24 June 2022

Australia considers reduction in IFV requirement

by Julian Kerr

Australia is considering reducing the scope of its programme to procure infantry fighting vehicles. Two platforms are competing for the contract: Rheinmetall's Lynx KF41 and Hanwha's Redback (pictured above). (Hanwha Defense Australia)

The scope of a multi-billion dollar programme to supply the Australian Army with up to 450 tracked infantry fighting vehicles (IFVs) may significantly be reduced, Janes has learnt.

According to informed sources, Rheinmetall Defence Australia (RDA) and Hanwha Defense Australia (HDA) – the two companies vying for Project Land 400 Phase 3 – were requested by the Department of Defence (DoD) in Canberra around 18 June to amend their respective bids to provide 300 IFVs instead of the original 450.

This involves revising the pricing model in the final proposals submitted by both companies in late 2021 at the conclusion of extensive risk mitigation activities involving the Rheinmetall's Lynx KF41 and Hanwha's Redback.

The companies were also asked to submit bridging budgets, enabling the government to consider increasing its order in increments of 50 vehicles. Revised figures were required by the end of July for a decision on the successful contender in September, the sources said.

No changes were requested in scheduling, most recently stated by the DoD as initial operating capability (IOC) of the selected platform in 2024–25 with final operating capability (FOC) expected by 2030–31.

Project Land 400 Phase 3, also known as the Mounted Close Combat Capability, is intended to deliver and support up to 450 IFVs and 17 manoeuvre support vehicles to replace the army's upgraded but obsolete M113AS4 armoured personnel carriers.

The scope of a multi-billion dollar programme to supply the Australian Army with up to 450 tracked i...

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