STATE OF THE DEFENCE SECTOR IN WESTERN AUSTRALIA 2021-22

By Thomas Hage,

Defence Writer, WA DEFENCE REVIEW &

Managing Editor, WA DEFENCE REVIEW

Since last year’s edition of the WA DEFENCE REVIEW Annual Publication was released the Western Australian defence sector has seen a number of major developments. As a consequence of ongoing federal and state government policies and investment, the local defence sector has continued to experience growth, underpinned by a growing awareness of the west’s vital geo-strategic role.

Precipitated by escalating geo-political rivalry, Australia is facing major challenges to its national security. Perhaps the most significant response yet has been the establishment of the historic AUKUS pact with the US and the UK, with the resulting cancellation by the Australian Government of the conventionally powered French Attack-class submarine contract. Through AUKUS, Australia now plans to acquire up to eight nuclear-powered submarines, which is demonstrative of how the government is crafting a response to what it sees as the rise of an increasingly assertive and militarised China.

The contents of the 2020 Strategic Update and 2020 Force Structure Plan make plain the scale of the real and perceived threat posed to Australia and the resources being invested to counter them. Notably, the strategic update emphasises that the 2020-21 Defence budget of $42.2bn is forecast to nearly double to $73.7bn by 2029-30, and estimates that cumulative Defence spending over the next decade will amount to a staggering $575bn.

As the WA Governor, and former Defence Minister, Kim Beazley recently made clear, “More and more focus will come on to Western Australia, our strategic concerns, and our strategic geography.” Hence, as regional tensions manifest, the Australian Defence Force presence in WA is slated to grow in size and capabilities.

For instance, RAAF infrastructure in WA has progressively upgraded in the last few years to accommodate the introduction of new fleet assets such as P8-A Poseidon, F-35A Lightning II and C-17 Globemaster aircraft. The most recent and notable instance is the April 2021 announcement by Defence that RAAF Base Gingin – an important satellite air strip used extensively for training - will receive a $7.7m airfield upgrade for maintenance works, aircraft pavement and aeronautical ground lighting works. The contract was awarded to New Zealand-based firm Fulton Hogan.

The situation however is different for the Australian Army in WA, which is now witnessing a resurgence in importance. In December 2020, the Army Force Structure Implementation Plan was released with the intent of markedly strengthening its profile and capabilities in WA. On top of a major refurbishment of Campbell Barracks that was completed last year, the home base of the Special Air Service Regiment which is the only regular army unit in WA, is undergoing further modernisation. As part of LAND 121 Stage 5B the unit’s home base at Campbell Barracks will receive a $34m upgrade of its vehicle workshops, hard-stands and shelters. Lendlease has been selected as the prime contractor.

Defence is also implementing plans to strengthen the 13th Brigade, an army reserve formation, to better support the ADF on an array of current and future domestic and overseas missions. In a major development in the sphere of workforce generation, commencing in 2022 the numbers of regular personnel posted to the 13th Brigade will increase. This will be enabled by transfer options from the army reserve, participation in the gap year program, and eventually, direct recruiting. The 13th Brigade is also focusing on boosting its talent pool through shared workforce initiatives with industry partners like BHP.

The re-establishment of the 10th Light Horse to the status of a ‘regiment’ in October 2021, in concert with raising a regimental headquarters and a new cavalry sub-unit (B Squadron), was a symbolically important step in realising the army’s new ambition for the west. Importantly, the 10th Light Horse Regiment has been equipped with 10 PMV-L Hawkei vehicles and will be equipped with additional PMV-M Bushmaster vehicles to strengthen its capabilities. It will receive Boxer CRV simulation and training equipment, to ensure the unit’s integration with other cavalry force elements as required.

The most significant development for the army in WA, however, was the much-awaited announcement regarding the refurbishment of Irwin Barracks in Karrakatta – the 13th Brigade’s headquarters – which was approved by Defence in June 2021, with WA-based company Doric Contractors awarded the contract to manage the development phase of the major infrastructure upgrades for the proposed $360.5m redevelopment of Irwin Barracks. The base’s cadet, recreation, headquarters and training facilities, plus living-in accommodation, office administration buildings and workshops will undergo a major refurbishment. Subject to government and parliamentary approvals, construction work is scheduled to commence in mid-2023 and be completed by mid-2026. Conversely, in the sphere of naval and maritime affairs, the federal government decision to retain Full Cycle Docking in South Australia, and not select WA as the preferred destination, received publicly voiced disapproval from the state government. Currently, WA still retains the Mid Cycle Docking of the Collins-class submarines and the ANZAC Mid Life Capability Assurance Program (AMCAP), as well as the sustainment of the frigates by BAE Systems Australia at their Henderson shipyard. Of note, there are a number of Defencerelated projects (as demonstrated in Tables 1 and 2) either afoot or planned that will, in the foreseeable future, place WA’s defence industry in an increasingly stronger position.

Not since the advent of the 1987 ‘Two Ocean Navy’ policy has the Royal Australian Navy in WA received such attention from the federal government and Defence, a notable example being the ongoing investment in the refurbishment, modernisation and expansion of HMAS Stirling - Australia’s largest naval base. These projects will provide additional facilities to accommodate the increasing numbers of naval personnel and onsite training, including new administration buildings, warehouses, living-in accommodation and support infrastructure, assets and capabilities that have either arrived or are incoming in the near future. Noteworthy developments include: • November 2020: Defence announced a new maritime underwater tracking range will be built in WA to replace the original tracking range system that ceased operating in 2012. • March 2021: Defence released the Navy

The contents of the 2020 Strategic Update and 2020 Force Structure Plan make plain the scale of the real and perceived threat posed to Australia and the resources being invested to counter them. Notably, the strategic update emphasises that the 2020-21 Defence budget of $42.2bn is forecast to nearly double to $73.7bn by 2029-30, and estimates that cumulative Defence spending over the next decade will amount to a staggering $575bn. Capability Infrastructure Sub-program (NCIS) – 3 Building Works (NCIS-3), which is one of five NCIS works packages for HMAS

Stirling and the Australian Marine Complex in

Henderson. • June 2021: The replenishment vessel NUSHIP

Stalwart arrived from Spain to its homeport at Fleet Base West and was commissioned as

HMAS Stalwart on 13 November 2021. • September 2021: A joint venture between

Perth-based companies Duratec and Ertech secured a $52m contract by Defence to lead an extension and upgrade of the Oxley Wharf at

HMAS Stirling. • October 2021: Defence Minister Peter Dutton announced that an additional $1bn has been allocated to further upgrade infrastructure and facilities at HMAS Stirling, which will support the increased activity by allied naval vessels now, and to include eventually Australian nuclear-powered submarines operating from the base into the Indo-Pacific region. It is yet

Irwin Barracks, Western Australia: Members of the 10th Light Horse Regiment stand alongside the first of the unit’s new Hawkei Protected Mobility Vehicle – Light which were received by the unit in September 2021. © Department of Defence.

to be determined specifically what projects the money will be spent on.

The development of infrastructure at HMAS Stirling is happening in tandem with efforts to bolster the navy’s new surface fleet capabilities, which are either being built or earmarked for construction, including at Henderson WA.

The most significant development for the army in WA, however, was the much-awaited announcement regarding the refurbishment of Irwin Barracks in Karrakatta – the 13th Brigade’s headquarters – which was approved by Defence in June 2021, with WA-based company Doric Contractors awarded the contract to manage the development phase of the major infrastructure upgrades for the proposed $360.5m redevelopment of Irwin Barracks.

Underpinned by the 2016 Defence White Paper and the subsequent 2020 Force Structure Plan, Defence remains committed to the implementation of the extant Continuous Naval Shipbuilding Program.

At present the $510m build program for the Guardian-class patrol boats, underpinned by the Pacific Maritime Security Program and Patrol Boat Replacement Project, is well on track and is expected to be completed by 2023. In addition to the Guardianclass orders that have previously been fulfilled, from early 2020 to date Austal has built and delivered another seven Guardian-class patrol boats to the South Pacific island-nations of Kiribati, Palau, Papua New Guinea, Solomon Islands, Tonga and Vanuatu.

In WA, central to the Continuous Naval Shipbuilding Program’s implementation are the $343m Evolved Cape-class patrol boats (of which the first of six vessels earmarked for the navy was

launched in October 2021 at the Austal shipyard in Henderson), $3.9bn Arafura-class Offshore Patrol Vessels (OPVs), $4.3-6.4bn mine countermeasure and hydrographic vessels, $400-600m LHD Landing Craft replacement and $450-650m ADV Ocean Protector replacement. Austal has already constructed and launched the first Evolved Cape-class vessel in September 2021, and has already cut the aluminium with four other vessels that are currently at various stages of construction.

The SEA 1180 Arafura-class OPV build program, overseen by the prime contractor Luerssen Australia (in addition to progress made with the construction of OPV3), has also seen the commencement of work on OPV4 in January 2021 and similarly the start of construction for OPV5 in November 2021 respectively at Civmec’s Henderson facility. Other developments with the OPV program include Raytheon being selected in December 2020 as the new Capability Life Cycle Manager, and in March 2021, the establishment of an OPV System Program Office at Henderson to coordinate Defence’s engagement with industry.

While announcements have yet to be made with regard to replacement of the LHD Landing Craft and the ADV Ocean Protector, Defence has revealed its intent to explore a variant of the Arafura OPV for the new mine countermeasures and hydrographic survey vessels, which are earmarked to be built in Henderson.

Aside from the Continuous Naval Shipbuilding Program, another significant focus of the navy’s efforts in WA is underscored by Plan Galileo, which aims to attain three key objectives by 2025, namely: (a) build a new approach to integrated Capability Life Cycle management, (b) leverage new technologies and learning to improve productivity and promote increased levels of innovation, collaboration and knowledge sharing in the maritime domain, and (c) build the skilled workforce needed.

Integral to Plan Galileo is the establishment of Regional Maintenance Centres (RMCs) which shall interface in collaboration with government, primes and SMEs. Established at strategic locations around the country in Sydney, Cairns, Darwin and Henderson, the RMCs shall be tailored to service the unique requirements of each state’s Defence presence and industry capabilities to sustain the new classes of navy surface fleet vessels being introduced into service.

In tandem with the Australian Government’s commitment to the Continuous Naval Shipbuilding Program and infrastructure investments at HMAS Stirling, the WA government has also been working in coordination with Defence’s plans as exemplified through its Western Australian Defence and Defence Industries Strategic Plan released previously in October 2018, and the subsequent Mission Update 2020: Western Australian Defence and Defence Industries Strategic Plan.

Significantly, and aligned with this, in November 2020 Defence West on behalf of the WA government also launched the AMC Strategic Infrastructure and Land Use Plan (SILUP) to identify the short, medium and long-term upgrades required to guide the AMC’s development. At

As part of the $5.5bn WA Recovery Plan economic stimulus and infrastructure package, in March 2021 the state government announced that it would fund the establishment of a new high-tech manufacturing hub that supports developing industries such as hydrogen, batteries, renewable energy and defence. The proposed precinct will straddle the areas of Henderson, Latitude 32, Kwinana and Rockingham.

its core the SILUP proposes to develop the southern and northern harbours, including the establishment of ‘Defence Priority Zones’, and an enhanced ship lift capability. As such, in late 2020 the WA government allocated $87.6m for a series of infrastructure upgrades at the AMC that have since been awarded to local firms. They include: • February 2021: Georgiou commenced construction on the new vessel transfer path to facilitate better movement across the complex, between the floating dock, shipbuilding and sustainment facilities. • February 2021: Lanskey Constructions will deliver the new shipbuilding facility in the northern shipbuilding precinct, which shall activate under-utilised waterfront land to support commercial shipbuilding. • June 2021: Aurecon Australasia secured a contract as part of the AMC Integrated Infrastructure Program to provide technical studies that will inform future expansion, and shall engage Perthbased DHI to provide expertise in wave and tide modelling. • June 2021: Ertech was selected for the design and delivery of a comprehensive wharf upgrade.

In sync with these developments, in late 2020 the Defence West announced it was examining potential to build a Large Vessel Dry Berth (LVDB) at Henderson. The LVDB would be predominantly used for the construction and sustainment of large-hulled vessels and has the potential to be a multi-billion dollar infrastructure program if approved. Currently, there have been suggestions that a joint feasibility study is under consideration between the WA and federal governments, but no announcements have been made.

Finally, the AUKUS announcement in August 2021 suggests that intensified Defence usage and allied naval engagement of HMAS Stirling and the AMC will need to be taken into consideration with future federal and WA governments’ infrastructure planning. SKILLING & TRAINING

To support the implementation of Defence programs and projected defence industry workforce demands in WA, efforts are being made by the federal and WA governments to expand and further expedite the growth of the state’s defence industry workforce and mitigate against the prospect of potential shortfalls. In this regard the TAFE sector has been privy to much activity, underscored by the following examples: • September 2020: The WA government announced its $18m Defence Industry Incentive aimed at providing financial assistance to WA businesses, that employ apprentices in key trades within the defence industry, to generate skilled workers and, thereby, attract national Defence maritime projects. • October 2020: Federal and WA governments jointly signed a $103.4m JobTrainer Agreement to reduce fees for an additional 107 TAFE courses to deliver training across a range of different sectors, including defence industry. • December 2020: WA government launched ‘The Other Force’ campaign to raise awareness of the job opportunities and career pathways available in the state’s defence industry. The campaign is focused on attracting women, veterans, youth, jobseekers and career changers to take advantage of the opportunities created by the $18.34m maritime defence industry workforce package. This includes the launch of the Defence Industry Veterans Employment Scheme (DIVES) scholarship program which aims to encourage veterans to take-up a career in defence industry, and the Women in Defence Industry Scholarship, which seeks to enhance female participation in the defence industry workforce. • February 2021: Federal government launched the Schools Pathway Program – an initiative aimed at boosting interest in STEM subjects for high school students. • June 2021: Australian Government and South Metropolitan TAFE partnered to launch the $10m Defence Industry Pathways Program for WA high school graduates that provides a 12 month traineeship to help grow WA’s defence industry workforce. The pilot program will support 120 students by mid-2022 with the Australian Government agreeing to contribute $45,000 per trainee. TERTIARY SECTOR UPDATE

The tertiary sector in WA has also experienced developments across a range of areas with all five tertiary institutions involved in Defence-related research and development programs.

Four of the five universities collaborate as ‘Team WA’ – which encompasses Curtin University, Edith Cowan University, Murdoch University and The University of Western Australia - to offer specialised research and education to support the current and future needs of Defence. By July 2021, according to the state government, WA-based defence R&D initiatives received a combined total of almost $870,000 for seven individual projects.

Importantly, the Defence Science Centre (DSC) based in Perth is playing an increasingly At present the $510m important role in facilitating build program for the R&D opportunities and partnerships between Defence, Guardian-class patrol boats, industry and academia. Jointly underpinned by the Pacific funded by the WA government and the Defence Science Maritime Security Program Technology Group as a node of the Australian Defence Science and Patrol Boat Replacement and University Network, the Project, is well on track and centre’s main purpose is to capitalise upon leading-edge is expected to be completed technologies and industries that have fostered the growth by 2023. and diversification of WA’s economy. Particular areas of interest are artificial intelligence and machine learning, robotics, undersea and surface sensors, mine detection, remote operations, communications technology, advanced manufacturing and cyber security. The DSC operates three separate grant schemes and, since its inception, has supported 24 defence-relevant R&D projects valued at nearly $4m. The activities of the DSC are set to expand further as it undertakes a feasibility study into a future research centre, to be based at the Technology Precinct of the AMC. The centre will aim to target the development of maritime sector technologies that have potential Defence-application emphasising integrated undersea surveillance systems, mine countermeasure and hydrographic vessels. TRANSFERABLE & FUTURE POTENTIAL

Though not directly emphasising the defence sector, there are a number of WA government and industryled initiatives that will provide spin off opportunities for the defence sector. For instance, in August 2020 the WA government unveiled plans to build a new container port in Perth’s industrial south with a $97.2m investment into planning for a facility at Kwinana.

In addition, in July 2020 the WA government announced a $5.5bn WA Recovery Plan economic stimulus and infrastructure package, which has implications for the state’s defence sector. As part of the plan, in March 2021 the WA government announced that it would fund the establishment of a new high-tech manufacturing hub that supports developing industries such as hydrogen, batteries, renewable energy and defence. The proposed precinct will straddle the areas of Henderson, Latitude 32, Kwinana and Rockingham.

In October 2021, the WA government announced a $20m commitment to support the establishment of the new Australian Automation and Robotics Precinct (AARP) in Neerabup, 40km north of Perth. To be completed within three years, the AARP is slated to be among the world’s largest test facilities of its kind. The precinct will be a major hub for testing and research into the latest developments in automation, remote operation and robotics systems. A broad range of industries such as the resources sector, defence, agriculture, space, logistics, construction, advanced manufacturing and the education sector are anticipated to use AARP.

According to the WA government, once operational, the AARP will provide suppliers and operators of automation and robotics equipment or systems with access to specialist infrastructure, including: Common User Test Beds with multiple areas and roadways for physical testing, a Common User Facility operation building, and supporting research and development facilities. The 51ha site has the potential to expand to 94ha to accommodate future growth and, once fully established, has the potential to generate thousands of jobs in the fields of robotics, automation, and remote operations.

It is increasingly evident that WA is playing to its strengths and that the combined impact of these initiatives and projects will increasingly attract synergies between the state’s world-class resources sector and the defence industry. Addressing this point in May 2021, the Hon Paul Papalia, WA Minister for Defence Industry and Veterans’ Issues, wrote in The Australian that “WA companies regularly mobilise large numbers of people to distant sites without any external support. They employ land, sea and air transport and they sustain their workforces through extended logistics supply chains… Logic also dictates that WA should be the centre for developing ‘crewed and uncrewed systems’.” He added, “WA resource industry players are world leaders in the integration and operation of autonomous systems. Key to this is the need to deliver trusted communication and data connectivity in remote and harsh environments, where WA capabilities are second to none.”

Taking all these developments into account it is evident that the future for WA’s defence sector is replete with opportunity. Although challenges remain, particularly in augmenting a skilled and trained workforce to meet existing and upcoming defence industry workload, the combination of volatile regional geo-politics, geographic proximity to the Indo-Pacific region, government investment in the development of strategic infrastructure, and the proven capabilities of the state’s industry means that in the long term Western Australia is likely to achieve new and notable milestones for its expanding defence sector.

ANZAC platform installation managed by the Warship Asset Management Agreement (WAMA) which is comprised of BAE Systems Australia, Naval Ship Management and Saab Australia with the Australian Government.

ANZAC platform installation managed by the WAMA.

Leonardo MW is contracted to undertake a Communications systems upgrade as part of the ANZAC platform installation managed by the WAMA.

BAE Systems and other smaller companies are conducting Seahawk MH-60R ‘Romeo’ helicopter ship integration with the ANZAC-class frigates as part of ship upgrades.

Austal Ships is contracted to deliver up to 21 Guardian class patrol boats to replace the existing Pacific Patrol Boats.

Luerssen Australia has contracted Civmec to process steel for all 12 Arafura-class OPVs and will build 10 of the 12 at their new facility in Henderson.

Sitzler was the prime contractor for the relocation and the integration of the Space Surveillance Telescope near Exmouth. Whereas Raytheon is the initial support contractor for the Space Surveillance Telescope near Exmouth prior to being transferred to sustainment.

Austal is contracted to deliver six Evolved Cape-class patrol boats replacing some of the Armidale class patrol boats and will be utilised as an interim capability until the OPVs enter operational service.

Sea to Summit is a 100% Australian owned prime vendor that supplies leading edge outdoor field equipment.

Project LAND 1508 is procuring a range of equipment and accessories via Precision Technic Defence. These items are being integrated to form a mission planning capability.

SEA 1300 was approved by the Australian Government through the 2020 Force Structure Plan to provide Defence with an agile navy guided weapons project that is responsive to current and emerging threats in the acquisition and sustainment of weapons.

Commercial arrangements with individual suppliers including allocation of work between suppliers and states are subject to finalisation, as such suppliers are not currently named against this project. There is an expectation that WA companies and institutions will play a role in this program.

WAMA is comprised of the Australian Government, BAE Systems Australia, Naval Ship Management and Saab Australia. Each is responsible for the upgrade, maintenance and inventory support for the ANZAC-class frigates and associated support systems.

ASC maintains and upgrades the Collins Platform Systems. Raytheon Australia maintains and upgrades the Collins combat systems. Thales Underwater Systems maintains and upgrades the Collins sonar systems. BAE Systems maintains and updates the Collins periscopes. James Fisher Defence provides submarine escape and rescue services.

Maritime Explosive Ordnance System Program Office-West (MEOSPO-W) as part of Explosive Materiel Branch (EMB) maintains and sustains torpedoes in support of Collins-class submarine (MK48), Anzac-class frigate (MU90), MH-60R ‘Romeo’ helicopter (MK46 and MK54) and P-8 aircraft (MK54).

ASP Defence Support Services provides in-service support for HMAS Sirius.

Teekay Shipping Australia (Perth) provides ship management services for Australian Defence Vessel Ocean Protector.

Raytheon Australia provides operation, maintenance and support services for Very Low Frequency communications at Naval Communications Station Harold E. Holt (NCSHEH). This arrangement also includes support to the Space Situational Awareness Radar system (paid for under CAF13) at the same location. The budget for NCSHEH includes the aggregate of Australian and US shared contribution.

Maritime and Jenkins Engineering Defence Services both provide in-service and operational support for intelligence, surveillance and reconnaissance electronic warfare systems for navy.

Mission Systems Australia (formally L-3 Oceania and part of L3 Harris), provides in-service support for the navy’s Navigation Display Systems.

BAE Systems Australia provides sustainment support for the ADF’s Hawk 127. CAE provides logistics, maintenance and engineering services for aerospace training simulators and training services supporting the ADF’s Hawk 127 Lead In Fighter operations at RAAF Pearce.

BAE Systems Australia provides turn-key support services to the Radar 2 site. Employs approximately 34 people at Laverton in WA on a fly-in, fly-out basis. Raytheon Australia provides support services for the C-Band Space Surveillance Radar located at Harold E. Holt Base, Exmouth.

Thales Australia Pty Ltd provides software support for Command and Intelligence Systems Support Office - supported WYVERN.

BAE Systems Australia supports a Satellite Ground Station at Kojarina, near Geraldton in Western Australia (SGS-W). SGS-W comprises of two X-band and one Ka-band large aperture anchor terminals. Note: Under JP 2008, Blacktree Technology Pty Ltd provides the interim support to major components of the Narrowband Satellite Communications System.

Airflite is the maintenance contractor of the Air Sea Rescue Kit, used in C27 and C130 aircraft, which enables the RAAF to maintain its requirement to provide long range search and rescue services under the Maritime Safety Authority and Defence Joint Personal Recovery.

Lockheed Martin Australia is the prime contractor responsible for the delivery of the PC 21 Pilot Training System operated by No.2 Flying Training School.

Boeing Defence Australia undertakes sustainment activities on the Defence High Frequency Communications System, including at RAAF Learmonth.