A little clarity around the Project LAND 200 Tranche 2 BMS

More than two months after Army directed operational units to cease using the Project LAND 200 Tranche 2 Battle Management System (BMS), developed by Elbit Systems Australia at a cost of more than $1 billion, it is finally becoming a little clearer why it took this drastic step.

Firstly, no contract has been terminated. The Australian Army says it has only paused use of BMS and moved to an interim solution.

Defence says its halt of the BMS rollout was not because of a discovery of security back doors within the BMS software – the focus, mostly, of media speculation based on a long-held suspicion, with no hard evidence, that systems of Israeli origin may allow them secret access, not just to Australian networks, but conceivably to secure partner systems, specifically the US.

There has been no high-level concern expressed by any Five-Eyes partners although there may have been lower-level discussions with the UK.  “We have not found a backdoor in the system,” Defence Chief Information Officer Stephen Pearson told a Senate estimates hearing on June 2. The Australian Signals Directorate is among those reviewing the software.

BMS security assurances aside, LAND 200 Tranche 2 is now deemed a Project of Concern – Defence’s list of troubled acquisitions requiring intensive remediation. While most projects on the list achieve remediation, Defence has shown it will pull the plug where there is no realistic prospects of success. Remember Seasprite?

So, what is the problem? 

It would appear to have more to do with those familiar issues which commonly beset long-running and complex developmental IT projects: Defence not having a clear idea of what it wants to achieve and – in this case – failing to establish fully effective governance arrangements combined with contractor delays in meeting milestones.

That was the verdict of the Australian National Audit Office (ANAO) in its May 2019 audit report of LAND 200, and it appears nothing has changed.

Army Chief LTGEN Rick Burr told Senate Estimates in June that, “The reason for this (pause) is due to a lack of accreditation of the current version of software which is due to expire at the end of this month. We have put in place an interim capability to ensure operational preparedness. That interim solution is in place now and will be used on current and future exercises, such as (July’s) Talisman Saber.”

The interim solution uses an element of the BMS software called SitaWare Headquarters, for which Army has purchased additional licences.

Software accreditation relates to security assurance. The in-service version was using software version 7.1 which was to have been replaced by version 9.1. But version 9.1 isn’t yet ready and therefore hasn’t gone through the security accreditation process. In the meantime, accreditation of version 7.1 – which was only ever provisional on a year-to-year basis – was to expire on June 30, and Defence realised there was no prospect of achieving re-accreditation.

Elbit was verbally advised of this on April 16, and formally in writing in writing on April 30.

“Under the contract, the company was required to provide version 9.1,” LTGEN Burr told Estimates. “That has not been forthcoming, hence the focus on how we continue with the system that we have, version 7.1. It, ultimately, was going to run out of accreditation, as many software
versions do on many platforms.” 

He said Defence was working with Elbit to find a way forward. “There are obviously reviews and we are cooperating to try to work out what the future is here.”

However, the interim BMS could be in place for up to three years as Defence goes to Phase 3 of LAND 200, with an RFT to go out to the market this year and a scheduled First Pass in March 2022, for which Elbit will be able to compete. 

“We are currently, today, continuing to work with Elbit Systems Australia on the sustainment contract, and Elbit on the acquisition contract,” MAJGEN Simon Stuart, Head of Land Capability, told the Senate committee. “And two reviews are underway, one technical and one commercial, being run by the Capability Acquisition and Sustainment Group. So, we are continuing to work on the delivery of version 9.1 under the acquisition contract.”

BMS is a very advanced capability regarded as crucial to a modern networked army. In simple terms this replaces paper maps and voice communications with a system of electronic maps giving a common operating picture. These maps are located in headquarters, showing the location of force elements in real time and are available right down to individual vehicles.

The basic BMS comprises the software by Elbit and the tactical communications network by L3Harris Communications Australia. With their unique strategic circumstances and constant need to maintain a capability edge, the Israelis are widely regarded as leaders in this field and now field a fully weapons-integrated BMS. 

This is regarded as the true game changer, allowing platforms to hand off firing solutions to the most appropriate effector. This is where the Australian Army aspires to go, but it has been a long time coming.

Second pass for BMS was in 2009. In 2013, JP 2072 Phase 3 and LAND 75 Phase 4 were combined to create LAND 200 Tranche 2, with an approved budget of $969 million. But total expenditure to date has been $1.44 billion.

LTGEN Burr acknowledged the importance of BMS to Army modernisation. “It is one of the design principles…to be connected, protected, lethal, and enabled, and, as to ‘connected’, obviously this forms a part of that,” he said. “The digital radio network is central. The battle management system is one of the systems that we have for command and control. There is also a fire support network. There is an electronic warfare network. They’re all enabled for command and control. 

“This one is a key part of that, from brigade headquarters down to company level and below, and into vehicles,” he added. “It is critical and is why this project is an important part of our future capability.”

Immediately following discussion of BMS at Estimates in Canberra, Elbit Systems Australia (ELSA) managing director Paul McLachlan fronted journalists at the LAND FORCES 2021 exposition in Brisbane, declaring he was confident the issues could be resolved. He said the company had yet to be informed as to the Commonwealth’s exact concerns about the BMS, and that claims of espionage were hysterical.

“There are certainly some concerns and there was some discussion about that at Senate Estimates,” McLachlan said. “We will be engaging with members of the committee to make sure we put our side of the story. We are engaged with some positive discussions now with senior leaders of Defence. More than anything, the company is fundamentally committed to fixing any problem there is and being able to deliver what remains of the contract.”

In an earlier statement the company said it utilised secure software development processes in collaboration with the Department of Defence, including the provision of all source code.

Elbit Systems of Australia is the local subsidiary of Israel’s largest defence company, with ambitions to create a fully sovereign Australian business with access to advanced Israeli technology. The company’s Australian workforce numbers 250, including 80 veterans, and 100 systems and software engineers.

Elbit’s LAND 200 issues haven’t seen it excluded from potential future opportunities. The company has been shortlisted for Land 125 Phase 4, the latest stage in the program to modernise the ADF’s Soldier Combat System. Elbit is also a partner with Hanwha in that company’s bid for the Army’s new LAND 400 Phase 3 Infantry Fighting Vehicle. 

This article appeared in the May/June 2021 issue of ADBR.