News Review | ADM Aug 08
BAE Systems completes Tenix purchase
BAE Systems has completed its $775 million acquisition of Tenix Defence after receiving all required approvals from the Department of Defence and the Federal government’s Foreign Investment Review Board (FIRB).
Tenix Defence will be integrated with the operations of BAE Systems Australia, headquartered in Adelaide, making it Australia’s biggest defence company with 5,500 staff and annual sales of $1.2 billion.
The Tenix purchase is a significant step in BAE Systems’ strategy to become the premier global defence and aerospace company through a multi-home market business focus, acording to Mike Turner, outgoing Chief Executive of BAE Systems.
“The acquisition of Tenix Defence will transform our business in Australia, making it the largest in-country defence supplier to the Australian Defence Force,” he said 27 June.
“Australia is one of BAE Systems’ six home markets and the company has a proud history of investing in Australian capability.”
“This transaction significantly enhances the depth and breadth of our capabilities in Australia. It adds a major naval business to our portfolio and significantly increases our land capability.
"We have restructured our organisation to reflect our presence in the new sectors and better to align with our customer.
"The combination of the two companies will enable us better to equip and support the ADF for many years to come,” said Jim McDowell, Chief Executive of BAE Systems Australia.
The Minister for Defence, Joel Fitzgibbon, welcomed the completion of the deal.
“I congratulate BAE Systems Australia for their investment in the Australian defence industry,” he said.
“The acquisition provides BAE Systems Australia with a broad range of defence capability areas including naval shipbuilding, armoured vehicles, aircraft support, systems integration and electronic warfare.”
However, to protect Defence’s interests, BAE Systems has provided specific assurances through a Deed with Defence relating to the amphibious ships contract, agreed between the Commonwealth and Tenix in October 2007.
The Deed also prevents BAE Systems from buying ASC Pty Ltd (formerly the Australian Submarine Corporation) if it is sold by the Australian Government.
“I am delighted that the sale of the Tenix defence businesses has successfully concluded,” said Tenix Group Managing Director and CEO Greg Hayes.
“Our strategic intent had been to foster international growth for Tenix’s defence businesses, so the sale to BAE Systems, with its scale, depth of production and experience, will certainly help to achieve this objective.
“I would like to congratulate Jim McDowell and his team at BAES on this important acquisition.
"The lengthy and complex completion process was conducted professionally and in good spirit by BAES and Tenix, which bodes well for the merger of the two companies’ businesses.”
Tenix will now proceed with the pre-emption process for its two joint ventures, RLM and Tenix Toll, while continuing to have business interests in infrastructure services, traffic and parking services, aviation and coastal survey services.
BAE Systems head-hunts Saab chief
BAE Systems has moved quickly to recruit senior management with naval industry experience following its purchase of Tenix Defence.
The acquisition means BAE Systems is now prime contractor for the Navy’s LHD project and the company has recruited Saab Systems chief Merv Davis.
Davis, who retired from the RAN in 2003 with the rank of Commodore, had previously been Combat Systems Manager of the ANZAC Ship Project, Project Director of the Minehunter Coastal project, and inaugural Commander of the Australian Navy Systems Command.
Currently Managing Director of Saab Systems Pty Ltd in Australia and the Vice President of Saab’s global Naval Systems Division, he is expected to join BAE Systems in October after five years with Saab.
“Merv Davis has made a significant contribution to Saab’s business both in Australia and in the naval domain,” said Dan-Åke Enstedt, Chairman of the Board of Saab Systems Pty Ltd.
“He will be greatly missed but in leaving there is also significant potential for future partnership.”
“Significant success in Australia has led to Saab pursuing a Saab strategy in Australia and the company’s performance in Australia has done very well under his leadership,” said Peter Wimmerström, President of Saab Systems.
“Merv Davis’ contribution over the period has earned him the respect of the management team who are all saddened by his departure but understand why he has chosen to take up this opportunity.
"We wish him every good fortune and look forward to future cooperation.”
Saab has already begun the search for an Australian replacement for Merv Davis.
12 CTD proposals approved
Defence has selected 12 innovative proposals for funding to the tune of $21.5 million in the latest round of the Capability & Technology Demonstrator (CTD) program.
“It is widely acknowledged that Australian industry plays a key role in supporting our Defence operations,” the Minister for Defence Science and Personnel, Warren Snowdon MP said in June.
“The CTD program provides opportunities to show how advanced technology can provide significant enhancement to Defence capability.
"These 12 projects come from various industry sectors, and include small-to-medium enterprises, established defence contractors and Australian universities.
“It is exciting to see that the proposals receiving funding in 2008 cover a very wide spectrum of defence capability – from wearable solar panels to submarine sonar, from grenade launchers to GPS anti-jam units.
“The projects are a mix of leading edge technologies and innovative applications of existing technologies, with the potential to result in major savings for Defence, spin-offs for civilian use and export opportunities for Australian industry,” said Mr Snowdon.
The DSTO manages the CTD Program on behalf of Defence.
The 12 successful CTD projects for 2008 are:
• Ka Band Satellite On-The-Move Communications System (EM solutions)
• Field Portable Supersonic Particle Deposition unit (Rosebank Engineering)
• Special Sonar for Submarines (Sonartech Atlas)
• Elongate Solar Cells for Energy Generation (The Australian National University)
• Adaptive Tuned Mass Damper for Submarine Engines (University of Adelaide)
• Miniaturised GPS Anti-Jam Module (Tenix Systems)
• Low Band Direction Finding Sub-System (Jenkins Engineering Defence Systems)
• Tactical Electronic Warfare Open Architecture RF Subsystem (BAE Systems)
• Rifle Fired High Velocity Grenade Launcher (Intelligent Sensing)
• Low Cost On-Store Telemetry (Tenix Systems)
• Battlefield Integrated Tactical Exploitation of Sensors (Tenix Systems)
• Helicopter Aid for Maritime Operations (Advanced VTOL Technologies)
For further details on the CTD projects selected for funding this year go to www.dsto.defence.gov.au/collaboration/3743/
Defence infrastructure boom approved
Over $1.1 billion worth of Defence facilities proposals have received Parliamentary approval.
These include:
• $623.28 million for the Hardened and Networked Army facilities at Edinburgh, South Australia. The project includes working accommodation, training facilities, a driver training area, a vehicle wash point and common user facilities for both Army and RAAF including health, messing, fitness and community facilities as well as extensive site infrastructure works. Construction is planned to commence in late 2008 and be completed by 2011.
• $72.1 million for the Robertson Barracks Redevelopment. The Project will deliver the facilities to support the new Abrams tank fleet, and new and refurbished facilities to support the Army. Construction is planned to commence in mid 2009 and be completed by mid 2011.
• $80.2 million for the Enoggera Redevelopment Stage One. The project includes the construction of a combined messing facility and office accommodation for the Headquarters of Army’s 7th Brigade, and upgrades the existing engineering service facilities. Construction is planned to commence in late 2008 and be completed by 2011.
• $64.2 million for the Airborne Early Warning and Control Facilities at RAAF Base Tindal. The proposed project will include new taxiways, aprons, shelters, hydrant refuelling and associated infrastructure to enable the aircraft to operate effectively from the base. Construction is planned to commence in early 2009 and be completed in late 2010.
• $58.7 million for the RAAF Base Tindal Redevelopment Stage Five. The redevelopment will be a mixture of new facilities, refurbishment and extensions to existing facilities and will include upgrades to the Base engineering services, aircraft maintenance facilities, warehousing, new fuel tanker maintenance and liquid dry breathing oxygen facilities as well as catering and messing improvements. Construction is planned to commence in mid 2009 and be completed in mid 2011.
• $49.8 million for RAAF Base Darwin Redevelopment. The proposed redevelopment will include a new Logistics Headquarters, office accommodation, fuel farm, mechanical equipment workshop, vehicle washbay and demolition of redundant facilities. Construction is planned to commence in mid 2009 and be completed by mid-2011.
• $168.7 million for Multi-Role Helicopter Facilities. The project will provide operational, maintenance and training infrastructure to support the introduction and operation of the aircraft, including new headquarters for 16th Aviation Brigade and elements of the Defence Material Organisation at Gallipoli Barracks in Brisbane. Construction is planned to commence in late 2008 and be completed by late 2010. The project includes $30 million of facilities to be provided for the 5th Aviation Regiment at RAAF Townsville in North Queensland, including a new Mission Planning facility, improved maintenance facilities, and a new flight simulator.
And in June, the Minister for Defence, Joel Fitzgibbon, visited RAAF Base Edinburgh and broke ground to mark the commencement of approximately $30 million in upgrades to accommodate the RAAF’s new Boeing C-17 Globemaster III aircraft.
“RAAF Base Edinburgh has long been an important military base for the ADF and this investment reinforces its significance,” Fitzgibbon said.
“More than $30 million will be invested in facilities to support the operation of the C-17 at RAAF Base Edinburgh.”
The Edinburgh upgrade includes a new air movements terminal and heavy cargo preparation facility, and upgrade of the airfield pavements.
The pavements will be widened and strengthened and a new aircraft parking apron will be provided. Construction of the new facilities to accommodate the C-17 aircraft will be completed in April 2009.
In addition to the work being undertaken at Edinburgh, facilities at four other RAAF Bases are being upgraded to accommodate our C-17 fleet.
The total budget for the C-17 Heavy Air Lift Infrastructure Project is $268.2 million.
Special delivery: C-17 brings MRH90 home
Australia’s third MRH90 Helicopter, MRH04, arrived in the cargo hold of a RAAF C-17 Australia by a RAAF C-17.
“The delivery of the latest Multi-Role Helicopter (MRH) by C-17 is a major capability milestone demonstrating the ability to deploy the helicopter globally once it is ready for operational service,” according to Parliamentary Secretary for Defence Procurement Greg Combet.
“The helicopter will now be prepared for acceptance by the prime contractor, Australian Aerospace, and staff from the Defence Materiel Organisation.
"Following successful completion of acceptance testing, Defence anticipates that MRH04 will be accepted in July 2008, after which the helicopter will be delivered to the 5th Aviation Regiment in Townsville to join the test and training program.”
Netherlands orders 13 more Bushmasters
The Netherlands Ministry of Defence has ordered 13 new Bushmasters from Thales.
The first vehicles will be delivered in theatre by 1 October this year, bringing the total supplied to the Dutch armed forces to 49.
The contract is worth over $15 million (€9.2million), and includes an option for additional vehicles to meet ongoing requirements.
Thales first supplied the vehicle to the Netherlands in 2006, and the new deal represents a significant vote of confidence in the Bushmaster’s operational performance, according to Chris Jenkins, managing director of Thales Australia.
“This sale demonstrates the continuing success of the Bushmaster in operations, and the trust that troops on the ground place in it,” said Jenkins.
“The Bushmaster offers a unique combination of enhanced protection, mobility and capacity, and has proven its worth with Australian and Dutch forces in Iraq and Afghanistan.
"It is a highly versatile modular platform for many different integrated systems and capabilities.
“We are continuing to examine other export opportunities for this world-class product.”
Meanwhile, the UK Ministry of Defence has ordered a review of its controversial ‘Snatch’ Landrovers following the deaths of four soldiers in Afghanistan in June.
A mine in Helmand Province whilst patrolling in a Snatch Landrover killed the soldiers, including the first female member of the British Army to die in action.
So far more than 30 British soldiers have been killed in Iraq and Afghanistan while traveling in the armoured Landrovers.
The review will decide whether or not the Snatch Landrovers should be replaced by vehicles offering better protection against mines and Improvised Explosive Devices (IEDs), according to the Edinburgh newspaper Scotland on Sunday.
About 100 Snatches are currently in service with the UK Armed Forces in Afghanistan.
Seeing in the dark
Elbit Systems Ltd. subsidiary, Elbit Systems Electro-Optics Elop Ltd. (Elop) has been awarded three contracts valued in a total amount of approximately $87 million from a customer in Asia for the supply of cooled Thermal Imaging systems for reconnaissance and target acquisition applications.
One of the contracts will be performed through Elbit Security Systems Ltd.
The projects will be performed over two years and Elop foresees potential for follow-on orders.
"Our Thermal Imaging systems have recorded thousands of successful operational hours with the most demanding military organizations in the world.
"These recent contract awards continue a string of recent orders from customers in four continents, further strengthening our status as a world leader in cooled FLIR technologies," said Joseph Ackerman, President and CEO of Elbit Systems.
HMS delivers first Australian WIT training course
HMS has recently completed its first Australian counter-IED Weapons Intelligence Team (WIT) training course with 21 tri-service members at the Wide Bay military training arena in Queensland.
The ADF took part in the intensive 18-day WIT training course in order to educate 15 Army, four Navy and two Air Force personnel in the collection and examination of critical information from IED incident sites for intelligence purposes.
It provided the attendees with an in-depth understanding and knowledge of IED construction, what to look for, how the devices work, how to analyse the information and how to collect and protect evidence.
The WIT training offered by HMS contains a balanced combination of written and practical tests with field-based training exercises.
It is both US Army and NATO approved, and has been completed by EOD personnel and front line operatives currently on active duty in high-threat areas around the world.
“The WIT training course equips the ADF with a suite of new skills”, explained Andy Green, managing director of HMS.
"Having a highly trained weapons intelligence team significantly increases the force’s capabilities in examining post-IED scenes.
“Weapons Intelligence training is a rare skills set – we believe we are currently the only company offering training in this field at the moment.
"All of the training team at HMS are leading edge counter-IED experts with operational experience gained in theatres including Iraq and Afghanistan.
"This places us in a unique position to offer specialist training designed to meet the ever evolving requirements of military and homeland defence organisations worldwide.”
Living in a material world
The development of futuristic materials for use in ships, aircraft and combat vehicles is now a reality, with the establishment of the Defence Materials Technology Centre (DMTC). Dr Mark Hodge has been appointed CEO.
“The DMTC is the first centre of its kind, and will bring together some of Australia’s brightest talents in the field of materials technology research,” said the Minister for Defence Science and Personnel, Warren Snowdon.
"Participants such as Bluescope Steel, BAE Systems, Thales Australia, GKN Aerospace, Surface Technology Coatings, ANSTO, Wollongong University and Queensland University have been unstinting in their commitment and co-operation.”
The DMTC is headquartered at Swinburne University and will receive Australian Government funding of $30 million and a further $52 million from the collaborative partners.
It officially commenced operations on 10 June.
The Parliamentary Secretary for Defence Procurement, Greg Combet, said the Centre will play a vital role in the protection of Australian troops deployed around the world.
“Its program is designed to develop specific future defence capabilities not currently addressed by Australian defence industry.
"I look forward to it delivering improved armour protection for military vehicles and high-tech materials for use in major Defence acquisitions such as the Joint Strike Fighter.”
The DMTC is the first to be established under the Defence Future Capability Technology Centre Program, modelled on the Government’s successful Cooperative Research Centres (CRC) Program.
The DMTC will be managed by the Federal government’s Innovation portfolio.
With 13 partners from Government, industry and the research sector, the Centre’s establishment is on schedule, making it the shortest timeframe for an organisation of this nature to be established.
First MU90 firing from an RAN warship
The MU90 Impact Lightweight Torpedo has undergone Test and Evaluation firings aboard the Anzac frigate HMAS Toowoomba.
“While the MU90 Lightweight Torpedo has been successfully tested in Europe, this Acceptance Test and Evaluation exercise represents the first time an MU90 Lightweight Torpedo has been fired from an Australian warship,” said Minister for Defence, Joel Fitzgibbon.
“The new MU90 Lightweight Torpedo will provide a significant upgrade to the Anti-Submarine Warfare capabilities of the surface combatant platforms of the Royal Australian Navy (RAN), including the RAN’s FFG and ANZAC frigates,” Fitzgibbon said.
The test firing in the Western Australian Exercise Area was a milestone for the DMO’s Joint Project 2070, Project Djimindi – Replacement Lightweight ASW Torpedo.
It demonstrated the RAN’s capability to successfully launch the MU90, have it operate to preset commands and correctly classify a target. On completion of the run, the exercise torpedo performed end-of-run procedures that allowed it to be safely recovered by a Torpedo Recovery Vessel.
The weapon will be refurbished in the Torpedo Maintenance and Integration Facility (TMIF) at HMAS Stirling in Western Australia.
This strategic facility is being established by the Djimindi Alliance, which comprises the DMO, Thales Australia and EuroTorp, to provide complete integration and maintenance capability in Australia for the MU90.
The TMIF will be formally opened on 31 July.
The MU90 Lightweight Torpedo is being acquired in a three-phase program worth $616 million.
Defence selected the Eurotorp MU90/Impact torpedo in 1999 after a competitive tender.
The MU90 Lightweight ASW Torpedo is 3 metres long, weighs 300 kilograms, has a range of greater than 10 kilometres and is designed to track and attack quiet-running submarines at depths of more than 1,000 metres.
It will replace the RAN’s existing Mk46 lightweight torpedo, currently near the end of its shelf life.
An Apt solution
The DMO operates a large number of systems in this role and these differ widely in both size and complexity.
Three such systems providing tri-service logistics support to Defence Aviation are NetMAARS, FleetPlanner2 and ADAASS.
Collectively, these are known as the Ancillary Systems and are utilised by thousands of technical and logistics personnel across the ADO.
The Ancillary Systems are centrally hosted in Canberra out of the Aviation Engineering and Maintenance Management Systems Office (AEMMSO), a division of the Laverton-based Directorate of Logistics Support Systems (DLSS).
In a first for the DMO, DLSS has outsourced a significant portion of its Ancillary Systems through-life support to a local Canberra-based ICT company – Apt Business Solutions.
Apt compliments the AEMMS Service Desk by providing a range of ICT services including Change, Capacity and Availability Management.
These are structured around the company’s core software design and engineering skills.
Apt has tailored its services to integrate tightly with AEMMS’ ITIL processes.
Ancillary Systems support is thus physically spread across two organisations.
However, careful process design has enabled AEMMS and the contractor to operate efficiently as a single team.
Apt has been working successfully with AEMMS in this way for two years.
“Outsourcing much of the ongoing maintenance and support of the Ancillary Systems has enabled DLSS to reduce its internal overheads and has freed valuable Defence personnel for other projects,” said Apt’s Managing Director, Peter Fox.
"Furthermore, because the external support is provided by a single, specialised contractor, services are delivered in a cost-effective and consistent manner for all of the Ancillary Systems."
10 Sqn completes Mid-east task
The RAAF’s 10 Squadron has successfully completed its longest period of continuous operational service since World War II.
Between April 2003 and April 2008, 10 Squadron committed up to 70 personnel at any one time to the AP-3C Orion Task Group in the Middle East Area of Operations (MEAO).
The Minister for Defence, Joel Fitzgibbon, and Chief of Air Force Air Marshal Geoff Shepherd AO attended a ceremony at RAAF Edinburgh to recognise this extraordinary period of service.
During its time in the Middle East, 10 SQN conducted maritime surveillance of the Persian Gulf and the Arabian Sea, and overland surveillance of Iraq in support of Australian and Coalition forces.
Overland missions have included escorting friendly road convoys or searching for militants launching rockets.
Crews provide direct support to coalition ground forces by using the Electro Optics sensor to search for suspicious activity.
The Orion’s data link can provide video footage in real time to troops on the ground.
“10 Squadron personnel should be proud of what they have achieved,” Fitzgibbon said.
"Their work is an important component of Australia’s contribution to Coalition operations in the MEAO.
"The Orion Task Group personnel are not always given the public recognition they deserve due to the classified nature of most missions.
"This makes today’s ceremony so important.”
The traditional role of Australia’s AP-3C Orions is anti-submarine and anti-surface warfare, but 60 per cent of missions in the MEAO have been conducted overland, where the Orions have also excelled.
RAAF Orions continue to perform vital work in the Middle East, through 11 Squadron’s deployment.
To date in the MEAO, the Orion detachment consisting of Number 10 and 11 Squadron aircraft has flown more than 11,300 hours.
805 Sqn decommissions
The Royal Australian Navy’s 805 Squadron, which was reformed to operate the SH-2G(A) Super Seasprite, has been decommissioned at HMAS Albatross, Nowra after seven years of providing valuable training to Navy personnel.
“The current 805 Squadron was re-commissioned in 2001 to be equipped with a fleet of eleven Seasprite attack helicopters,” said Greg Combet, the Parliamentary Secretary for Defence Procurement.
“Past and present members of the squadron had achieved a number of good results despite difficult circumstances.”
The much-delayed Seasprite program was cancelled earlier this year.
Despite this, Combet said, “The limited release achieved by the Seasprite helicopters enabled Navy to train personnel at HMAS Albatross in aeroskills and mechanical expertise, with 29 attaining qualifications as aeronautical maintenance tradespeople.
“Due to ongoing technical problems the Federal Government has decided not to continue with the introduction of the aircraft, and the helicopters will be sold under an agreement with the manufacturer Kaman.”
Squadron members will transfer to other squadrons and support roles, said Combet.
“The Public Servants who were attached to the squadron are being re-deployed within the Defence Materiel Organisation.
"We have also engaged a local professional human resource firm to assist the re-deployment of all affected personnel including the staff who were working for the contractor.
“The Government remains committed to the sustainment of helicopter facilities in the Nowra region and we expect that the local economy will continue to prosper as a result.”
Hornet upgrades fielded
The RAAF has accepted the Joint Direct Attack Munition (JDAM) into operational service, and has successfully trialed the Raytheon AL-67(V)3 Radar Warning Receiver (RWR) aboard its upgraded F/A-18A/B Hornets.
The first production configured F/A-18 Hornet fitted with ALR-67(V)3 flew at RAAF Williamtown, only 18 months after the decision to acquire the equipment.
Under Phase 2.4 of Hornet Upgrade program, Project Air 5376, The RAAF’s F/A-18s are being fitted with upgraded RWRs, countermeasures dispensing systems and RF jammers.
Earlier this year the RAAF accepted the Operational and Technical Airworthiness of the GPS-guided JDAM on F/A-18A/B fighter aircraft.
This will provide the Hornets with a state-of-the-art air-to-ground weapon system for use during day or night and in all weather conditions.
“These upgrades to the F/A-18 Hornet will provide the RAAF with leading-edge technology, ensuring the Hornet’s continued ability to operate as Australia’s frontline fighter aircraft,” said the minister for defence, Joel Fitzgibbon.
“The JDAM ‘smart-bomb’ will provide the Air Force with greatly improved accuracy and weapon effectiveness, reducing the likelihood of collateral damage during offensive operations.
“The upgrade to the Hornet’s RWR is a significant achievement for the Defence Materiel Organisation as it has only been 18 months since the Raytheon ALR-67(V)3 Radar Warning Receiver was approved as part of the Hornet’s Electronic Warfare Self Protection upgrade.”
Within18 months the project has acquired the RWR and completed the design, integration and testing required to install and operate it on the Hornet.
The project is within budget and on-track to deliver the complete electronic warfare self protection upgrade to the entire Hornet fleet by late 2012.
“Given the complexity of the project, the ability to deliver within schedule and budget has been a big success for the Defence Materiel Organisation,” Mr Fitzgibbon said.
Copyright - Australian Defence Magazine, August 2008