iscover
The defence industry has been left reeling by the sudden cancellation of the $3 billion JP 9102 project as Deputy Prime Minister Richard Marles assures that the project is “changing direction, not cancelled”. The project, expected to create more than 200 direct jobs, was envisioned to deliver a new military satellite communication capability for Australia – before news of its cancellation surfaced this week.
The plan would have seen the launch of a new geostationary satellite alongside multiple ground stations and an advanced satellite management system, creating secure communications that the ADF would have used.
Prime contractor Lockheed Martin had previously been announced as the preferred bidder for Project JP 9102 in April last year.
During that announcement, Lockheed had indicated a team of Australian companies would assist with the project, such as Inovor Technologies, EM Solutions, AV-Comm, Linfox, Shoal Group, Ronson Gears, Calytrix Technologies, Conscia, Clearbox Systems, DXC and Blacktree Technology. In addition, it was further stated that the Victorian government would establish Victoria as the engineering and technical hub for the company’s JP 9102 solution.
Blacktree technology co-founder and co-director Joel Nevin, speaking to Defence Connect, confirmed that industry partners were disappointed by the recent decision regarding JP 9102.
“We were really disappointed ... It’s a large cost not only to us, but also the other companies and all the primes that have borne the cost. That’s what disappoints me the most,” she said.
“When the news came out over the weekend, there were a lot of late-night phone calls around the world to our partners. We have been involved in JP 9102 since 2018. We were involved in all five teams, were invested and engaged in the process.
“It’s hard on a number of fronts because we have to make an initial investment due to the nature of the industry. There are [preparations for] tenders, as part of the cost of doing business.
“Ultimately, you’ve got to get back up, dust yourself off and make another go.
“I think next week, at MilCIS (Military Communications and Information Systems Conference 2024), a lot of industry will debrief about this and there will be differing views going forward.
“On a positive note, our attendance during JP 9102 has given us exposure to partners who we would never have had access to otherwise. There are opportunities going forward from that, exposure to markets and strong relationships moving forward.”
Earlier this week on 4 November, Defence announced that current procurement activity had ceased with Lockheed Martin Australia for the single orbit GEO-based satellite communications system.
“As outlined in the 2024 National Defence Strategy, Defence requires space capabilities that enhance intelligence, surveillance and reconnaissance, provide resilient communications and counter emerging space threats. The Integrated Investment Program included $9–12 billion to invest in enhanced space capabilities,” Defence said.
The decision was reportedly based on a belief that “Defence has assessed that a single orbit GEO-based satellite communications system would not meet strategic priorities”.
Deputy Prime Minister Richard Marles, speaking to ABC News Breakfast on 5 November, said the project was a change of direction, not cancellation.
“It’s not a cancellation, it’s really a change of direction in terms of how we deliver the capability for our communications network in Defence,” he said.
“This original plan goes back seven, eight years and it was about having two or three GEO-synchronous satellites above Australia to deliver that capability.
“Since then, we’ve seen technologies develop which can literally shoot satellites out of the sky. But we’ve also seen technologies develop where you have thousands of microsatellites in a much more distributed way providing the same effect.
“And we’re seeing that, for example, with Starlink above Ukraine. What we need to make sure that we’re doing as we move forward is delivering a communications capability which is more distributed, which is therefore more resilient, and we believe we can do that in this way faster and more cost effective. So, this is frankly moving with the times and making sure that we have the capability that we need which meets the threats and the opportunities that we have in the future.”
