Romeo in the running

Certainly the public battle between Australian Aerospace (leading the NFH90 marketing efforts) and Lockheed Martin/ Sikorsky’s ‘Team Romeo’ indicates debate is running hot within Defence and government over Australia’s biggest military acquisition program for the next five years. In September, (as reported in the last issue of AA) Australian Aerospace CEO Dr Jens Goennemann called for Air 9000 Phase 8 to be decided by a competitive evaluation – “I just want a competition” was his public plea – evidently in response to reports Defence was favouring a FMS (Foreign Military Sale) government-to-government purchase of the Romeo.

Then in October Team Romeo key officials came to Canberra for further briefings on their offering, and to publicly reveal that any Australian purchase of the Romeo would be accompanied by a $1 billion ‘Australian Industry Capability’ package, on top of any FMS contract.

Elements of that package would include establishing a facility at Nowra which would employ 125-150 people.

“We estimate about a third of that $1 billion would be related to through life support,” said Leonard Wengler, Sikorsky’s VP naval programs.

Other work for Australian industry would come in the introduction into service phase, and “global supply chain opportunities”.

“An agreement would be put in place between the corporations (Lockheed Martin and Sikorsky) and the Australian government to allow Australian companies to bid on future (MH-60R) work,” said Chris Clapperton, general manager business development for Sikorsky Helitech. Further, conversion of civilian airliners to freighters has even been identified as one area of work that could be undertaken under the Romeo industry package.

With the MH-60R now in production for and in service with the US Navy, Team Romeo says there is sufficient flexibility in production schedules to allow deliveries to Australia to begin as early as the fourth quarter of 2011, possibly allowing the RAN to have an IOC (initial operating capability) as soon as late 2012, considerably sooner than the 2014-2016 timeframe called for in the Defence Capability Plan.

“We haven’t really discussed that (an IOC date) in detail,” said Clapperton, “But our top level analysis believes it would be 12 months from first aircraft delivery to when they would be able to achieve IOC. ” An IOC date “really depends on how fast they (the RAN) really want to ramp up,” said Wengler.

Remarked Lockheed Martin VP business development for maritime systems Ronald Christenson, “There’s really no such thing as a no-risk program. But this is as close to a no-risk program that’s available today. ” A subsequent report in The Australian newspaper on October 23 suggested that ADF officials have already recommended to government that the MH-60R be acquired as the “best choice” ahead of the rival NFH90. The report said the MH-60R is the preferred option due to its lower risk compared to the less mature NFH90. This is despite the NFH90’s commonality with the troop transport MRH 90, 46 of which are currently entering Army and Navy service.

That would certainly be in line with this year’s Defence White Paper, which said the new helicopters would be acquired “as a matter of urgency. ” Still, the paper also quoted Defence Materiel Minister Greg Combet as saying, “The government would be concerned to approach such an acquisition after very carefully looking at the options which, at least, include both a US and a European capability. ” Perhaps the decision is not yet clear cut?