- Facilities to Support Improved Embarked Logistics Support Helicopter
Department of Defence
3.1The Department of Defence (Defence) seeks approval from the Committee to proceed with the proposed Facilities to Support Improved Logistics Support Helicopter project.
3.2The project aims to provide new and upgraded facilities and infrastructure to support the integration, operation, and sustainment of 12 new MH-60R Seahawk (Romeo) helicopters for the Navy. The project will be delivered at two Navy bases: HMAS Albatross (near Nowra, NSW) and HMAS Stirling (60km south of Perth, WA).
3.3The estimated cost of delivery of the project is $146 million (excluding GST).
3.4The project was referred to the Committee on 20 August 2024.
Conduct of the inquiry
3.5Following referral, the inquiry was published on the Committee’s website.
3.6The Committee received one submission, one confidential submission, and two supplementary submissions. A list of submissions is in Appendix A.
3.7On 30 October 2024, the Committee conducted a site inspection at HMAS Albatross followed by a public and in-camera hearing at Nowra. A transcript of the public hearing is available on the Committee’s website.
Need for the works
3.8Under capability project SEA9100 Phase 1, twelve new Romeo helicopters are being acquired to replace the Navy’s fleet of six MRH-90 Taipan logistics support helicopters. In doing so, the Navy will establish a common maritime helicopter fleet, building on the existing Romeo capability, training and sustainment frameworks.
3.9The Force Structure Plan 2020 required Defence to expand and rationalise its Navy support helicopter fleet to match an increase in the number of amphibious and afloat support vessels. The 2024 National Defence Strategy and 2024 Integrated Investment Program reaffirmed the Romeo acquisitions.
3.10Navy currently operates 24 Romeo helicopters in anti-submarine warfare, anti-surface warfare, search and rescue, and logistics roles across three squadrons. The helicopters will be based at HMAS Albatross but will also operate at HMAS Stirling and on ships.
3.11The SEA9100Ph1 Workforce Transition Plan is based on increased efficiencies through shared services and equipment in the established Romeo precinct. Having three squadrons using the same aircraft will create increased demand for Romeo aircraft training simulation, so SEA9100 Phase 1 is seeking to procure an additional Romeo training simulator to add to the two existing trainers within the Seahawk Simulation and Warfare Centre at HMAS Albatross. The acquisition of the third training simulator will require an extension of the Centre.
3.12Defence explained in more detail the need for an additional simulator in the public hearing:
It increases our ability to train for the high-end warfare tasks, which are not necessarily able to be achieved by physically flying the aircraft on exercise. It increases the likelihood of having simulators available and increases our ability to keep our pilots and aircrew current.
[…]
There are certainly things in a simulator that you only want to exercise in a simulator. You want to give them the confidence that, should it happen in the real world, they'll know what to do.
3.13The additional aircraft in the fleet will also result in an increase in operational tempo at the Helicopter Support Facility on HMAS Stirling as a key staging base. As a staging facility for aviation assets, the Facility does minor and major maintenance and supporting administrative functions, both prior to, and upon departing on an assigned Fleet Unit. Minor works are required at the Helicopter Support Facility to maintain the capacity to accommodate an increased presence of support helicopters in a secure environment.
Options considered
3.14Defence undertook master planning, site investigations, stakeholder consultation, whole-of-life cost analysis and design development to establish the capital facilities and infrastructure works required to address the project need. The following options were considered:
- Option 1 – Do Nothing. This option represents the current state where 808 Squadron operates from interim facilities, dislocated from the existing Romeo precinct facilities and workforce, relying on existing facilities to provide for the new type of aircraft and expected growth without any major capital investment.
- Option 2 – Minimum Viable Product (in-budget). This option provides the minimum scope to best enable and support the capability at its home base including an interim period before permanent facilities are available. This option integrates and consolidates permanent unit facilities in the existing Romeo precinct and builds on the training and operational capability with extra space for a third training simulator. It also includes minor enhancement of the main staging base at HMAS Stirling to enable better operational efficiency and effectiveness. This option considers a risk-managed approach to enable minimum viable capability through reduction or exclusion of certain elements of scope and functionality that may be provided by existing facilities and workforce.
- Option 3 – Full Scope (above-budget). This option further enhances Option 2 with the inclusion of all the elements of scope to provide for independent maintenance and operational functionality of the new 808 Squadron facility, security of the Romeo apron, and additional car parking capacity for the Romeo precinct.
- Option 2 is the preferred option as it meets the minimum viable capability required to enable, raise, train, and sustain 808 Squadron at its main base at HMAS Albatross and further improves the operational effectiveness of the Helicopter Support Facility at HMAS Stirling. This option is within the project’s approved budget.
Scope of the works
3.16The scope of works of Defence’s preferred option includes the following work elements:
- Work Element 1 – Interim Facilities HMAS Albatross.
- Physical and security upgrades to hangars and administration areas for the interim facilities for 808 Squadron at HMAS Albatross.
- Work Element 2 – Carparking HMAS Albatross.
- Extending the existing car park in the Romeo precinct to support the new squadron working accommodation.
- Work Element 3 – HMAS Albatross External Infrastructure.
- constructing aircraft pavement and integrating the new squadron facilities into the existing apron
- connecting engineering services (power, water, stormwater, wastewater, and communications) to the new facilities elements
- constructing additional covered hardstand for the equipment container storage
- providing additional explosive ordnance storage lockers at an existing explosive ordnance preparation area
- constructing new footpaths and minor landscaping.
- Work Element 4 – Permanent 808 Squadron Facility HMAS Albatross. This facility is the new headquarters, working accommodation and maintenance facility for 808 Squadron:
- office and meeting space for the executive, operational, administrative and logistics staff
- mission planning and briefing rooms
- aircraft hangars
- general and specialist aviation stores and workshops
- amenities including ablutions and kitchenettes
- services plant and communications rooms.
- Work Element 5 – Training Simulator Facilities HMAS Albatross.
- This work extends the existing Seahawk Simulation and Warfare Centre with an additional bay to house the new flight training simulator with associated control room, briefing rooms and support contractor workspace.
- Work Element 6 – Helicopter Support Facility Internal Works HMAS Stirling.
- Four additional work-points and helicopter power converters to the hangars.
- Work Element 7 – Materials Handling Equipment Shelter HMAS Stirling.
- A new shelter for aircraft work platforms and tow motors at the Helicopter Support Facility.
- In the event the project experiences trade savings through tendering or retirement of risk provision during delivery, the following below the line scope items may be delivered:
- additional Carpark at HMAS Albatross
- automation of Helicopter Support Facility Hangar Doors at HMAS Stirling.
Community and stakeholder consultation
3.18Defence has engaged with a variety of internal and external stakeholders during project development to date, including:
- Federal Member for Gilmore, Mrs Fiona Phillips MP
- NSW Member for South Coast, Ms Liza Butler MP
- NSW Member for Kiama, Mr Gareth James Ward MP
- Mayor of Shoalhaven City Council, Mayor Amanda Findley
- Airservices Australia
- Civil Aviation Safety Authority
- Local industry groups (Air Affairs Australia, Sikorsky Australia, Partech Systems, Kratos Defence Australia, Shoalhaven Business Chamber)
- Shoalhaven Landcare
- Australian Conservation Foundation – Shoalhaven Branch.
- Nowra Aboriginal Land Council
- Wreck Bay Aboriginal Community Council
- Nowra Motoplex.
- Federal Member for Brand, The Hon. Madeleine King MP
- WA Member for Rockingham, The Hon. Magenta Marshall
- Mayor of Rockingham City Council, Mayor Deb Hamblin
- Mayor of Kwinana City Council, Mayor Peter Feasey*
- Mayor of Cockburn City Council, Mayor Logan Howlett
- Local industry groups (Rockingham Kwinana Chamber of Commerce, Master Builders Western Australia, Kwinana Industries Council)
- South West Aboriginal Land and Sea Council
- Rockingham Regional Environment Centre Naragebup.
- Two community information sessions were held on 1 August at the Fleet Air Arm Museum, Nowra Hill, NSW. The four attendees were local residents. Key points raised were:
- existing noise pollution and impact of the project on aerodrome noise
- opportunities for local industry participation in the proposed works
- questions about the delivery program
- curiosity around the capability and the role it plays in the Royal Australian Navy
- questions regarding personnel increases to support the project.
Cost of the works
3.20The total capital out-turned cost of the project is $146 million (excluding Goods and Services Tax). The cost estimate includes project management and design fees, construction, information and communications technology, furniture, fittings, equipment, contingencies, and a provision for escalation.
3.21There will be ongoing operating and sustainment costs as a result of the proposed works. The new facilities for 808 Squadron and the extension to the Seahawk Simulation and Warfare Centre at HMAS Albatross will be the key contributors to these ongoing costs.
Revenue
3.22There will be no revenue generated by the project.
Public value
3.23Defence has assessed public value, opportunities, and benefit to the community from the public works as:
- Economic impacts – the project expenditure will support the Australian economy, in particular in the construction and professional services sectors in the Shoalhaven and Illawarra regions.
- Employment opportunities – the project will employ a diverse range of consultants, contractors and construction workers, and is expected to generate opportunities for up-skilling and job training to improve individual skills and employability on future projects.
- Local industry and Indigenous business involvement opportunities – Defence and the Head Contractor will actively promote opportunities for small and medium local enterprises through construction trade packages. The Head Contractor will also develop a Local Industry Capability Plan and an Indigenous Participation Plan to detail how it will engage with and maximise opportunities for local industry and Indigenous businesses, while providing value for money to the Commonwealth.
Project timing
3.24The project is forecast to comment in mid-2025 and be completed by mid-2027. Defence explained the overlapping timing of the public works, the helicopter acquisitions and the increased workforce:
The helicopters will commence arriving in 2026. They won't all arrive in one hit; they'll be staggered over time. So there is a slight misalignment, which is why the interim facilities are an important step.
3.25Commodore Turner further explained that the required workforce will upskill over time, with a gradual ramp up ‘to full capacity in the early-2030s before the workforce has readjusted to the increased size of the helicopter fleet.’
Committee comment
3.26The Committee did not identify any issues or concerns with the proposal, and it is satisfied that the project has merit in terms of need, scope and cost.
3.27The Committee notes Defence’s confidence that the Shoalhaven construction industry will have sufficient capacity to support the project and encourages Defence to continue to pursue a high level of local industry participation.
3.28Having regard to its role and responsibilities contained in the Public Works Committee Act 1969, the Committee is of the view that this project signifies value for money for the Commonwealth and constitutes a project which is fit-for-purpose, having regard to the established need.
3.29The Committee recommends that the House of Representatives resolve, pursuant to section 18(7) of the Public Works Committee Act 1969, that it is expedient to carry out the following proposed works: Department of Defence — Facilities to Support Improved Embarked Logistics Support Helicopter.
3.30Proponent entities must notify the Committee of any changes to the project scope, time, cost, function or design. The Committee also requires that a post implementation report be provided within three months of project completion. A report template can be found on the Committee’s website.