The Australian Government confirmed today that it will consider the findings of the Defence Strategic Review before deciding on the tender for the Land 400 Phase 3 Infantry Fighting Vehicle project.
The Review will make recommendations on priorities for investing in Australia’s defence capability and posture, to meet the nation’s security challenges over the next decade and beyond.
The Minister for Defence Industry, Pat Conroy, said it is responsible for the decision on a procurement worth between $18 billion and $27 billion to be informed by the findings of the Review.
“I would like to thank Hanwha Defense Australia, Rheinmetall Defence Australia and the many other companies involved in this tender process for their understanding and professionalism,” Minister Conroy said.
“The Government remains focused on Australia’s future defence capability. We don’t want to pre-empt the findings of the Review, which is especially critical given the rapidly changing strategic circumstances facing our nation.”
The final report from the Defence Strategic Review is due to be delivered to the Government early next year.
Land 400 Phase 3 is the most expensive acquisition program in Army's history and its scope has been under pressure given the Budget's allocation of $9.9 billion to the Australian Signals Directorate for the REDSPICE program, as ADM reported in March.
The budget for Phase 3 was initially set at $10-15 billion in 2015 but then ballooned to $18-27 billion.
In June, it was reported that the two companies vying for the program - Rheinmetall Defence Australia and Hanwha Defense Australia - were told to resubmit their bids for 300 vehicles instead of the original 450.