Lockheed Martin Australia was handed a $1.2 billion satellite project by the government despite having a more expensive bid and lacking the experience of its only rival supplier, according to a procurement audit that also raises questions about a consultants’ report used to justify the entire project.
The deal, signed in September 2022, stemmed from informal conversations between government officials and the US defence and aerospace giant half-a-decade earlier that led to trials of its Satellite-Based Augmentation System.
An audit of the eventual two-year procurement for the fully fledged system found several inconsistencies in tender planning and evaluations and concerns from suppliers and officials about perceived conflicts of interest.
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