Project

Explanation

Description

The $537 million Sea 1444 Phase 1 project is to deliver 14 Armidale class patrol boats (ACPB) and provide 15 years in-service support. In addition the project is providing funding to DSG to deliver patrol boat facilities at Cairns and Darwin.

The new patrol boats will improve the Navy's capability to intercept and apprehend vessels suspected of illegal fishing, quarantine, customs or immigration offences and will provide 3500 days availability with the scope to surge up to 600 days per annum.

Background

In June 2001 Government required Defence to analyse private finance and direct purchase options and to recommend a preferred procurement strategy. Defence requested tenders for private finance and/or direct purchase. After Government approval of the preferred acquisition strategy, Stage 1 short-listing occurred, then a Stage 2 Request For Tender was released to the short-listed companies.

In June 2002 after the Stage 1 bids from nine tenderers were evaluated, Government decided not to proceed with private financing as there was no clear financial advantage in pursuing that option.

The Stage 2 Request For Tender for direct purchase closed in November 2002 and in August 2003 the Minister for Defence announced the preferred tenderer as Defence Maritime Services (DMS). In December 2003 Defence signed a contract with DMS for the supply and support of 12 ACPB. The scheduled delivery for the vessels was to be from May 2005 to June 2007.

In May 2005 further funding was provided for an additional two vessels to be acquired under Project Sea 1444, to operate as part of the Government's Securing the North West Shelf policy.

All 14 vessels have been delivered and achieved Initial Operational Release (IOR) and commissioned into the Navy. The last vessel achieved IOR in November 2007 and commissioned in February 2008.

Uniqueness

The contractor had to propose the number of vessels required to meet the operational requirements and their maintenance obligations. In the original tender, 12 vessels was the minimum that could be supplied to meet the proposed requirement. This approach also involved Navy moving to a multi-crewing philosophy for the ACPB fleet.

Also, following Government direction (equivalent to first pass) the acquisition strategy considered both private finance and ownership models for the acquisition of the required capability. This strategy meant that with either model DMO contracted for the acquisition and support of the fleet in one single contract rather than the traditional acquisition model followed by a separate support contract.

Major Challenges

ACPB Rectification Program. A rectification program was instigated with the prime contractor in July 2009 to bring all vessels to the product baseline as represented by HMAS GLENELG by December 2011. This program will enable the achievement of Final Operational Capability (FOC) for the class early 2012. HMA Ships MARYBOROUGH, CHILDERS and ARMIDALE have completed their rectification work as scheduled.

Fuel system. The problem of water contamination causing fuel pump failures and fuel cloudiness has been resolved through a series of design changes and changes to operating procedures. Modified fuel oil purifier sets have been successfully trialled and will now be fitted across the Class.

Sea-boat davit hydraulics. Initial test results on the sea-boat davits indicated that hydraulic piping modifications and upgrades to the hydraulic power packs have been successful in delivering a system that meets the contracted performance. Trials on the fully modified vessel to prove that the system delivers an acceptable capability should be completed late 2010.

Austere Accommodation Compartment. As a result of successful trials following modifications to the exhaust stacks and the black and grey water system and the installation of gas sensors in the Austere Accommodation Compartment (AAC), the Navy has lifted the restrictions on the use of the compartment (on the modified vessels) for appropriately trained Defence personnel.

Sewerage Treatment Plant. A repeat of the First of Class Sewage Treatment Plant (STP) trial indicated that there was no evidence of Hydrogen Sulphide (H2S) generation affecting the AAC but found environmental concerns related to overboard discharge quality not meeting the latest IMO, MEPC targets. These concerns are being investigated by the prime contractor. This does not impact the safety of the STP or sewage system in relation to the production of H2S or other toxic gases.

Current Status

Cost Performance

Project remains within budget.

Schedule Performance

Progress continues towards achievement of FOC, which remains dependent on rectification of outstanding build defects.

Capability Performance

All vessels continue to meet the Navy's operational requirements. The Patrol Boat Systems Program Office continues to close extant issues. HMAS GLENELG, representing the ACPB capability, achieved Operational Release (OR) on 19 May 2010. The final vessel will achieve OR after the completion of the rectification work at the end of 2011. Closure of the acquisition phase of the project will commence after FOC is achieved in March 2012.