Submarine rescue contract termination triggers investigation

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.

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