of insight into the WGS program. The most important of these being the biannual Program Status Review and a 1 Star Steering Group that meets each year to provide governance over the partnership. The management framework is operating effectively and the partnership is successfully working as an integrated project team. |
| Considerable acceleration of the standard acquisition cycle has meant the project continues to refine project management documentation, relevant to the nature of the agreements governing project execution. |
Current Status | Cost Performance Current indications, based on recent real-time progress and achievement data from the US Government, show that the Project will be completed within the approved budget. |
| Schedule Performance No change is anticipated to the Project Completion Date. The milestones achieved so far include. WGS Service Initial Operational Capability (IOC); Interim Anchor Capability IOC (backhaul); and establish WGS Training for ADF personnel. Interim Anchor Capability FOC (Backhaul & Aust IA Station(s)) is fifteen months behind schedule. |
| Capability Performance The first two satellites are now operational and both have exceeded their operational requirements. Australia used US infrastructure from June 2008 via the Simpson Trunk (undersea cables) to gain access to the first WGS satellites. This capability was augmented incrementally through the placement of Australian equipment in US satellite anchor stations (offshore anchoring) situated in Hawaii and Landstuhl (Germany) to support increase levels of capability. The mature offshore anchoring capability was set to work October 2009. |