Tensions and delays in Australia’s Future Submarine programme disclosed in official audit report
Australia’s AUD80 billion (USD55.15 billion) Future Submarine programme,
the country’s largest-ever defence procurement,
is running nine months late and has missed two key contractual milestones,
the Australian National Audit Office (ANAO) reported on 14 January.
The ANAO
also revealed that the government’s Naval Shipbuilding Advisory Board
had suggested that the Department of Defence (DoD) should consider whether proceeding with French shipbuilder and strategic partner Naval Group was in the national interest,
even if a deal was to be eventually reached on a contentious Strategic Partnering Agreement (SPA).
The SPA, which sets out the principles of co-operation between Naval Group and the Australian government, was eventually signed in February 2019: nearly 16 months behind schedule.
Jane’s 360
Future Submarine Program — Transition to Design …
the next generation of submarines for Australia will be constructed at the Adelaide shipyard, securing thousands of jobs and ensuring the project will play a key part in the transition of our economy.
DCNS [now Naval Group4] of France has been selected as our preferred international partner for the design of the 12 Future Submarines, subject to further discussions on commercial matters.
Subject to discussions on commercial matters, the design of the Future Submarine with DCNS will begin this year.
Australian National Audit Office
https://www.anao.gov.au/work/performance-audit/future-submarine-program-transition-to-design