Australia Signs $50bn Submarine Contract

Lockheed wins bid to integrate the combat systems.

Staff, Sky News Australia
30 September 2016

The federal government and French shipbuilder DCNS have signed an agreement to begin designing new submarines for Australia - which begins the work on the $50 billion future submarine program.
Under the deal DCNS will design new subs, based on its Barracuda nuclear attack boats.
The subs will be built in Adelaide, with the first expected to enter service in the early 2030s. Designing will take up to five years.
Defence company Lockheed Martin Australia has also been chosen as preferred combat system integrator for the project, winning the bid ahead of Raytheon Australia.
It involves linking the submarine's sonar and other sensors, weapons and navigation systems, using a control system from US submarines.
Defence Industry Minister Christopher Pyne said the signing of the design and mobilisation contract on Friday would herald the beginning of work on the $50 billion Future Submarine Program.
Under the deal DCNS will design new subs, based on its Barracuda nuclear attack boats.
'The timely start of design and robust planning for each phase of the program are essential to success and for the benefits to start flowing to the Australian economy,' Mr Pyne said in a statement.
Defence Minister Marise Payne said Lockheed Martin Australia would work with DCNS to design and integrate a combat system to meet Australia's unique capability requirements.
That will involve about 200 fulltime jobs.
'By partnering with an Australian-based company with strong links to the United States we will ensure that we get the best Australian and US technology, while ensuring that our sensitive technology is protected,' Senator Payne said in a statement.