The first three of 11 Kaman Aerospace SH-2G(A) Super Seasprite helicopters to be delivered to the Royal Australian Navy (RAN) from next March will have below operational standard avionics, owing to delays in system development by Litton Industries.
Final delivery of full operational standard aircraft will now be in late 2003 or early 2004. The original schedule called for three fully operational helicopters to be handed over late this year, with final deliveries to be made in mid-2002.
The operational system specified by the RAN in its June 1997 contract with Kaman is not expected to be available for at least another two years. It will then be retrofitted into the initial aircraft.
Litton signed a fixed-price contract with Kaman in November 1997 to develop the RAN-unique SH-2G(A) integrated tactical avionics suite (ITAS), but has now lodged claims against Kaman and the Australian Department of Defence for an additional A$15 million ($8 million) to help recover losses on the project.
US analysts suggest Litton's ITAS development costs may have reached $60 million. Litton has not disclosed a value for its sub-contract with Kaman. But the US company announced in November 1997 that revenues from the RAN contract, and the Royal New Zealand Navy's four similar SH-2Gs could exceed $100 million.
The Australian DoD acknowledges limited liability for part of the A$15 million claim because of a post-contract specification change to the Link 11 datalink. Senior acquisition officials, however, say that this liability is likely to be capped at around A$5 million.
Kaman says Litton "has stated that it is incurring additional costs on the [RAN] programme beyond its fixed price contract." As a result, Litton has requested an adjustment to its contract value.
Kaman says it is working with the RAN and Litton to address its performance and funding issues, but adds it is prepared to take appropriate action to protect its interests in the programme.
Source: Flight International