January 21, 2020 | International, Naval
By: Nigel Pittaway
MELBOURNE, Australia – Australian defense leaders this week denied claims that their department was urged to consider alternatives to the navy's plans of buying 12 large conventionally-powered submarines from France's Naval Group.
The claims, reported by local news media in the wake of an Australian National Audit Office (ANAO) report about the program earlier this week, suggested negotiations with Naval Group were at such a poor state the Commonwealth-appointed Naval Shipbuilding Advisory Board had earlier recommended drawing up contingency plans.
However, in a statement released Wednesday by Secretary of Defence Greg Moriarty, Chief of Defence Force Gen. Angus Campbell, Chief of Navy Vice Admiral Mike Noonan and Deputy Secretary Naval Shipbuilding, Tony Dalton, denied the claims.
“Contrary to media interpretations of ANAO's latest report on the Future Submarine Program, Defence was not advised to ‘walk away' from Naval Group by the Naval Shipbuilding Advisory Board,” the statement read.
“In line with best practice and following the advice of the Advisory Board, Defence has continued to assess all of the risks that attend this highly complex program. At each stage, we are adopting relevant risk mitigation strategies. The ANAO acknowledges that Defence has taken steps to manage risks.”
The 12 Attack-class submarines are being acquired under Australia's Sea 1000 (Future Submarine) program to replace six existing Collins-class boats which, without a major service life extension program, will need to be retired by 2036. The design is based on the French Barracuda-class nuclear attack boat, and the program is valued at either $34.5 billion (50 billion Australian dollars), or $55.2 billion (AUD 80 billion), depending on accounting practices. Either way, it is Australia's largest-ever defense acquisition program.
The ANAO report, titled “Transition to Design,” found that the design phase of the program is already nine months behind schedule and two important milestones had been missed. It said Defence “could not demonstrate” its expenditure of $396 million (US $273 million) on the design to date has been fully effective in achieving the two milestones to date. The Defence Department has spent 47 percent of all program expenditure thus far on design work and, despite the risk mitigation strategies, it continues to describe program risk as “high”.
“While the first scheduled major milestone under the Submarine Design Contract was reached five weeks later than planned, Defence and Naval Group are working towards the recovery of this delay by the next contracted major milestone in January 2021. Importantly, the delivery of the Attack-class submarine has not been delayed,” the statement continued.
“Acknowledging the scale of this program, we remain confident that our work on the Attack-class program with Naval Group and Lockheed Martin Australia (as the Combat Systems Integrator) is progressing thoroughly and will result in the delivery of a regionally-superior submarine from the early 2030s, establishing a truly sovereign capability as we maximize the involvement of Australian industry.”
The Sea 1000 program timeline calls for delivery of the first Attack-class boat in 2032 with service entry around 2034.
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September 18, 2018 | International, C4ISR
By: Justin Lynch Spurred in part by Russia's campaign of hybrid warfare in Ukraine, the Pentagon will purchase more electronic warfare equipment, a move that could lead to consolidation in the cybersecurity industry, an analyst said in a new report. Russia's use of electronic warfare combined with conventional combat tactics during its 2015 invasion of Ukraine exposed how the Department of Defense needed to increase its spending on cybersecurity, Brad Curran, an analyst at Front & Sullivan told Fifth Domain. Greater use of offensive cyber and electronic weapons by Russia means that the U.S. is expected to boost defense of its communications systems, and possibly look to increase its own offensive weapons. A September report from Frost & Sullivan projected a 2.9 percent compound annual growth rate in cybersecurity spending from the Pentagon through 2023. Securing electronic communications “is a high priority,” Curran said. The Defense Department is “just getting started” and it will be “a continuous effort to make sure our combat networks are secure.” The focus could benefit firms like Raytheon, which have invested heavily in electronic warfare, Curran said. Curran said that government purchases of enterprise systems will likely stay the same or even shrink because many of the acquisitions are meant to boost efficiency. One example is the government's investment in the cloud. But he predicts an increase in purchases of electronic warfare and offensive cyber capabilities, which will favor larger defense firms. The result will be consolidation of the cybersecurity industry among the biggest companies. During the Black Hat conference, one cybersecurity firm described the industry as “cut-throat” and added they expected industry consolidation because of purchases from the largest contractors. In 2017, the Pentagon awarded more than $1.22 billion to cyber contractors. That money went to 69 prime contractors and 50 different companies. The Pentagon's 2019 budget request for cybersecurity totals $3.6 billion, according to the report, half of which is dedicated to operations and management. The Air Force has the largest share of cybersecurity programs, at $2.19 billion. Booz Allen Hamilton was the top recipient of public contracts from the Pentagon in 2017 with a total of $115.4 million in awards, according to the report. In August, the Pentagon awarded Booz Allen Hamilton a $91 contract to manage cybersecurity for the Ballistic Missile Defense System. But while artificial intelligence will be an area that the U.S. government focuses its investments on the future, Curran said it is not currently a major factor in acquisition. “The future is AI but right now it is more of a concept," he said. https://www.fifthdomain.com/industry/2018/09/17/pentagon-spending-could-lead-to-consolidation-of-cybersecurity-industry