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Defence Department will tear up a contract with an American company for crucial submarine search & rescue equipment, in a move expected to cost the Commonwealth tens of millions of dollars in compo.

Source : PortMac.News | Independent :

Source : PortMac.News | Independent | News Story:

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Sub equipment contract fail to cost millions in compo
Defence Department will tear up a contract with an American company for crucial submarine search & rescue equipment, in a move expected to cost the Commonwealth tens of millions of dollars in compo.

News Story Summary:

Last year saw a bitter stand-off between Phoenix International (Australia) and Defence over a deal to provide a "Submarine Escape Rescue and Abandonment System" to the Australian Navy by 2022.

It can now be revealed a recent review of the troubled contract has recommended it be scrapped, with the Commonwealth to soon begin formal discussions on reaching a commercial settlement with Phoenix.

Industry insiders estimate cancelling the $297 million contract will cost taxpayers tens of millions of dollars in compensation.

The decision to scrap the troubled US contract means Australia's Collins Class submarine fleet will be forced to continue using its existing British designed equipment including the ageing "LR5" submersible until well into the 2020s.

In November, the ABC revealed the LR5 had been damaged after colliding with the stern of a Navy rescue ship during training exercises off the West Australian coast.

Defence sources confirmed that on January 4 the LR5 rescue vehicle produced by the James Fisher Defence company was declared to be fully operational following detailed independent evaluations.

"We're confident it's a capable system" a senior defence official told the ABC, speaking on the condition of anonymity because he was not authorised to discuss the contract publicly.

"We exercise with it every year, and we test it end-to-end — very few navies around the world do this," the official said.

Last year the Chief of Navy Vice-Admiral Mike Noonan insisted safety was a number one priority for Australia's submarine fleet and the current rescue equipment was appropriate.

"Royal Australian Navy submariners are a professional force, trained and equipped to manage all possible eventualities related to submarine operations," Vice-Admiral Noonan said in a statement.

Story By | Andrew Greene


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