The SIG Sauer MCX, in .300 Blackout calibre, has been selected as the platform for the Personal Defence Weapon System, which will provide dismounted combatants with a light, modular, and compact weapon system that can be rapidly optimised for specialised roles. Credit: CoA / Tristan Kennedy
The Defence Strategic Review was scathing of the current Australian acquisition process, describing it on page 20 as not fit for purpose. Just as bluntly, it calls for the system to be scrapped and replaced with something that delivers capability faster and does not let the search for the perfect become the enemy of the good. Basically, it concludes that we need to be more focused and move faster.
The report also calls for more off-the-shelf purchases – though it is difficult to see how this is compatible with a greater role for Australian industry. The sad truth is that local industry is tiny compared with the large amounts being spent on Defence, precisely because for decades the system has been oriented to purchasing stuff from existing production lines, especially those in the US, rather than spend on developing our own capabilities. We are now reaping what Defence and successive governments have sown.
The question is how these seemingly incompatible directives of the DSR can be implemented. The Review itself does not deal explicitly with the future of CASG – the Capability Acquisition and Sustainment Group (the successor to the Defence Materiel Organisation) – saying instead that various options need to be developed as soon as possible. For example, on page 90 one of these options should examine how to:
“…. streamline and accelerate the capability acquisition process for projects designated as strategically urgent or of low complexity.”
Worryingly for Australian industry, the preceding point is that the need for local content and manufacturing has to be balanced against the need for speed.
One possible way around this dilemma is to involve Australian industry at a far earlier point in the whole capability development cycle to make quicker and smarter decisions about what can and can’t be done locally. As a brief digression, this is what the US tech disruptor Palmer Luckey – who has regularly featured in these pages – advocates via his company Anduril Industries, currently co-developing the Ghost Shark XL-AUV with the RAN.
Another example of a successful industry-led acquisition process is LAND 159 where a local company has been tasked with testing, acquiring and delivering various weapons to the Army. The Head Land Systems, Major General Andrew Bottrell announced on September 20, 2022, the awarding of the Lethality System Project (LAND 159) Tranche 1 contract to Queensland-based company NIOA.
He explained that between now and the mid-2020s, NIOA will use a range of sub-contractors to supply new sniper rifles, pistols, shotguns, personal defence weapons, fighting knives, and an assault breaching system to the ADF, with many of the new weapons to be on display at Land Forces.
Major General Bottrell said the contract would include munitions and ancillary equipment including optical and laser systems, torches and suppressors for the new generation of small arms.
“Under the contract, NIOA will be the prime contractor, working with local and international suppliers and weapon manufacturers on the acquisition, integration, delivery and ongoing support of the new weapon systems from 2023.”
“This is a bold step into modern weaponry to quickly improve Australia’s defence preparedness.”
“NIOA has demonstrated a long‑term commitment, private investment, and a focus on growing sovereign industrial capability to support Australia’s war fighters.”
“The collaboration between Defence and industry means we will acquire the best available weapon systems for our troops.”
The role of NIOA has been to approach the market on behalf of the Commonwealth to identify and evaluate Tranche 1 weapon systems and provide acquisition and support recommendations to Defence, along with all cost data. Defence reserved the right not to accept recommendations, but the reality seems to be that the system has worked smoothly.
To guard against things such as potential conflicts of interest, Defence has specified that the contract will be conducted in an open, impartial and transparent manner. It includes performance-based measures which are supported by a governance framework.
For their part, NIOA believes that the contract has gone extremely well, though preferred not to contribute directly to this article. Evidence from various suppliers supports the view that the process has been rapid – much more so than if this had been a traditional Defence tender.
An example is ZU Bladeworx Australia – a small company with a very funky name – which is contracted to NIOA to manufacture the new close quarters combat fighting system for Defence. The company says this system includes a double-edged combat knife, designated the H2HFW, along with a trainer blade and a machined hard case sheath.
Managing Director Matthew Lucarnus told APDR:
“NIOA continues to demonstrate their commitment to Australian Sovereign Capability by supporting a local small business, ZU Bladeworx Australia, to produce this weapon system 100% in Australia. We have found Nioa’s support instrumental in helping us compete at the high level required of a major government contract.
“From the very start, NIOA has provided us with crucial support to help us complete the contract milestones. This has included numerous members of their staff being dedicated to helping us with everything from understanding complex government contracts, understanding our workplace health and safety requirements, adherence to engineering standards, and locking down quality assurance procedures.
“We feel like we are part of a much bigger team as NIOA has taken a mentoring role with us, which we are very grateful for. As we continue to roll the product out successfully, the assistance that the team has provided so far is evident in the successful production results we are achieving.
“It is amazing that a Prime Defence contractor like NIOA can help a small Australian business like Zu Bladeworx provide a world class product, locally produced, that can compete on the international stage.”
The contract with NIOA to provide a multitude of services has relieved Defence of a large amount of work, with the prime contractor issuing and evaluating various responses from the more than 200 companies who have registered interest in the project. This has led to 29 RFT suites to 35 Australian and 17 international producers of weapons, munitions and various sundry items.
To give a further indication of scale, NIOA has received around 1,300 items of hardware as part of its evaluation process, with everything needing to be tested, stored and catalogued. This involved 800 weapon firings using 31,000 rounds and was conducted during a remarkably short three month trial period – which might sound like a lot of fun but is actually hard work.
The consequence is that Tranche 1 will deliver a significant capability enhancement to Sniper and Close Combat Capabilities, with the following mission systems approved by Government for acquisition:
As well as testing all the various weapons and products, NIOA – which is 100% Australian owned – will also be responsible for their introduction into service but also their through-life support, including modifications and upgrades.
Given this success story, it would seem logical in the light of the DSR for this Australian industry acquisition model to be used more frequently. We asked Defence to contribute their views via a series of questions. For reasons known only to themselves, they have declined to provide even a single sentence to this article.
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