Project

Explanation

Description

The $663 million JP2043 Phase 3A project provides for the procurement of a Modernised High Frequency Communications System for Defence long-range communications. The Fixed Network component comprises four High Frequency stations, one station in each of the Riverina (New South Wales), Townsville (Queensland), Darwin (Northern Territory) and North West Cape (Western Australia) areas together with primary and backup Network Management Facilities in Canberra. The project will also provide upgrades to selected Australian Defence Force (ADF) sea, land and air mobile platforms to make them compatible with the top-level capabilities of the modernised network.

The Fixed Network capability will be provided in two major stages. The first stage (the Core System) replaced the existing Navy and Air Force High Frequency networks and is now supporting ADF operations. The second stage of the Fixed Network capability (the Final System) will provide increased automation and enhanced functionality and is still undergoing development.

Background

Defence Communications Corporate Plan of May 1991 directed that existing ADF High Frequency networks be rationalised and modernised. Satellite communications is now the primary system for high and medium data rate communication with mobile ADF platforms (Mobiles) such as ships, aircraft and vehicles, however High Frequency provides a secure alternative means of long range communications for Satellite communications fitted platforms and a primary long-range communication capability for platforms not Satellite communications fitted. The High Frequency Modernisation Project was established in May 1993 and originally envisaged four implementation phases:

•  Phase 1 (completed 1994) - a preparatory phase including a Network Definition Study to determine the basic requirement and an Invitation to Register Interest process;

•  Phase 2 (completed 1996) - a more detailed definition phase involving parallel Project Definition Studies undertaken by short-listed Phase 1 companies following a Request for Proposal process;

•  Phase 3A (commenced 1997) - an implementation phase involving selection of the Prime Contractor through a restricted Request for Tender process, provision of a modernised High Frequency communication network and its follow-on support, and High Frequency upgrades to an initial range of Mobiles; and

•  Phase 3B (cancelled 1999) - an implementation Phase involving High Frequency upgrades to selected remaining Mobiles.

The Phase 3A Prime Contract was signed in December 1997 with Boeing Australia (now Boeing Defence Australia). It is variable price, initially comprising 40 per cent milestone payments and 60 per cent earned value payments. This was subsequently amended to milestone payments only, after substantial delays to progress were experienced by the Contractor. A Network Operation Support Contract with Boeing Australia was executed at the same time as the Prime Contract, to take effect from Final Acceptance of Prime Contract deliverables.

The Prime Contract has undergone several major amendments and currently provides for the implementation in two stages:

•  a Core System (accepted October 2004), to provide an upgraded Fixed Network having a capability no less than that provided by the networks being replaced; and

•  a Final System (accepted April 2010) including enhanced features for the upgraded Fixed Network and a Mobiles Upgrade component.

Project approval provides for 87 platforms to be upgraded. The Prime Contract was originally scoped for First-of-Type installations and Upgrade Modification Kits for a total of 56 Platforms. However, amendments made in 2004 reduced the Contract scope to a single First-of-Type Upgrade (CH47 Chinook helicopter), five High Frequency Upgrade Kits for follow-on Chinook installations, plus two Generic High Frequency Upgrade Systems. The Generic Systems will be used to demonstrate functional performance and to verify the suitability of System software and hardware components for platform use prior to implementation of Mobiles upgrades.

The Mobiles within approved project scope are listed below.

Platform Type

Qty

CH47 Chinook

6

Black Hawk

35

Mine Hunter Coastal

6

Armidale Class Patrol Boats

14

Hydrographic Ships

2

Army Land Strategic High Frequency

14

RAAF No. 1 Combat Communications Squadron

4

Defence Force School of Signals Watsonia (Simpson Barracks)

2

Defence Force School of Signals (Cerberus)

1

Deployable Mine Countermeasures & Clearance Diving Headquarters

3

Total:

87

The Australian National Audit Office carried out a performance audit of the project in 2007. Audit Report No. 34 2006-2007 was tabled in Parliament in May 2007.

Uniqueness

The High Frequency Modernisation Project is a complex software intensive and high risk project involving geographically diverse sites at five major locations across Australia. Implementation of the Fixed Network has involved civil infrastructure development, electrical power generation and transmission, telecommunications infrastructure extension, communications system hardware and antenna installation. It has involved the engineering disciplines of systems engineering, software development, system design and integration, system test and evaluation. It also includes an extensive program to develop, install and integrate upgraded capabilities on selected Mobiles.

Because of the complex nature of the project, provision was made in the contract for the use of, what was at the time, relatively new methodology of Integrated Product Development Teams which included Contractor and Commonwealth personnel. These were included for project insight and to reduce risk particularly in the important areas of requirements clarification, systems engineering and acceptance, test and evaluation. While not as effective as originally expected the use of these teams did achieve moderate success.

The System being provided is designed to be one of the most advanced of its type in the world. It incorporates capabilities leading those in similar High Frequency communications systems in the United States and the United Kingdom.

Major Challenges

The project has suffered implementation delays but that part of the new communication system which replaced the legacy systems previously operated by the Navy and Air Force (the Core System) commenced operational service in 2004. This Core System was upgraded to the fixed network Final System, which commenced operational service in October 2009. The project is now focused on the Mobiles upgrades.

The capacity to utilise the additional functionality provided by the Final System immediately following Final Acceptance will be limited by the status of the Mobiles Upgrade program.

Platform availability will be an issue for all Mobiles upgrades. The upgrade schedules need to be coordinated with the maintenance schedules and operational requirements of the platforms. Other risk factors related to Mobiles upgrades include the task of integrating High Frequency upgrade equipment with existing communications systems of varying levels of maturity and sophistication, and of accommodating the new equipment within the spaces available. Development of radio specific software drivers to provide operational compatibility with the modernised High frequency System will also be required.

Current Status

This was a Project of Concern in 2009-10

Cost Performance

The project is tracking within its approved budget. Some payments to the contractor had been withheld as a result of failure to meet contracted schedule milestones. Since April 2009 the contractor has achieved all major contracted milestones and has received payment against this achievement.

Schedule Performance

The Core System was accepted in October 2004 and achieved Initial Operational Release (IOR) in November 2004, replacing all Defence legacy High Frequency Systems (with the last legacy site closed in November 2005).

The delivery schedule for the Final System, including the single upgraded Chinook, was rebaselined following the execution of a Deed of Settlement and Release in February 2004 and a Deed of Agreement in May 2005.

Boeing Defence Australia experienced delay in the delivery of the Final System capability and failed to meet a significant delivery milestone in October 2007. Subsequently the Commonwealth agreed to negotiate with Boeing Defence Australia on the basis of granting schedule relief in return for receiving appropriate compensation. Negotiations commenced in February 2008 and ended in June 2008 with the parties failing to reach agreement on an acceptable overall compensation package.

Following technical and schedule reviews that occurred between July and September 2008, the Commonwealth and Boeing Defence Australia agreed to recommence negotiations in October 2008. Negotiations were conducted at the senior executive level and resulted in a Deed of Settlement, Release and Amendment being signed in April 2009. This Deed provided for agreement to a revised schedule to contract completion as well as resolution of various contractual issues. 

Since signature of the Deed of Settlement, Release and Amendment in April 2009, Boeing Defence Australia has achieved progress ahead of the revised schedule and has met all remaining major contractual milestones. Successful completion of Introduction Into Service activities in October 2009 moved operations from the Core System level of capability to the Final System level of capability, and provided the second Network Management Facility at HMAS Harman ACT. The Network Management Facility at Russell ACT has subsequently been upgraded to Final System standard and provides a backup capability. Achievement of this milestone triggered the commencement of the Network Operation Support Contract, transferring operations and maintenance of the system from the acquisition contract to the sustainment contract.

Previous delays have impacted on the upgrade schedule for the Mobiles not yet in contract as the Mobiles upgrades will be based on products and design material developed under the Prime Contract with Boeing Defence Australia. These delays, together with platform availability problems, mean that the Mobiles program may extend to 2016.

Capability Performance

The Final System is now providing a reliable service in support of operational ADF platforms, generally meeting or exceeding the specified availability. Compared to the replaced Navy and Air Force High Frequency Communication Systems, the Final System provides:

■  greater automation;

■  improved frequency management;

■  joint communications planning tools;

■  improved area of coverage;

■  automated non-secure phone patches;

■  secure phone patches;

■  centralised management & control;

■  reduced operations and maintenance staff;

■  automated distress voice monitoring;

■  automated email;

■  automated fax; and

■  auto-replicating dual Network Management and Urgent Voice Monitoring facilities.

Operators and maintenance personnel report a good degree of satisfaction with the Final System. With the roll out of a later software build, several minor performance issues raised during the introduction into service activities have now been remedied and the system stability has improved significantly.

The impact of the delays on the mobile platform upgrades is being addressed with Capability Development Group and the Services. This will lead to changes to the Mobiles Upgrade programs. Issues that need to be addressed include remaining Life of Type of in-scope platforms and the current need for either a full or partial modernised high frequency communications capability upgrade.