HdH Returns to the Contractor Role

It is also appropriate that HdH, having become Australia’s largest aerospace manufacturer, should break new ground in the contracting approaches to these new prime contracts.

Pilatus PC-9

HdH signed its largest-ever fixed price contract in July 1986 when it reached an agreement with the Australian Government for the production of 69 Swiss-designed Pilatus PC-9 turboprop trainers for the Royal Australian Air Force.

In the second half of the previous year, HdH had fought hard, but unsuccessfully, to maintain the Australian-designed A10 Wamira as the RAAF’s new basic trainer. It lost the Wamira battle in an environment in which the Australian Government had lost confidence in the local industry’s ability to take an all new design through to production at acceptable prices and schedules.

In choosing the PC-9 the RAAF opted for a new design from a proven trainer manufacturer and HdH was given the task of putting together an Australian production programme leading as quickly as possible to full local airframe manufacture.

By Cabinet directive, this was to be a fixed price contracting arrangement, with the RAAF adopting the same arms length relationship with HdH as it would normally have with an overseas aircraft manufacturer. To reinforce this arms-length arrangement, for the first time the production licence was held by HdH as the manufacturer, not by the Commonwealth.

The PC-9 contract, worth over $230 million, places the responsibility for performance squarely on HdH. It has the total responsibility for contracting with Pilatus for lead-in aircraft and kits, for buying engines and other vendor equipment internationally, for controlling Australian subcontractors and for seeking to expand the Australian subcontractor base beyond the traditional ‘big three’ – Hawker de Havilland, the Government Aircraft Factories (now ATA) and Hawker de Havilland Victoria.

Because the PC-9 provides performance potential far beyond any previous propeller-driven basic trainer, the RAAF required initial aircraft for syllabus development earlier than the Australian production line could supply, so the first two aircraft will come complete from Pilatus in Stans, Switzerland, with HdH being responsible for their acceptance and presenting them in Australia for subsequent RAAF acceptance from July 1987.

From the third aircraft, the final assembly and fit-out line at HdH’s Bankstown facility will be responsible, with the first Australian-assembled aircraft due for delivery in November 1987.

While HdH Bankstown is the prime contractor, project manager and final assembler, the main manufacturing task will take place in Melbourne. HdH Victoria is responsible for the production of the wing and horizontal tail of the PC-9, utilising new manufacturing facilities installed as part of the F-18 project. HdHV will have about 30% of airframe production.

The Government Aircraft Factories are responsible for fuse lage manufacture, with GAF’s share being approximately 40% of the airframe. In another first, the RAAF and HdH have agreed that HdH will provide a total product support package for PC-9, covering the first three years of RAAF operations.

Under the terms of this support agreement, HdH will be responsible for all aspects of maintenance from flight line to depot level and major repairs. HdH will be responsible for spares assessing and stocking, technical publications, training and all other aspects of a total integrated logistic support package.

HdH will also be giving the RAAF guarantees on aircraft availability and mission reliability, another first in Australian defence contracting and a possible pointer to future relationships between the defence forces and industry if it succeeds.

RAN Seahawk Helicopters

When the Sikorsky Seahawk was chosen in 1984 as the RAN’s new patrol frigate helicopter, Sikorsky in turn chose HdH to be its Australian prime contractor for final assembly, systems integration and testing of the Seahawk.

Covering 14 of the 16 Seahawks after initial installations are done at Stratford, deliveries from the Bankstown production line will commence in 1988.

Because the equipment fit in RAN Seahawks is substantially different from the US Navy Seahawks, a team of HdH engineers has been working at Sikorsky and at other project participants including Rockwell Collins on systems design and integration planning.

HdH will be receiving the Seahawks from Sikorsky as major subassemblies. HdH will then carry out structural modifications specific to the RAN, then install the role equipment and carry out both ground and flight testing.

In the case of Seahawk and the subsequent Black Hawk contract, HdH’s customer is Sikorsky. Once again, the contracts are on a fixed price basis, so HdH’s profitability will be tied to its ability to perform efficiently and on schedule.

RAAF Black Hawk Helicopters

Although the RAAF decision to purchase the Sikorsky Black Hawk was taken somewhat later than the RAN Seahawk, delivery will be earlier because the simpler Black Hawk systems fit will not require the same long design and development lead times. First of the thirteen Black Hawks currently scheduled to come off the Bankstown line will do so late in 1987. Once again, HdH’s role is final assembly, systems integration, ground and flight testing.

With the Dibb Report and the recent Defence White Paper emphasising the need for army mobility, particularly in Northern Australia, there is a high probability of follow-on orders for significant extra numbers of Black Hawks.

If this occurs, the potential exists for HdH to deepen Australian participation in Black Hawk production, with significant airframe subassemblies being totally produced here and others assembled from imported detail parts. Such an arrangement could involve a cross-section of Australian industry.

In addition, the possibility exists for HdH to undertake assembly and fit out of other Black Hawks for export to international customers.

Sikorsky and HdH are currently finalising arrangements for a joint venture to develop a regional service centre to provide comprehensive logistic support to Australian and international operators of Seahawk and Black Hawk. HdH is already a major maintainer of defence helicopters, their engines and systems and this new joint venture with Sikorsky provides a major opportunity to expand into a wider helicopter support spectrum.