Following reviews of defence procurement and of naval shipbuilding, the Government directed an innovative alliance based contracting strategy for the Air Warfare Destroyer (AWD) project. This strategy aims to achieve improved contract performance (schedule, budget, capability and risk management) by improving government and industry interaction.
The philosophy behind the alliance strategy is to integrate Defence and industry to ensure best for project outcomes based upon a pain-share and gain-share contracting strategy.
AWD Alliance
In April 2005, The Australian Government selected Raytheon Australia as the Combat System Systems Engineer, and in May 2005 selected ASC as the Shipbuilder.
Together with Defence Materiel Organisation, ASC and Raytheon Australia have committed to an Alliance Based Target Incentive Agreement (ABTIA), which focuses on cooperation, collaboration and joint decision-making while providing the Government with the right to intervene to protect the national interest.
Under ABTIA the industry participants are responsible for delivering the AWDs on time and on budget.
Platform Systems Designer
Selected by the Government in June 2007 after a rigorous two pass decision process, Navantia is the AWD Platform Systems Designer.
Navantia has built four F100s (currently building a fifth) using a modular construction methodology. This same methodology is being used for construction of Australia's AWDs and will ensure efficiency benefits for the design of Australia's Hobart Class.
Navantia acts as a subcontractor to the Commonwealth.
The United States Navy and Lockheed Martin
The AWD Alliance is working closely with the United States Navy (USN) and its Aegis Weapon System Engineering Agent, Lockheed Martin, to deliver the Aegis capability to the AWD project. Representatives from the USN and Lockheed Martin are co-located with the AWD Alliance team in Adelaide to ensure a completely integrated solution.
The Lockheed Martin Aegis Weapon System, incorporating the state-of-the-art AN/APY 1D(V) phased array radar, forms the core capability of the Hobart Class AWDs. Aegis is the world's foremost advanced air defence system capable of engaging enemy aircraft at ranges in excess of 150 kilometres.
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