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RAN Life of Type Extension Study

BMT adopted a risk based approach to assess the viability of Life Of Type Extension (LOTE) for nine classes of ship in the RAN.

Summary

The Commonwealth of Australia requested industry support in examining alternative options for the Life Of Type Extension (LOTE) of a wide range of vessels currently in service with the Royal Australian Navy (RAN). BMT was selected to undertake the Study which was completed in two stages over the course of nearly 12 months.

BMT Approach

A BMT developed, risk-based approach was adopted to assess the viability of LOTE for nine classes of ship for which a large team of industry’s leading subject matter experts were deployed to all corners of the country. Importantly, the methodology was not limited solely to material/condition surveys which have been the basis and shortfall of many LOTE studies in the past. BMT recognised the need for an integrated approach incorporating the Defence Fundamental Inputs to Capability (FIC) to identify the full cost of operating the fleet in the various LOTE scenarios.

Key Features

A fleet-wide cost profile extending over the proposed life extension periods of the ships was established.  Recommendations included further investigation of the key materiel condition risk areas and development of Engineering Change Proposals to remedy the issues.

Ultimately, the study provided:

  • Identification of Life Limiting Factors and LOTE Management Options;
  • Costing the options and recommending a way forward for each class;
  • Reliable advice on schedule and budget implications;
  • Fidelity of costing data of sufficient quality to inform senior Defence management;
  • Understanding of the underlying drivers of costs;
  • Understanding of any impact on capability to conduct and sustain operations; and
  • Understanding of any impact on achieving availability targets while satisfying safety, environmental and technical risk imperatives.

Key Benefits

The BMT study supported the development of a robust business case for higher committee consideration and provided an informed basis on which government was able to choose where and when to spend money in order to provide the required capability.