Report - Part 1

Part 1

Future of Australia's naval shipbuilding industry
Tender process for the navy's new supply ships

27 August 2014

© Commonwealth of Australia 2014
ISBN 978-1-76010-070-4

View the report as a single document - (PDF 2379KB)

View the report as separate downloadable parts:

Members (PDF 20KB)
Acronyms and abbreviations (PDF 7KB)
Executive Summary (PDF 97KB)

National security
Defence industry policy and decision to conduct limited tender

Chapter 1 - Introduction (PDF 27KB)

Conduct of inquiry
Background to inquiry
Decision to inquire into the limited tender for two replenishment vessels  

Chapter 2 - Proposed acquisition of two replenishment ships (PDF 182KB)

HMAS Sirius
HMAS Success
Strategic needs and analysis stage
Project—SEA 1654, Phase 3

Chapter 3 - Role of central agencies (PDF 178KB)

First Pass Consideration
Commonwealth Procurement Rules (CPRs)
Central agencies and DMO's role in decision for restricted tender
Government approval—first pass

Chapter 4 - Capacity (PDF 223KB)

Australian prime contractors and shipyards
Capacity of Australian shipyards
Investment in infrastructure

Chapter 5 - Urgency of acquisition (PDF 127KB)

Timing and schedule
Lease vessel

Chapter 6 - Productivity (PDF 560KB)

Announcement of tender for new supply ships
Productivity—compensated growth tonnage
AWD experience and acquiring new supply ships
Economies of scale
Contribution to Australian economy

Chapter 7 - National security (PDF 96KB)

Strategic imperative

Chapter 8 - Australian industry involvement (PDF 211KB)

Australia's Defence industry policy
Industry's interpretation of the decision to tender for the supply ships
Valley of death
Avoiding the valley of death and the future frigates
Australian participation in the construction of the supply ships

Chapter 9 - Limited tender (PDF 172KB)

Reasons for limited tender—cost and resources

Dissenting Report by Deputy Chair, Senator Sean Edwards (PDF 99KB)
Additional Comments by Senator Nick Xenophon - Ship happens? (PDF 106KB)
APPENDIX 1 - Submissions received (PDF 20KB)
APPENDIX 2 - Public Hearing and Witnesses (PDF 6KB)

Committee Secretariat contact:

Senate Standing Committees on Economics
PO Box 6100
Parliament House
Canberra ACT 2600

Phone: +61 2 6277 3540