This independent performance audit in the Department of Defence considers the current phase of design and construction of 12 new submarines (the ‘Future Submarine’ fleet) the largest Defence procurement in Australia's history.

This paper advocates early consideration of all aspects of a transition to nuclear propulsion for Australia's submarines, based on compelling strategic and submarine capability arguments. While a nuclear-powered submarine force would provide strategic advantages, some quite formidable challenges would need to be overcome to add such a force to the Royal Australian Navy.

The transition from the Collins-class submarines to the future submarine fleet will be more complex than any previous capability transition that Defence has undergone. The submarine enterprise will be in constant transition, rather than completing a short, bounded transition process.

This independent report by Insight Economics, sponsored by Mr Gary Johnston (Submarines for Australia), presents an analysis of the government’s decision on the acquisition of twelve future submarines (FSM) for the Royal Australian Navy under the SEA 1000 programme.

The objective of this audit was to assess the effectiveness of Defence’s design and implementation of arrangements to select a preferred Strategic Partner for the Future Submarines Program.