1.2 Project Context

Project	Explanation
Description	The Anti-Ship Missile Defence (ASMD) upgrade SEA1448 Phase 2 project will provide the ANZAC Class Frigates with an enhanced level of self defence against modern anti-ship missiles. There are two sub-phases of SEA1448 Phase 2. Phase 2A of the ASMD Project, with an approved budget of $377 million, will upgrade all eight of the ANZAC Class Ship's existing ANZAC Class Combat Management Systems (CMS) and fire control systems, and install an Infra-Red Search and Track (IRST) System which will provide improved detection of low level aircraft and anti-ship missiles when the ship is close to land.
Background	The need for an Anti-Ship Missile Defence (ASMD) capability in the Royal Australian Navy's (RAN) surface fleet was first foreshadowed in the 2000 Defence White Paper.
	SEA 1448 Phase 2A is the initial phase of the ANZAC ASMD Program, performed by the ANZAC Alliance (Commonwealth plus BAE Systems (previously Tenix) and Saab Systems), to provide ship systems capable of integrating missile defence systems.
	Phase 2A was approved by Government in November 2003 for $475m (December 2003 prices). This included an element for the Very Short Range Air Defence System (VSRAD) (two per ship) of $155.5m, which was quarantined pending the outcome of investigations into an active phased array radar system (referred to as CEAFAR) and its Sea trials conducted in 2004.
	A Capability Options Document (COD) was approved in October 2004 as a precursor to Phase 2B second pass approval. This document assessed the relative capabilities offered by various combinations of sensors and systems against agreed ASMD threats, and concluded that there was a significant capability advantage with a phased array radar based solution over the VSRAD plus conventional radar system option in the High Threat environment. As a result the VSRAD funding was later transferred to Phase 2B, when phased array radar options and their potential capability advantages were assessed by Defence; this was formally agreed by Government in September 2005.
	The ANZAC Alliance was contracted under a Non-Target Cost Project Charter in September 2004 to commence work on Phase 2A whilst finalising the Target Cost Estimate. This permitted work to be progressed towards achieving Phase 2A Systems Requirements Review (SRR) in August 2005. The Alliance contract was signed in May 2005 and included the procurement for eight ship sets of the Saab Mk3E Combat Management System from Saab Systems (Australia) and the Sagem VAMPR NG IRST System. This initial contract did not include any costs for platform detailed design, materials, installation or test. These costs were included once sufficient preliminary platform design had been completed and hence was able to be costed in detail. The amendment to the Project Charter to include this effort was approved in January 2006. Following the decision to exclude VSRAD in late 2005, the Electronic Optronics package and the Low Noise Amplifier modification for the Fire Control Director were removed from the scope. Other variations to the Project Charter were in December 2006 to conduct requirements analysis for the upgrade of the Combat System Simulator for the IRST System and to install the Saab Emulator Training System at the Adelaide Test Site.
	SEA 1448 Phases 2A and 2B are being managed as a confederated ASMD Project due to their common systems engineering disciplines, schedules and risks. Phase 2A represents a low risk due to its in-service equipment, whereas Phase 2B represents a high risk due to the leading edge (developmental) technology involved, and these risks migrate as enterprise risks to the confederated SEA 1448 Phase 2 ASMD Project.
	As a result of technical issues in the integration of the phased array radar into the Class with Phase 2B of the ASMD Project in 2007, a change to the Phase 2B Project acquisition strategy has caused delays in the installation of the equipment being purchased under Phase 2A. These delays do not impact on the delivery of the Phase 2A equipment, which is being delivered into store and appropriately maintained until the Phase 2B acquisition strategy calls on the equipment for installation.
	To support the upgraded Mk3E Combat Management System and IRST, a combined ASMD Integration and Training Centre was built by the Defence Support Group (DSG) in 2006. This building was added to the existing ANZAC System Support Centre (ASSC) located at HMAS Stirling in Western Australia. In February 2007 the existing ANZAC Class Simulator (simulating the ships radars and weapon systems) at the ASSC was upgraded to include the IRST.
	The only remaining contract yet to be signed for Phase 2A of the ASMD Project is for the first 3 years of in service support for the IRST. This is intended to occur before December 2010. The support for the Mk3E Combat Management System is already in contract as there is an existing sustainment support contract with Saab Systems (Australia) for the existing Saab Mk3 Combat Management System that is already installed in the ANZAC Class.
Uniqueness	The Phase 2A Combat Management System upgrade is the next generation of the Mk3E system initially installed on the final Anzac Class Frigate (HMAS Perth). The Mk3E was the first XP windows based commercial off the shelf combat management system in the RAN and was initially installed in HMAS Perth as part of a de-risking trial.
	This Phase of the ASMD Project is fully contracted through the Anzac Ship Alliance.
Major Challenges	The Major Challenges for SEA 1448 Phase 2A have been: • The decision to investigate the option of a Phased Array Radar for Phase 2B in lieu of the originally selected VSRAD option. Consequently, Phase 2A was directed to commence in isolation to the Phase 2B decision. The planned decision of December 2004 to use the Phased Array Radar in Phase 2B was delayed to September 2005, impacting on the systems engineering aspects of the project, as several decisions made during the first year were required to be revisited when the Phase 2B decision was made to ensure the viability of the decision and design. This has also delayed the completion of the integration and training facilities at the ANZAC Systems Support Centre; and • Ensuring sufficient spares for the Commercial-Off-The-Shelf (COTS) based Combat Management System has been mitigated through the procurement of key COTS components of the ASMD Mk3E Combat Management System.
Current Status	Cost Performance This phase of the ASMD Project is currently progressing within the approved budget and the capability is anticipated to be delivered within the approved budget. Schedule Performance The systems being provided under Phase 2A are being delivered to schedule. Overall though, due to the linking of Phase 2A with Phase 2B and the Government approving a change of acquisition strategy for Phase 2B in August 2009, there is a 38 month variance to the original delivery of the capability. Capability Performance Successful completion of the land based combat management system integration testing in December 2009 and demonstrations of the ASMD System and its hardware and software with the RAN (using ASMD software in a realistic simulation and emulation environment) has confirmed that the integrity of the capability delivery is being met for the ASMD Upgrade.