The two prime bidders for the Army’s huge Land 400 Phase 3 project to buy hundreds of ‘infantry fighting vehicles’ — a cross between an armoured personnel carrier and a small, fast tank — will now wait for the Albanese government to reassess the project under the ongoing Defence Strategic Review.
The worst-kept secret in defence industry circles ran out of departmental notification time late last week, after those leading the project were required to tell suitors of the slip to keep on the right side of governance arrangements.
Initially estimated to be worth up to $27 billion, the third procurement tranche for Army combat vehicles has come down to a bake-off between the Korean-inspired Hanwha Defence Australia Redback Infantry Fighting Vehicle and the German designed-Rheinmetall Lynx KF4 Infantry Fighting Vehicle.
Orders for the tracked and turreted vehicles were initially flagged to be in the region of 450 machines, but this expectation has since been revised back to 300 machines.
The official line from the government is that the Defence Strategic Review is a matter for cabinet and thus off limits for discussion, which amounts to a non-denial of a date slip and thousands of employees at both bidders and their supply chains being forced to soak up the expense of biding time.
The ability of Defence to stick to indicative procurement timelines on procurements is a major ongoing issue for defence industries because of the financial and technological risks long-cycle projects create.
The nightmare scenario is that projects take so long to deliver that they are essentially obsolete when they arrive.
Heavy armoured vehicles like tanks are a prime target for criticism by some defence experts, who argue that buying so many machines is not the best use of limited resources, especially when other firepower assets like missiles and UAVs are in the mix.
The delay to the decision over which Infantry Fighting Vehicle will be selected comes as defence suppliers to the Army converge on Brisbane for the Land Forces expo, which showcases weaponry and is a reliable magnet for protests against military industries dubbed the ‘merchants of death’.
Security around the event has been increased after protestors previously breached the exhibition hall, leading to safety concerns about the defence equipment inside.
:
Any feedback or news tips? Here’s where to contact the relevant team.