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AUSTRALIAN INDUSTRY CAPABILITY (AIC) OPPORTUNITIES

Hunter Class Frigate Program

Q3 2020

 

AIC & Supply Chain Leaders

 

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 ASC Shipbuilding Pty. Ltd, as a subsidiary of BAE Systems Australia Limited. ASC Shipbuilding Pty. Ltd 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

  • ASC Shipbuilding 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

  • The objective of Australian Industry Capability (AIC) is to identify opportunities for, and collaborate with, the CoA in order to maximise the participation of Australian industry in the performance of the contract on and from the effective date (ED); and

  • In doing so, we will grow AIC and provide a clear road-map for Australian industry that can be followed through the design-prototype, shipbuilding, and sustainment phases of the Hunter program.

 

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

 

Expectation of OEM’s RFP Submission

 

As part of their RFP submission OEMs will be required to provide 2 options:

 

AIC Base Case

Doing business in Australia

AIC Enhanced Option

Increasing Australian capability

  • Minimum required to complete SoW for program delivered in Australia
  • Australia based PM / Engineering
  • Installation / Set-to-Work / Commissioning
  • Building sustainment capability
  • Includes risk managed Technology / Knowledge Transfer Plan
  • Increasing capability in Australia
  • Capability delivered
  • Identify Australian partners
  • Investment required
  • Ongoing premium
  • Schedule delta from base case
  • Potential export opportunities
  • Includes risk managed Technology / Knowledge Transfer Plan

 

 

 

 

Category Definitions

 

Market Testing via ICN

To evidence full & fair market testing, ASC Shipbuilding 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

“OEM work packages will be
uploaded to the BAE Systems ICN Portal
for SMEs to register EOIs”
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

 

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 ASC Shipbuilding

 

“We want to connect with you

and your supply chain”

 

AIC Considerations

  • Is my organisation registered on the Industry Capability Network (ICN) Gateway?
  • Have I set the appropriate notifications to upcoming work packages on the ICN for the HCFP?
  • Have I attended the HCFP briefing / supplier forums?
  • Do I understand what Australian Industry Capability (AIC) and Continuous Naval Shipbuilding (CNS) mean?
  • Have I made contact with any OEM for HCFP supply?
  • Does my current capability match those of known OEM suppliers?
  • Have I made contact with industry associations to understand what support is available to maximise my chances of being selected?
  • Do I know what level (i.e. investment / time / transfer of technology) it will take to leverage sovereign capability?
  • What is my level of engagement to date with the appropriate OEM/s listed?
  • Am I a competitive alternative to the current supply chain?

 

A New Standard in Shipbuilding

AIC Contacts

Greg Keen
+61 499 553 398

greg.keen@baesystems.com

Level 3
80 Flinders Street
Adelaide 5000, AUSTRALIA

Doug Sim
(UK) +44 7867 131 074

douglas.sim@baesystems.com

BAE Systems Naval Ships
South Street, Scotstoun
Glasgow, G14 0XN

Julian Bennett
+61 429 792 830

julian.bennett4@baesystems.com

Level 3
80 Flinders Street
Adelaide 5000, AUSTRALIA

Cheryl Velautham
+61 403 943 490

cheryl.velautham@baesystems.com

Level 3
80 Flinders Street
Adelaide 5000, AUSTRALIA

 

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