behind schedule, the review board narrowed the tenders down to two contenders in each group: IKL/HDW and Kockums for the submarine, Rockwell and Signaal for the combat system. The Walrus and Type 2400 submarine designs were considered to be too expensive to manufacture because of inefficient building practices, while the combat data system tenders had been narrowed down by unjustified development risk in the Plessey and Krupp/Ferranti proposals, and the dual problems in the Sintra Alcatel tender of excessive power usage and incompatibility with the proposed American weapons system. On 9 May, the Australian cabinet approved the selections for the funded studies and decided that six submarines would be built, with the option for two more, all in Australia. The companies were granted funding for project definition studies, from which the final selections would be made. Liaison teams were sent to each of the four companies to observe the development of the concepts presented in the initial proposals. As part of this process, the two submarine designers were required to establish a consortium with at least 50% Australian ownership: IKL/HDW joined with Eglo Engineering to form Australian Marine Systems, while Kockums (which had originally planned to work with Eglo) became part of a joint venture with the Australian branch of Chicago Bridge & Iron, Wormald International, and the Australian Industry Development Corporation to create the Australian Submarine Corporation. During the study, various accusations of foul play by or unsuitability of both submarine designers were made by Australian politicians and the media. These included claims that the centre-left Australian Labor Party (ALP) and the Swedish Social Democratic Party, both in power at the time, would lead to a pro-Kockums bias, investigations into perceived coaching of IDL/HDW representatives in the questions to be asked at an ALP Caucus briefing session on the project, and public emphasis on security incidents in both Sweden and West Germany. These incidents either lacked supporting evidence or were proven false, and were the result of the Liberal Party attempting to discredit the Labor government, or pro-British politicians and organisations who believed both submarines were inferior to the Vickers Type 2400 offering. The Dibb Report on the state of the Australian Defence Force was released in March 1986; it included advice that if the submarine project cost increased too much, the boats' capabilities should be scaled back to save money. Around the same time, Federal Treasurer Paul Keating