Future submarine program case study

Introduction

Aimpoint proudly partnered with the Australian Government’s Future Submarine Program, a $50 billion investment dedicated to enhancing Australia’s defence capabilities through the delivery of 12 conventionally powered submarines. Engaged by the Department of Defence Capability Acquisition and Sustainment Group (CASG) over seven years, Aimpoint provided critical support across multiple program phases. From competitive evaluation and contract development to the establishment of an Australian Industry Capability (AIC) framework, Aimpoint’s leadership helped ensure the program would not only meet defence requirements but also foster sustainable, sovereign capabilities in Australia.

Phase 1: Competitive Evaluation Process (CEP)

In the Competitive Evaluation Process, Aimpoint supported CASG’s rigorous evaluation of bids from France, Germany, and Japan. During this phase:

  • Bid evaluation support: Aimpoint assisted CASG with formal bid review and engagement activities, leading to a comprehensive Evaluation Report.
  • Selection outcome: The report ultimately recommended the French shipbuilder DCNS (later Naval Group) as the preferred partner for Australia’s next-generation submarine fleet.

This phase showcased Aimpoint’s expertise in large-scale procurement evaluations, especially in assessing defence and technology transfer capabilities critical to the program’s success.

Phase 2: Contract development and technology transfer

With DCNS selected, Aimpoint’s role expanded to leverage our training and development expertise in shaping the contract’s training and technology transfer elements:

  • Framework development: Aimpoint developed and negotiated key components for training, intellectual property, and technology transfer to build a sovereign submarine capability in Australia.
  • Establishment of Australian design authority:  We crafted a framework to support critical capabilities across design, build, operate, and sustainment, ensuring Australia’s long-term independence in submarine construction.
  • Comprehensive capability planning: Aimpoint led the government’s efforts to identify, plan, and fund resources—including personnel, technical tools, data, and infrastructure—essential to achieving these capabilities.
Through this phase, Aimpoint underscored its proficiency in complex contract development, emphasising the integration of robust training and transfer elements.
Phase 3: Enhancing Australian Industry Capability (AIC)
As the program advanced, Aimpoint was brought in to lead efforts focused on AIC, leveraging our success in sovereignty-focused strategy to boost Australian industry involvement:
  • AIC integration: We contributed to updates within the ASDEFCON framework, setting standards for AIC reporting, thresholds, and program alignment to elevate Australian industry’s role.
  • Capability partner model: Notably, Aimpoint spearheaded the $1 billion Capability Partner initiative with Naval Group, successfully shifting the manufacture of key components (like pump jets, shaft lines, and other critical systems) from France to Australia. This initiative targeted essential capabilities across Design, Build, Operate, and Sustainment, covering all aspects of Upkeep, Update, and Upgrade. By establishing these requirements, Aimpoint not only secured long-term industry involvement but also ensured that Australian suppliers were well-integrated through the Capability Partner model, allowing tier-two suppliers to participate more actively.
This phase highlights Aimpoint’s influence in policy development, program governance, and the enhancement of AIC standards within Australia’s defence landscape.
Phase 4: Establishing a sovereign submarine build company
In the program’s final years, Aimpoint worked across the industry division, contributing directly to the establishment of Naval Group Australia as a sovereign entity capable of independently delivering submarine construction in Australia:
  • Australian subsidiary capability realisation plan: Aimpoint developed the Naval Group Australia Capability Realisation Plan, which established all requirements necessary to fully operationalise a sovereign submarine construction entity. This comprehensive plan outlined every element required to “stand up” the organisation, setting clear expectations for governance, operational capabilities, workforce structure, and facilities. Under Aimpoint’s guidance, Naval Group was held accountable to execute this plan, ensuring all strategic elements would be realised in alignment with the program’s objectives.
  • Governance and organisational structure: Aimpoint oversaw the development of governance structures, board formation, policy creation, and procedural frameworks essential for a self-reliant submarine build company.
  • Comprehensive workforce planning: We provided workforce estimates and skill profiles, anticipating the program’s personnel needs and ensuring the availability of trained staff.
  • Technology and training strategy: Aimpoint led strategies for training navy operators, establishing a sustainment shipyard, and implementing a Transfer of Technology plan to support long-term program sustainability.
Through this pivotal phase, Aimpoint demonstrated our capacity for strategic workforce planning, organisational development, and the setup of a major industrial capability from the ground up.
Legacy and lasting impact
Aimpoint’s contributions have had a lasting impact on the Australian defence industry. Our work reshaped elements of the ASDEFCON framework, reinforcing the importance of AIC, procurement, training, and technology transfer. Today, Aimpoint’s legacy on the Future Submarine Program is evident in updated frameworks for AIC reporting, ACE measurement, DRAICS, and CSR reporting, setting new standards for Australian industry engagement across Defence programs.