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.The decision is expected to cost tens of millions of dollars
The ABC can now reveal a recent review of the troubled contract has recommended it be scrapped, with the Commonwealth to soon begin formal discussions on reaching a commercial settlement with Phoenix. The decision to scrap the troubled US contract means Australia's Collins Class submarine fleet will be forced to continue using its existing British designed equipment including the ageing "LR5" submersible until well into the 2020s.after colliding with the stern of a Navy rescue ship during training exercises off the West Australian coast.
"We exercise with it every year, and we test it end-to-end — very few navies around the world do this," the official said.
bsadams25 Finding Oz October: ‘Any sign of that Aussie submarine?” ‘No sir! It’s disappeared....nowhere to be found!”
Who is being held responsible for this debacle?
sucking australian taxpayers’ money
The article doesn’t say why - what are the grounds to cancel the contract?
I'm wondering why the Australian taxpayer will pay compensation - if the contract is torn up, surely its because product couldn't be delivered as agreed? And can we please tear up the French sub contract, buy 10 Virginia class subs & save $50 billion? MarisePayne DeptDefence
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