Independent experts warned on DMO/RAN patrol boat problem years ago

In relation to a previous post on our patrol boat problem, we were warned by independent experts years ago.

ARMIDALE CLASS PATROL BOAT

General.

The project seems to have been an attempt by DMO to be a ‘smart’ buyer by acquiring a commercial design that, seemingly, had only to be modified to meet RAN operational requirements. The chosen vessel however also required Navy to change its traditional crewing policy to fit the constraints of the commercial design.

The vessel has encountered serious design defects which have led to it being virtually ‘black balled’ by RAN sailors on both operational and safety grounds. Needless to say, Defence/DMO and the RAN hierarchy have lauded the vessel.

Despite this, DMO’s PDS states that “All vessels continue to meet Navy’s operational requirements”.

Progress to FOC.

The project is now 33 months late, due to outstanding defects. FOC is now estimated to be 2011.

Major Risks and Issues.

These are recorded, as follows:

Navy standards are different to commercial standards resulting in a risk to customer acceptance.

Contractor inability to provide support vessels throughout the life of the in-service phase of the contract (performance risk).

One would expect Navy to have had such risks well in view and under tight control at least ten decades ago.

Lessons Learned.

Both of the Key Lessons Learned are simply generic, and are symptomatic of a failure to follow established project management, engineering management, risk management, and IV&V methodologies from the beginning of this project to the end. This project highlights the the capital risks accepted by DMO in embarking on a project of medium complexity, relying wholly upon contract administration for its management. The project has cost Australia much in time, money, and compromised and late capability requirements, but there is no sign in this PDS that any real lessons have been identified and digested.

Risk Consequences

This project has reached a risk consequence of Severe/Catastrophic.