BAE Systems HCFP – Quarterly update
AUSTRALIAN INDUSTRY CAPABILITY (AIC) OPPORTUNITIES
Hunter Class Frigate Program
Q3 2021
Ross Hillman
Supply Chain Director HCFP
BAE Systems Maritime Australia
HCFP – Organisational Structure
Hunter Class Frigate Program – AIC Overview
- The Commonwealth of Australia (CoA) bought the Type 26 Reference Ship Design (RSD) from the UK
- The Hunter Class Frigate Program (HCFP) will be managed within the construct of BAE Systems Maritime Australia (former trading name ASC Shipbuilding Pty Ltd), as a subsidiary of BAE Systems Australia Limited. BAE Systems Maritime Australia will deliver nine anti-submarine warfare Hunter class frigates to the Royal Australian Navy, and in so doing contribute to an enduring sovereign industrial capability
- Tier 1 OEM contracts to be placed with ASC Shipbuilding Pty Ltd
- BAE Systems Maritime Australia to access Osborne Naval Shipyard (South Australia) from July 2020
- Cut steel for the Hunter program’s prototyping phase: December 2020
- Construction to commence on First of Class: December 2022
- Schedule impact to Ship 1 will not be compromised
- To maximise Australian industry participation, market testing is to be demonstrated via the use of the ICN Gateway
Purpose
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AIC / CNS Objectives
Achieve an Australian defence industry that has the capability, posture and resilience to help meet Australia’s defence needs, while being internationally competitive and innovative through the establishment of:
- Modern, innovative and secure naval shipbuilding and sustainment infrastructure
- A highly capable, productive and skilled naval shipbuilding and sustainment workforce
- A motivated, cost-competitive and sustainable Australian industrial base underpinned initially by experienced international ship designers and builders who transfer these attributes to Australian industry; and
- A national approach to delivering the Naval Shipbuilding Plan.
AIC Requirements
- UPKEEP – At a minimum, an OEM’s equipment or system should be supported from Australia rather than Europe or the US once the ships are accepted and using the build process wherever possible to support knowledge and technology transfer
- UPGRADE – Capability transfer that allows the OEM’s equipment or system to be changed or modified in Australia during life of the ship
- CNS – That there shall be knowledge transfer so that for future programs the equipment might be designed and built in Australia. This may include design support activities such as systems safety and quality
- MAX – That Australian content of the product is maximised in a cost-effective manner. Where there is capability already in Australia, it should be utilised where cost-effective to do so
- VFM – The Australian capability delivers value for money across the ship’s Life Cycle Cost. Establishing a capability should reduce sustainment costs
- SUSTAINABLE – The Australian capability must be sustainable both during and beyond the Hunter program acquisition phase.
TARGETED TASKs
- The Targeted Task supports or potentially supports Category A, B or Combat Systems equipment on the HCFP.
- The Targeted Task will provide a clear deliverable in support of the feasibility and assessment of the OEM investment cases where:
- The SME is already in discussion with the OEM; and/ or
- The SME has facilities capable of producing the equipment; and/ or
- The SME has a successful track record (based on BAESMA industry knowledge).
- The Targeted Task presents an opportunity ‘on the surface’ to increase AIC but requires further validation;
- The Targeted Task clarify opportunity specific implications required for HCFP benefit (such as facilities, tooling, certification, security etc.);
- The Targeted Task will have the potential to deliver an AIC/CNS outcome for the specified equipment; and
- The Targeted Task will clarify transfer of technology/knowledge scope including elements such as cost, outputs and/or maximising AIC.
Category Definitions
| Category A | Category B | Category C | Category D | Combat Systems |
| High value, high risk, project specific equipment, very large and complex systems; | Medium value, established and medium to low risk equipment; | Catalogue items and commodities, consumables; | On-site subcontracted services; | Mission Critical Systems; |
| Customer mandated, program critical (mini projects), competition led; | Complete systems that have been modified for the Program, although they remain recognisable as the original equipment or system; | Platform supplies (build to print or Commercial-off-the-shelf (COTS)); | Program critical; intrinsic linkage to build Program; service to the project | Leverage existing capability in Australia for HCFP with partners SAAB Australia and Lockheed Martin; |
| Major equipment’s; e.g. combat, power and propulsion and complex systems. | Platform equipment. | Catalogue equipment’s or commodity materials, which are generally build to print or proprietary, with high volume but individual value and risk; | Subcontract services. | 80% change to Hunter Class from the Reference Ship Design – there is no functional baseline. |
| Commodities; steel, valves, pumps, electrical systems, pipe materials. |
Market Testing via ICN
To evidence full & fair market testing, BAE Systems Maritime Australia requires the use of the Industry Capability Network (ICN)
Category A & B to use Minimum Change principle – using the same Tier 1 Suppliers as Type 26 unless in the case of: 1. Obsolescence; 2. Design Change, 3. Poor Performance, 4. Capacity Constraints, and/or 5. Financial Risk |
Category C & D work packages will all be market-tested via ICN Gateway |
Combat Systems to use ICN when suppliers are not either mandated or pulled through from T26 |
SME’S ENGAGED IN Q4 2020/Q1 2021 INCLUDE
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OEM’S ENGAGED IN Q4 2020/Q1 2021 INCLUDE
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OEM RFP’S ISSUED TO DATE
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SME EOI’s & RFP’S ISSUED TO DATE
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Category A Equipment
Category B Equipment
Category C Equipment (Prototyping)
CAtegory C Equipment (Prototyping) Cont.
Category D Equipment (Prototyping)
Combat Systems Equipment RFP Timing
Making Contact with BAE Systems Maritime Australia
BAE Systems Maritime Australia is continually seeking to connect with Australian & New Zealand industry who want to:
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“We want to connect with youand your supply chain” |
