"There don’t seem to be any safeguards that can be built into a source selection decision at this early stage that will prevent future price hikes occurring."
The federal government is awash in risk reduction processes for project definition, procurement and acquisition. It is just that some chose not to use government risk manuals. Why is that?
If a contract is written well that adequately protects the tax-payer, Germany is willing to do it at a fixed price.
Interesting that the Air Warfare Destroyer and F-35 are brought up.
They are symbolic of ignoring robust risk analysis. Besides the money spent, both will be obsolete to the threat and are likely to get killed in a real shooting war.
Japan? We can look at these problems as they exist today.
Sweden? True about the leak. Then again, Sweden was not well liked because of their high-and-mighty attitude with the Carl Gustuv anti-tank system. That tarnished, ADF visceral hate existed before the Oberon replacement started. As far back as...1966 and was a conversation piece in 1988.
With that, Sweden did do a lot for us with the Collins. Yes there were missteps in the Oberon replacement project which gave us the Collins. But there were many successes.
The Collins Class Submarine Story: Steel, Spies and Spin.
However, to ignore Sweden in the Collins replacement project is just short-sighted and even, petty.
The real Collins submarine rot was caused by those in the poor experiment known as the DMO to royally screw up long-term sustainment management. Ask a serving Collins sub commander of any time-frame how they felt about that.
The author is correct that an evaluation of bids should reduce the competitors from 3 to 2.
Since the Japanese option offers the most, significant risk, it should go.
"But if the Government is going in this direction they should make it really commercially attractive and add SEA 5000 plus SEA 1180 to the mix. Both the French and German bidders make excellent surface ships; the Japanese only slightly less so. Just think of the package deal that could be done if Defence competed not only the future submarine but most of the surface fleet as well."
Agree.
About as good as we can hope for with such a significantly deskilled entrenched defence bureaucracy.
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Australian Defence Reading List
"Sometimes I wonder whether the world is being run by smart people who are putting us on, or by imbeciles who really mean it."
-Mark Twain
-Defence may want to waste money on more defective M-1 tanks.
-Collins sub replacement appears to be a rigged game
-New Defence White Paper fails to address Australia's core security needs
-2009 Defence White Paper Fantasy
-Analysing "The ADF Air Combat Capability- On the Record"
-Find out who is responsible for the Air Warfare Destroyer mess
-Analysis of Defence Materiel Organisation Major Projects Management and What Needs to be Fixed
-New DMO Boss warns the staff that business as usual is over
-How dangerous is the Defence Material Organisation to our Defence Industry?
-Australia's Failing Defence Structure and Management Methodology
-More on the dud-jamming gear Defence wants to buy
-ADF cost per flying hour
-I will wipe out bullying vows new Defence chief (Houston 2005)
-Vacancy
-Put Vol 2 Report of DLA Piper Review into the light of day
-Rory and Jim
-Parasitism as an Abstraction for Organizational Dysfunctions
-Hobart-class "Air Warfare Destroyer" to be fielded with obsolete radar guidance technology
-The Decay Of Critical Military Thinking And Writing-With Particular Reference To The RAAF
-The great M-1 tank myth
-*UPDATE* Fear and loathing in Canberra - Audit released on MRH-90 helicopter project
-RAN bullies contractor over Collins sub replacement
-2014-15 ADF budget shocker - Star-ranks
-Air Warfare Destroyer -- Billions, not millions over budget
-Australia's M-1 tanks are... a downgrade compared to what it had
-Weak links put on rubber-stamp Defence panel
-Insert Joke Here
-Tyranny of distance--Long, drawn out helicopter projects are unsustainable
-2014-15 ADF budget shocker - cost per flying hour over the last budget year
-Tiger savaged by Navy League of Australia
-Tiger helicopter update
-PDF file - Exploring the Impacts of the Defence Trade Controls Act 2012
-Dangerous minds: Are maths teachers Australia's newest threat?
-Government ignores its own 'rescue' report created to fix Air Warfare Destroyer woes
-DM Johnston fired in cabinet reshuffle
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