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Marles claims JP 9102 axing is ‘change of direction, not cancellation’

Deputy Prime Minister Richard Marles has said the JP 9102 project has not been cancelled but is simply “changing direction”.

Speaking to the ABC, Marles said that since the tender was announced eight years ago, industry has created technology that can “literally shoot satellites out of the sky”.

“But we’ve also seen technologies develop where you have thousands of microsatellites in a much more distributed way providing the same effect,” he said.

Space Connect reported on Monday how the government would sensationally axe the “JP 9102” project to deliver a new military satellite communications capability for Australia.

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In a statement released shortly after the news broke, the federal government said the planned single-orbit GEO-based system would not “meet strategic priorities”.

It added Defence would instead prioritise “a multi-orbit capability” and that its current SATCOM capabilities already supported Australia’s immediate needs.

Explaining the decision, Marles said on Wednesday that Australia needs to deliver communications capability that is more “distributed” and “resilient”.

“We believe we can do that in this way faster and more cost-effective. So, this is frankly moving with the times and making sure that we have the capability that we need which meets the threats and the opportunities that we have in the future.”

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The news of the project’s axing was first reported in The Australian on Sunday night before being confirmed by a short, 187-word statement on Monday.

JP 9102 was only signed off just 18 months ago, with prime contractor Lockheed Martin beating big hitters, including Boeing, Northrop Grumman Australia, and Optus to become the “preferred tenderer”.

However, it’s unknown whether Lockheed formally had the final contract signed after it entered the last stages of negotiation.

If approved, JP 9102 would have created more than 200 direct jobs, while Lockheed Martin itself pressed ahead with making key appointments for its staff to oversee it.

Speaking to Space Connect’s sister brand, Defence Connect, Blacktree Technology, which was working with Lockheed, revealed that other industry partners were disappointed by the decision.

“We were really disappointed,” said its co-director Joel Nevin. “It’s a large cost not only to us, but also the other companies and all the primes that have borne the cost. That’s what disappoints me the most.

“When the news came out over the weekend, there were a lot of late-night phone calls around the world to our partners. We have been involved in JP 9102 since 2018. We were involved in all five teams, were invested and engaged in the process.

“It’s hard on a number of fronts because we have to make an initial investment due to the nature of the industry. There are [preparations for] tenders, as part of the cost of doing business.

“Ultimately, you’ve got to get back up, dust yourself off and make another go.

“I think next week, at MilCIS (Military Communications and Information Systems Conference 2024), a lot of industry will debrief about this and there will be differing views going forward.

“On a positive note, our attendance during JP 9102 has given us exposure to partners who we would never have had access to otherwise. There are opportunities going forward from that, exposure to markets and strong relationships moving forward.”

Adam Thorn

Adam Thorn

Adam is a journalist who has worked for more than 40 prestigious media brands in the UK and Australia. Since 2005, his varied career has included stints as a reporter, copy editor, feature writer and editor for publications as diverse as Fleet Street newspaper The Sunday Times, fashion bible Jones, media and marketing website Mumbrella as well as lifestyle magazines such as GQ, Woman’s Weekly, Men’s Health and Loaded. He joined Momentum Media in early 2020 and currently writes for Australian Aviation and World of Aviation.

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