PETER LA FRANCHI / CANBERRA
Australia would restrict the number of domestic industry participants in its military electronics sector under draft industry restructuring options now being prepared for government consideration.
Participation in the electronic systems component on all future Australian defence force projects being undertaken locally would be dependent on prequalification with tendering processes confined to those firms alone. Multinational primes for projects would be directed to use pre-qualified firms as part of teaming arrangements in future competitions.
Prequalification is viewed as enabling faster acquisition processes on projects worth less than A$100 million ($60 million), while sole sourcing arrangements will be considered in areas with few domestic players.
The proposed rationalisation model is not considered likely to affect significantly new aerospace platform acquisitions, given the high offshore content involved in such projects, but will have a major impact on future aerospace upgrade projects carried out in Australia. It would also have a direct impact on the purchase of new aerospace command, control and communications infrastructure by Australia.
According to a draft version of the Electronic Systems Sector Plan obtained by Flight International, electronics will account for "70-80% of the value of new maritime, aerospace and land platforms" by the Australian Department of Defence over the coming decade. This equates to a market value of A$20 billion.
The draft plan says the proposed rationalisation will target the Australian military systems integration, mobile military communications and electronic warfare sectors. It would affect Australian defence electronics expertise in niche areas such as radar.
The document describes military systems integration as "among the most complex, expensive and risk-prone of all defence markets. The resultant exposure in the defence acquisition budget is of major concern. This is reflected in recent experience with the Collins Class Submarine Combat Systems, the Jind- alee Operational Radar Network, the Mine Warfare Command Support System, and the [Kaman] Super Seasprite mission control system."
A final report is due to be presented to the Australian government for approval by mid-year.
Source: Flight International
