SIAA comments on JP9102 tender cancellation

The Space Industry Association of Australia (SIAA) has noted “with profound disappointment” the Australian Department of Defence’s decision to cease its procurement activity for Joint Project (JP) 9102. The SIAA has released a strongly worded statement on the cancellation and its effect on Australian supply chains.

The association states, numerous SIAA members have been involved with the program for many years and participate in the supply chain of the preferred tenderer, Lockheed Martin Australia. Large international suppliers and Australian Small-to-Medium Sized Enterprises (SMEs) alike have invested in preparation for the program, already creating high-tech jobs all around the country. If the program had proceeded this would have grown to hundreds of high-tech jobs, significant workforce upskilling, export opportunities and hundreds of millions of dollars of contracts to Australian companies for future technology made in Australia.

“The Australian Space Industry is a growing, high-tech industry that underpins Australia’s economic and national security”, said SIAA Chairman Jeremy Hallett. “This is recognised internationally with local innovation and technology achieving success in civil and military space programs all over the world. While other OECD nations see sovereign Space capability as critical to creating high-tech, high-value jobs and a military advantage, in our own backyard we seem to be doing the exact opposite.”

“I can only assume we will see job losses as a result of this decision and what makes this cancellation worse is that the first industry briefings for this project were held in 2017, so some companies are coming up to eight years of involvement in the project,” he added. “I am sure some companies will seriously consider the business case for dealing with Defence as a customer in the future, which I worry will mean our warfighters will miss out on homegrown innovations that can make a difference on the battlefield.”

SIAA has long put forward the view that Australia needs to become a contributor of Space capabilities and not just an idle consumer from our international partners and vendors. This is needed to achieve a level of strategic autonomy and resilience that is fundamental to securing future economic and national security. Owning and operating significant military Space infrastructure in the Indo-Pacific as part of a multi-orbit architecture would have achieved this, and provided meaningful contribution into AUKUS Pillar 2, the advanced capabilities of which cannot function without Space capability.

“We’ve seen a change in direction for Space Domain Awareness under JP9360 after industry being led along for many years”, said Mr Hallett. “We have the media-reported cancellation of the Resilient Multi-Mission STaR Shot program by DSTG, we have heard nothing public on Assured Positioning, Navigation and Timing under JP9380 even though that tender closed over a year ago, and now this news on JP9102 – not to mention cuts to civil space programs. It is a harsh reality for our sector, but it does not change the fact that our sector is world beating – it is winning on the international stage – and I want to see this technology advantage for our country too.”

SIAA notes Defence’s intention to “prioritise a multi-orbit capability increasing resilience for the Australian Defence Force”. To achieve this Defence must commit to engaging with the Space industry by the end of 2024 to clearly communicate next steps and begin to establish an enduring partnership. Defence needs to demonstrate an intent to match the global investment in Space and be prepared to make prompt decisions to secure a technology advantage, made in Australia, to harness the acceleration in space technologies and address the evolving threats in Space.