Australian Government Flags Collins Submarine Sustainment as Product of Concern

The Australian Government has officially designated the sustainment of the Collins-class submarine fleet as a Product of Concern, following a recommendation from the Department of Defence.

According to Naval News, this decision addresses ongoing challenges in keeping the submarines operational through the 2030s.

Originally designed for a shorter service life, the Collins-class submarines are now required to meet increased operational demands, necessitating extensive maintenance and upgrades to extend their service life.

The Australian Defence Force (ADF) faces the complex task of maintaining the fleet’s effectiveness as a strategic asset despite these challenges.

In response, the ADF will develop a remediation plan, with a Product of Concern Summit scheduled for early 2025. This summit will bring together stakeholders from Defence and industry to address sustainment challenges and chart a path forward.

The Albanese Government has committed between $4 and $5 billion over the next decade to extend the fleet’s life until Australia transitions to nuclear-powered submarines. This investment is aimed at closing capability gaps and maintaining a robust deterrent for Australia’s maritime security.

The previous Coalition Government had applied an efficiency dividend of $120 million, reducing support for the Collins-class sustainment program. However, under the Albanese Government, a new $2.2 billion sustainment contract was signed with ASC, ensuring stronger support for the fleet’s future needs without efficiency cuts.

The Product of Concern framework, revitalized under the Albanese Government, will enhance ministerial oversight and improve collaboration between Defence and industry. This initiative ensures that the Collins-class fleet remains operational, capable, and ready to meet Australia’s defense requirements.

The Collins-class sustainment program had previously been designated as a Product of Concern from 2008 to 2017.