ADI Industry Briefings
July 2005
What we are
 ADI is Australia’s leading defence company
 ADI provides a greater range of defence technologies and
services to the Australian Defence Force than any other
Australian company
 ADI, through its predecessor organisations in Australia, can
trace its origins back to the 1880s (Colonial Ammunition
Company).
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Evolution of the Company - History
Colonial Ammunition
Company established
(1889)
ADI Limited
corporatised
(1989)
ADI privatised
New owners
Transfield and
Thales
(1999)
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Small Arms/
Light Engineering
Naval/marine
Engineering
Engineering &
Vehicles
Propellants
and Explosives
Established Lithgow
NSW (1912)
Garden Island, NSW
established (1913)
Established Bendigo
VIC (1943)
Established Mulwala
NSW (1943)
Software Engineering
& Manufacture
Acquired Universal
Defence Systems
Perth (1991)
Electronic Warfare
Acquired Advanced
Systems
Adelaide (2001)
Munitions
& Explosives
Restructured this
business, established
Benalla VIC (1996)
Electronics/
Communications
Acquired Stanilite
Sydney (1996)
Present Structure
Naval
Electronics & Aerospace
Land - Ordnance
Land - Engineering & Vehicles
Services & Security
Naval
Established as large
scale naval prime
contractor
(Minehunter contract
1994)
Joint Venture Owner - Transfield Holdings
 Joint owner of ADI
 Has developed over $6 billion of private infrastructure
 Major Australian private company with focus on
infrastructure development and outsourcing
 Businesses throughout Australia, New Zealand and South
East Asia
One of Australia’s most successful owner/developers of
infrastructure and related markets.
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Joint Venture Owner - Thales Group
 Joint owner of ADI
 Main businesses:

Aerospace, Defence, Security and Services
 Providing:

Prime Contracting, Lead Systems Integration and Equipment
 More than $20 billion annual turnover worldwide

More than 50% turnover and 50% of employees outside
France
 Thales in Australia

Turnover is $1 billion, 3,500 employees
A global leader in defence systems and security
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Our Competitive Edge
 ADI has the financial, technology and human resources to
meet our Defence and commercial customers’ current and
emerging requirements and to provide a long-term strategic
partnering role.
 Capability edge in:








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Prime Contract Management
Lead System Integration
Systems Engineering
Specialist Manufacture and Heavy Engineering
Research and Technical Development
In Service Support
Through Life Support
Training our people
Business Group - Naval
 FFG upgrade
 Naval shipbuilding
 Naval combat systems
 Naval in service support
 Commercial maritime support
 Marine engineering
 Mine countermeasures
 Weapons systems
 Naval programs
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FFG Upgrade Project

Upgrading the four newest
FFGs to ensure they are
effective against potential
threats to at least 2013


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New, modern combat system
ADACS (Australian
Distributed Architecture
Combat System)
Most sophisticated
enhancement of Australian
warships in Australia
Minehunter Ships
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
Prime contractor

Produced six world leading
Minehunters for RAN

Responsible for detailed
design, construction, outfitting,
systems integration, testing
and trials

In-service support
FFG Test Centre
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
Land based test site at Garden
Island

First time that development of a
warship combat management
system has been done by an
Australian company in Australia
Military Vehicles - Bushmaster

299 vehicles for ADF

Developed by ADI

High mobility

Integrated protection against antitank mines, improvised
explosive devices, mortar
fragments and small arms fire
Deployed with ADF in Timor and
more recently in Iraq

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Military Vehicles - HMEV
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
Developed by ADI

Operationally proven with US
and Australian armies

World’s fastest military tractor up to 100km/h

Equipped with front-end loader,
backhoe and other engineering
attachments
Specialist Vehicles - FireKing
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
Developed by ADI

Based on Bushmaster vehicle
platform

Currently in production for
ForestrySA

Has unique crew survival cabin
tested by CSIRO
Marine Gas Turbine Modules for General Electric

Components made for over 390
LM2500 modules
 ADI/GE
relationship spans 15
years
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
First module completed for new
generation LM2500 and
autoderivative gas turbine
engine

Developed jointly by ADI and
GE
Ammunition Manufacture


40 main product lines including:

Small, medium and large
calibre ammunition

Grenades and aircraft bombs

New 25mm ammunition
production line commissioned
Technical data packs

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Maintained for ADI & ADF
Summary
 Major share of Australian defence market
 Strong track record in managing high
technology projects
 Good, ethical reputation
 Attuned to customers’ technology needs and long-term
aspirations
 Range of leading products and technologies
 Excellent technical skills base
Proven strength and commitment
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ADI PROCUREMENT POLICY
ADI Main Sites
• 16 Sites (Incl. 8 major Sites)
Darwin
• 2,600 Staff
• 8 Purchasing Locations
• 50 Purchasing Staff
• 4,000 Suppliers
Brisbane
Newcastle
Lithgow
Mulwala
Nedlands
Perth
Adelaide
Bendigo
Canberra
Sydney
Garden
Island
City Centre
Melbourne
Benalla
City Centre
Hobart
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Purchasing Segments
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GENERAL
EXPENSES
ELECTRONIC
COMPONENTS
Site Maintenance & Operating
Human Resources
Supplies
Communications
E-Procurement/Small items
Travel
Shipping & Packaging
Training
Components ( Including
Cables)
Bare PCB’s
INDUSTRIAL
(Manufacturing)
INFORMATION
&
TECHNOLOGY
Mechanical Sub-Contracting
& Lasers
Mechanical Components
Electrical Equipment SubContracting
Measurement Equipment
Production Equipment
Hardware
Software
Intellectual Services
Group Purchasing Policy
 Identify and develop dependable and highly efficient suppliers to
obtain the right level of performance that matches our customers
needs.
 Initiate real supplier collaborative relationship.
 Having key target suppliers whilst retaining a degree of diversity
and openness towards the market.
 Achieve optimum value for all Procurement Activity by selecting
products and services that meet our requirement.
 Competitive target suppliers will be treated fairly, information about
them will be kept confidential, and their intellectual property rights
will be protected.
 Conduct all business dealings in an ethical and professional
manner.
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The Purchasing Function
 Involvement of Purchasing at Bid Level and Conception Level
 Acquisition of all goods, materials and external services required
for the running of the business
 Contribute positively to the financial performance of ADI
 Purchase at prices that are fair and reasonable for ADI and our
suppliers
 Open minds on new methods and procedures for procuring goods
and services
 Actively involve suppliers at the early stages of new products and
bids
 Install Suppliers Performance Management Capability
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Benefit of Early Procurement Involvement
Capacity to
influence costs
Conception
Admin /
Purchasing
Negotiation
Synergies and
common utilisation
on best practices
Contribution to
defining a solution
based on knowledge of
the supplier market
• Available technical
• Tenders
solutions
• Selection of
• Potential suppliers
suppliers
• Defined goals
Profit centre
Up Stream
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Need to divide
functions of
purchasing and
procurement
• Coordination of logistics
and administrative
Purchasing tasks
Cost centre
Down Stream
Process
Amphibious Capability & Sustainment
Kevin Manie – Project Director
DESCRIPTION

The ADF is seeking to markedly improve the Amphibious Deployment
and Sustainment Capability (ADASC) through Project JP 2048. The
Project will deliver new Watercraft under Phase 3 that will integrate
with the ship platform chosen in Phase 4A/4B for the two large
amphibious ships
 It considers only existing Amphibious Ship designs, which are
currently either built or under contract for construction.
 Two designs have been chosen; the French Landing Helicopter Dock
(LHD) MISTRAL class by Armaris (DCN/Thales) and the Spanish BPE
LHD from Navantia ( previously known as Izar).
 The delivery date for the first was originally mandated as 2010
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The 2 Designs
DCN/Armaris
Navantia
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The Need for Amphibious Capability
 In the Defence White Paper – “Defence 2000 – Our Future
Defence Force”, the Government’s Primary Responsibility
was:

Ensure ADF flexibility to respond to a wide range of
contingencies

Ability to gain and use freedom of action

Control activities on/in/under the sea, on land and in the air
 For this, a variety of capabilities are needed

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Warships, submarines, aircraft, troops and equipment and
transportation options
The Need for Amphibious Capability
 Two sophisticated vessels for the RAN for Amphibious
Deployment and Sustainment (ADAS)
 Part of the overall Amphibious Deployment and
Sustainment Capability

ADAS Ship & Crew

ADAS Watercraft

ADAS Helicopters & Crews

ADAS Operations

ADAS Support
 In line with Australia’s overall Military strategy
 To replace HMAS Tobruk, Manoora and Kanimbla
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About JP2048 Phase 4A/4B
 c.25000 tonnes displacement when fully
fitted out
 Ability to lift, lodge, sustain and
withdraw a combined force with
equipment whenever and wherever
required

Helicopters

Vehicles

Watercraft
 Deployment in Littoral environment
 Combat support centre
 Logistic and Medical
support
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Program Timeline
 December 2004

Ship Builders Estimating Pack Released from designers
 January 2005

RFQ released from Commonwealth to 8 parties (including RRDS team)
 March 2005

RFQ responses received for analysis
 August 2005

First-pass approval sought from cabinet
 2H 2006

Shipbuilder RFT & Selection
 2007

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Begin build for Ship delivery 2010-2012
ADI – Delivering This Capability
 Risk Reduction Design Study Team (now ASAG)



Made up of Industry representatives
To provide expert industry assistance to the Commonwealth
ADI Representation
 Project Team in place at ADI



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New people for a new challenge
International experience
Professional experts in their fields
ADI – Working With Industry to Deliver JP2048
Greg Parkinson
Supply Chain Manager
ADI Strategy
 Our Role:

Prime Contractor

Lead Systems Integrator
 Partnering with industry who have experience, facilities
and expertise, e.g.

Forgacs (Newcastle, Tomago, Cairncross)

NASSCO (San Diego, CA)
 Working together with Government
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
Industry Groups

Departments for State Development
Maximising The Benefit To Australian Industry
 Agile Prime Contractor

Can best spread the benefit of this project to industry

Able to draw upon skills and capacity of both traditional and
non-traditionally shipbuilding companies

Minimise spikes in labour demand
 Maximise the benefit to Australian Industry
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
Extensive use of subcontractors around Australia

Training of labour through GTO and RTO

Developing facilities

Creating export opportunities
Raw material to Superblock
Raw Material
plate
Plate profile and
penetrations cut
Plate Prep
Stiffeners welded
Panels welded to form 3-D structure
Initial outfit started
Fabrication
Block
Units assembled together
Outfit further progressed
Grand Block
Super Block
Blocks and Grand Blocks brought
together to form complete section of
ship. Outfit advanced.
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ROM Quantities
 113 or 60 modules per ship (design dependant)
 Typical of 170 or 300 tonnes per module

Maximum Navantia Module Weight – 360t

Maximum DCN/Armaris Module Weight – 460t
 Maximum Module weight set by the designer’s shipyards
 Modules would be required at the build site at a rate of 1
per week on the Spanish design
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ROM Quantities
 Approximately 120km of cabling will be installed
 Around 600 tonnes of piping will need to be fitted
 Around 12,000 tonnes of steel will be required
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
8000 tonnes of steel plate

4000 tonnes of steel structural items
Industry Support Requirements
ADI/Forgacs will be seeking support in the following
areas…
 Turnkey solutions for complete block assembly

Modules up to 200 or 350 tonne mass (design dependant),
30m x 20m x 10m size

Maximum efficient level of fit-out

Pipe work, cabling, robust equipment etc.

Painted

Delivery to consolidation facility

Engineering and Production Design assistance

Demonstrable project management capability
 Transportation
 Labour Provision
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Industry Support Requirements (cont.)
 Support to major subcontractors from SMEs

Steel plate fabrication

Beam preparation

Ship equipment





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Winches
Hatches
Joinery
Pumps
Safety Equipment

Paint

Electrical Installation

Plumbing and pipe work

Pipe spool manufacture

Equipment installation and commissioning
Registration Of Interest
In order to ensure fair and equitable consideration of
expressions of interest in this program, formal requests
will be only accepted via the ADI website
www.adi-limited.com
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