"As outlined in the White Paper, the Government has decided to acquire 12 new Future Submarines, to be assembled in South Australia. This project will be the largest and most complex defence procurement undertaken in Australia's history," said Mr Combet.

"The Domestic Design Study will examine Australia's submarine design capability and capacity. Investigations by the Project to date have aimed at developing an understanding of the capability of the international submarine industry.

"The RAND Corporation brings internationally recognised expertise to the Domestic Design Study having completed similar studies for both the United States and United Kingdom governments," said Mr Combet.

"The results of the Domestic Design Study will inform project strategy options for consideration by Government during 2010 and is an example of the Government's careful planning for Australia's next generation of submarines," Mr Combet said.

"The Defence Materiel Organisation is undertaking a number of studies to identify and explore all the options to ensure we have the appropriate design capability to support our submarines throughout their life. The information we collect through this process will help to develop strategic options for the Government's consideration," said Mr Combet.

The report is to be completed by February 2010.

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