Defence (or govt?) weasels out of $12billion satellite ordered last year

On 3 April last year, Defence was proud to announce Lockheed Martin Australia as the preferred tenderer to deliver a new Australian Defence satellite communication system, through Joint Project 9102 Phase 1.

Lockheed Martin supplied image

The Integrated Investment Program included $9-$12 billion to invest in enhanced space capabilities.

JP9102 would have delivered

• new Defence controlled and operated geo-stationary communications satellites
• multiple ground stations across Australia
• integrated Satellite Communications Management System
• two new satellite communications operations centres

Lead contractor Lockheed Martin Australia said upon winning the contract just over 18 months ago that whatever could be done in Australia, should be done in Australia – and had already lined up a large array of Australian sub-contractors to benefit from billions of dollars of Defence money.

Lockheed Martin also partnered with the Victorian government to establish Victoria as the engineering and technical hub for its JP9102 solution – an investment that would create more than 200 advanced space-industry jobs in the state.

Now it seems that the cost was a significant factor in today’s announcement that the project has been completely axed.

While the Defence announcement first tried to spin it towards an “acceleration in space technologies and evolving threats in space since the project’s commencement”, the ‘real reason’ was admitted (in nuanced language) at the end of the statement…

“This decision allows Defence to prioritise emerging needs, mitigate capability gaps and continue to support our transition to an integrated, focused force” – i.e. ‘we want to spend the money on other things’.

They also said ‘Defence’s current satellite communications capabilities were good enough for the job anyway’.

If that’s true, why let a contract for $9-$12 billion in the first place?

 

 

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