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Djimindi Lightweight Torpedo Alliance Agreement

Background

The Djimindi project is one of the Department of Defence's (Defence) most high profile and long-term projects. It involves an alliance agreement (between Defence, Thales and EuroTorp) for the procurement of European MU90 lightweight anti-submarine torpedos and related capabilities to the Royal Australian Navy (RAN). This alliance arrangement has been in place for many years, and has been renegotiated many times to address evolving project issues and risks.

Project issues have been well documented, including through reviews conducted by the Australian National Audit Office (ANAO) in 2013 and 2010.

We were appointed in 2010 to assist Defence to review, identify and address project risks.

Client objectives

In line with ANAO's recommendations, Defence wanted to manage an efficient, effective and seamless "close out" of the Djimindi alliance and transition to traditional in-service support contracts.  

Our role

We are advising Defence on the remediation and close out of the Djimindi alliance, and the implementation of new contracts to support the continued procurement of lightweight torpedoes to RAN. This has included providing advice on the strategy for alliance dissolution and managing related risks such as IP, future capability and liability.

Outcomes

We assisted Defence to tailor its dissolution and risk management strategy so that it was effective, pragmatic and responsive to the ANAO's criticisms. We also assisted Defence to implement two integrated support contracts which have supported the transition into service of the Djimindi capability.

We continue to support Defence to review the issues associated with structuring and implementing a strategy for alliance dissolution.