Understanding Australian Submarine Corporation's Business Model

The Australian Submarine Corporation (ASC) is a major player in the country's defense industry, and understanding its business model is crucial to grasping its operations. The ASC is a wholly owned subsidiary of BAE Systems Australia.

The ASC's business model is built on a contract with the Royal Australian Navy (RAN) to design, build, and maintain Collins-class submarines. This contract has been in place since the 1990s and is worth billions of dollars.

The ASC's primary focus is on delivering high-quality submarines to the RAN, with a strong emphasis on meeting the Navy's requirements. The company has a team of skilled engineers and technicians who work closely with the RAN to ensure that the submarines meet the Navy's needs.

The ASC's business model is also influenced by its partnership with BAE Systems Australia, which provides access to global expertise and resources. This partnership has been instrumental in helping the ASC to develop and implement new technologies and processes.

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ASC has partnered with ORBIS, a veteran-owned US Defence contractor, to support its AUKUS capability collaboration. ORBIS is headquartered in Charleston, South Carolina, and employs over 450 employees.

ASC has selected ORBIS as its first US AUKUS Capability Partner, marking a significant milestone in Australia's efforts to sustain its conventionally armed, nuclear-powered submarines.

ORBIS will perform a Submarine Rotational Force-West (SRF-W) Gap Analysis to support ASC's requirements to develop and deliver a SSN Submarine Support System Plan and a SSN Industrial Workforce Plan.

ASC's collaboration with ORBIS will identify ASC's recruitment and training needs for the AUKUS SSN Sustainment program, enabling training placements in the USA for ASC's Australian employees.

As a company with deep roots in the US Nuclear-Powered Submarine enterprise, ORBIS understands the importance of the AUKUS program in promoting national security and economic interests for both the US and Australia.

ASC has a pivotal role to play in delivering SRF-W through building, developing, and upskilling its workforce. The collaboration with ORBIS will help ASC achieve this goal.

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ASC's Business and Operations is a well-oiled machine, with a strong focus on delivering high-quality submarines to the Royal Australian Navy.

ASC is a major Australian company, with a turnover of over $1.4 billion in 2019-20.

The company has a significant workforce, employing over 3,000 people across Australia.

ASC's main site is located in Osborne, South Australia, where the majority of its operations take place.

ASC supports the Australian Defence Force through the provision of sovereign submarine build, design and sustainment expertise.

ASC has a long history of building submarines, having constructed the Royal Australian Navy's six Collins Class submarines between 1987 and 2003.

The company has been providing the fleet's through-life support for over two decades.

ASC is currently delivering the Collins Life of Type Extension, a major program to upgrade the submarines' key systems and add 10 years to their service lives.

This program will ensure Australia retains a potent conventionally powered undersea capability well into the 2030s.

ASC is also contracted to the Australian Government to deliver the Sovereign Shipbuilding Talent Pool (SSTP), established in September 2021 to support the nation's transition to building and sustaining a nuclear-powered submarine fleet.

ASC's potential future is shrouded in uncertainty, with a recommendation to privatise the company on the table.

In February 2014, the National Commission of Audit suggested that the Commonwealth sell its interest in ASC.

The Commission's Phase One Report laid out a clear path for privatisation, sparking debate about the company's future ownership.

Privatisation could have significant implications for ASC's operations and customers, but the exact details remain to be seen.

ASC has partnered with ORBIS, a US Defence contractor, to support the development and delivery of a SSN Submarine Support System Plan and a SSN Industrial Workforce Plan.

This partnership is a significant milestone in Australia's efforts to sustain its conventionally armed, nuclear-powered submarines. ASC's collaboration with ORBIS will enable the identification of recruitment and training needs for the AUKUS SSN Sustainment program.

ASC will also work with ORBIS to enable training placements in the USA for ASC's Australian employees for future roles in Virginia Class sustainment in Australia. This will help build and upskill the workforce for the SRF-W program.

The partnership with ORBIS is a key step in ASC's journey towards maintaining Australia's Virginia class submarines. ASC has a pivotal role to play in delivering SRF-W through building, developing and upskilling its workforce.