Final COMMONWEALTH OF AUSTRALIA Contract n° FUTURE SUBMARINE PROGRAM CASG/FSP/Contract356/2016 Design and Mobilisation Contract Australian Industry Capability Plan USTRALIAN FUTURE SUB ARI E PROG AUSTRALIA I DUSTRY CAPABILITY PLA n Final Version for Approval This document contains both Background IP & Foreground IP Prepared for: Future Submarine Project Office Australian Department of Defence Prepared by: DCNS 40-42 Rue du Docteur Finlay 75015 Paris, FRANCE vournavai power- FOR OFFICIAL USE ONLY SIO-069449-B March 2017-Page 1/103 DIFFUSION RESTREINTE Copyright ©2016-2017 All rights reserved. This document contains intellectual property rights owned by or licensed to the Commonwealth and/orDCNSand/orDCNS'suppliers. Use and disdosure of this document and its content is governed in accordance with the Design and Mobilisation Contract between the Commonwealth and DCNS (Contract No. CASG/FSP/Contract356/2016) CDR PM-30 Final COMMONWEALTH OF AUSTRALIA Contract n° FUTURE SUBMARINE PROGRAM Design and Mobilisation Contract CASG/FSP/Contract356/2016 Australian Industry CapabilityP lan Approval Name/Function Date Signature Drafted by Validated by Approved by Revision Index Revision Date Revision Content A B SIO-069449-B FOR OFFICIAL USE ONLY £ March 2017 DIFFUSION RESTREINTE Page 2/103 CDR PM-30 Final COMMONWEALTH OF AUSTRALIA Contract n° FUTURE SUBMARINE PROGRAM Design and Mobilisation Contract CASG/FSP/Contract356/2016 Australian Industry Capability Plan Contents 1 Purpose and Scope of the Document ............................................................... 6 1.1 Purpose of the Document......................................................................................................6 1.2 Background............................................................................................................................6 1.3 Assumptions ........................................................................................................................ 10 1.4 Referenced Documents ....................................................................................................... 11 1.5 Applicable Documents......................................................................................................... 11 1.6 Referencing Principles & Definitions.................................................................................... 11 1.7 Hierarchy of Plans................................................................................................................ 13 2 Executive Summary ........................................................................................ 15 2.1 Strategic Objectives/Approach ............................................................................................16 3 AIC Management and Principles................................................................................ 17 3.1 Overall Approach ......................................................................................................17 3.2 Flow-through of the Plan throughout the Progra ...................................................18 3.3 Overall Program Organisation and Management ..................................................... 23 4 Maximising Opportunities for Australian Industry................................................... 30 4.1 Overvie ...................................................................................................................30 4.2 Approach to Creating a Sovereign and Sustainable Industrial Base . . , - ........................30 4.3 Australian Industry Capability Priority List (AICPL) .............................................................31 4.4 Strategic Industrial Capability Assessment Framework,. , ........................................... 40 4.5 Addressing SICAF .........................................................................................41 4.6 Australian Government Gran .................................................................................41 5 Derivation of Program Requirements into Local Industry Activities ............ 45 6 AIC Monitoring and Reporting ........................................................................ 46 6.1 Overall Process Description.................................................................................................46 7 The AIC Schedule and LIA Description Sheets ........................................................ 51 7.1 Introductio ............................................................................................................... 51 7.7 Initial LI ................................................................................................................. 57 Future Submari ie Enterprise Development ............................................................. 59 8.1 Introductio ............................................................................................................... 59 8.2 Technology Transfer;- ................................................................................................. 60 8.3 Innovation Environment Strateg ..............................................................................65 8.4 Innovation Environment Cultivatio ..........................................................................66 Public AIC Plan ................................................................................................ 80 9.1 Overview........................................................................................................................... -80 9.2 Company Details.................................................................................•-••-•• ••••••••••••••••••••••••••80 9.3 Executive Summary............................................................................................................. 80 SIO-069449 - B FOR OFFICIAL USE ONLY March 2017 DIFFUSION RESTREINTE Page 3/103 Copyright ©2016-2017 All rights reserved. This document contains intellectual property rights owned by or licensed to the Commonwealth and/or DCNS and/or 'DONS' suppliers. Use and disclosure of this document and its content is governed in accordance with the Design and MobilisationC ontract between the Commonwealth and DCNS (Contract No. CASG/FSP/Contract356/2016) CDR PM-30 COMMONWEALTH OF AUSTRALIA Final Contract n° FUTURE SUBMARINE PROGRAM Design and Mobilisation Contract CASG/FSP/Contract356/2016 Australian Industry Capability Plan 9.4 Scope of Future Work Opportunities 82 9.5 Future Opportunities/lndustry Engagement. . 83 . Annexes A Acronyms and Abbreviations, 85 B AIC Reporting Schedule. , 88 C Local Industry Activity Description Sheet 91 , List of Figures T Man anisa F ure6. lian In nnovat t. Sover ,.31 Figure 11 ability G is: fron • • s Area Critic ToT List of Tables Table 1. Key Terms. 11 . SIO-069449-B FOR OFFICIAL USE ONLY March 2017 c DIFFUSION RESTREINTE Page 4/103 COPDTONhSt^^o1u7sAe'aTSuro^^^^:S^^^^ CASG/FSP/Contract356/2016) CDR PM-30 Final COMMONWEALTH OF AUSTRALIA Contract n° FUTURE SUBMARINE PROGRAM Design and Mobilisation Contract CASG/FSP/Contract356/2016 Australian Industry Capability Plan Table 9. AIC Reporting Schedule Template 88 . able n. SIO-069449-B FOR OFFICIAL USE ONLY March 2017 DIFFUSION RESTREINTE Page 5/103 Copyright ©2016-2017 All rights reserved. This document contains intellectual property rights owned by or licensed to the Commonwealth and/or DCNS and/or DCNS' suppliers. Use and disclosure of this document and its content is governed in accordance with the Design and MobilisationC ontract between the Commonwealth and DCNS (Contract No. CASG/FSP/Contract356/2016) CDR PM-30 COMMONWEALTH OF AUSTRALIA Final Contract n° FUTURE SUBMARINE PROGRAM Design and Mobilisation Contract CASG/FSP/Contract356/2016 Australian Industry CapabilityP lan 1 Purpose and Scope of the Document 1.1 Purpose of the Document ?oegr^ntractoru ses the AICP to manage- coordinate and monitort he de"very oft heA IC The Commonwealth uses the AICP to: ' Sat ^ performance and Pro9ress of the Australian Industry Capability (AIC) • identify the Commonwealth's involvement in the AIC program. 1.2 Background snua^'nSSS?LSinoi£dr;h"e'^ :=ea ^^S ;o" iS£H^^Mm^!Ks^^= SB^ ^^S£^3^ssa^^'^-^^^ SIO-069449 - B FOR OFFICIAL USE ONLY March 2017 DIFFUSION RESTREINTE CDR PM-30 Final COMMONWEALTH OF AUSTRALIA Contract n° FUTURE SUBMARINE PROGRAM Design and Mobilisation Contract CASG/FSP/Contract356/2016 Australian Industry Capability Plan 1.2.1 Design and Mobilisation Contract The DMC has been established to mobilise the FSP and commence initial design activities. The mobilisation activities include: • finalising the enabling agreements with the French Government, the CoA and Lockheed Martin Australia Pty Ltd (LMA); • development of the fundamental principles and strategies to be applied to the design of the FSM; • development of the management plans required for the execution of the FSP, including AIC, and transfer of technology; and • commencement of Design Studies The DMC has been structured with successive steps: • Step 1: Early Mobilisation and Preliminary Design Studies of six months duration; • Step 2: expected to commence on completion of Step and • Step 3: will only commence after Step 2 if the Design ontract is not signea. SIO-069449 - B FOR OFFICIAL USE ONLY ET March 2017 DIFFUSION RESTREINTE Page 7/103 Copyright ©2016-2017 All rights resen/ed. This document contains intellectual property rights owned by or licensed to the Commonwealth and/or DCNS and/or DCNS' suppliers. Use and disclosure of this document and its content is governed in accordance with the Design and Mobilisation Contract between the Commonwealth and DCNS (Contract No. CASG/FSP/Contract356/2016) CDR PM-30 COMMONWEALTH OF AUSTRALIA Final Contract n° FUTURE SUBMARINE PROGRAM Design and Mobilisation Contract CASG/FSP/Contract356/2016 Australian Industry Capability Plan £SSS?£"-ss"---". ==.u-as Sca^^;^asm^aS,S,'KS^°'Austalianindu^'he • Stream 5.1: the development of an AICP for the FSP: • ^epmc^ adST<; ^op%T.op^pr^pTpn( ppp> •ha- — •h' ' s^ms.5,3c.aon!X91FlSd°" me devel°P™"'°"^AusTal, an BuildA pproachf or * stream5:4:a studyduring step.1 into the availability and economic viability of Australia ^lilfactured^u"_ steel__equivalent to that no7maTly"useTbyI DCNSUIanydulaTanal ^OS^e^S^S^=^^D^^a^a^ <'s requirements for use in the FSM. 1.2.2 Stream 5.1 Australian Industry Capability Plan ss^^^^^^^^^^ ^ ^°Z£} f^ab!"tytooperate.;ndl susta?;I ^a^w ^ ^ra^sc^^ tcTmTon;e8aT^acbh°era£^^^^^ 1.2.3 Stream 5.2 Procurement Activities ^q.ui^nLat-timmg^Ta^o-be^a9re_e^ wi^tuhi 'Coru'Fuurthnee SsVe snytsSn°nr an^ap^"betoee"'theAI№an°dTP°pu^^^e ^^procurementa ctivitiesw illa lso covert he scope ofs tandard equipment supply and will ' ^^°LRew,estFW lnfo^mation <RFI) packs in Preparation of supplier and , qualification and delivery of the RFIs to proposed'suppirers? ' E?aerS^sofasnudpplierr esponsest ot he RFI and en9a9ement^ h suppliersf orr esponse • the pre-qualification of suppliers. SIO-069449 - B FOR OFFICIAL USE ONLY March 2017 DIFFUSION RESTREINTE Page 8/103 CDR PM-30 Final COMMONWEALTH OF AUSTRALIA Contract n° FUTURE SUBMARINE PROGRAM Design and Mobilisation Contract CASG/FSP/Contract356/2016 Australian Industry Capability Plan The PPP describes DCNS methodologies and processes for meeting procurement and supply chain management responsibilities for the FSP. It also describes the approach to engagement with suppliers and subcontractors in support of design related activities, reflecting DCNS Procurement Processes including AIC development, monitoring and control. 1.2.4 Stream 5.3 Development of the Australian Build Study A study conducted to inform FSP stakeholders of the approach to deliver the Australian build of the FSM. The study includes the assessment of options to manage the delivery of high risk technical elements of the build for the Future Submarine. It also takes into consideration the production workforce training, the availability of production facilities, procurement, supply chain and materiel delivery and how the technology transfer to the Australian program will be achieved. The study also considers the support required by production teams for problem resolution from the design team during the build. 1.2.5 Stream 5.4 Australian Steel Development and Qualification The Australian Steel Development and Qualification (ASDQ) study, conducted in accordance with [A7], will include a proposal for maximum use of Australian steel. Where no equivalent Australian steel is identified through the study, an assessment of the Australian manufacturing capability will be provided and the relative costs identified to deliver Australian made equivalent steel that meets the qualification requirements of DCNS and the CoA. During Step 2, DCNS will develop a detailed ASDQ Plan working with a suitable Australian steel provider(s) to deliver equivalent Australian made steel based on the study completed in Step 1. 1.2.6 Stream 7 - Transfer of Technology To enable the CoA to establish sovereign capability to operate and sustain the FSM capability, DCNS will develop a Transfer of Technology (ToT) program that provides sufficient and appropriate technical data and knowledge transfer, including an understanding of the FSM design intent and basis of design. It will involve a collaborative approach between the CoA and DCNS that ensures the CoA obtains sufficient knowledge of the FSM design to fulfil its legal and regulatory responsibilitiesf or approval and acceptance. The CoA will be actively involved in the DCNS design process with the in-country team of CoA staff in France working with the DCNS team in order to understand the design through each phase. It includes the ToT to the Australian shipbuilder of the FSM and the nominated sustainment contractor of the FSMs in service, and a transfer of the Design Authority (DA) role to DCNS Australia. The ToT program also includes the transfer of the required technical data, tools and processes, and provides appropriate training, experience and mentoring to develop the skills of the workforce that will sustain the FSM whilst maximising Australian industry involvement. SIO-069449-B FOR OFFICIAL USE ONLY March 2017 DIFFUSION RESTREINTE Page 9/103 Copyright ©2016-2017 All rights reserved. This document contains intellectual property n'ghts owned by or licensed to the Commonwealth and/or DCNS and/or DONS' suppliers. Use and disclosure of this document and its content is governed in accordance with the Design and Mobilisation Contract between the Commonwealth and DCNS (Contract No. CASG/FSP/Contract356/2016) CDR PM-30 Final COMMONWEALTH OF AUSTRALIA Contract n° FUTURE SUBMARINE PROGRAM Design and Mobilisation Contract CASG/FSP/Contract356/2016 Australian Industry Capability Plan strearTL7cc"rlprisesactivities leadin9 to identification, definition and development of the ToT to the CoA. Key activities to be undertaken are: • Stream 7.1: the development of the Transfer of Technology Strategy (TOTS); ' stream 7;2: the deve!°Pment of.the ToT Training Plan (TP) (which includes the provision of the first training activities); and ' stream7:3;the deyei°pment of the Technical Data Management Plan (TDMP), and the Integrated Product Development and Support Environment (IPDSE). 1.2.7 Stream 7.1: Transfer of Technology Strategy The. TOT.S,will,bedeveloped and executed in accordance with the TOTS - [A6] and will detail how DCNS will deliver sovereign capability to the CoA, including "the activities~which"will1 ensureappropriate TOT. to Australian industry. This strategy will incorporate sufficient data, ^?^?.gT-and. underetanding of the design to facilitate*"establishm'ent- of ~the"sovereign capability to maintain, operate and modify the FSM in a safe and cost-effective manner' 1.2.8 Stream 7.3: Technical Data Management Plan and IPDSE Th^?^plla,tiol1, oftechnical data contributes to the CoA's sovereignty in sustaining the FSM. A_TDMP,.~ [R7] wi". describe DCNS strategy, plans, methodology,'and "processes'for "the identifiGation'..contr0.1; UPdate- validation and'support of technicardatajncluding'identifyir the requisite time estimates and dependencies. The scope and format of the Technical Data Package (TDP) for the FSP will be described in 1.3 Assumptions The Australian industry component of the FSP will be influenced by the outcomes of a number of related and transverse strategies and plans, as referred to elsewhere in this" plan" Theongoing cognlsance of any.adJustments made to the assumptions which'shap'e'these other documents will be essential, as they may have an impact on the execution of the AICP. These assumptions will therefore be regularly monitored by the Australian Industry CaDabiIit Steering Group (AICSG). The AICP is currently shaped by the following assumptions71 • twelve FSM will be built in Australia, one setting to work every 24 months; * lhilA=l-c?,.^ilLne.ed}o*beaTerlcled. and UPdated from time to time as the FSP develops. The^i nvolvement of Australian industry will be overseen within the framework of the I, • the AICSG will manage and oversee the AIC activities within the FSP; • Australian industry involvement is to be maximised but not to the detriment of cost. schedule or capability; ----.. - -. —., * t-h.^-!e.arn?ng.., curve. assumPt":)ns_for Australian industry are based on assumptions consistent with previous DCNS ToT experience in submarine construction; • the DA capability will be transferred to DCNS Australia; the proposed AIC approach will be enduring throughout the acquisition program and throughout sustainment; and SIO-069449 - B FOR OFFICIAL USE ONLY March 2017 DIFFUSION RESTREINTE Page 10/103 COIDCnNyS^'® s2up0p,liletrsM. 1Uisiel "aJn;dg hdlirsecsleorseuerde: <ofT^hh;iss ddooccuummeennt t aconndt ailtnss c oinntteenltl eictsu"aglo pvreopmeerdtJyn ari°gchtcso rodwanne'dc ebwyf tohr" ltihceeDnsee°ds itnoa ^tcheM oC"boim[mio'ns^w^e^a^l^t^h and/or DCNS and/or Commonwealth and DCNS (Contract No. CASG/FSP/Contract356720-16)