Submarine rescue contract termination triggers investigation
Escape, rescue and abandonment system deal with Phoenix International Australia is cancelled.
The Australian government is conducting an investigation after the Department of Defence terminated a contract for a submarine escape, rescue and abandonment system.
After an open tender, the contract was awarded to Phoenix International Australia in April 2018 for a deployable submarine rescue system on Royal Australian Navy (RAN) Collins- and future Attack-class boats.
However, following a series of delays in 2019 and 2020, Defence initiated an independent review of the project in August 2020.
‘The Government has considered the outcomes and recommendations of the review and has agreed to terminate the contract with Phoenix International Australia by mutual agreement,’ Defence announced on 21 January.
The Department of Defence will now work with Phoenix to reach settlement, which will include addressing arrangements with Phoenix and its subcontractors.
A comprehensive investigation is under way ‘to inform lessons learnt into procurement practices and relevant accountabilities’, Defence noted, adding that the RAN ‘retains a suitable submarine rescue system’ from James Fisher Defence Australia for Collins-class boats.
This can be sustained until the late 2020s when a replacement system will be needed for the new Attack class.
As part of our promise to deliver comprehensive coverage to our Defence Insight and Premium News subscribers, our curated defence news content provides the latest industry updates, contract awards and programme milestones.
You may also like
More from Naval Warfare
-
![UK’s $1 billion AUKUS support request signals strong ongoing US collaboration]()
UK’s $1 billion AUKUS support request signals strong ongoing US collaboration
The latest foreign military sales request from the UK has implications for the future of the programme and collaboration between the three nations.
-
![US Coast Guard prepares acquisition process of up to seven light icebreakers]()
US Coast Guard prepares acquisition process of up to seven light icebreakers
The USCG plans to award a contract this year for the construction of Homeland Security Cutters. The new vessels will replace the 60-plus-year-old fleet of Light Icebreaking Tugs.
-
![RTX Raytheon enhances SM-3 and SM-6 production capacity]()
RTX Raytheon enhances SM-3 and SM-6 production capacity
The expansion of the Redstone facility in Alabama will enable Raytheon to increase production of Standard Missiles in the location by 50% and support Washington in refilling stockpiles after recent operations have depleted the Pentagon’s reserves.
-
![What the rise of interoperability between Western allies means for defence procurement]()
What the rise of interoperability between Western allies means for defence procurement
Major naval initiatives including the European Patrol Corvette programmes and Norway’s UK partnership-focused purchase of Type 26 frigates point to the growing interest in the advantages of commonality across allied navies.
-
![Kraken’s Royal Navy USV contract signals next step in crewed-uncrewed integration]()
Kraken’s Royal Navy USV contract signals next step in crewed-uncrewed integration
The UK Royal Navy’s rapid procurement of uncrewed platforms aligns with the force’s strategic shift towards a fleet better equipped to handle modern threats.
