BAe Systems RWR dropped.

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Well the rumours have been flying about this for some time, so it doesn't come as too much of a surprise to me.



Nelson writes off $100m in radar deal switch
Patrick Walters, National security editor
November 14, 2006.


AFTER spending almost $100 million developing an Australian-designed radar warning receiver for the RAAF's FA-18 fighters, the Defence Department has instead chosen US technology giant Raytheon to supply the system.

BAE Systems had been developing the ALR 2002B system for the RAAF's front-line fighters but development problems with the integration of the system on the planes caused lengthy schedule delays.

Defence Minister Brendan Nelson said yesterday the department had concluded that while the BAE radar warning receiver had shown "great promise", the system could not be developed in time.

The Howard Government decided to go ahead with the ALR 2002B nearly three years ago, but decided to switch to Raytheon when it became clear that BAE Systems could not meet the installation deadlines of the new receivers.

"Ensuring the success of the extensive Hornet upgrade and Australia's regional superiority is the most important priority and requires us to progress with another, proven - option," Dr Nelson said.

The radar warning receiver, a key part of a billion-dollar upgrade of the Hornet fleet, allows the FA-18 to engage targets in high-threat environments.

He said working variants of the ALR 2002B system would be fitted to other military aircraft, including the Black Hawk and Chinook helicopter fleets.

Dr Nelson said he had been assured by the chief of BAE Systems Australia, Jim McDowell, that no jobs would be lost as a result of the contract switch to Raytheon.

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Here's the media release from Brendan Nelson confirming this decision.


ENSURING AUSTRALIA’S AIR COMBAT CAPABILITY EDGE


The Government has taken an additional step to ensure that the F/A-18 delivers Australia’s air combat capability edge during the transition to the Joint Strike Fighter.

As part of our plan to maintain air superiority in our region, the F/A-18 fleet is undergoing substantial combat enhancement under the Hornet Upgrade Program. The upgrades delivered under this program will give the F/A-18 enhanced air to air combat capability and strike capabilities.

A highly capable Radar Warning Receiver (RWR) is a critical component of these upgrades. It will allow the F/A-18 to prosecute (deter or engage) targets in complex high threat environments.

BAE Systems Australia has been developing a RWR – the ALR 2002B. This is an Australian developed technology that shows great promise. The Government is not and will not be risk averse in encouraging innovation and in obtaining the best capability.

However, we have concluded that this technology cannot be delivered within the necessary timeframe. Ensuring the success of the extensive Hornet upgrade and Australia’s regional superiority is the most important priority and requires us to progress with another, proven option.

Accordingly, the Government has now decided to fit the Raytheon ALR-67(v)3 RWR to the entire F/A-18 fleet. The ALR-67(V)3 is already proven and operational in the United States’ F/A-18 fleet, so there is low integration risk. The ALR-67(V)3 will be progressively fitted to the F/A-18 from 2008 with Full Operational Capability achieved in 2011.

Working variants of the ALR-2002 RWR, developed by BAE, will be fitted to our helicopter, and possibly, transport fleets. This decision does not reflect on the efforts of BAE Systems Australia and the CEO of BAE Systems Australia, Mr Jim McDowell, has assured me that no jobs will be lost as a result of this action.