Some Insights
I'd be interested in more details on your...
...comments. How is the F-22 of more benefit to the Australian Defence Community (I assume you mean industry as well) than the F-35?
Cheers
Magoo
Hi Magoo,
The information you are asking for has been posted on other threads, in some detail, and can be found in various Parliamentary submissions, however, will summarise for you.
First, some scene setting.
With the signing up to the PFSD MOU, Dr Nelson and his predecessor have spent and committed to spend through this and the SDD MOU around half a billion dollars on Australia's participation (including Project Office and other government department expenses) in the JSF Program by around 2012. This does not include the procurement cost for the aircraft.
To date, Australian Industry has won around US$100 million dollars worth of contracts. Bravo Zulu to all who have done this, however well worth reading Submission 20 to the JSCFADT which, unlike the Defence submissions, provides tables of costs and a risk analysis of this somewhat adventurous loss lead venture.
See -
http://www.aph.gov.au/house/committee/jfadt/adfair/subs/sub20_1.pdf
and search on 'loss-lead business model'
FYI - the US$100 million is the gross value of the contracts and the 15% EBIT assumed in the analysis is extremely generous (given the highly competitive and somewhat draconian nature of the JSF Program contractual Ts&Cs). If you haven't read them, well worth taking a look. The big risk is that with the high probability of delays in schedule (and significant ones, at that), Australia is likely to have a number of corporate carcasses which will be ripe for the picking (@ < 10 cents in the dollar for all the infrastructure and investment they have made to be part of the JSF Program) by none other than LM. How else do you think the LM Board is mitigating the sub contractor risks on their books, if not through their global expansion program?
Anyway, to the summary -
1. F-22 is and always will be an exclusive club, unlike JSF which is already suffering from the malaise of the melee that comes from so many players.
2. A buy of 50 +5 (total 55) Raptors would result, on present numbers, in Australia having over 23% of the world fleet - a position it has not been in before (ever) with any aircraft fleet. Such a proportion of the total fleet brings with it significant commercial and strategic industrial influence, provided one knows how to use such influence which is a risk if just left up to Defence who, as they freely admit and understandably, lack the commercial acumen. This latter point is one of the major issues that is being addressed through the Industry Policy Review (by both Defence and industry). So far, so good.
3. Such a buy would be good for the USAF for the Raptor Program but moreover from a strategic perspective. We are now moving into some of the more sensitive aspects of the Evolved F-111 Proposal (which has the purchase of the F-22 as its centrepiece which is why its NDP was "
Procuring the F-22 by Stealth") so I will just have to leave you to take this point up from here. Happy, to discuss off line with some caveats.
4. Fully evolving the F-111 would cost somewhat less (by some degree) than two billion dollars, even with the healthy risk margins that were used in the cost estimates in the original proposals.
Certainly not the eight billion dollars that AM Geoff Shephard stated he felt would be the cost to the JSCFADT hearing back on the 31st of March last year. He has either not read the proposals or is choosing to use fictitious numbers. He will likely be required to table his cost estmates. As you can see with most if not all the arguments put forward by Defence, none are supported by facts or hard numbers since they know if they tabled what they presently claim to be facts and hard numbers, these would go to their credit which is now, likely, to happen (and some might say about time, too). However, I digress. A significant portion of this money for evolving the F-111 (at Australia's own pace and under Australia's control) would be spent in engaging and employing Australian Industry in the design, integration and low risk technology insertion programs. This is the exact opposite to the outcomes of the current Defence plans and will return significantly more in terms of the industry capabilities required to support Australia's defence capabilities (aka self reliance) plus provide the seed funds required for Australia's industrial base to expand its export activities.
........ to be continued (with more on both the F-22 and the evolving of the F-111). Suggest studying the submissions to the JSCFADT would be helpful in gaining an appreciation of some of the details behind the above as well as what I will be providing in the next installment.
