Australian Government Press Release, distributed 13 December 2024:
Following a recommendation from Defence, Collins class submarine sustainment has been listed as a Product of Concern to enable enhanced ministerial oversight of this critical capability
The Collins class sustainment program has experienced challenges in recent years. With the submarines required to operate beyond their original design life, it is essential that increased sustainment requirements are met to ensure the Collins class remains an effective and formidable capability until it is withdrawn from service.
Defence will now develop a remediation plan as a priority, to allow a Product of Concern Summit to be held in early 2025.
The Albanese Government is committed to investing in priority capability enhancements and fleet sustainment for the Collins class to ensure it remains a potent and credible capability to conduct operations to safeguard Australia’s maritime approaches and sea lines of communication.
This includes a $4 to $5 billion commitment over the next decade to extend the life of the Collins class and ensure there is no capability gap until Australia transitions to its future conventionally-armed, nuclear-powered submarines.
Under the former Coalition Government, an efficiency dividend of approximately $120 million was applied as part of the Collins class In-Service Support Contract signed in 2020. This cut directly affected the level of sustainment support provided to the Collins class submarines.
In June this year, Defence, under the Albanese Government, signed a new four-year sustainment contract with ASC valued at $2.2 billion, without a detrimental efficiency dividend.
Since coming to office, the Albanese Government has strengthened and revitalised Defence’s Projects and Products of Concern framework. It is an important tool in the proper stewardship and governance of Australia’s vital Defence capabilities.
The Product of Concern process has demonstrated its value in addressing challenging projects through enhanced Ministerial oversight. Product of Concern Summits ensure Defence and industry come together in the national interest to remediate Defence capabilities.
Collins class submarine sustainment has previously been a Product of Concern spanning successive governments, from November 2008 until October 2017.
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Naval News Comments:
Collins-class returned to the headlines primarily over a significant effort by Australian government to life-extent all six boats of the class for service into the 2030s, dubbed “LOTE” or “Life of Type Extension”. Australian Defence earlier has de-scoped the effort from a more comprehensive modernisation supporting the Attack-class program under SEA 1000 cancelled in 2021. Nevertheless the Australian Navy finds itself in a difficult situation attempting to keep six ageing submarines in service until the late 2030s. That date marks receipt of the third of three Virginia-class nuclear powered submarines from the US Navy, as part of the AUKUS Pillar 1-agreement.
Life-extending naval combatants always entails significant challenges over a finite lifespan for many systems installed. According to Australian media reporting earlier this year ASC officials in a Senate Estimates-meeting revealed “unprecedented levels of corrosion” on at least two Collins-class boats, HMAS Sheean and HMAS Farncomb.
The development implies any modernisation will entail more comprehensive measures to keep the boats in service. Should the boats have experienced a higher than expected level of wear and fatigue, the Australian Navy may have to impose operational restrictions, such as diving limitations on the Collins-class. The extent and implications remain speculative for now, but listing the boats as Program of Concern may indicate Collins LOTE is heading for some choppy waters over the next few years.
