(NSI News Source Info) March 27, 2009: M113s are the only tracked vehicle in the Australian Defence Force’s (ADF’s) fleet of armoured troop transports used for transporting and supporting infantry in a battlefield. M113s first saw service with the ADF during the Vietnam War and are undergoing a major upgrade to improve protection, lethality, mobility and habitability.
2. Currently, 431 upgraded M113s are on order for delivery by the end of 2011 under Project Land 106: Upgrade of M113 Armoured Vehicles. The initial purchase in July 2002 of 350 upgraded vehicles for delivery by December 2010 was extended in December 2008 to include an additional 81 upgraded M113s as part of the Enhanced Land Force (ELF) initiative.
Nine years on, Australia’s A$ 1 billion M-113 upgrade program has only delivered 42 vehicles out of the 431 that are due to be delivered by late 2010.
Nine years on, Australia’s A$ 1 billion M-113 upgrade program has only delivered 42 vehicles out of the 431 that are due to be delivered by late 2010. 3. With total anticipated expenditure in the order of $1 billion, the upgrade is one of Defence’s top 30 projects by forecast 2008–09 expenditure, with some $100 million in expenditure under Project Land 106 forecast for this financial year.
4. Upgraded M113s are to be a core component of the ADF’s capability. They are fundamental equipment for Army’s two mechanised battalions, the 5th and 7th Royal Australian Regiments (7RARand 5RAR), and are currently forecast to be in service until 2020.
The Australian National Audit Office (ANAO) previously examined the Department of Defence’s (Defence’s) progress in delivering this project in Audit Report No.32005–06, Management of the M113 Armoured Personnel Carrier Upgrade Project. Given the continuing significance of this project and developments since the 2005–06 audit, the ANAO scheduled this audit to provide updates on the progress against Project Land 106’s stated schedule, cost and technical performance objectives, and on Defence’s implementation of the recommendations and findings of the previous audit.
8. The M113 Major Upgrade Project commenced in July 2002 and has suffered a series of delays. Army has so far received 42 of the vehicles to be upgraded (see Table 1.3). Of these, 16 are in service with 7RAR, five are awaiting issue to units and the remaining 21 are allocated primarily to driver and crew training units.
9. Many of the initial technical difficulties with the Project were resolved by the end of 2007, at which time extensive negotiations with the Prime Contractor were successfully concluded. Those negotiations enabled final production to get under way and reaffirmed the December 2010 delivery date.
Subsequently, however, production has been slow. In July 2008, the Prime Contractor informed Defence that the existing production facilities at Bandiana, Victoria, were not adequate to the task and, at December 2008, there was a potential shortfall of around 100 upgraded vehicles by December 2010.
11. Defence is currently working with the Prime Contractor on measures to improve and expand the M113 production facilities and recover the anticipated production shortfall. On 28 October 2008, the Minister for Defence announced that additional production will occur at Williamstown, Victoria, and Wingfield, South Australia. ANAO notes that recovering the production schedule will be challenging.
12. Defence advised that the upgradedM113s achieved a limited Initial Operational Capability as of December 2007 and could, if circumstances required, be deployed. However, Defence has yet to complete the Operational Testing and Evaluation of the upgraded vehicles, which is necessary to achieve Operational Release. In light of increasing threats, Defence is considering additional protection for its M113s, at a potential additional cost of up to $0.2million per vehicle, if they are deployed on more hazardous missions.
13. As of September2008, the 16 upgraded M113s delivered to 7RAR had travelled less than 1000 kilometres. They were first used in a training exercise in November 2008 and, by December 2008, had travelled almost 9000 kilometres. Defence advised ANAO in December 2008 that, notwithstanding delays in the delivery of the upgraded M113s, demands on capability had been manageable. This was due, in part, to Defence’s ability to use alternative armoured troop transports, and because troops who would otherwise have been assigned to M113s were necessarily deployed elsewhere on operations.
Defence advised ANAO in December 2008 that: The development of the [upgraded M113] capability is adversely impacted by support to operations. This cost has been assessed and accepted by Chief of Army as Capability Manager. Indeed, the cost is manageable within Army’s wider priorities and strategic guidance.
14. Until it receives all its upgraded vehicles, Defence will continue to operate its fleet of original M113s, many of which are over 35 years old. At the time of this audit, Defence’s assessment was that there were no viable alternatives to the upgraded M113.
Click here for the full report (126 pages in PDF format) on the ANAO website.
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