Project Data Summary Sheet 225

Project Number AIR 9000 Phase 8

Project Name FUTURE NAVAL AVIATION
COMBAT SYSTEM
First Year Reported 2011–12
in the MPR
Capability Type Replacement
Acquisition Type MOTS
Service Royal Australian Navy
Government 1st Feb 10
Pass Approval
Government 2nd Jun 11
Pass Approval
Total Approved $3,408.5m
Budget (Current)
2014–15 Budget $670.8m
Project Stage Initial Materiel Release
Complexity ACAT II

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Section 1 – Project Summary
1.1 Project Description

AIR 9000 Phase 8 is acquiring 24 MH-60R Seahawk naval combat helicopters, associated weapons and
support systems to replace the current 16 S-70B-2 Seahawk helicopters and the cancelled SH-2G(A)
Seasprite helicopters. The aircraft is equipped with a highly sophisticated avionics suite designed to employ
Hellfire air-to-surface missiles and Mark (Mk) 54 anti-submarine torpedoes. The aircraft will provide Navy
with a contemporary helicopter with anti-submarine warfare (ASW) and anti-surface warfare capability.
The acquisition of 24 helicopters will enable the Navy to deploy at least eight Seahawks embarked at sea
across the ANZAC class frigates and the new Hobart class Air Warfare Destroyers (AWD).

1.2 Current Status

Cost Performance
In-year
In-year variance of $14.7m was mainly due to earlier than expected payments against the acquisition
FMS case for the MH-60R Seahawk helicopters. This has been offset by slow billing for non-FMS
procurements, and minor delays with ANZAC Ship Integration. The project also experienced a
foreign exchange loss of $16.6m for the 2014-15 Financial Year.
Project Financial Assurance Statement
As at 30 June 2015, project AIR 9000 Phase 8 has reviewed the approved scope and budget for those
elements required to be delivered by the project. Having reviewed the current financial and contractual MH-60R Seahawk
obligations of the project, current known risks and estimated future expenditure, Defence considers, as at the
reporting date, there is sufficient budget remaining for the project to complete against the agreed scope.
Contingency Statement
The project has not applied contingency in the financial year.

225 Notice to the reader

Future dates and Sections: 1.3 (Major Risks and Issues), 4.1 (Measures of Materiel Capability Delivery Performance), 5.1 (Major Project Risks)
and 5.2 (Major Project Issues) are out of scope for the ANAO’s review of this Project Data Summary Sheet. Information on the scope of the
review is provided in the Independent Review Report by the Auditor-General in Part 3 of this report.

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 Schedule Performance
The next major milestone will be Initial Materiel Release (IMR), defined as five aircraft in United States Navy
(USN) configuration accepted, with sufficient Explosive Ordnance (EO) to support Introduction Into Service
and one flight at sea during first quarter 2015. The project declared IMR in March 2015, three months
ahead of schedule and expects Capability Manager sign-off of IMR in July 2015.
Project AIR 9000 Phase 8 declared In Service Date (ISD) in January 2014 ahead of schedule. The first two
aircraft were delivered early and a total of twelve aircraft have now been accepted, with aircraft six remaining
in the USA with industry as the prototype aircraft for ADF Unique Mission System Options – Phase 1
verification activities. Training for Royal Australian Navy (RAN) aircrew and technical personnel commenced
on schedule. Initial cadres of aircrew and technical personnel have completed training on schedule and are
operating RAN MH-60R in Australia having spent 12 months operating up to four aircraft alongside the
USN in Florida, USA. The Seahawk Simulation and Warfare Centre and new MH-60R Squadron complex
at HMAS Albatross were accepted in September and December 2014 respectively.
Materiel Capability Delivery Performance
The MH-60R Seahawk helicopter being procured is a Military Off the Shelf (MOTS) procurement of a USN
specification MH-60R Seahawk. The MH-60R Seahawk has been in service with the USN since 2005 and
was first deployed operationally by the USN in early 2010. The USN has accepted 202 MH-60Rs and flown
in excess of 292,000 flight hours as at June 2015. The Australian Defence Force (ADF) has accepted
delivery of twelve MH-60R aircraft, as of 30 June 2015 and there are currently no known impediments to the
Part 3. Project Data Summary Sheets

Project achieving the materiel capability performance requirements. The aircraft delivery schedule will result
in ADF MH-60Rs being delivered earlier than forecast at Second Pass.
Note
The capability assessments and forecasts by the project are not subject to the ANAO’s assurance review.

1.3 Project Context

Background
The Defence White Paper 2009 stated that ‘As a matter of urgency, the Government will acquire a fleet of at
least 24 new naval combat helicopters to provide eight or more aircraft concurrently embarked on ships at
sea. These new aircraft will possess advanced ASW capabilities, including sonar systems able to be lowered
into the sea and air-launched torpedoes, as well as an ability to fire air-to-surface missiles.’
First Pass Approval for the acquisition of the Future Naval Aviation Combat System to satisfy this
requirement was provided by Government on 24 February 2010.
The selection of the MH-60R followed a competitive solicitation process between a US Government FMS
case offering the Sikorsky / Lockheed Martin MH-60R Seahawk and a direct commercial sale from Australian
Aerospace offering the NATO Helicopter Industries NH90 NATO Frigate Helicopter. Second Pass Approval
for acquisition of the MH-60R was provided by Government on 15 June 2011.
Uniqueness
The Australian MH-60R helicopter is being acquired as a MOTS product, in the same baseline configuration
as the USN aircraft. A limited number of Australia unique design modifications will be incorporated after all
aircraft have been delivered. The USN will develop the modifications for incorporation in Australian
and USN MH-60R aircraft.
MH-60R Seahawk

The MH-60R is being acquired as a maritime combat capability. It will have limitations in utility roles such as
passenger or cargo transfer.
Major Risks and Issues
The Project Office (PO) is currently managing seven open risks with the highest level of pre-
mitigation risk being medium, whilst also managing seven open issues. However, there are currently
no major risks or issues in achieving the MH-60R operational capability milestones on schedule.
Other Current Sub-Projects
Project AIR 9000 Phase 7 Helicopter Aircrew Training System (HATS). HATS will be an important link in the
training continuum for inductees to the MH-60R training system.

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Section 2 – Financial Performance
2.1 Project Budget (out-turned) and Expenditure History
Date Description $m Notes
Project Budget
Aug 09 Original Approved 0.3 1
Jun 10 Real Variation – Budgetary Adjustment 9.6 2
Jun 11 Government Second Pass Approval 3,019.7
Jun 14 Real Variation – Budgetary Adjustment (39.2) 3
2,990.1
Jul 10 Price Indexation 0.1 4
Jun 15 Exchange Variation 418.0
Jun 15 Total Budget 3,408.5

Project Expenditure
Prior to Jul 14 Contract Expenditure – US Government (AT-P-SCF) (850.2) 5

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Contract Expenditure – US Government (AT-P-AHV) (20.0) 5
Contract Expenditure – US Government (AT-B-ZBZ) (8.9) 5
Contract Expenditure – Navy – Empire Test Pilots’ (4.8)
6
School
Contract Expenditure – US Government (2.1)
5
(AT-P-GTC)
Other Contract Payments / Internal Expenses (35.4) 7
(921.4)

FY to Jun 15 Contract Expenditure – US Government (AT-P-SCF) (592.8) 5

Contract Expenditure – US Government (AT-P-AHV) (46.5) 5
Contract Expenditure – US Government (AT-B-ZBZ) (10.6) 5
Contract Expenditure – US Government (AT-P-GTC) (1.4) 5
Contract Expenditure – Navy – Empire Test Pilots’ (3.9)
6
School
Other Contract Payments / Internal Expenses (30.3) 7
(685.5)
Jun 15 Total Expenditure (1,606.9)

Jun 15 Remaining Budget 1,801.6

Notes
MH-60R Seahawk
1 This amount represents the project Budget prior to achieving Second Pass Approval by Government.
2 Project Development Funds
3 Facilities Budget Transfer to Defence Support and Reform Group
4 Up until July 2010, indexation was applied to project budgets on a periodic basis. The cumulative
impact of this approach was $0.1m, applied only to the portion of the budget approved at First Pass.
From July 2010 all project budgets were approved by Government in out-turned dollars including
AIR 9000 Phase 8.
5 The scope of this contract is explained further in Section 2.3 – Details of Project Major
Contracts.

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 6 Project contribution to reimburse Navy for the training of a Test Pilot and Flight Test Engineer at the
Empire Test Pilots’ School.
7 Other includes travel, contractor support, legal support, Non-FMS Procurements, ANZAC and AWD
Ship Modifications, and general support activities.

2.2A In-year Budget Estimate Variance

Estimate Estimate Estimate DMO’s Explanation of Material Movements
PBS $m PAES $m Final Plan $m
504.7 511.7 670.8 The variation is primarily due to an acceleration of
FMS payments for MH-60R Seahawk helicopters
which resulted in a foreign exchange loss of
$14.8m for the case for this financial year.
Variance $m 7.0 159.1 Total Variance ($m): 166.1
Variance % 1.4 31.1 Total Variance (%): 32.9
2.2B In-year Budget/Expenditure Variance
Estimate Actual Variance Variance Factor Explanation
Final Plan $m $m
$m
0.5 FMS Year end variance was due to
Part 3. Project Data Summary Sheets

Overseas Industry earlier than expected payments

(2.4) Local Industry against FMS case for the MH-60R
Brought Forward Seahawk helicopters which has
Cost Savings been partially offset by payments
16.6 FOREX Variation not progressing as planned for the
Commonwealth Delays Jacksonville Deployment
Additional Government (AT-P-GTC) and Hellfire Missiles
Approvals (AT-P-AZP) due to disbursement
data not warranting payment. In
670.8 685.5 14.7 Total Variance
addition there has been slow billing
2.2 % Variance for the non-FMS procurements, and
minor delays with ANZAC Ship
Integration. The project also
experienced a foreign exchange
loss of $16.6m.
2.3 Details of Project Major Contracts
Price at
Signature Type (Price Form of
Contractor Signature 30 Jun 15 Notes
Date Basis) Contract
$m $m
US Government (AT-P-SCF) Jun 11 2,090.3 2,410.0 Variable FMS 1, 3
US Government (AT-P-AHV) Aug 11 168.1 208.7 Variable FMS 1, 3
US Government (AT-B-ZBZ) 1, 2,
Jan 12 12.3 21.7 Variable FMS
3
US Government (AT-P-GTC) Feb 13 10.9 14.3 Variable FMS 1, 3
Notes
MH-60R Seahawk

1 The scope of this contract is explained further below.

2 Increased quantity of Tactical and Training Missiles in FMS Case.
3 Contract value as at 30 June 2015 is based on actual expenditure to 30 June 2015 and remaining
commitment at current exchange rates, and includes adjustments for indexation (where applicable).
Quantities as at
Contractor Scope Notes
Signature 30 Jun 15
US Government (AT-P-SCF) 24 24 MH-60R, synthetic training devices,
and associated mission and support
systems
US Government (AT-P-AHV) Classified Classified Mk 54 Torpedoes

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US Government (AT-P-ZBZ) Classified Classified AGM-114N Hellfire Air to Surface
Missiles
US Government (AT-P-GTC) N/A N/A RAN MH-60R Detachment – Naval
Air Station Jacksonville, Florida
support
Major equipment received and quantities to 30 Jun 15
Spares and Support Equipment deliveries
Aircraft 1 and 2 delivered in December 2013
Aircraft 3 and 4 delivered in February 2014
A quantity of Mk 54 Torpedos delivered in August 2014
A quantity of Hellfire Missiles delivered in August 2014
Aircraft 5 delivered in October 2014
‘BRomeo’ Seahawk Training Device delivered in October 2014
Aircraft 7 and 8 delivered in January 2015
Tactical Operational Flight Trainer 1 delivered in February 2015
Aircraft 9 and 10 were accepted in January 2015

Part 3. Project Data Summary Sheets

Aircraft 11 and 12 were accepted in April 2015

Section 3 – Schedule Performance

3.1 Design Review Progress
Major System / Platform Original Current Achieved Variance
Review Notes
Variant Planned Planned /Forecast (Months)
System MH-60R Helicopter N/A N/A N/A N/A 1
Requirements ADF Unique Mission System Jan 14 Jan 14 Apr 14 3 2
Options – Phase 1
ADF Unique Mission System TBA TBA Nov 14 0 2
Options – Phase 2
Air Warfare Destroyer Dec 14 Dec 14 Jan 15 1 3
Preliminary MH-60R Helicopter N/A N/A N/A N/A 1
Design ADF Unique Mission System Mar 14 Mar 14 Jun 14 3 2
Options – Phase 1
ADF Unique Mission System Mar 15 Mar 15 Apr 15 1 2
Options – Phase 2
Air Warfare Destroyer Dec 15 Dec 15 Dec 15 0 3
Critical Design MH-60R Helicopter N/A N/A N/A N/A 1
ADF Unique Mission System TBA TBA Jun 14 0 2
Options – Phase 1
ADF Unique Mission System May 15 May 15 May 15 0 2
MH-60R Seahawk
Options – Phase 2
Air Warfare Destroyer Dec 16 Dec 16 Dec 16 0 3

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 Notes
1 MH-60R helicopter system requirements and design reviews not required as it is a MOTS helicopter
procured through FMS.
2 The ADF Unique Mission System Options have been split into two phases. Phase 1 Statements of
Work (SOWs) for ADF Unique Mission System Options have been agreed by the PO, USN,
Sikorsky and Lockheed Martin. Director General Technical Airworthiness has endorsed SOWs in
accordance with Technical Airworthiness Regulations. Dates are reflective of Phase 1 design
reviews. SOW for Phase 2 was released as part of USN request for tender 26 February 2014, and
contract signature with Lockheed Martin being achieved in October 2014.
3 The AWD requires modification to enable the MH-60R aircraft to operate at full capability as
the AWD certification baseline is based on a classic Seahawk aircraft. The modification
works required to integrate the MH-60R aircraft will be conducted following the delivery of
each AWD.

3.2 Contractor Test and Evaluation Progress

Test and Major System / Platform Original Current Achieved Variance
Notes
Evaluation Variant Planned Planned /Forecast (Months)
Part 3. Project Data Summary Sheets

System ADF Unique Mission System Aug 15 Aug 15 Aug 15 0 1

Integration Options – Phase 1
ADF Unique Mission TBA TBA TBA TBA 1
System Options – Phase 2
Air Warfare Destroyer TBA TBA TBA TBA
Acceptance ADF Unique Mission System Feb 16 Feb 16 Feb 16 0 1
Options – Phase 1
ADF Unique Mission TBA TBA TBA TBA 1
System Options – Phase 2
Acceptance of first MH-60R Jun 14 Dec 13 Dec 13 (6)
Acceptance of final MH-60R Sep 18 Aug 16 Aug 16 (25)
Air Warfare Destroyer TBA TBA TBA TBA

Notes

1 The ADF Unique Mission System Options have been split into two phases. Phase 1 SOW for ADF
Unique Mission System Options have been agreed by the PO, USN, Sikorsky and Lockheed Martin.
SOW for Phase 2 was released as part of USN request for tender 26 February 2014, and contract
signature with Lockheed Martin being achieved in October 2014.
MH-60R Seahawk

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3.3 Progress Toward Materiel Release and Operational Capability Milestones
Original Achieved Variance
Item Notes
Planned /Forecast (Months)
In-Service Date (ISD) Jun 14 Jan 14 (5) 1
Initial Materiel Release (IMR) Jun 15 Mar 15 (3) 2
Initial Operational Capability (IOC) Aug 15 Aug 15 0
Materiel Release 2 (MR2) Dec 16 Dec 16 0
Materiel Release 3 (MR3) Jun 19 Jun 19 0
Materiel Release 4 (MR4) Dec 20 Dec 20 0
Final Materiel Release (FMR) Dec 23 Dec 23 0
Final Operational Capability (FOC) Dec 23 Dec 23 0
Notes
1 Revised aircraft delivery schedule.
2 The project declared IMR in March 2015, three months ahead of schedule and expects
Capability Manager sign-off of IMR in July 2015.
Schedule Status at 30 June 2015

Part 3. Project Data Summary Sheets

Approval
Schedule Plan at
Government Approval IMR

IOC
Schedule Plan at 30
June 2015
FMR
Jun-10

Jun-11

Jun-12

Jun-13

Jun-14

Jun-15

Jun-16

Jun-17

Jun-18

Jun-19

Jun-20

Jun-21

Jun-22

Jun-23

Jun-24
FOC

Section 4 – Materiel Capability Delivery Performance

4.1 Measures of Materiel Capability Delivery Performance
Pie Chart: Percentage Breakdown of Materiel Capability Delivery Performance
Green:
The project expects to meet capability requirements as
expressed in the Materiel Acquisition Agreement and
supporting suite of Capability Definition Documentation
and in accordance with the requirements of the relevant
Technical Regulatory Authorities. MH-60R Seahawk
Amber:
N/A

Red:
N/A

100%

Note
This Pie Chart does not necessarily represent capability achieved. The capability assessments and forecasts
by the project are not subject to the ANAO’s assurance review.

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 4.2 Constitution of Initial Materiel Release and Final Materiel Release
Item Explanation Achievement
Initial Materiel Release (IMR) • Five aircraft in USN configuration, Achieved
Tactical Operational Flight Trainer and
supporting systems,
• Establishment of key Sustainment
organisations,
• Initial stock of Mk 54 Torpedos and
Hellfire Missiles, and
• Modification of one ANZAC class ship
for interoperability with MH-60R
Seahawk helicopter.
Final Materiel Release (FMR) • All 24 aircraft delivered and Australian Not achieved
Unique Mission System Options
implemented,
• Full EO fit-out and all Mk 54 Torpedos
and Hellfire Missiles delivered,
• All ANZAC class ships and Air Warfare
Destroyers modified for
interoperability with MH-60R Seahawk
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helicopter, and
• Final Training Management Package.
Achievement is scheduled for
December 2023.

Section 5 – Major Risks and Issues

5.1 Major Project Risks
Identified Risks (risk identified by standard project risk management processes)
Description Remedial Action
Facilities. The establishment of the training and Provision will be made, in consultation with
squadron complex may be affected by construction Headquarters Fleet Air Arm, for the use of temporary
delays, leading to an impact on cost, performance or shared hangar and administrative facilities, if
and schedule, because the facilities project has required.
been delayed by cost and scope issues with the The PO has sought and gained Ministerial approval to
result that IOC is delayed by up to six months. accept and operate the initial batches of MH-60R in
the US to consolidate training and to mitigate the
facilities risk.
Despite facilities works commencing following
contract signature in October 2013 the risk remains
high due to no float in the build program.
This risk was retired following the
Commonwealth’s acceptance of the training and
squadron complex on 29 September 2014 and 19
December 2014 respectively.
Training System. Materiel Release 2 milestone USN to identify schedule compression strategies for
MH-60R Seahawk

may be affected by lack of an Australian training Australian unique requirements, i.e. double shift
system leading to an impact on trainee throughput, production, air freight the devices.
because the USN are unable to deliver Training The Project is seeking RAAF Air Lift Group support to
Devices to the contracted schedule, with the result return the synthetic training devices to Australia in a
that the training system will not be established by bid to reduce shipment duration significantly and
February 2015. reduce schedule risk. The MH-60R PO is also
investigating the use of commercial carriers in the
event that RAAF is unable to assist due to higher
priority tasking.
PO continues to conduct weekly teleconference
meetings with USN and CAE US and has participated
in individual device requirements and design reviews

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 which have reduced the residual risk associated with
some elements of the training system (e.g. Avionics
Maintenance Trainer), however, the residual risk for the
overall training system remains at high as the
consequence for any delay to the Australian training
system remains severe despite reduction of likelihood.
This risk was retired following Commonwealth’s
acceptance of the first Tactical Operational Flight
Trainer and the Avionics Maintenance and
Weapons Loading Trainer on 27 February 2015.
These training devices along with a BRomeo
(whole aircraft maintenance trainer) enable the RAN
to commence an Australian training program
required to satisfy the Initial Operating Capability
requirements.
MH-60R capability Baseline. One project Capability Development Group to provide for the block
objective as per Second Pass Approval is to upgrade program by insertion of a MH-60R Capability
maintain the same configuration as the USN MH- Assurance Program (CAP) in the Defence Capability
60R through life of type in order to realise Plan.
economies of scale, maintain combat capability As planning for the MH-60R CAP has progressed,

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parity, and to manage obsolescence. If a Capability this risk has been downgraded to a medium level
Assurance Program is not established and funded, risk.
the Australian MH-60R will quickly become an
orphan product.
MH-60R Health and Usage Monitoring System The MH-60R PO are maintaining a high level of
(HUMS). There is a chance that FMR will be engagement with the USN to ensure early
affected by inadequate Information and identification of potential problems and to gain a better
Communications Technology (ICT) expertise to understanding of the MH-60R HUMS system and its
design, establish and manage the MH-60R HUMS interfaces.
support infrastructure, leading to a negative impact Remedial actions include ensuring that the
on the capability to conduct credible fatigue life appropriate resources, particularly ICT expertise, are
assessments throughout the operational life of the applied to the development and implementation of the
aircraft. MH-60R HUMS whilst ensuring the required level of
HUMS support, at the operational level as well as
hardware and software support at the system level, is
established through the sustainment FMS case.
This risk has been retired following the
establishment of the HUMS support infrastructure
enabling the transfer of aircraft data between the
RAN and USN.
Inability to use USN derived courseware. There is The MH-60R PO have identified a number of
a chance that IOC milestone may be affected by an mitigation strategies that when employed will reduce
inability to use USN courseware for operator and the residual risk level to medium.
maintainer training on the Defence provided This risk has been retired following the receipt,
information technology infrastructure resulting in an installation and successful testing and use of the
MH-60R Seahawk
insufficient indigenous training system leading to USN courseware on the Defence Protected
an impact on cost, performance and reputation. Network and Defence Secret Network.
Poor budget performance for Financial Year 2014- The USN, represented by Program Management
15 onwards. There is a chance that quarterly Authority 299 (PMA-299) hold monthly Disbursement
payments for the FMS cases in support of AIR Tracker reviews to review planned disbursements.
9000 Phase 8 will be different from that predicted. The MH-60R PO Resident Business Manager attends
these reviews. After each review the Disbursement
Tracker is updated to reflect the changes in forecast
expenditure. This risk was identified as being
misleading with its current title, as it indicates
poor budget management from a PO perspective,
when in reality it is the USN management of

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 quarterly FMS billing that creates uncertainty in
forecasts. The risk has been retitled Variable FMS
Financial Forecasts Financial Year 2014–15 and
Following.
This is an ongoing issue as opposed to a risk and
has been retired and transferred to the issues log
as a medium rated issue.
Emergent Risks (risk not previously identified but has emerged during 2014-15)
Description Remedial Action
N/A N/A

5.2 Major Project Issues

Description Remedial Action
Crashworthiness. Exemptions are required to The exemption to AD 03/2009 was not agreed prior to
allow the final Crashworthiness certification for a achieving the Special Flight Permit. The MH-60R
MOTS Aircraft against the requirements of Airworthiness Issue Paper on Crash Protection
Airworthiness Directive (AD) AD 03/2009 and Assessment remains open with final crashworthiness
the changes provided via Defence Airworthiness certification to be achieved prior to award of Australian
Part 3. Project Data Summary Sheets

Advisory Circular 001/2012. An Airworthiness Military Type Certificate.

Issue Paper has identified this issue. However, The project continues to progress this issue through
AD 003/2014 dated 11 December 2014, which both the technical and operational airworthiness
superseded AD 03/2009, did not allow for an authorities. Following the release of AD 003/2014
exemption on the previously planned grounds dated 11 December 2014, the project intends
in the issues paper. updating the subject Issue Paper to comply with
current requirements and Technical Airworthiness
Authority advice to Operational Airworthiness
Authority on the effects of AD 003/2014 Defence
Aircraft Crash Protection Policy, which removes
support for Limited Configuration Control
exemptions to ADF aircraft. The RAN and USN
share a common aircraft baseline.
This issue has been retired following advice being
received from the Commander Australian Fleet that
the Airworthiness Issue Paper has been closed and
that MH-60R crash protection is to be reviewed
against Contemporary Crash Protection Design
Requirements every five years or when significant
changes are proposed to the aircraft Configuration,
Role and Environment.
MH-60R Seahawk

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Section 6 – Project Maturity
6.1 Project Maturity Score and Benchmark
Attributes

Technical Difficulty

Operations and
Understanding
Requirement

Commercial
Technical
Schedule

Total
Support
Maturity Score

Cost
Project Stage Benchmark 10 8 8 8 9 8 9 60
Initial Materiel Project Status 9 9 8 8 9 8 9 60
Release • Schedule: The MH-60R production line is mature. The Project
Explanation
has negotiated early delivery dates for ADF MH-60R.
• Cost: The overall Estimate at Completion is projected to be within
project guidance. The Project has benefitted from economies of
scale from the US Government multi-year buys of aircraft and key

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components.

70 70
65 66 67
63
60 60
55 57
50 50
45
40 42
35
30 30
20 21
16
13
10
0
Enter DCP

Decide Viable Capability Options

1st Pass Approval

Industry Proposals / Offers

2nd Pass Approval

Contract Signature

Preliminary Design Review(s)

Detailed Design Review(s)

Complete Sys. Integ. & Test

Complete Acceptance Testing

Initial Materiel Release (IMR)

Final Materiel Release (FMR)

Final Contract Acceptance

MAA Closure

Acceptance Into Service

Project Completion

2013-14 MPR Status - - - - 2014-15 MPR Status - - - -

MH-60R Seahawk

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 Section 7 – Lessons Learned
7.1 Key Lessons Learned
Categories of
Project Lesson
Systemic Lessons
Whilst an FMS program affords a number of advantages, the transfer of a significant Contract
amount of project management and engineering functions to the US Government Management
implementing agency (NAVAIR PMA-299) and the weak bargaining position of the
Commonwealth, increases the project's exposure to risk (technical, schedule and
cost). The resultant level of risk and complexity is often understated and poorly
understood.
The level of Commonwealth contract and financial management involvement and
oversight of industry is very low in comparison to that mandated for Direct
Commercial Sale contracts, yet both procurement methods confront similar issues.
Adequate Commonwealth participation in key project management and technical
oversight activities in the US, as provided for in the Government Second Pass
submission, is critical to provide the required level of contract management.
The recruitment process lead times for candidates not already within the ADF or APS Resourcing
can create significant extended vacancies within the Project workforce, and this is
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exacerbated by the relatively short notice that Defence personnel are obliged to
provide for internal transfers.
By procuring MOTS equipment, adhering to the project’s clearly defined scope as Off-The-Shelf
detailed by government at Second Pass, and effectively using the Program Equipment
Management Steering Group to prevent potential scope creep, the project has been
able to meet or exceed its financial and schedule obligations as detailed within the
project’s Materiel Acquisition Agreement.

Section 8 – Project Line Management

8.1 Project Line Management in 2014-15
Position Name
General Manager Ms Shireane McKinnie
Division Head RADM Tony Dalton
Branch Head CDRE Colin Lawrence
Project Director CAPT Peter Ashworth
Project Manager CMDR Michael Rainey
MH-60R Seahawk

Project Data Summary Sheets

ANAO Report No.16 2015–16
Project
2014–15Data Summary
Major Projects Sheets
Report
ANAO Report No.16 2015–16
2014–15
244 Major Projects Report
244