The above-linked ANAO report makes for confronting reading for those inclined to the view that the adults in the room know what they are doing and that we should therefore have confidence in their judgements and public pronouncements about e.g. the deliverability of AUKUS. The single most astonishing takeaway is that the now discarded "full
Collins LOTE" that was conceived and justified in part as de-risking and generating efficiencies with the
Attack-class program through use of common equipment was not comprehensively re-examined after the
Attack-class program was cancelled and those envisioned synergies evaporated:
2.24 The 2022 LOTE scope review was not a full reassessment of the impact of the cancellation of the Attack class [....] It did not reconsider the risks associated with continuing to integrate new equipment and systems into the submarines or the feasibility of installing the upgrades within the schedule. Defence assumed that these risks would be reduced as the project progressed through the systems engineering lifecycle. Those risks were not reduced as assumed. While earlier planning documents had emphasised the benefits of aligning the LOTE with the Attack class program, the 2022 review framed the proposed scope primarily in terms of keeping the Collins class submarines operational, without revisiting the original rationale for selecting Attack‑aligned solutions.
One question that the ANAO report doesn't directly address is if the "full
Collins LOTE" actually
ever made sense, i.e. even before the
Attack-class was cancelled. Nonetheless, there are clues:
2.5 At the same time, in October 2014, Defence commissioned a separate study into the feasibility of developing an ‘evolved’ Collins class submarine in collaboration with Saab Kockums.15 This work was undertaken as part of Defence’s broader efforts to identify options to replace the ageing Collins class submarines.16 The study found that modifying the existing Collins class design to incorporate contemporary systems was technically feasible. It also found that replacing major systems — such as the main motor, diesel generators, and power conversion and distribution system — would require design work comparable to that of a new submarine build and a funding profile consistent with a new acquisition.
Italics mine. I suspect that this was always a fool's errand, particularly insofar as it was tied to a 2-year schedule in order to maintain availability. Have we even seen comparable replacement of major equipment in built submarines elsewhere around the world? Outside of post-Soviet Russia?
The obvious question that presents is just why, beyond institutional dysfunction and the sunk cost fallacy, Defence doggedly pursued the "full
Collins LOTE" up until late 2025, rather than accepting the more modest "sustainment" path that the facts on the ground have now dictated. One answer is clearly because that sustainment path
also entails considerable risks. I suspect that a second answer is because Defence is not nearly as confident in the
Virginia and SSN-AUKUS schedules as public pronouncements would suggest.
After all, if Australia is to receive three
Virginia-class SSNs by 2038, it's not entirely clear why we would need to retain five
Collins-class boats at that point (assuming HMAS
Farncomb retires in 2038 as scheduled, followed by HMAS
Collins in 2040). If SSN-AUKUS also holds to schedule and delivers its first (Australian) boat in 2042, the notion that the RAN is going to operate
three types of submarine in the mid-2040s (with the last two
Collins boats, HMAS
Sheean and HMAS
Rankin, retiring in 2046 and 2048 respectively) also stretches credulity. Clearly, the notional future
Collins pathway is intended to mitigate risks elsewhere in AUKUS, and the "full LOTE" was an attempt to maintain
Collins as a credible capability for as long as possible.
That preferred pathway has now been acknowledged to be unachievable. The de-scoped sustainment pathway may be more deliverable, but it adds additional medium-term risk to the prospect of sustaining our submarine capability, and places greater pressure on the
Virginia and SSN-AUKUS pillars to hold to schedule. The ANAO writes that government failed to appreciate the extent to which the full
Collins LOTE, as originally conceived, de-risked the
Attack-class procurement at the cost of transferring those risks to the LOTE. Insofar as the sustainment of an Australian submarine capability is concerned, the AUKUS "Optimal Pathway" entails three interdependent elements, each of which entails considerable risk. Odds are that there will be more entertaining hijinks to come.
