Ossirand Articles

Defence this week: the work behind the ships

info@ossirand.com (Hamish Freer) — Sun, 25 Oct 2026 14:00:00 GMT

Most of this week's defence news was not about new platforms. It was about what has to exist before ships and submarines can be built and kept running: factories, wharves, finance, project leaders and suppliers. Much of it centred on Western Australia, where shipbuilding and submarine sustainment are converging on one precinct.

Australia

Henderson: the money arrives, the hard part starts

The National Reconstruction Fund Corporation (NRFC) will lend $245 million to Austal Defence Shipbuilding Australia to build and fit out a modular manufacturing facility at the Australian Marine Complex in Western Australia. The facility will produce eight Landing Craft Heavy for the Army, due by 2038 under the Strategic Shipbuilding Agreement signed in 2025. Each vessel can carry more than 500 tonnes of people, vehicles and equipment, including long range strike weapons. Defence Connect reports the project will add about 780 roles. The loan is subject to finance documentation and customary conditions.

At the ADM Western Australia Defence Summit, David Hanley, Defence's Deputy Secretary for Naval Shipbuilding and Sustainment, said capability is measured by how ships are deployed and sustained, not by how many there are. After the siting decision for the new Henderson Defence Precinct, he said, the next task is delivering facilities on time, which depends on design sequencing, many approvals and construction. He noted that the frigates being built in Japan need a sustainment solution within three years, when many shipbuilding projects take seven. The government has announced $12 billion for the precinct, and ASPI puts its total estimated cost at about $25 billion. The state's planned Western Defence Forge industrial precinct has drawn 179 expressions of interest, but no site has been confirmed.

The constraint at Henderson is moving from whether to build to how quickly facilities, approvals and supply chains can be sequenced. Writing in The Strategist, ASPI's Raelene Lockhorst made a related point: new plant does not become capability without skilled workers, qualified suppliers, utilities and a steady pipeline of work.

Submarine works at Stirling

The Duratec Ertech Joint Venture reports that about 70 per cent of piling is complete at Diamantina Wharf, part of the $281 million infrastructure upgrade at HMAS Stirling on Garden Island. Piling has also started at two other sites on the island. Pile and fender components are fabricated at Henderson and barged across, and piling is done from the existing wharf to limit disruption to the base. The works support Submarine Rotational Force-West, which will maintain US Virginia class and UK Astute class submarines rotating through Western Australia under AUKUS.

The detail worth noting is the method. New capacity is being added around a base that has to keep operating, which is a pattern the whole western build-out will face.

A new framework with Timor-Leste

Defence Minister Richard Marles and Timor-Leste Prime Minister Xanana Gusmão signed a Defence Cooperation Framework in Dili, valued at more than $60 million. Australia will provide new vessels to the Timor-Leste National Police for maritime security, search and rescue and countering transnational crime. Over five years it will also provide cyber security advisers, incident response support and help building digital forensics capability to investigate cybercrime and disrupt scam centres. The framework builds on a Defence Cooperation Program that has run since 2002 and the Parseria Joint Declaration signed in January 2026.

Regional packages like this now bundle cyber and policing support with traditional defence cooperation, which widens the range of Australian agencies and suppliers involved in delivering them.

People who run complex projects

ASC, which sustains the Collins class submarines, has joined the International Centre for Complex Project Management (ICCPM) as a Gold Corporate Partner. The aim is to develop leaders for Defence and other complex programs. ICCPM's work is supported in part through the Defence Industry Development Grant program.

With shipbuilding, submarine sustainment and a new precinct all running at once, experienced project leaders are as much a constraint as wharf space or steel.

Sovereign sensors and ground stations

The Victorian Government announced that Nomad Atomics will bring manufacture of its quantum sensors, previously done overseas, to Richmond, Victoria, creating about 51 jobs over three years. Its technology can support navigation without GPS. In Western Australia, Capricorn Space has 20 operational antennas at its ground station near Mingenew and is developing a second parcel of almost six hectares to double the site. The government's Statement on Space, released in July, identifies ground segment platforms that support sovereign data control as a key opportunity for Australian industry.

Both are small in dollar terms, but they point at the same goal as the shipbuilding news: keeping critical manufacturing and data onshore.

International

F-35 production set for a decade, pending Congress

The US Department of War and Lockheed Martin announced a 10 year framework for F-35 production and sustainment. It covers 850 US aircraft, international customer orders across Lots 21 to 30, and production continuing at 156 aircraft a year. It depends on multi year authority and appropriations being granted in the coming months, after which contract terms, pricing and schedules will be finalised. If it holds, overseas operators and suppliers get a decade of predictable production rate to plan sustainment and spares around.

Australian money in a US submarine supplier

Bird-Johnson Propeller Company broke ground on 20 October on a Propulsor Center of Excellence in Pascagoula, Mississippi, which will make propulsor rotors and other critical components for the Virginia class program. The project is backed by combined Australian and US investment, and Australia has committed US$3 billion to the US submarine industrial base overall. Australian Submarine Agency officials attended. It is a concrete example of Australian funds going into the supply base that has to deliver Virginia class boats to Australia from the early 2030s.

How it fits together

A wharf at Garden Island, a landing craft factory at Henderson and a propulsor plant in Mississippi are links in the same chain. Each has to be finished, staffed and supplied before the capability it supports can arrive on time, and each depends on approvals, finance and people as much as on design.

That is why the less visible news matters: a government loan to fit out a shipyard, a partnership to train project leaders, a state precinct still looking for a site. The question for Australian defence and industry over the next few years is less about which platforms are chosen and more about whether the facilities, workforce and suppliers behind them arrive in the right order.

Sources

The week in defence delivery: how the buying is changing

info@ossirand.com (Hamish Freer) — Wed, 21 Oct 2026 14:00:00 GMT

Most defence news is about platforms. This week the more useful signal was about process: how capability is bought, who manages the contracts, and how many organisations have to line up for one schedule to hold.

Germany turns a direct buy into a competition

Germany's defence ministry has told Boeing it will not go ahead with a direct purchase of the Ghost Bat, the uncrewed aircraft developed by Boeing's Australian subsidiary for the Royal Australian Air Force. The German air force had wanted collaborative combat aircraft in service by 2029. Reporting now points to flight testing from 2027 and operational capability in the early 2030s, with competing designs likely to get the chance to demonstrate before a selection.

The Ghost Bat is not necessarily out. Rheinmetall and Boeing announced a partnership to offer it to Germany at the end of March. But the field now includes teams from Airbus and Kratos, Anduril, General Atomics with INTEC, Lockheed Martin, and Helsing with Hensoldt.

The practical point is that a change in acquisition strategy reshapes a pursuit more than any change to the product. A direct buy rewards whoever is ready now. A competition with demonstrations rewards whoever can prove performance on the customer's terms and timeline.

Sovereign rocket motors: three phases, three parties

Northrop Grumman, selected in April with $126.9 million to demonstrate local solid rocket motor manufacture, is aiming to run that demonstration next year using upgraded facilities at the government owned Mulwala munitions factory in New South Wales. The Commonwealth has set 2030 as the deadline for producing motors for the Guided Multiple Launch Rocket System (GMLRS) at Mulwala, with locally made motors to be sold to Lockheed Martin for integration. The program runs in three phases: demonstration, qualification, then production.

Programs shaped like this are where schedule risk concentrates. Each phase depends on a different party, a government owned site, a manufacturer and an integrator, and a delay at any of those interfaces can move the end date.

Ghost Shark gets its payloads

Defence Industry Minister Pat Conroy announced payloads for the Ghost Shark XL autonomous undersea vehicle at Anduril Australia's Sydney factory: a new sea mine, a deployable logistics cache, and swarms of Altius uncrewed aircraft. Payload work was also confirmed for Speartooth undersea vehicles and Bluebottle surface vessels, the latter to carry towed array sonar. Some of the payloads are going to Exercise Maritime Big Play Pacific in San Diego this month.

The Integrated Investment Program commits up to $5.8 billion over the decade to autonomous and uncrewed undersea warfare, including $1.7 billion for a fleet of Ghost Shark platforms.

Modular payloads change the shape of the work. Instead of one large integration program there are many smaller ones running in parallel, each needing configuration control, test evidence and a safety case against a common platform.

Space: software and sensors

Saab launched its Allied Mission System in Adelaide on 20 October. It is cloud based software that combines space domain awareness, mission management and command and control in one system, delivered as a service.

Separately, Fleet Space Technologies led SENTRI, a $1.6 million project funded through the Defence Innovation Partnership's Activator Fund. It linked small, low cost ground sensors directly to an Australian satellite to give decision makers a live picture within seconds, in areas without existing communications networks. Partners included Adelaide University, Swordfish Computing and the Defence Science and Technology Group. The next step is field testing with Defence.

Both point the same way. A growing share of space capability is software and data handling, so requirements, integration and the workflows of the people using it matter as much as the hardware.

Who manages the contracts

A freedom of information release reported by the ABC shows at least $15.6 million in financial and procurement errors in the Guided Weapons and Explosive Ordnance (GWEO) enterprise. It includes $13.3 million paid in June 2023 to cover contract price increases before the required legal approval, which was granted retrospectively in July 2025. The minister said the contract is now managed by Defence public servants rather than contractors. GWEO is due to move into the new Defence Delivery Agency from July 2027.

In the same week, Model26, a not for profit delivery organisation launched in June with help from BMT, said its modelling shows it could cut the cost of Defence professional and technical services by about 15 per cent, roughly $150 million a year on an addressable spend of about $1 billion. It plans to operate within the Major Service Provider framework, through which more than $7.3 billion has been spent since it began. Australian Defence Magazine reports that the next round of that framework is expected to be one of the most contested Defence services competitions in recent years.

What ties it together

Read together, these stories describe one shift. Customers are changing how they buy, from direct purchase to competition. They are changing where accountability sits, with contract management back inside Defence and delivery consolidating into a single agency. And the market for the advice that supports delivery is opening to new models.

For anyone delivering defence programs, the governance around a platform is becoming as decisive as the platform itself.