Australia — Smart sustainment leads to $100 million saving

Min­is­ter for Defence Materiel Jason Clare today announced Defence will save $100 mil­lion over the next decade under new arrange­ments for oper­at­ing the radar net­work pro­tect­ing north­ern Aus­tralia.

The sav­ings will be achieved by Defence work­ing in part­ner­ship with BAE Sys­tems and Lock­heed Mar­tin to deliv­er more effi­cient sup­port ser­vices to the radar — the Jin­dalee Oper­a­tional Radar Net­work (JORN).

Mr Clare said this was a ter­rif­ic exam­ple of Defence and indus­try work­ing togeth­er to deliv­er sav­ings to the taxpayer.

“Defence, BAE Sys­tems and Lock­heed Mar­tin Aus­tralia have done excel­lent work to deliv­er these sav­ings,” Mr Clare said.

“This $100 mil­lion sav­ing will be achieved with­out any impact on the oper­at­ing capa­bil­i­ty or safe­ty of the radar network.

“This rep­re­sents a sav­ing of 16 per cent per year.”

Mr Clare said the sav­ings fol­low an end-to-end review of the JORN sys­tem to iden­ti­fy pos­si­ble sav­ings measures.

“The JORN sys­tem was cho­sen as one of the four ini­tial pilot projects devel­oped in ear­ly 2010 for the imple­men­ta­tion of Strate­gic Reform Pro­gram – Smart Sus­tain­ment Ini­tia­tives,” Mr Clare said.

“These revised sup­port con­tracts rep­re­sent a sig­nif­i­cant sav­ing for Defence and would not have been pos­si­ble with­out the excel­lent work put in by both Defence and the indus­try part­ners – Lock­heed Mar­tin Aus­tralia and BAE Systems.”

JORN pro­vides long range sur­veil­lance of Australia’s north­ern sea and air approach­es up to 3000km from the three radar sites locat­ed near Laver­ton, WA, Alice Springs, NT and Lon­greach, QLD.

The revised con­tracts include an exten­sion to the orig­i­nal con­tract sup­port peri­ods. Addi­tion­al­ly, the con­tracts include an option for fur­ther exten­sions should capa­bil­i­ty out­comes and cost sav­ings con­tin­ue to be achieved.

Media con­tact: Kore­na Flana­gan – 02 6277 7620 

Press release
Min­is­te­r­i­al Sup­port and Pub­lic Affairs,
Depart­ment of Defence,
Can­ber­ra, Australia 

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