JP9102: Michael Cratt, on behalf of Av-Comm Space & Defence

On Monday the 4th of November, reports that defence-industry project ‘JP9102’ had been cancelled were confirmed by numerous sources. JP9102 was a $7 billion joint project, designed to usher in a new age of sovereign controlled, high capacity, geostationary satellite communications network. Critically, the satellite network would provide the Australian Defence Force with the ability to operate the combined force throughout the Indo-Pacific region to assured and resilient access to satellite communication, deemed critical to operating in a likely future conflict.

Av-Comm was chosen as the sole ground station terminal supplier after a lengthy and rigorous tender process put forth by Lockheed Martin in delivering this project for the Commonwealth. Monday’s news comes as both a shock and a disappointment to us all. Av Comm was first approached by multiple Prime Defence contractors in 2021, to provide integral support for the ground segment piece of this program. Since Av-Comm was first approached, the team have spent the proceeding months and years tirelessly preparing the business to participate in the program.

This transformation included the purchasing of a new office space to accommodate the planned addition of an estimated 50 new staff, which had to be fitted out in accordance with stringent specifications set forth by Defence. Av-Comm spent months overhauling internal processes, refining workflows, and funnelling internal resources to focus on facilitating this upcoming project. Av-Comm spent over $3 million preparing the organisation to an acceptable level for Defence. This included investing in a DISP membership, ISO accreditations, implementing new security protocols, and more. As a result, Av-Comm is now a more mature and defence-capable organisation, ready and waiting to participate in these large-scale defence projects.

The space industry should be a unique and prised asset for the Australian Government. A high value industry, poised for huge growth globally, requiring skilled and unskilled workers alike, with the potential to improve the lives and wellbeing of millions worldwide. The Australian Government has a chequered history with funding scientific research and development, particularly within the space industry. There needs to be open and transparent engagement with industry by the Government before making consequential decisions that impact the livelihood of Australian companies.

Av-Comm is by no means the only company or organisation to feel the shockwaves that have reverberated through our industry thanks to this news. Estimates of around a 30% decline in jobs at SMEs involved in Defence contracts during the past few years. It’s clear that the Government see Defence spending as a cost and not an opportunity to invest in Australian Capability, Australian Businesses, and the Australian People. Despite the Government’s lack of support for Australian SME involvement in Defence programs, some large Primes such as Lockheed Martin Australia continue to see value in local industry. Av-Comm has maintained strong relationships with several Primes during the lead up to this project, completing work on more than 25 projects across the globe.

We would like to recognise the time, effort, and energy put into JP9102 by other SMEs and industry partners, and the individual cost on Australian businesses and people. Despite Lockheed Martin making headlines as a result of this, this decision from the Government has impacted countless people behind the scenes. Our SME colleagues, including but not limited to, EM Solutions, Blacktree Technologies, Clearbox, Shoal Group, and Conscia have all invested countless time and effort in preparing to deliver this project for Lockheed Martin, and will all be feeling the impact of this decision. The tireless work and dedication of our colleagues at Lockheed Martin should also be recognised, and those who have had to uproot their lives in the US to come to Australia in support of this project will also be feeling disappointment in the Government’s decision.

Av-Comm aligns with the Space Industry Association of Australia’s advocacy for a more proactive role in the global space sector. Australia should not merely be a passive consumer of foreign space products and services; we have the potential to contribute significantly to space-based technology and capabilities. It is imperative that Australia is recognised as an active participant, rather than a convenient market for international primes to deploy their personnel, bypassing local industry collaboration. The current governmental approach lacks the strategic foresight necessary to foster and leverage strengthened domestic industry partnerships.

Despite this latest setback faced by our industry, we are determined to not give up. Av Comm will continue to strive for fair and responsible inclusion of our domestic industry in the global space landscape. Av-Comm's multi-orbit Cassowary satcom terminals showcase our exceptional capabilities, and we are dedicated to ensuring our warfighters have access to our outstanding Australian satcom technology. It is clear through the fighting spirit exuded by these industry players that we will not let this setback put us down.

The Australian space and defence landscape will go from strength to strength by supporting each other and continuing to champion our sovereign capabilities as we embrace Defence’s move towards a multi-orbit satcom architecture. Our Cassowary ground station, ideally positioned for this new phase of Defence architecture, will continue to demonstrate our ability to develop and deploy complex world-leading technology, right here in Australia.