Defence Budget 2010 - 2011


1st Jun 2010

Bridging Air Combat Capability
AIR 5349 Phase 1 (2010 / 2011 $493 million)

Prime Contractor: Boeing Company, under a Foreign Military Sales (FMS) arrangement with the
United States (US) Government. This phase of the project will acquire 24 F/A-18F Block II Super Hornet multi-role aircraft and associated support systems and services. This will ensure that Australia’s
air combat capability edge is maintained through the transition to the F-35 Joint Strike Fighter during the coming decade. Following successful testing and acceptance activities conducted by the US Navy
(USN) in late 2009 and early 2010, five aircraft were ferried to Australia and arrived at RAAF Base Amberley on 26 March 2010 to commence operations.

Air to Air Refuelling Capability
AIR 5402 ($493 million)

Prime Contractor: EADS CASA (Trading as Airbus Military), (Spain).
This project is acquiring five new generation Airbus A330 Multi-Role Tanker Transport (MRTT)
aircraft – to be known as KC-30A in RAAF service. The acquisition also establishes the infrastructure
necessary to deliver services including engineering, maintenance, spares management, technical data,
software and training support for the new fleet.
Programmed expenditure during 2010-11 is based on payment milestones and earned value in relation
to delivery and acceptance of the first three aircraft and associated support system elements,
conversion of the fourth A330 (in Australia), and delivery of the fifth commercial A330 to Airbus
Military prior to commencement of conversion.

F/A-18 Hornet Upgrade
AIR 5376 Phase 2 ($107 million)

Prime Contractors: The DMO is the prime systems integrator of elements provided by:
• The Boeing Company (US) – for the avionics and electronic warfare self protection upgrade
• The USN – for aircraft software integration and radar warning receiver acquisition
• SAAB (Sweden) – for supplementary countermeasures dispensing systems
• Elta (Israel) – for active radio frequency electronic counter measures systems
• Elbit Systems Limited (Israel) – for Hornet Data Recorder
• Boeing Defence Australia - for production installation of the electronic warfare self protection suite
of modifications.

Airborne Surveillance for Land Operations
JP 129 Phase 2 ($77 million)

Prime Contractor: To be determined.
This phase of the project seeks to provide two Tactical Uninhabited Aerial Vehicle (TUAV) systems;
each comprising five air vehicles, two ground control stations, a tactical launch and recovery element,
and associated tactical support systems.
Defence has finalised its capability requirements for this phase of the project, which places emphasis on
operationally proven off-the-shelf systems which can be delivered in minimum time to support current
and future operational needs. An analysis of candidate TUAV systems against capability, schedule,
risk profile and cost has been completed, and an acquisition business case is being prepared for
Government consideration.


Next Generation Satellite Communications System
JP 2008 Phase 4 ($193 million)

Prime Contractor: Boeing via the US Government.
This phase of the project seeks to deliver high-priority components of the next generation satellite
communication system supporting the ADF from 2008. The project will address the ADF’s wideband
satellite communications requirements by partnering on the US Wideband Global Satellite (WGS)
communication system program.
Interim anchoring provides early access to the first block of WGS through a mix of offshore anchoring
using US facilities with backhaul to Australia and small capacity in-country anchoring for direct access
to WGS satellites viewable from within Australia.

Ultra High Frequency Satellite Communications
JP 2008 Phase 5A ($145 million)

Prime Contractor: Intelsat LLC.
This phase of the project seeks to deliver an enhanced Ultra High Frequency (UHF) satellite
communications capability over the Indian Ocean region. Intelsat LLC has been contracted to include a
hosted UHF payload, owned by Defence, on the IS-22 commercial satellite that Intelsat plans to launch
to provide commercial pay-TV and data services. IS-22 is scheduled to commence in-orbit operations in
The project will also upgrade the Australian network control system to handle the additional capacity
provided by the payload. Intelsat will support the capability for 15 years following in-orbit acceptance
by Defence.

Battle Management System (BMS)
LAND 75 Phase 3.4 ($124 million)

Prime Contractor: Elbit Systems Limited.
This phase of the project will deliver a vehicle mounted BMS into a Brigade Group in support of
Network Centric Warfare Roadmap milestones. This capability is to be delivered in cooperation with
JP 2072 Phase 1 that is delivering the combat radio system, and LAND 125 Phase 3A that is delivering a
dismounted BMS.
A Contract with Elbit Systems Limited was signed on 15 March 2010. IOC based on a combat team in
7 Brigade in Brisbane is due in July 2011. FOC in 7 Brigade is due in April 2013.

Dismounted Battle Group and Below Command, Control Communication System (BGC3)
LAND 125 Phase 3A ($65 million)

Prime Contractor: Elbit Systems Limited.
This phase of the project will deliver 1,501 BMS-dismounted and 164 dismounted command posts to
the ADF. This is part of the BGC3 requirement.
The project is delivering a dismounted BMS into a Brigade Group in support of the Network Centric
Warfare Milestone 2 – Networked Battle Group 2011. It is delivering this capability in cooperation with
project JP 2072 Phase 1, which will deliver the combat radio system and project LAND 75 Phase 3.4,
which will deliver a vehicle mounted BMS.

Battlespace Communications Systems (LAND)
JP 2072 Phase 1 ($59 million)

Prime Contractors: Elbit Systems Limited; Harris and Raytheon via the US Government.
This phase of the project seeks to deliver commercial off-the-shelf and military off-the-shelf
communications systems that will provide capabilities to meet the high priority gaps identified in the
current Battlespace Communications System (LAND) (BCS(L)). In particular the project will acquire
the combat radio system in support of the LAND 125 BMS, high capacity data radios in support of the
Battlefield Command and Support System, and High Frequency (HF) radios.
Radios and ancillaries will be acquired through government to government arrangements. Integration
and installation into platforms (including vehicles and soldiers) will be arranged via separate contracts.

Tactical Information Exchange Domain
JP 2089 Phase 2A ($35 million)

Prime Contractors: The Anzac Ship Integrated Material Support Program Alliance contractors Saab
and BAE Systems (for the Anzac Class Frigate multi-link upgrade). FMS and direct commercial
procurements of military off–the-shelf and commercial off-the-shelf equipment, additional support to
existing support infrastructure and additional training using existing contracts (for the initial common
support infrastructure).
This phase of the project will substantially increase the interoperability of the Anzac Class Frigate with
other ADF and coalition platforms through the installation of advanced tactical data links in Link 16
and Variable Message Format, to augment existing Link 11 data link capabilities.

High Frequency Modernisation
JP 2043 Phase 3A ($34 million

Prime Contractor: Boeing Defence Australia Ltd.
This phase of the project is to replace Naval HF Stations at six sites, replace Air Force HF stations at
four sites, upgrade design and performance of the replaced systems, and upgrade selected ADF mobile
The first stage of the project, completed late 2004, replaced the capability provided by the former Navy
sites and Air Force stations. The second stage – which is to provide increased levels of automation,
improved capability, enhanced security and survivability, reduced reliance on staff, and which will
incorporate the new equipment into mobile platforms – is currently being implemented.

New Air Defence Command and Control Systems for Control Units 2 & 3
AIR 5333 ($34 million)

Prime Contractor: Boeing Defence Australia Ltd.
This phase of the project is replacing the Air Defence Command and Control System with two new
systems located at RAAF Bases Tindal and Williamtown. It will also design and deliver an integrated
ADF Air Defence System communications network.
During 2009-10, factory acceptance testing, site acceptance testing, operator and maintainer training
and upgrades to RAAF Base Williamtown facilities were completed. Delivery of the Northern Regional
Operations Centre (NROC) located at RAAF Tindal is scheduled for August 2010. Delivery of the
Eastern Regional Operations Centre (EROC) located at RAAF Williamtown is scheduled for September
2011. The major activities for 2010-11 will be the completion of operational test activities at NROC in
conjunction with Exercise Pitch Black in the July to August 2010 period, and the installation and
acceptance testing of the Vigilare system into EROC.

Follow-on Stand off Weapon
AIR 5418 Phase 1 ($70 million)

Prime Contractors: A FMS case was established with the US Air Force (USAF) in July 2006 to supply
AGM-158 Joint Air-to-Surface Standoff Missiles (JASSM).
A commercial contract was signed with Lockheed Martin Missiles and Fire Control in September 2006
for support to integration of JASSM with F/A-18A/B aircraft, supply of technical data and
documentation for JASSM airworthiness certification, and provision of an anti-surface warfare
(maritime interdiction) capability study.
This phase of the project is acquiring JASSM for integration onto the F/A-18A/B aircraft to improve
weapon terminal effectiveness against well defended targets.

Lightweight Torpedo Replacement
JP 2070 Phase 2 ($46 million)

Prime Contractor: Eurotorp, Thales.
This phase of the project originally covered integration of the MU90 torpedo in several ADF ship and
aircraft types, provision of support facilities and acquisition of an initial outfit of European-
manufactured weapons.
Significant activity planned for 2010-11 includes the conduct of further firings to complete the
acceptance test and evaluation programme in order to proceed to initial operational release and
operational test and evaluation. The project is planning to lease a suitable mobile target in early 2011 to
support the firing programme.

Lightweight Torpedo Replacement
JP 2070 Phase 3 ($40 million)

Prime Contractor: Eurotorp, Thales.
This phase of the project involves the acquisition of MU90 torpedoes and the assembly of locally and
internationally produced torpedo components into MU90 torpedoes using facilities at Fleet Base West,
Western Australia. The project will establish an Australian manufacturing and support capability for
the Eurotorp MU90 lightweight torpedo, and deliver sufficient quantities to meet war reserve

Mulwala Redevelopment Project
JP 2086 Phase 1 ($37 million)

Prime Contractor: Bovis Lend Lease.
This phase of the project will deliver a modernised propellant manufacturing capability at Mulwala,
New South Wales, to replace the existing capability that dates back to the 1940s. The works include
construction of new nitrocellulose, solvent and propellant production plants, a confined burn facility
and a Performance and Safety Testing Centre (PSTC).
A contract was signed with Bovis Lend Lease in June 2007 for the design and construction of the
modernised facility.

Multi Role Helicopter
AIR 9000 Phase 2 ($424 million)

Prime Contractor: Australian Aerospace.
This phase of the project is acquiring 46 MRH-90 helicopters for the Army and Navy (with a nominal
split of 40 for Army and six for Navy). The support systems will include an electronic warfare
self-protection support system, a ground mission management system, a software support centre, an
instrumented system with telemetry capable of being installed into three instrument-capable aircraft,
two full flight and mission simulators and facilities infrastructure at Townsville, Oakey, Brisbane and

Armed Reconnaissance Helicopter
AIR 87 Phase 2 ($151 million)

Prime Contractor: Australian Aerospace.
This phase of the project will acquire an Armed Reconnaissance Helicopter (ARH) System for the
Army. The system will consist of 22 helicopters, an ARH software support capability, an electronic
warfare mission support system, ground mission equipment, facilities, a training system and training
devices including full flight and mission simulators.
The re-baselined schedule to deliver the first operational capability to Army was achieved in
September 2009, 27 months later than originally contracted. All 22 ARHs are expected to be delivered
by early 2011, with acceptance of final supplies by December 2011.

Bushmaster Protected Mobility Vehicle
LAND 116 Phase 3 ($144 million)

Prime Contractor: Thales Australia.
This phase of the project is acquiring 737 vehicles in seven variants (troop, command, mortar, assault
pioneer, direct fire weapon, ambulance and air defence). The vehicles will provide protected land
mobility to Army combat units and Air Force Airfield Defence Guards. All 300 troop, command,
assault pioneer, mortar, direct fire weapon and ambulance variants under the original acquisition
contract have been delivered.
Delivery of 144 ELF vehicles was completed in April 2009. Delivery of 293 Bushmaster vehicles for
Project LAND 121 Phase 3 will be completed by June 2012. The project is currently determining the
most appropriate way ahead to meet an outstanding requirement for the provision of up to 184
protected mobility vehicle compatible trailers to meet an element of Project LAND 121 Phase 3.

Field Vehicles and Trailers
LAND 121 Phase 3 ($106 million)

Prime Contractors: Light/Lightweight Capability: Mercedes-Benz Australia-Pacific Pty Ltd.
Trailer (light/lightweight) Capability: Haulmark Trailers Australia.
Trailer (mediumweight/medium/heavy) Capability: Yet to be selected.
Mediumweight/medium/heavy Capability: Yet to be selected.
Additional Bushmaster vehicles: Thales Australia.

Upgrade of M113 Armoured Vehicles
LAND 106 ($97 million)

Prime Contractor: BAE Systems Australia Defence.
This project is upgrading the Army's M113 A1 vehicles to improve protection, lethality, mobility and
habitability. The upgrade replaces most of the vehicle, retaining only the hull, hatches, rear door and
communications systems. In addition to the 350 vehicles for the initial requirement, 81 vehicles are
being purchased to support the Army’s ELF. In August 2009, a contract change was approved to stretch
the only un-stretched variant, the armoured mortar. The final contracted delivery date for all 431
vehicles is April 2012.

Artillery Replacement 155mm Howitzer
LAND 17 Phase 1A ($76 million)

Prime Contractor: The capabilities will be purchased from the US Government through the FMS
This phase of the project seeks to enhance the indirect fire support capability of the ADF. The project
will replace and enhance specified elements of Army’s indirect fire system. The Project LAND 17
mission system will address the tactical joint fires artillery command and control systems, indirect fire
system delivery platforms and other indirect fire system elements. The project will also meet the
various integrated logistic support requirements including training support, facilities and all aspects of
through-life support.

Direct Fire Support Weapons
LAND 40 Phase 2 ($67 million)

Prime Contractors: Medium Direct Fire Support Weapons: SAAB Bofors Dynamics.
Heavy weapon thermal sight: BAE Systems Australia.
Light Weight Automatic Grenade Launcher (LWAGL): A contract is yet to be signed for the LWAGL.
This phase of the project will deliver two new types of direct fire support weapons to Army's Infantry
Battalions, Special Forces and RAAF Airfield Defence Guards. The first of the systems to be delivered is
the M3 Carl Gustaf medium direct fire support weapons fitted with a thermal sight. The second system
is a LWAGL fitted with a night sight and a fire control system.

Anzac Anti-Ship Missile Defence
SEA 1448 Phase 2B ($76 million)

Prime Contractor: CEA Technologies Pty Ltd and the Anzac Ship Integrated Material Support Program
Alliance (comprising the DMO, Saab Technologies Australia and BAE Systems).
This phase of the project is tasked to deliver a phased array radar system to the Anzac Class Frigate for
target indication/tracking and mid-course guidance and target illumination for the Evolved Sea
Sparrow Missile in conjunction with other sensor and combat management system upgrades delivered
under Phase 2A.

Guided Missile Frigate Upgrade Implementation
SEA 1390 Phase 2.1 ($49 million)

Prime Contractor: Thales Australia.
This phase of the project is to upgrade four Adelaide Class Frigates to deliver integrated sensors,
missile launchers, and combat management systems to improve aspects of the frigate’s war fighting
capability. All four ships have been accepted and delivered to Navy as part of IOR. Changes to the
ship’s platform systems will deliver reliability and supportability improvements.

Standard Missile Replacement
SEA 1390 Phase 4B ($36 million)

Prime Contractor: US Department of Defense under an FMS arrangement and various commercial
contracts - Lockheed Martin-US, AAI Corporation, BAE Systems-US and Thales Australia.
This phase of the project is to upgrade four Adelaide Class Frigates with the SM-2 surface-to-air mid
course guidance mode missile capability, to acquire the weapons, and to provide missile technician

Air Warfare Destroyer Build
SEA 4000 Phase 3 ($1.146 billion)

Prime Contractor: Delivered under an Alliance arrangement between ASC AWD Shipbuilder Pty Ltd,
Raytheon Australia Pty Ltd and the Commonwealth represented by the DMO.
The Commonwealth also has a platform system design contract with Navantia, SA (Spain), and the
Aegis Combat System is being supplied by the US Navy via an FMS agreement.
This phase of the project remains on schedule and budget to deliver HMAS Hobart in December 2014,
HMAS Brisbane in March 2016 and HMAS Sydney in June 2017.

Airborne Early Warning and Control Aircraft
AIR 5077 Phase 3 ($385 million)

Prime Contractor: Boeing.
This phase of the project will provide Defence with an Airborne Early Warning and Control (AEW&C)
capability, with the provision of six aircraft and associated supplies and support.
In November 2009, Boeing and the Commonwealth reached agreement on a commercial settlement
that addressed, among other things, compensation for project delays, compensation for projected
performance shortfalls, an incremental delivery regime and the way forward for the program.

Amphibious Deployment and Sustainment
JP 2048 Phase 4A/B ($553 million)

Prime Contractor: BAE Systems Australia Defence (formerly Tenix Defence).
This phase of the project will acquire two 27,000-tonne Amphibious Ships referred to as Landing
Helicopter Dock (LHD) ships to replace the Heavy Landing Ship HMAS Tobruk and one of the two
Landing Platforms Amphibious (either HMAS Manoora or Kanimbla).

Joint Strike Fighter Aircraft
AIR 6000 Phase 2A/B ($43 million)

Prime Contractor: Lockheed Martin is contracted to the US Government for the development and
production of the Joint Strike Fighter (JSF). Australia will procure the aircraft through a government to
government co-operative agreement.
On 25 November 2009, the Australian Government announced Second Pass approval of Stage 1 of
Phase 2A/B of the New Air Combat Capability (NACC) project, comprising acquisition of Australia’s
first 14 Conventional Take-Off and Landing F-35 JSF aircraft and the infrastructure and support
required for initial training and testing, with delivery commencing in 2014. These 14 aircraft are the
first tranche of Phase 2A/B. A Government decision on the next stage of Phase 2A/B is expected to be
made in 2012

Table 64: Planned workforce for the 2010-11 budget and forward estimates
  2010-11 2011-12 2012-13 2013-14
  Budget Forward Forward Forward
  estimates estimates estimates estimates
ADF Permanent Forces        
Navy 367 374 381 386
Army 465 472 486 498
Air Force 928 978 963 961
Total Permanent Force 1760 1824 1830 1865
ADF Reserve Force        
Navy 140 140 140 140
Army 90 90 90 90
Air Force 90 90 90 90
Total Reserve Force 320 320 320 320
APS 5818 5893 6031 6178
Contractor[1] 56 52 49 49
Total workforce Strength 7,954 8,089 8,230 8,412
1. In 2010-11, the DMO expects a short-term increase of 5 contractors.  
  The number of contractors decreases in 2011-12 and beyond.  

APDR at a glance