General
Submarine equipment contract failure costs millions in compensation, rescuers left with old gear
The Defence Department will tear up a contract with an American company for crucial submarine search and rescue equipment, in a move expected to cost the Commonwealth tens of millions of dollars in compensation.
Key points:
- A contract for new submarine rescue equipment has been scrapped
- The decision is expected to cost tens of millions of dollars
- Older equipment will now be relied upon for search and rescue for several more years, but even that has had its problems
Last year, the ABC revealed a bitter stand-off between Phoenix International (Australia) and Defence over a deal to provide a “Submarine Escape Rescue and Abandonment System” by 2022.
The ABC can now reveal a recent review of the troubled contract has recommended it be scrapped,…
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