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Welcome to the special Defense Systems Journal Edition of Vol. 12, No. 24 of the Weekly DIAR.com e-Newsletter. 

Special Defense Systems Journal Edition Each week the Defence Industry & Aerospace Report (DIAR.com) e-Newsletter provides an up-to-date listing of all Australia’s major Defence & National Border Protection corporate press releases, speeches and reports by way of a headline and brief summary extract, as well as other international defence business news items relevant to current Australian Department of Defence new military capability acquisitions as reflected in official guidance provided by way of the 2009 Defence White Paper and the 2009-2019 Defence Capability Plan (DCP). If you would like your corporate press release considered for inclusion in future DIAR.com editions, please forward a copy to newsroom@busicom.com.au.  DIAR.com is a Business Communications Group publicationAustralia – Tel: 1300 369 781 – Fax: 1300 369 782International -- Tel: +61 (0) 2 6260 5944 -- Fax: +61 (0) 2 6260 3977
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NEW PRIME MINISTER SPORTS REGIONAL AFFINITY TO THE AIR FORCE: In unprecedented political gyrations in Canberra, the Welsh born (but South Australian raised) member for Lalor (Victoria), Julia Gillard, has displaced Kevin Rudd as leader of the Australian Labor Party to assume the office of Prime Minister. Gillard studied arts and law at the University of Adelaide before engaging with the Australian Union of Students and becoming its national president in 1983. At times in her student politics days, she is reported as having supported groups, such as the Socialist Forum, calling for abolition of the ANZUS Alliance, and the application of wealth taxes on high income earners. She went on to work as a solicitor at Slater & Gordon, and then served as chief of staff for then Victorian Opposition leader (now Premier), John Brumby. Ms Gillard entered Parliament in 1988. Her electorate is named after Peter Lalor, leader of the 1854 Eureka Stockade rebellion. Lalor covers some 991 sqkms from Toolern Vale in the north to Werribee South and Point Cook (ie: the founding aerodrome of the RAAF). In her inaugural press conference as new Prime Minister, Gillard spoke highly of the contribution of the men and women of the ADF, at home and abroad, and saying “our country relies on you to keep us safe. To keep the peace and honour the U.S. and the other alliances that are so important for our nation.”  [24.06.10] (DIAR.com) ‘ROLLING STONE’ GENERAL OF NO EFFECT ON AFGHANISTAN MISSION: The Chief of the Defence Force, Air Chief Marshal Angus Houston, has welcomed the appointment of General David Petraeus as new Commander of the International Security Assistance Force (ISAF), in Afghanistan. Petraeus’ sideways appointment follows the sudden departure of General Stanley McChrystal, who was appointed with celebration by President Obama to advance a new ‘surge’ strategy for the war in Afghanistan (as CENTCOM Commander, Petraeus was in effect McChrystal’s boss). McChrystal’s tenure came undone after a ‘Rolling Stone’ magazine interview revealed his discontent with the strength of political commitment to the Afghanistan campaign, thus revealing a disconnect between ISAF leadership and the Obama administration. Houston said McChrystal had overseen “a particularly difficult period in Afghanistan, and had been instrumental in driving the revised counter-insurgency strategy forward.” He was nevertheless “confident the mission would not be affected by his departure.” Petraeus led Coalition Forces when he was the Commanding General Multi-National Forces – Iraq, and last year, was appointed an Honorary Officer of the Order of Australia in recognition of his service in Iraq to the International Coalition against Terrorism.  [24.06.10] (DIAR.com) NEXT ROUND OF DEFENCE CAPABILITY PLAN REFORMS UNVEILED: Announcing, in Canberra, a series of new policy initiatives to improve the usefulness, principally for industry, of information presented in the public version of the Defence Capability Plan (DCP), the Minister for Defence, Senator John Faulkner, has released a Defence-commissioned study - completed in December 2009 by the Australian Strategic Policy Institute (ASPI) - which contains ten broad recommendations as to opportunities to improve the disclosure of Defence capability planning information. The recommendations of the report have latterly been used to shape new Government proposals to further enhance the next electronic update (to be extended to a ten-year horizon) of the DCP (DCP-U-2010/2, the second for 2010, and now scheduled for release in September/October), as well as the biennial printed DCP, due for release at next July’s Defence+Industry Conference. ASPI further recommended that the biennial D+I Conference be shifted from Adelaide back to Canberra, however, Defence considers Canberra’s conference facilities remain inadequate to stage the event.  [24.06.10] (DIAR.com) ‘DCP AT A GLANCE’ LEADS PUSH FOR BETTER PROJECT COSTINGS: ASPI’s report addressed widespread complaints from industry as to uncertainties regarding cost estimations for proposed new military capability acquisition projects resulting from the 2009 DCP’s adoption (upon Mortimer Report recommendations) of a new banding structure for project cost estimates of: <$100m; $100m to $500m; $500m to $1,500m; and >$1,500m. Australian Defence Business Review (ADBR) magazine (cited and referenced in the ASPI report), undertook some pioneering work in October 2009 to provide greater definition to these bands in its widely circulated ‘DCP at a Glance’ spreadsheet, which adopted a derived nominal project cost (A-DNPC) methodology to break the >$1,500m ACAT I band into: ‘Lower’ – $1,500m; ‘Middle’ – $3,000m; ‘Upper’ – $6,000m; ‘High’ – $12 billion; and ‘Ultra High’ – $25 billion. ASPI’s report took up this mantle by alternatively recommending the future adoption of project cost bands based on an uncertainty of +/-10% (ie: cost bands equal to around 20% of project value). Senator Faulkner went on to confirm the Government’s decision that future editions of the DCP would split the >$1,500m ACAT I band into four: $2-3 billion, $3-5b, $5-10b & >$10 billion. As such, the overall number of cost bands utilised in future DCP’s will now be expanded from four to nine: the preceding four bands for ACAT I and; ACAT 4 - <$100m; ACAT 3 - $100-300m & $300-500m; and ACAT 2 - $500m to 1 billion & $1-2 billion.  [24.06.10] (DIAR.com) DMO POSITIONS TO INSULATE ITSELF FROM DEFENCE PROJECT FAILINGS: ASPI’s report also called for more specific timings for ‘first’- and ‘second’-pass approvals, and improved timings (and definitions) for initial operating capability (IOC) and full operating capability (FOC). The Minister responded that the Government, in future, will retain banded timeframes for projects, however, these may be refined (including a narrowing to single year targets) as projects move towards ‘second pass’. In response to ASPI calls to reform IOC & FOC benchmarks, the Minister affirmed the Government would adopt a Defence Materiel Organisation (DMO) push to tighten up outcomes & performance information, thus helping to insulate itself from public criticism for project delays due to factors falling outside of its material acquisition agreements (MAAs) with military capability managers. In short – and as most recently exampled in stress between the DMO and the Chief of Navy in agreeing on project Sea 1390 acceptances - the DMO sees IOC & FOC as essentially ‘Defence’ milestones, that represent the estimated timeframe for when a capability system comprising all fundamental inputs to capability (FICs), will achieve full capability. As such, the DMO’s materiel supplies are just one element of a number of fundamental inputs necessary to realise a capability that can be operationally employed by a military Capability Manager. Hence, a more accurate measure, reflective of its own circumstances, is required to properly assess the DMO’s ongoing performance.  [24.06.10] (DIAR.com) DCP REFORM MORE ABOUT DEFENCE PERFORMANCE THAN INDUSTRY DATA: Senator Faulkner went on to confirm that the next public DCP would provide new DMO performance information, in the form of forecasting a time-frame for initial materiel release (IMR) - considered to be of much more relevance to industry than the traditional IOC, as it relates specifically to the planning date for equipment to be delivered to, or accepted by Defence (ie: IOC includes a number of FICs in which industry may have little or no role). The introduction of concepts such as IMR and the more substantive Final Materiel Release (FMR), were canvassed in the 2009/10 Budget papers as the new baseline reporting milestones that would, in future, mark the delivery and release to capability managers of material supplies the DMO undertakes to support the achievement of IOC & FOC by the relevant Capability Manager. The process of transitioning to the use of IMR & FMR for reporting purposes is expected to be complete by the end of the 2011 calendar year. IMR & FMR milestones have since been included in the MAA template now being used for all new DMO projects, and all existing DMO major projects will be required to transition to this new MAA template by the end of 2011. Interestingly, the Minister’s/Departmental announcement related only to IMRs, with both IMRs & FMRs being completely overlooked in the ASPI analysis.  [24.06.10] (DIAR.com) DEFENCE GOING ELECTRONIC TO OVERCOME ACQUISITION VOLATILITY: Defence Minister Faulkner went on to explain that industrial capability details in future DCPs would be expanded to include information on Priority Industry Capability (PIC) and Strategic Industry Capability (SIC) implications, Australian Industry Capability (AIC) guidance and improved indications of associated facilities and infrastructure investment undertakings. Project descriptions in future DCPs will also include Life-of-Type information for each new capability, and more detail on through-life support strategies, where appropriate. The document will also provide more analysis of the risks to, and issues with, an overall program and the aggregate level of demand by industry sectors covering the full ten years of the public DCP. Links to electronic pages for existing approved projects, the Defence Minors and Facilities Programs run by the Defence Support Group will all be part of a new ‘one-stop shop’ (ePortal) website now under development, which is expected to be up and running by September in time to accommodate subsequent DCP-U-2010/2 details. Defence also plans to update micro changes to DCP information more frequently than the current six months committed to by the Government last July.  [24.06.10] (DIAR.com) ‘HORNET’ CENTRE BARREL REPLACEMENT PROGRAM CLOSED OFF: Representatives of Defence, L-3 MAS (Canada) Inc & BAE Systems (BAES) have gathered at BAES Australia’s Fast Jet Support (FJS) facility at Williamtown (NSW) to mark completion of phase 3.2 of project Air 5376 – the centre barrel replacement (CBR) of ten F/A-18 ‘Hornet’ fighters. The tenth and final ‘Hornet’ to be modified was handed to the Commonwealth during an official ceremony. As an integral part of the Structural Refurbishment Program Phase 2 (SRP2) for the Hornets, the specified work involved complete replacement of the aircraft’s centre fuselage (or ‘centre barrel’ section) near the wing root. L-3 MAS selected BAES Australia as its teaming partner to provide structural ‘tear down’ & ‘rebuild’ elements of the CBR endeavour from its Williamtown facility. This involved dismantling the aircraft and preparation for airlift (via Antonov AN-124 aircraft) to the L-3 MAS facility in Mirabel, Canada. Upon return of the fuselage to Australia, ‘rebuild’ comprised re-assembly of the aircraft, flight testing and delivery to the RAAF, all carried out to the most stringent military standards. Defence earlier booked $480m in savings upon scientific advice it did not have to CBR the larger majority of the ‘Hornet’ fleet, given just over $300m had been expensed on ten CBRs.  [24.06.10] (DIAR.com) CBR VALUE FOR MONEY QUESTIONABLE AGAINST NEW ‘SUPER HORNET’: The ‘Hornet’ fleet had originally been planned for withdrawal from service in 2018, however, officials now believe 2020 “is achievable” upon assumption that sufficient project Air 6000 F-35A joint strike fighters have been accepted into operational RAAF service. The DMO’s Head Aerospace Systems Division, AVM Colin Thorne, told a Parliamentary Committee 30 March “we do not believe we need to do any more centre barrel testing to get to 2020 … (but) there is some other corrosion work, such as around the fuel tanks, we need to do to get to 2020.” The Committee heard evidence L-3’s Mirabel facility was no longer doing CBR work, although the capacity to do so remained intact. Alternative CBR update capacity similarly existed through the US Navy (albeit, principally because the USN had shifted to buying new ‘Super Hornet’ aircraft at US$50m each). AVM Thorne estimated that to address recurrent ‘Hornet’ sustainment issues, a new project phase of “about $180m over six or seven years” would be required, although DMO-CEO, Dr Stephen Gumley intervened saying, “it may be a bit more than that … it depends what you find when you open up some of the aircraft.” Compared to buying new ‘Super Hornet’ aircraft, Dr Gumley argued, “from a purely economic point of view, it makes a lot more sense to put the work in to make sure the classics can see us through.”  [24.06.10] (DIAR.com) FIRMS CHOSEN TO CONTEST REPAIR OF NAVY’S MAJOR FLEET UNITS: The Federal Government has announced the Industry entities that will be invited to tender for long-term, performance-based contracts for the repair & maintenance of the Navy’s major fleet units, as part of reforms celebrated by Defence Minister Faulkner at the Pacific 2010 international maritime exhibition to provide greater certainty and stability to the Navy ship repair sector. Those invited to participate in the respective Request for Tender processes for the amphibious group comprising HMA Ships ‘Success’, ‘Manoora’, ‘Kanimbla’ & ‘Tobruk’ include: ASP Ship Management; BAE Systems; KBR/Rolls Royce; Babcock/UGL Infrastructure; Forgacs/Teekay; Thales and DMS Maritime/Transfield. For the four ‘Adelaide’-class FFG frigates, the invited companies are: BAE Systems; KBR/Rolls Royce; Thales and DMS Maritime/Transfield. For the eight ‘Anzac’-class frigates, the invited companies are: BAE Systems; Babcock/UGL Infrastructure; Thales and DMS Maritime/Transfield.  [24.06.10] (DIAR.com) EXERCISE ‘CROCODILE’ FOSTERS REGIONAL SECURITY & READINESS: Multinational forces - including the East Timorese Defence Force (F-FDTL) and the International Stabilisation Force (ISF) - are participating in a multilateral Marine Exercise in East Timor. Exercise ‘Crocodile 10’ includes weapons firing skills, amphibious assault serials, jungle training, flying operations, and a helicopter raid on an abandoned prison. The exercise is said to be focused on professional development and arms corps advice to the F-FDTL. The ISF includes soldiers from the Brisbane-based 8th/9th Battalion, Royal Australian Regiment and the Timor Leste Aviation Group, drawn primarily from the Australian 5th Aviation Regiment equipped with S70A-9 ‘Black Hawk’ helicopters. The United States Marine Corps and US Navy (via US Ships ‘Peleliu’ & ‘Pearl Harbor’), have also joined the 19-26 June exercise.  [24.06.10] (DIAR.com) BILL INTRODUCED TO STRENGTHEN SECURITY AT DEFENCE BASES: Defence Minister Faulkner has introduced a Bill to make Australian military bases more secure. The Bill was developed following a Defence review of its protective security arrangements after the August 2009 arrest of a number of people allegedly planning an attack against the ‘Holsworthy’ Army Base, in southern Sydney (NSW). The Bill provides explicit authority for authorised Defence Force members to defend themselves, or others, from death or serious injury in the event of an attack on Defence premises. It will provide search and seizure powers to reduce the risk of dangerous items entering Defence premises - or weapons and classified information being unlawfully removed - and will strengthen Defence’s ability to detect and deal with trespassers. The Bill only has application within Australia, and will not affect ADF operational activities overseas.  [24.06.10] (DIAR.com) LEGISLATION COMING TO ENHANCE NATIONAL SECURITY CO-OPERATION: Attorney-General Robert McClelland has also introduced legislation to enhance cooperation, assistance and information sharing between Australia’s security, intelligence and law enforcement agencies. The Telecommunications Interception and Intelligence Services Legislation Amendment Bill 2010 will remove potential legislative barriers to agencies working closely by allowing secondments between national security agencies; and developing joint teams to address key national security issues. The Bill will also enhance the ability of the Australian Security Intelligence Organisation (ASIO) to provide telecommunications interception capabilities to Commonwealth, State and Territory law enforcement agencies.  [24.06.10] (DIAR.com) BILL INTRODUCED TO ESTABLISH MILITARY COURT OF AUSTRALIA: The Attorney-General has also introduced legislation to establish the new Military Court of Australia (MCA), and reshape the current federal court system. The Military Court of Australia Bill 2010, co-sponsored by Defence Minister Faulkner, will establish the new MCA as a separate court under Chapter III of the Constitution, with the same independence and constitutional protections as other federal courts. The new court will replace the interim system of military justice put in place following the High Court’s decision last year (ie: Lane v Morrison), which invalidated the Australian Military Court established by the Howard Government.  [24.06.10] (DIAR.com) DHA PROJECTS IN VOYAGER POINT, MUIRHEAD GIVEN GREEN LIGHT: Veterans’ Affairs and Defence Personnel Minister, Alan Griffin, and the Parliamentary Secretary for Defence Support, Dr Mike Kelly, have announced the $45m Defence Housing Australia (DHA) development at Voyager Point (NSW) has been given the go-ahead by the Public Works Committee (PWC). Griffin said the 137-lot development in the western Sydney suburb (which is in proximity to the ‘Holsworthy’ Army Base) would provide 59 homes for ADF members and their families. The first stage of the $43m DHA development at Muirhead (NT) has also been given PWC go-ahead, and is to provide 166 building lots, including 50 new homes for Defence. Later stages of the project will see 330 additional homes constructed for Defence personnel in Darwin. Currently about 4,500 Defence personnel reside in the Darwin area.  [24.06.10] (DIAR.com) RAYTHEON COMPLETES CUSTOMER REVIEW OF ITS INDUSTRY PROGRAM: Raytheon Australia’s Industry Development Unit (IDU) has completed the program’s second major customer Program Management Review in concert with the Defence Materiel Organisation’s (DMO) Industry Division. The IDU was launched in July last year, with Raytheon Australia the second (after Boeing) to sign a Global Supply Chain (GSC) Deed with the DMO. Raytheon’s IDU has since ensured twelve contracts for Australian firms with US-based Raytheon businesses worth over $50m. Australian companies are now said to be well integrated into Raytheon's global supply chain for programs as complex and diverse as the ‘Patriot’ air & missile defence system, the ‘Zumwalt’- class destroyer, emergency services communications and biometrics products. The number of companies registered with the IDU has grown to 185, of which 46 are involved in marketing, bidding or in contract with US programs.  [24.06.10] (DIAR.com) US-LED MULTINATIONAL COMMAND STRUCTURE FOR ORUZGAN: Defence Minister Faulkner and Foreign Affairs Minister Smith have welcomed the decision by the North Atlantic Treaty Organisation (NATO)-led International Security Assistance Force (ISAF), to establish a new multinational command structure for Oruzgan province in Afghanistan, to replace the Netherlands lead from 1 August. Senator Faulkner confirmed that under the new arrangements, the United States would head a multinational 'Combined Team - Oruzgan' (CTO), under an ISAF flag. Within these arrangements, Australia is to play a core role in the Provincial Reconstruction Team (PRT), including having an Australian civilian lead the PRT, whilst the size of its current force will remain unchanged at around 1,550 personnel. Police numbers are, however, being increased from 22, to 28 officers. Minister Faulkner considers the role previously performed by the Dutch will be “more than adequately met” by the new CTO arrangements. Singapore and Slovakia also have forces in the province.  [23.06.10] (DIAR.com) INCREASED ADF SECURITY ROLE FOR PROTECTING CIVILIAN ACTIVITY: Senator Faulkner says the main focus of the ADF deployment under the new arrangements will remain training and mentoring the Afghan National Army 4th Brigade in Oruzgan province. The ADF will also take on an increased role in providing ‘force protection’ for Australia's civilian activity (around 30 individuals in Oruzgan, and some 50 civilians in Afghanistan by September). Singapore and Slovakia will also continue to provide ‘substantial contributions’ in the new multinational arrangement, albeit with Australia continuing to “strongly encourage a continued contribution (particularly some civilian presence) from the Dutch in Oruzgan." Senator Faulkner added that he had discussed the prospects for an ongoing Dutch commitment with his counterpart Eimert van Middlekoop at NATO headquarters in Brussels a fortnight ago, for consideration after the new coalition government is formed in the Netherlands.  [23.06.10] (DIAR.com) TENTATIVE WITHDRAWAL TIMETABLE FROM AFGHANISTAN ANNOUNCED: In his fourth ministerial statement on Afghanistan to the Senate, Defence Minister Faulkner has confirmed advice from the Chief of the Defence Force (along with ISAF partner input), that within two to four years (ie: as early as mid-2012), Australian soldiers training Afghan national soldiers in Oruzgan province should be able to hand over security responsibility for the province to locally-raised forces (ie: the Afghan National Army’s 4th Brigade. More specifically, said the Minister, Air Chief Marshal Houston’s advice was the task “should be completed within two to four years … (after which) the ADF would transition from a training mission, to an overwatch role. It is at that time that we would see the Australian contribution in Afghanistan start to be reduced”. No mention was made in regard to the longevity of Special Forces operatives pursuing a more active combat campaign against insurgents. ADF troops performed an overwatch role in Iraq for around 12 months, before departing. Transition arrangements are to be a key focus of discussions at a NATO Summit scheduled for Lisbon, in November.  [23.06.10] (DIAR.com) SOUTHERN AFGHANISTAN SPLIT INTO TWO REGIONAL COMMANDS: Senator Faulkner further announced in his ministerial statement major developments in command and control structures in southern Afghanistan. As such, ISAF’s Regional Command (South) has been split into two areas via: the establishment of an additional Regional Command (South-West) - RC(SW) – covering the Helmand & Nimruz provinces. The newly-defined Regional Command (South), takes in the provinces of Kandahar, Oruzgan, Zabul and Daikundi. Senator Faulkner said these changes had been made to optimise a Regional Command that had grown “exponentially” since its transfer to NATO’s command in 2006. With more than 50,000 ISAF troops and eight ANA Brigades operating across six different provinces, the volume of activity had been too much for just one command. The new structure would allow the two commands to better focus on the priority areas of operations in the south (expected to be the focus of ‘surge’ activity in and around Marjah and Kandahar.  [23.06.10] (DIAR.com) STATISTICS MARSHALLED TO BOLSTER CASE FOR CONTINUED MISSION: Senator Faulkner went on to say that while a recent report by the United Nations had stated the security situation in Afghanistan had not improved, it nevertheless acknowledged that there had been significant positive developments, with 42,000 children now attending school in Oruzgan province. Across the country, he added, “65% of Afghans now had access to healthcare, up from 9% in 2002. The number of teachers had almost doubled since 2002, and Afghan women now held almost a quarter of the seats in parliament (with elections scheduled in September).” The Afghan National Army (ANA) is said to currently stand at around 125,000, and is “on track to meet its November target of 134,000 troops, several months ahead of schedule. Overall, the ANA will grow to around 172,000 by October 2011.” Other positive developments were said to be happening on the ground in the South, with several key government positions having been filled in both Marjah and Nad-e Ali districts. On the horizon is an ISAF push to create a “rising tide” of security to displace insurgent influence in Kandahar. By year’s end, it is anticipated some 20,000 Coalition and Afghan troops will be securing the population centre, compared to the current 7,500.  [23.06.10] (DIAR.com) FORMER US BATH IRON WORKS PRESIDENT JOINS ASC BOARD: The Federal Minister for Finance & Deregulation (and sole shareholder of ASC Pty Ltd), Lindsay Tanner, has announced the appointment of submarine officer - US Navy Rear Admiral (retired) John Dugan Shipway - to the Board of ASC for a three year term, commencing 18 June 2010. Shipway was most recently the President of General Dynamics Bath Iron Works, retiring in 2009 after six years of service. He is credited with having spearheaded management reforms which eliminated more than 1.5 million labour hours from the cost of building ‘Arleigh Burke’-class guided missile destroyers at the company’s Bath (Maine) site. Shipway joined General Dynamics Electric Boat in 2000, becoming Vice President for Full Submarine Support. ASC Chairman, Vice Admiral (Retired) Chris Ritchie, said the company would benefit from Shipway’s extensive technical and program management expertise. ASC has been undertaking a process of renegotiation with the Defence Materiel Organisation (DMO) of the balance of its long-term support agreement for the ‘Collins’-class submarines. A new agreement is scheduled to commence from 1 July 2010.  [23.06.10] (DIAR.com) AUSTRALIAN ARMY RECEIVES LOCKHEED MARTIN JLTV PROTOYPES: Lockheed Martin (LM) has confirmed its delivery of two right-hand drive operation Joint Light Tactical Vehicles (JLTV) and a companion trailer to the US Army & US Marine Corps (along with representatives of the Australian Army) to undertake technology development phase assessment and testing in relation to the ADF’s project Land 121/4 requirement. The vehicles (otherwise identical to US JLTVs), included a Category ‘B’ Command & Control on the Move vehicle and a Category ‘C’ Utility vehicle, were presented to representatives of the US Department of Defense and the Australian Department of Defence in an acceptance ceremony at teammate BAE Systems’ production facility in Sealy, Texas. The LM-led JLTV team also includes Alcoa Defense and JWF-Defense Systems, and claims over 70,000 miles of rugged and robust in-house testing has already been achieved. Should Australia elect to continue its partnership with US forces into the JLTV’s engineering and manufacturing development phase, LM says it intends “to include the strength of Australian industry in the JLTV design, for both US and Australian vehicles.”  [23.06.10] (DIAR.com) MICREO APPLAUDED FOR RWR PRODUCTION MILESTONE: Raytheon Australia has congratulated Brisbane-based Micreo on completing the manufacture of its 500th radio frequency module unit, which is used in production of Raytheon’s ALR-67(V)3 radar warning receiver (RWR) carried aboard the RAAF’s F/A-18 ‘Hornet’ fleet, as well as the 24 F/A-18F Block II ‘Super Hornet’ multirole fighters being acquired under project Air 5349. Micreo’s components have also been selected (via Raytheon Australia’s DMO-funded Industry Development Unit), to feed into the company’s RWR global supply chain on Super Hornets operated by the United States Navy, and classic ‘Hornet’ fighters operated by Canada and Switzerland. Raytheon Australia MD, Michael Ward, went on to pay tribute to the efforts of Micreo and its MD, Tim Shaw, in regard to their work “to secure an electronic warfare capability in Australia.”  [23.06.10] (DIAR.com) JULY SPEAKER LINEUP AT USI OF THE ACT CANBERRA BRIEFINGS: Jennifer Stewart, the Professor of Public Policy, University of New South Wales at the Australian Defence Force Academy (NSW@ADFA), is to address the United Services Institute of the ACT (USI of the ACT) on ‘Defence procurement - Learning lessons from the past’, in the Spender Theatre, Australian Defence College (ADC), at Weston Creek in the ACT on Wednesday 7 July, at 6:30pm. Air Commodore Mike Bennett, Director General Strategy & Planning - Air Force, will speak (on a topic to be advised), on Wednesday 28 July, at 6:30pm. The Chief Executive BAE Systems Australia, Jim McDowell, will similarly speak (topic to be advised), in the Spender Theatre on Wednesday 4 August, at 6:30pm. McDowell will no doubt explain (in jocular fashion), how a container of parts recently dispatched from Australia to BAES at Warton Aerodrome in Lancashire (UK), upon opening, was found to contain a load of Redback spiders.  [23.06.10] (DIAR.com) METAL STORM ADVISES CHANGE OF EQUITY LINE PROVIDER: Metal Storm Limited reports that a December 2009 equity line of credit facility agreement with UK based Global Emerging Markets (GEM) Global Yield Fund has not proven to operate as effectively as both parties intended, meaning over the last five months the facility has yielded significantly lower funding than had been anticipated. As a result, Metal Storm and GEM have agreed to terminate the facility. Metal Storm has in turn signed an investment agreement with Dutchess Opportunity Fund II LP for an equity line of up to $25m over three years. The company has also entered into private share placement agreements to a total of $250,000 to secure working cash flow for the US Marines Mission Payload Module - Non Lethal Weapon System and US Marines Improvised Explosive Device Training kit contracts.  [22.06.10] (DIAR.com) DMO TALKS TO PROVIDE DEFENCE UPDATE FOR NSW/ACT INDUSTRY: The Defence Materiel Organisation (DMO) - NSW/ACT is to hold defence-industry policy reform briefings at the Australian Defence Force Academy, Adams Hall, in Canberra on 8 July from 8:30am to 12:30pm. Speakers will include: the Head Industry Division, Mark Reynolds; Manager Contracts, Defence Support Group, Julie Groenendijk; General Manager Reform & Special Projects Group, Jane Wolfe; and Director Defence Industry Security, Defence Security Authority, Jacinta Thomson. Attendance of the Chief Information Officer Group, Greg Farr, at the briefing is still to be confirmed. To register for attendance, email DMOBAO.NSWACT@defence.gov.au .  [22.06.10] (DIAR.com) MARITIME PATROL CAPABILITY AT RISK SAYS FORCE REVIEW: An Australian Strategic Policy Institute (ASPI) overview of extant Royal Australian Air Force (RAAF) capabilities had identified several major decisions the Air Force must face over the next few years, including: whether to proceed with further Joint Strike Fighter acquisitions (and when); the timing and types of maritime patrol aircraft to be acquired; what is to replace the ‘Caribou’ light tactical airlifter; the development of doctrine and tactics to make best use of new air combat capabilities (including the ‘Super Hornet’ fighters and project Air 5077 ‘Wedgetail’ aircraft - the latter with Cooperative Engagement Capability, which is also to be fitted to the ‘Hobart’-class air warfare destroyers); and the continued development of training to exploit the new systems the RAAF is procuring. The deferral of the unmanned component (phase 1B) of project Air 7000 to beyond 2019, says ASPI, could result in a reduced ability to conduct concurrent maritime patrol operations.  [22.06.10] (DIAR.com) ARMED UAV NEEDED TO MEET ‘SUPER HORNET’ & JSF SHORTFALLS: The ASPI policy analysis goes on to state that if there is cause for concern, it is that the strength of the ‘Super Hornet’ is in its sensor & EW systems, “and history shows that EW advantages tend to be ephemeral”. However, US Navy plans to retain the ‘Super Hornet’ well beyond 2020 increases the possibility of fitting the currently being delivered ‘F’- model aircraft, as electronic warfare ‘Growlers’. While both the ‘Super Hornet’ and the F-35 will be capable of close air support and battlefield interdiction, such roles will be limited (in terms of reach & persistence), if forward airfields are not available. Combined with observed limitations of the Army’s ground based air defence and joint command and control systems, ASPI concludes the ADF has some way to go before it can operate against the full range of land and air threats to deployed forces. As such, an armed unmanned aerial vehicle “might be necessary to provide the level of persistence required in this role.”  [22.06.10] (DIAR.com) EXPERT PANEL TO AIR DEFENCE INDUSTRY POLICY REFORMS: ‘Defence Industry - Policy and Reform’ is to be the subject of a C3I ‘Defence Watch’ seminar to be held at the National Press Club in Canberra on Tuesday, 6 July 2010. Speakers include: John Owens, Head Infrastructure Division, Defence Support Group (which will overview major upcoming projects in Defence infrastructure); Shane McIntosh, CTI (to provide an overview of the difference between the ‘Green Star’ and National Australian Built Environment Rating System (NABERS), with a brief note on how industry can assist Defence with its Green Building Requirements); Jane Wolfe, General Manager, Reform & Special Projects in the DMO (which has specific responsibility for governance & accountability of the $5.5 billion ‘Smart Sustainment’ program within the Strategic Reform Program); and Mark Reynolds, Head of the DMO’s Industry Division.  [21.06.10] (DIAR.com) NEW REPORT CALLS FOR THE CREATION OF A CYBER CRIME TSAR: A new report by the House of Representatives Communications Committee - entitled ‘Hackers, Fraudsters and Botnets: Tackling the Problem of Cyber Crime’ - makes 34 recommendations aimed at improving Australia’s response to the growing problem of cyber crime. The report recommends the establishment of an Office of Online Security within the Department of Prime Minster & Cabinet, headed by a Cyber Security Coordinator. The new Office would work to coordinate cyber crime policy across Commonwealth, State and Territory governments, and foster partnerships with industry and the community. The Committee also recommended the establishment of a national 24 hour cyber crime reporting facility and a mandatory e-security code of practice for the Internet industry that goes beyond the industry’s recently launched voluntary code.  [21.06.10] (DIAR.com) SEPARATE OVERSIGHT RECOMMENDED FOR AFP COUNTER-TERRORISM: The House of Representatives’ Intelligence and Security Committee’s (ISC) report into the Administration and Expenditure of the Australian Intelligence Community for 2008/09 has found that a gap exists in the current intelligence community oversight regime. In the report, the Committee recommended the Intelligence Services Act 2001 be amended to include Australian Federal Police (AFP) counter-terrorism elements in the list of organisations the Committee reviews. The Australian Secret Intelligence Organisation (ASIO), Australian Secret Intelligence Service (ASIS), Defence Intelligence Organisation (DIO), Defence Signals Directorate (DSD), Defence Imagery and Geospatial Organisation (DIGO) and Office of National Assessments (ONA) all currently report to the ISC.  [21.06.10] (DIAR.com)