Page 12 - Australian Defence Magazine March 2019

NEWS REVIEW
INDUSTRY UPDATE
Future Submarine SPA signed in Canberra
THE Strategic Partnering Agreement (SPA) between the Commonwealth and Naval Group on the future Attack-class subma- rines has been signed in Canberra.
The agreement was signed in the pres- ence of Prime Minister Scott Morrison, Minister for Defence Christopher Pyne, and Florence Parly, French Minister for the Armed Forces.
The SPA sets out terms and conditions that will endure for the entire program, avoiding the need to renegotiate a known set of provisions as work transitions from phase to phase.
The Government focused on delivering an equitable and enduring agreement
Negotiations on the SPA began in ear- ly 2017 and were intended to have been completed during that year, but was de- layed by issues including the length of warranty periods and the implications of a possible merger between Naval Group and Italy’s Fincantieri.
“Work on the submarines has taken place under the Design and Mobilisation Con- tract and this will continue uninterrupted under this agreement,” Prime Minister Scott Morrison said in a statement.
“The formalisation of this agreement rep- resents the contractual basis for the program.
After almost two years of negotiations, the SPA is now in place.
CANADA has upheld the selection of BAE’s Type 26 frigate as its future surface combatant despite an on-going court case brought by losing bidder Alion Science and Technology, a US company, and Canadian subsidiary Alion Canada.
The design contract has been signed in Ottawa by the Canadian government, and industry partners. The CA$60 billion build is the largest and most complex procure- ment in Canadian history.
Irving Shipbuilding is the prime con- tractor to the Canadi- an government for the build of all 15 ships at
its Halifax shipyard. BAE Systems, CAE, L3 Technologies, MDA and Ultra Electronics have partnered with Lockheed Martin Canada on the design, which is based upon the Type 26 Global Com- bat Ship that has been also selected as RAN’s
future Hunter-class frigates. The choice edged out Alion, which offered a design based on the Dutch De Zeven Provinciën Air Defence and Command frigate, and Navantia, which offered a version of the F-105 frigate alongside a team that included Saab Australia.
L3 Technologies will be providing the Integrated Platform Management Sys- tem, Integrated Communication Systems, electro-optical infrared (EO/IR) sensors, weapons stowage, torpedo handling sys- tems, and helicopter hangar doors.
Alion’s court case rested on the argument that the Type 26 does not meet require- ments set out in the tender. According to local media, the BAE/Lockheed Martin bid was the only one screened for cost, rais- ing questions amongst critics as to whether all three bids were properly evaluated.
“During the negotiations, the Gov- ernment focused on delivering an eq- uitable and enduring agreement in the interests of our nation. Other activities required to deliver this major program, including the development of the sub- marine construction yard at Osborne, SA, are continuing.”
According to Naval Group, suppliers of the top five pieces of equipment – the main motor, diesel generators, switchboards, bat- teries and weapons discharge systems – have
been reviewed and will be announced this year. 169 Australian suppliers have been pre-qualified for the program with Naval Group Australia.
Minister for Defence Christopher Pyne told ADM that negotiations on the SPA were completed in December, with docu- ments finalised prior to the official signing. Minister Pyne also said that he is not con- cerned about the pace of the program de- spite rapid changes in the regional strategic environment.
Canada confirms selection of Type 26 frigate
12 | March 2019 | www.australiandefence.com.au