Editorial: Strategic challenges in Land | ADM October 2013

As many of you may have noticed, I have an ongoing passion with the Domestic Munitions Manufacturing Arrangements (DMMA) program, which I’ve continued on P28 this month. There are some challenges to be faced in the program thanks to a series of decisions that perhaps did not take into account the strategic challenges faced by defence industry players.

As an overview for those not familiar with the program, DMMA aims to deliver new commercial arrangements for the manufacture and supply of domestically produced munitions, propellants and explosives, replacing SAMS and Mulwala Agreements, both of which expire in June 2015.

The original intent was to have a ‘hot transition’ at the plants to ensure the workforce and capability was not run down. That and the giant chemistry set that is Mulwala, both old and new, can be difficult to start and stop.

Contenders comprise of Alliant Techsystems (ATK) of the US teaming with NIOA Nominees, an Australian-based SME; BAE Systems Australia teaming with Expal Systems of Spain; Rheinmetall Waffe Munitions of Germany teaming with Nitrochemie of Germany and RUAG Ammotec of Switzerland; and Thales Australia, the current incumbent, teaming with General Dynamics-OTS of the US and NAMMO of Norway under the Australian Munitions banner.

A down select to the teams led by BAE Systems, ATK and Thales was made earlier this year. But the timeline of the project is already behind if the June 2015 expiration date for Benalla and Mulwala still stands. There are a multitude of reasons why the delays have occurred but the one element of the whole saga that strikes me as unfair to taxpayers and the ADF is that of a possible extension to SAMS and Mulwala agreements.

The further cost of tendering and more delays to this program are simply unacceptable. The continuing uncertainty for industry and associated regional workforces is untenable. The small communities around Benalla and Mulwala are ardent supporters of their respective plants and the economic multiplier effects those local jobs have, regardless of the logo out the front of them.

When the original article seen on P28 was published online, I was inundated with responses from a wide variety of sources. Angry people working for SMEs related to the current munitions supply chain who learned they may not have a job in 18 months, various union representatives asking for my sources and even from people inside industry thanking me for raising the issue so that they can pursue it more freely. In all the time I’ve written for ADM, no other article has elicited this kind of response.

I can only assume that the new government will be looking closely at how both industry and the program office have handled the project. Neither party have covered themselves in glory thus far. If the project continues on its current course, it may find itself being managed as a Project of Concern.

Perhaps the more strategic challenges faced by those in the land domain is what the ADF will look like once the drawdown in Afghanistan comes to an end in the very near future.

After a decade of almost nonstop operations in our region and in the Middle East the Army, and Special Forces in particular, will have some soul searching to do. The first step has already been outlined under Plan Beersheba but this period will also allow the organisation to close the OODA loop (for observe, orient, decide, and act) on many fronts. The lessons learnt from the peacekeeping and stabilisation efforts alongside the COIN campaigns are many and varied and will need to be passed on to the next generation of the ADF.

Army itself is going through a digital evolution when it comes to their communications and how they use joint ISR assets such as UASs. The digital soldier is less of a concept and more of a reality in transition for the Australian Army. The Army by its very nature is less reliant on platforms and technology than its sister services but when technology can help remove the fog of war and achieve the commanders’

intent in less time, with less people and increased lethality, the Army is keen.

This will also be a time when military to military relationships in our region are further nurtured with exercises, training and secondments or exchange programs. This is not just specific to Army but all services. Given the uncertainty in the region, such relationships will become increasingly important. The ability to pick up the phone and talk to someone you’ve trained with or previously worked with is invaluable. As so many Defence leaders have said, our most important asset is our people.