08 December 2015

Industry: AWD Reform Long-Term Arrangements Announced

AWD Hobart shortly after launch
The Air Warfare Destroyer (AWD) Alliance welcomes the Government’s announcement today on the long-term arrangements for the AWD program.

Since the AWD reform process was announced by the Ministers for Finance and Defence, the AWD Alliance has worked closely with the Government on this initiative, which included the completion of a comprehensive cost and schedule review that has set the program on a stable path towards delivery.

These reform activities resulted in a number of key outcomes for the program, which were announced today as part of the long-term arrangements.

Navantia has been contracted to bring an experienced shipbuilding management team into the AWD Alliance for the remainder of the program, working closely with the AWD Alliance participants.

The AWD program has been re-baselined through to the delivery of all three ships and their support system. This re-baseline includes a revised delivery schedule for all three ships, which brings certainty to the ship delivery dates and ensures the Royal Australian Navy will have this new, technologically advanced capability as soon as practicable.

The AWD Alliance will implement these arrangements across the project over the coming months.

AWD Program Manager Peter Croser said that each of these outcomes signify a positive step forward for the program. "We welcome today’s announcement. Over the past year, we have made significant productivity improvements and achieved a number of critical milestones – from launching Hobart in May to laying the keel for Sydney last month. Just yesterday, we installed a fully outfitted mast onto Brisbane, and commenced diesel generator light-off activities on Hobart. Next year, we look forward to the completion of combat systems activation on Hobart before sea trials and the launch of Brisbane," said Mr Croser.

The AWD Alliance industry participants, ASC and Raytheon Australia, also welcomed the long-term arrangements announced today.

ASC Shipbuilding Interim CEO Mark Lamarre said ASC has a good working relationship with Navantia. "We look forward to continuing our close collaboration with Navantia. This delivers an opportunity to further build our shipbuilding expertise and knowledge so that we can complete our role as shipbuilder on the AWD project," said Mr Lamarre.

The Managing Director of Raytheon Australia, Michael Ward, said "Raytheon welcomes the conclusion of the AWD reform strategy and the introduction of the long-term arrangements for the AWD program which includes a new role for Navantia. This is great news for Adelaide as it provides the necessary certainty to complete the AWD project."

"I take the opportunity to commend the Australian Government on this milestone. Particular credit should go to Senator David Johnston and Senator Mathias Cormann for initiating the AWD reform strategy and to Senator Cormann and Senator Marise Payne for seeing this process through to its conclusion," said Mr Ward.