Future Submarine — Competitive Evaluation Process
(Source: Australian National Audit Office; issued April 27, 2017)
Australia followed proper processes and procedures in selecting the Shortfin Barracuda design offered by France’s DCNS, the Australian National Audit Office said in a report issued April 27. (DCNS image)
Summary and recommendations

1. In February 2015, the Government announced an acquisition strategy for Australia’s Future Submarine, involving a competitive evaluation process.1 The Future Submarine will replace the Royal Australian Navy’s six Collins Class Submarines which, without an extension to their service life, are due to be withdrawn from service by 2036.

2. The competitive evaluation process was not aimed at eliciting and assessing a full design for the Future Submarine, or identifying firm cost and schedule data. These processes will be undertaken with the successful international partner subsequent to the competitive evaluation. Direction de Constructions Navales Services (DCNS) of France; ThyssenKrupp Marine Systems GmbH (TKMS) of Germany; and the Government of Japan participated in the competitive evaluation process. The Australian Government announced DCNS as the successful International Partner on 26 April 2016:

“DCNS 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.”

3. The objective of the audit was to assess the effectiveness of Defence’s design and implementation of arrangements to select a preferred international partner for the Future Submarine program (SEA 1000). To form a conclusion against the objective, the ANAO adopted the following high-level audit criteria:

“Defence designed a fit-for-purpose process for evaluating and selecting an international partner for the Future Submarine program, and to support the establishment of a sovereign capability to sustain the Future Submarine Fleet.

“Defence effectively implemented the agreed evaluation process to select an international partner for the Future Submarine program, and to support the establishment of a sovereign capability to sustain the future submarine fleet.”

Conclusion

4. Defence effectively designed and implemented a competitive evaluation process to select an international partner for the Future Submarine program.


Click here for the full report (48 PDF pages), on the ANAO website.

(ends)



Government Welcomes ANAO Report into Future Submarine Program Competitive Evaluation Process
(Source: Australian Minister for Defence; issued April 28, 2017)
The Turnbull Government has today welcomed the findings of the Australian National Audit Office (ANAO) report on the Future Submarine Competitive Evaluation Process.

Minister for Defence Industry said the ANAO Report has independently verified that Defence effectively designed and implemented a competitive evaluation process to select an international partner for the Future Submarine Program.

“The ANAO’s findings clearly demonstrate that the Competitive Evaluation Process was a fit-for-purpose process and was effectively implemented by Defence,” Minister Pyne said.

“Sovereignty over the operation and sustainment of the Future Submarine was a key consideration, as was the requirement to maximise Australian industry involvement without compromising capability, cost or schedule.”

The Turnbull Government has made significant inroads since the Government’s announcement on 26 April 2016 that DCNS had been selected as Australia’s international partner said Minister Pyne.

“The Government is well and truly ahead of schedule at this stage with the Future Submarine Project. On September 30 2016, we signed the Design and Mobilisation Contract with DCNS and announced that Lockheed Martin Australia has been selected as the Future Submarine Combat System Integrator.”

Defence, DCNS and Lockheed Martin Australia have since been working together on the design of the Future Submarine, all 12 of which will be constructed in Australia, using Australian steel, a local supply chain, creating thousands of jobs across the country.

-ends-




prev next

Official reports See all