TSAMTO, May 26. Modernization project in Canada of two frigates "Te Mana" (Te Mana) and "Te Kaha" (Te Kaha) of the class "Meko" A-200ANZ ("Anzac") The New Zealand Navy was almost one and a half times higher than the initial estimate and dragged on for more than four years.
According to Radio New Zealand, the cost of upgrading the second ship of the Te Mana series, and before it, Te Kaha (returned to the New Zealand Navy at the end of 2020), increased to about $ 700 million, mainly due to project management errors.
The main contractor Lockheed Martin Canada and the subcontractor are mired in a lengthy lawsuit with the Ministry of Defense of New Zealand.
As the publication reminds, back in 2017, New Zealand Defense Minister Ron Mark announced a significant cost overruns under a contract signed with Lockheed Martin Canada for the modernization of two Anzac-class frigates.
According to a press release from the New Zealand Defense Ministry, the value of the contract signed in 2014 for the FSU (Anzac Frigate Systems Upgrade) project worth $ 491 million was revised several times and at the end of 2017 had cost overruns in the amount of $148 million (total amount of $ 639 million).
According to R. Mark, the previous leadership of the Ministry of Defense made a series of erroneous assessments in project management. In particular, after the first revision of the project in September 2016, the Canadian side estimated additional costs in the amount of $ 65 to $ 74 million, but the Ministry did not resolve the issue during the year, while costs continued to grow and delays in the delivery schedule became longer. The contractor provided the final fixed amount in June 2017, however, this decision was not made on the eve of the elections, which led to an additional increase in costs.
As of the beginning of 2018, the government had no other choice but to revise the initial conditions and renegotiate the contract, which led to additional costs and a significant delay in the delivery and installation of new equipment on frigates.
As previously reported by TSAMTO, the initial contract between the Government of New Zealand and Lockheed Martin Canada for the modernization of two Anzac-class frigates was signed on April 29, 2014 (renegotiated in early 2018).
In accordance with the terms of the contract, Lockheed Martin Canada was responsible for the design, installation and integration of the CMS 330 combat control system, as well as for the acquisition of new radar systems and weapons. In addition to the modernization of the SBU, the frigates were also planned to be equipped with a vertical launcher "Sea Septor" by MBDA.
The first frigate arrived in Canada for modernization in March 2018, the second – in March 2019. Repair and modernization work was carried out at the Seaspan shipyard in Victoria (British Columbia).
