The Collins-class carries two periscopes, a search scope and an attack scope. Photo: ADF.
Defence has awarded contracts totalling $267 million to industry for the continuing sustainment of two of Australia’s Collins-class submarines’ most crucial sensors.
The contracts will see Thales Australia conduct work valued at $178 million on sustainment of the six submarines’ bow and distributed sonar and towed sonar arrays.
Sonar is a submarine’s primary method of detecting ships and other submarines and underwater obstructions, and the arrays operated aboard the Collins-class boats are considered as good as the finest sonars on any conventionally-powered submarines.
BAE Systems Australia has also been awarded an $89 million contract to maintain the Collins-class boats’ search and attack periscopes.
Both contracts are due to run through to the mid-2030s, by which time the Collins boats are due to be decommissioned in favour of former US Navy Virginia-class nuclear-powered submarines under the AUKUS Pillar 1 construct, despite growing doubts the US will ever be able to transfer those boats to Australia.
Deputy Secretary Naval Shipbuilding and Sustainment Group David Hanley said the Naval Shipbuilding and Sustainment Plan was delivering potent naval capabilities and helping to grow Australia’s sovereign industrial capability.
“These contracts provide over 100 Australian workers with certainty in Australia’s national naval shipbuilding and sustainment enterprise,” he said.
BAE Systems Australia Managing Director, Defence Delivery Andrew Gresham said the company was a long-term sovereign capability partner to the Navy with more than 30 years of expertise in the manufacture and build, sustainment and upgrade of Collins-class submarine periscope systems.
“We are delighted to confirm a five-year contract extension, building on our large body of work with the Submarine Enterprise that ensures the continued operation of the periscope systems, which are critical for the Collins-class fleet,” he said.
“Today’s announcement underscores the importance of our company’s long-standing experience in delivering periscope systems in Australia and our local network of trusted industry partners delivering into the sustainment program.”
The Collins-class was re-added to the government’s Projects of Concern (POC) list in 2024. Photo: ADF.
The periscopes had been due for replacement under the planned $5 billion Collins-class Life of Type Extension (LOTE) program which had been scheduled to commence in 2024 and would have seen at least three of the six boats through to a full life-of type around 2040.
But the LOTE was significantly scaled back in June 2024 when the government announced that work on the first boat – HMAS Farncomb – wouldn’t commence at ASC’s shipyard at Osborne in South Australia until 2026.
The invasive LOTE process will see the boat cut in half and its diesel and electric engines, power conversion and distribution systems all replaced. The boats will also receive a cooling system update and a comprehensive hull assessment.
But two of the planned enhancements to the submarines have been cancelled by the Commonwealth. Part of the upgrade was to include an optronics upgrade comprising new periscopes and other masts, which the government said won’t “proceed following advice that it would have added complexity and risk” to the program.
It had also been planned to integrate the 1500 km-range Tomahawk land attack missile with the Collins boats, but that was also cancelled after consultation with the US because it was deemed to not be viable.
The contract announcements also come just a week after the government held a Projects of Concern summit with industry to support the sustainment of the submarines.
The Collins-class was re-added to the government’s Projects of Concern (POC) list in late 2024 after questions were raised about the boats’ sustainment.
At that time, Defence Industry Minister Pat Conroy said that, with the Collins-class required to operate well beyond its originally planned design life, it was essential increased sustainment requirements were met to ensure it remained an effective and formidable capability until its withdrawal from service. He said he hoped to address any shortfalls through enhanced ministerial oversight via the POC process.
Information on any outcomes that may have come from the latest summit is non-existent, with a ministerial release from Minister for Finance Senator Katy Gallagher and Mr Conroy saying only that, “ASC is committed to working with Defence to improve Collins-class submarine sustainment performance and to effectively deliver safe and high-quality sustainment of Collins-class submarines”.
