Hanwha Bulletin APDR Leaderboard (1068 x 130) (C4I FINAL)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sustainment requirements are met to ensure the Collins class remains an effective and formidable capability until it is withdrawn from service.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 Australian government said it 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 billion 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 said it 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.

Minister for Defence Industry and Capability Delivery Pat Conroy said: “This is another example of the Albanese government bringing the necessary energy and oversight to fix troubled projects. I have convened seven Projects of Concern summits in just two-and-a-half years as minister. The former Coalition government held only four of these important summits during almost a decade in office. By listing Collins class sustainment as a Product of Concern, the government is demonstrating its commitment to remediating these challenges and ensuring the Submarine Enterprise, which includes Defence and ASC Pty Ltd, delivers and sustains improved performance.”

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8 COMMENTS

  1. If the Virginias are delivered in the 2030s, I don’t think they will want to continue sustaining the Collins class. Not only is their age problematic but the cost of sustaining both nuclear and conventional submarines would be unsustainable. On top of that there are going to be manning issues. Barely have enough crew to sustain our current sub fleet let alone several manpower intensive nukes.

  2. Just more Marles and Conroy double talk to cover up the fact, that neither have the balls to stand up to the Admirals, State Politicians and U.S. lobbyists.The Collins class is well past its use by date and the insane project to stretch out their service life is bordering on Criminal misuse of Government funding. The RAN should have been told that the Nuclear Boats would not be in service until 2040 and until then had the choice of an interim Boat or no Boat. Honestly talk about the tail wagging the dog….

    • The Collins class is not “well past its use by date”. Assuming the normal 30 year life for naval vessels, the oldest boat, HMAS Collins, still has a couple years of life left and the youngest, HMAS Rankin, still has until 2033. Despite previously committing the entire class to the LoTE, I think it is very likely only a portion of the fleet will. When (If) the Virginia’s come online, they’ll be able to do the work of 2-3 Collins boats, significantly reducing the strain on the existing fleet. Definitely challenging, but not impossible.

  3. The ‘optimal pathway’ to SSN acquisition now seems like the highest-risk pathway.

    The AUKUS submarine project now faces these three, completely foreseeable factors:

    1. Collins class LOTE is looking like a very high-risk project;
    2. The chance of the US accelerating its construction rate for Virginia class subs must look extremely doubtful given the thumbprint of the tech-bros on the incoming Trump administration. If Musk is criticising the value-for-money of the F-35 program, what must they be thinking about SSNs programs; and
    3. The Starmer government is trying to hose down a fiscal black hole that must surely constrain the investment in new generations of high-risk/high-cost capability.

    • Even with the previous Attack class plans, several Collins boats were going to undergo LoTE. I’m under the impressions the LoTE has significantly reduced in scope, but with the identified issues of increased corrosion will probably take longer than the usual 2 years. The F-35 program regardless of it’s world beating capability, was billions over budget and years behind schedule. I don’t share his criticisms regarding the capability but Musk was right to point out that plenty of time and money has been wasted on the program. Conversely, I think we need someone like Musk to cut the crap and get the Virginia build back on track. And with regards to the UK’s submarine woes well that is due to literal decades of under funding. Crossing my fingers the UK’s Strategic Defence Review recommends increasing the budget and the the Labour government commits to doing so.

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