We mean business
The Australian Future Submarine Program is the catalyst for unprecedented industry collaboration and development. Together with the Royal Australian Navy, we’re working with the Australian defence industry to meet the requirements for this truly strategic and complex national endeavour.
We’re committed to maximising opportunities at every phase of the Program, across all states, territories and business sizes. Through a shared focus on maximising opportunities for Australian defence industry, we will create and sustain a sovereign submarine capability now and into the future.
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Platform and Equipment
Systems and equipment specifically designed for the AFSP or for submarine applications. Platform & Equipment also includes semi-finished products, cast & forged parts, components used for submarine construction and in-house manufacturing of equipment, as well as ‘Standard Equipment’ - a catalogue of qualified materiel for use across the platform;
Energy and Propulsion
Equipment relating to the generation and storage of energy on the Platform, as well as the associated propulsion systems;
Specific outsourced services such as Design, Engineering Works (Arrangement), Product Qualification and Tests and Trials (T&T) of submarine equipment; and
Submarine Construction Yard (SCY) equipment, including specific tools, jigs and fixtures, specifically designed and qualified for the construction of the submarines.
Top 5 equipment
These major critical systems include any system where its failure would prevent a submarine from safely proceeding to, or remaining at, sea or achieving its operation. This includes the diesels, main motor, generators, power conversion and distribution system, weapons handling and discharge systems, the bilge and ballast system, and the main batteries.
Critical equipment refers to a material or system that plays a major role in the Whole Warship performances and architecture; has a Technology Readiness Level (TRL) under 5 at the beginning of feasibility studies phase (with lead time for procurement exceeding one year); or accounts for over 1% of the Program’s overall procurement cost.
Main equipment refers to a piece of equipment or system, although not being critical, that strongly impacts the layout; has lead time for procurement exceeding six months; or accounts for over 0.5% of the Program’s overall procurement cost.
Although not classified as critical or main equipment, secondary equipment is specifically designed for FSP (as opposed to standard equipment that may be used by various warship programs). It has little impact on warship architecture, balances, arrangement and/or purchasing.
Standard equipment means common technology products. It covers ‘trans-functional’ materials and semi-finished products in various technology fields.
Contractor designed equipment
This is equipment designed by Naval Group and manufactured by Australian Industry through long term industrial transfer of technology partnerships.
Submarine Construction Yard Equipment (SCY):
SCY equipment refers to a vast array of equipment required to operate and maintain the shipyard as well as manufacture assemble and test the submarine platform. This includes large scale machinery down to hand tools, equipment and tooling, jigs and fixtures as well as associated periphery equipment and support equipment.
Testing Laboratories refers to services associated with the qualification testing of materials and equipment classified as Standard, Secondary, Main or Critical. The categories of testing required to be conducted is quite broad and covers AS/NZ, ISO, IEC and other international Standards of testing for Electrical, EMC, Hydraulic, Environmental, Noise & Vibration, Fluid Chemistry, Fire and Metallurgical, in addition to product functionality.
Steel refers to critical Pressure Hull and structural steel elements of the submarine design and components within the design.
Engineering services refers to works required on the platform or the shipyard that requires specific engineering subject matter expertise. This can include consultation, investigation, evaluation, planning and design of engineering works and systems, engineering studies and reviews for the purpose of assuring compliance to specifications. Engineering services are usually in connection with but not limited to, structures, buildings, machines, equipment, mechanical and electrical, hydraulic or pneumatic applications and the safeguarding of such applications.
In accordance with the AFSP Procurement categories detailed above in section AFSP PROCUREMENT CATEGORIES, each technology has been pre-allocated a contracting level commensurate with the level of criticality, risk and safety of the warship.
A vendor may express interest in one or more technology categories. Depending on the technology category and classification the supplier may be contracted under varying levels of contracting agreements. Each contracting level attracts a different level of complexity, legal obligation and risk.
For example, where a major product (main or critical equipment or other major system (e.g. Software product), and/or its support system is developed in whole or part specifically for the AFSP and/or where the associated intellectual property is deemed necessary to achieve the Sovereignty objective, the contract awarded is likely to attract a Key Approved/Approved Agreement.
Of particular importance to meet the principle objective to attain Australian submarine capability sovereignty, successful vendors awarded complex or strategic level agreements are required, in addition to those owed to Naval Group Australia, to provide certain contracted commitments and rights directly to the Commonwealth of Australia (Commonwealth) in relation to:
i. the enduring availability of Intellectual Property rights and technology transfer to Australia;
ii. maximising Australian industry involvement through all phases of the Future Submarine Program; and
iii. the affordability and value for money of the Future Submarine Program for the Commonwealth, including the Commonwealth’s requirements for cost transparency, access and audit.
All vendors contracted under the AFSP will be required to provide information and certain rights relating to intellectual property, including technical data, software and contract material.
The Commonwealth defines sovereignty as having enduring control over the operation and sustainment of the whole warship, including the ability to upkeep, update and upgrade the whole warship in Australia. As such, it is crucial to the success and sustainability of Australia’s shipbuilding industry that the Commonwealth obtains the necessary rights to do what it needs to do to affect this for the life of the submarines.
Naval Group has committed to ensuring the Commonwealth has appropriate and enduring intellectual property rights in technical data, software and contract material to facilitate the transfer of knowledge to Australia and enable the sovereign operation and sustainment of the future submarine. This same commitment is required by those suppliers contracted under the AFSP, where IP is required to be transferred or licenced to achieve the establishment and regeneration of the capability, and that which supports the sovereignty objectives of the FSP.
As a mandatory requirement under this Program, some suppliers (particularly where the supply involves a major or critical system), will be required to execute an Approved Subcontractor Deed in favour of the Commonwealth, providing direct legal rights to intellectual property, technical data, software and contract material, necessary to develop, deliver, support, and maintain Australian Sovereign Submarine Programs.
All vendors engaged by NGA under the AFSP will be required to execute a Confidentiality Agreement.
NGA’s confidentiality agreements come in various forms, depending on the nature of the technology and relationship. Given the longevity of the Program, the confidentiality agreements will have a perpetual term, where Confidential Information needs to be kept confidential for as long as it remains confidential.
If vendors are subsequently engaged under a contract for the supply of goods and/or services, a Confidentiality Deed Poll in the favour of the Commonwealth of Australia must also be executed to ensure that the Commonwealth’s (including third parties) information remains confidential.
Terms of the confidentiality agreements and Deed Poll are required to be flowed down to vendors/suppliers’ third parties and related bodies corporate engaged and/or who may have transparency/access to Confidential Information for the purposes of the AFSP.
All vendors engaged by NGA under the AFSP will be required comply with NGA & DISP requirements with the level of information they will be handling
Security is an integral part of all activities undertaken by Naval Group SA and NGA. Vendors’ understanding and practice of good security is fundamental to the Program’s success.
Vendors will be required to complete a Security Commitment letter and questionnaire prior to receiving any official information under the Program. These compliance documents are an essential measure to help mitigate security risk prior to companies obtaining membership to the DISP.
All vendors will be required to obtain DISP membership prior to entering a contract with Naval Group Australia. With recent changes to the DISP, companies may now self-nominate for DISP membership without the need for a Defence contract.
The level of DISP membership & the categories are as follows: Entry Level (OFFICIAL/OFFICIAL- SENATIVE), Level 1(PROTECTED) & Level 2 (SECRET). Categories include: Governance, Personnel Physical and Information/Cyber Security.
To help determine the level of DISP your company requires, please use the Department of Defence’s DISP Decision Matrix which may be found here.
More information on DISP membership and how to apply may be found here.
Australian Government Security Vetting Agency (AGSVA)
This is the central vetting agency for the Australian Government that conducts security clearance assessments for federal, state and territory agencies. Click here for more information.
All vendors engaged under the AFSP who may have access to, transparency of or may be in receipt of export-controlled information must have required approvals.
Naval Group Australia is required to work with and manage material/materiel that is subject to both Australian and foreign export controls.
Export controlled material/materiel includes both tangible (such as physical hardware and equipment, hard copy files, CD, USBs and laptops) and intangible (email, fax, telephone, video conferencing or electronic files) material/materiel that is subject to Australian and foreign export controls.
All vendors engaged under the AFSP who may have access to, transparency of or may be in receipt of export-controlled material/materiel must have the relevant approval from the government of the country from which the controlled material/materiel originated.
For information originating from another country via NGA for the program, Naval Group Australia will request the export control license on your company’s behalf.
If a vendor forwards any export-controlled material/materiel to another party, that party must also have approval to receive export-controlled material/materiel
If a vendor engaged under the AFSP transfers export controlled material/materiel outside of Australia, it is that vendor’s responsibility to ensure that they have the necessary Australian export control approvals from Defence Export Controls.
Once approval has been obtained for export-controlled material/materiel, vendors will be asked to execute an ‘End User Certificate’ to verify the export control license. These licenses are provided for each legal entity, location and technology which means that if any of these three elements changes or is required in addition, a new End User Certificate is required. End User Certificates are also required between a vendor and their suppliers.
Key responsibilities for suppliers to Naval Group Australia:
Ensure all necessary Export Approvals are in place to provide relevant Goods and Technology to Naval Group Australia
Ensure the relevant approved scope of any Export Approvals enables Naval Group Australia full use of the Goods and Technology in the context of the AFSP
Ensure appropriate markings are on all export-controlled material, and that the markings remain consistent and relevant to the Goods and Technology you’re supplying
Ensure all applicable Export Authorisations are provided to Naval Group Australia. If this isn’t possible, you’ll need to provide the reference numbers of any applicable authorisations and ensure that any limitations or specific requirements for the use of the Goods and Technology is communicated in writing to Naval Group Australia
Ensure all applicable supporting documentation to an Authorisation is executed (for example, End-User Certificates and End-User Statements).
Suppliers of Naval Group Australia may need export approval within the process of receiving Goods and Technology throughout the Program. Obtaining export approval can be a lengthy process, and failure to consider and address the below points may result in delays to access information from Naval Group Australia.
When giving us your company details, please provide your full company name as it appears on any legal business registry, as well as the address where you’ll be receiving the Goods and Technology. If you have multiple addresses, please also provide these. If you trade under a different name, please also provide this.
If you have a parent company, subsidiary, business partner or you need to engage other suppliers in the context of working with us, these companies may also require export approval, so please provide these companies details where required and as soon it’s identified.
If there are any changes to the above, inform Naval Group Australia in writing immediately.
The AFSP aims to deliver to Australia a regionally superior submarine capability that provides the Commonwealth of Australia with enduring control over the operation and sustainment of the Future Submarine (FSM).
The FSP has the following strategic objectives (FSP Objectives):
To address Australian regulatory safety and environmental obligations in the submarine design and through developing a sound Mission System Seaworthiness Case
To deliver an affordable Future Submarine capability within the agreed timeframe and with the knowledge and skills to understand and control sustainment cost drivers for the life of the class
To maximise Australian industry involvement through all phases of the FSP without unduly compromising capability, cost and schedule.
Suppliers will be key contributors to the achievement of the FSP objectives and to the success of the Program through their individual commitments to maximising Australian Industry Capability (AIC).
Suppliers’ AIC intent and, eventually, commitment are sought and managed (where specified by the procurement process) through the drafting, submission, iteration, agreement and implementation of an AIC Plan. Suppliers’ AIC Plans outline their strategies and plans to meet or contribute to relevant FSP Objectives.
Suppliers’ AIC Plans are evaluated as part of the procurement process and must cover the lifecycle of the equipment; including, design, build, operation and sustainment to ensure the FSP objectives of creating sovereign capability to operate and sustain the future submarines can be met.
Further guidance on the expected level of detail required for these plans commensurate with the potential scope, value, complexity, risk of the work package(s) and size of the vendor’s business/supply chain is available on this page at section Tool & References.