Senate Foreign Affairs, Defence and Trade Legislation Committee [Part 2], , 1:05:22 to 1:11:28
Questioning focuses on US Government Accountability Office reports regarding submarine maintenance backlogs and workforce capacity.
Topics: Manufacturing, National security
Speakers: Senator Fatima Payman, Senator David Shoebridge, Unknown Speaker, Michaela James, Alexandra Kelton
I might move on to another another matter. Admiral Mead, in in August of this year, the US Government Accountability Office, which is effectively their their audit office, as you know, published a Navy Readiness Actions Needed to Address Costly Attack Submarine Maintenance Challenges. Um Have you familiarized yourself with that report?
>> Um not exactly, no.
It well, um has anyone in ASA familiarized themselves with that
>> Senator, we probably need more information.
>> Well, it's the August 2027 report entitled Navy Readiness Actions Needed to Address Costly Attack Submarine Maintenance Challenges, published by the US Government Accountability Office. I can't give you any more information than that.
>> Senator Michaela James, head policy, strategy, and engagement. Um aware of that report.
>> Sorry?
>> I'm aware of that report.
>> Have you Have you read the report?
>> I've read parts of the report.
The The report found that the US Navy has lost more than 15,000 operational days, um which is equivalent of 41 years, over the past decade from its Virginia Class Fleet due to maintenance delays and idle time on active attack submarines. Um and their report indicated that addressing those maintenance delays is going to have a significant impact on its ability um to meet the workforce to provide for the construction of new submarines. Um have you had any Has anyone in the ASA had discussion about those workforce stresses and the impact of those lost 15,000 operational days on the US Virginia Fleet?
>> Um we've had numerous discussions with the US Navy and US Naval Reactors on the US submarine industrial base over the previous months. Um in particular with their senior leadership and more importantly the investments that have been made recently um to increase the production uh of Virginia class submarines.
>> You've all been very generous with me. I think I said August 2027 and you're quite right. It It wasn't August 2027. It was August 2026. So yes. Um and if you had read the August 2027 one, Mr. James, you've done a a sterling job.
>> So can I just um by way of example, the Virginia class submarine build rate is up by 10% this year. And the forecast is that it will increase by another 10% next year and the enterprise hours are on pace for a 30% improvement by the end of 2026. Importantly they have commissioned two Virginia class submarines this year 2026. USS Massachusetts and USS Idaho and they are already deployed overseas. And they are on track to commission two further Virginia class submarines Arkansas and Utah in quarter one and quarter two 2027. >> So we're really seeing that uh sorry, I I don't mean to interject, but we've spoken about this um on many occasions that that $17 billion which they invested in 2020 four would take some time to wash through the system and we're seeing that happen now. And there are tangible outcomes um that the US are making. On the 6th of October the president made the announcement that the uh there would be a new Anduril facility of $6 billion in Maryland to manufacture critical components of the Virginia class submarines. On the 12th of October, the US Navy established an additional submarine component repair facility in the hot Ohio. And on the 23rd of October, there's the commencement of construction of a new submarine manufacturing facility in Mississippi. All these investments will help support Australia's future acquisition of Virginia class submarines.
>> Admiral Mead, the new facility in Mississippi, can you tell the committee what the scale of that that facility is in Mississippi and compare it to the current two production facilities? And because it's my understanding it is in no way comparable. But perhaps you can shed some light on the Mississippi facility. It is not in not in in close to comparable.
>> Well well, what what the US Navy is doing now, you what the Pentagon is doing, is establishing a range of outsourcing arrangements around the US. So, the work is not all being done at the shipyard itself where there are blockages. What they're doing is establishing outsourcing arrangements in smaller facilities specialized in some areas. The one in Mississippi is is focusing on the propulsor. Um some other areas are focusing on other parts of the supply chain. The [clears throat] aim of this is to allow the shipyard to focus on on what it actually needs to do in parallel with a range of other facilities that are being built or being repurposed in order to increase the production rate.