April 29, 2016 - The Turnbull Government has signed a long-term contract for the sustainment of ANZAC Class Frigates centred in Western Australia.
The strategic partnership between BAE Systems Australia Defence Pty Limited, Saab Australia Pty Ltd, Naval Ship Management Australia Pty Ltd (a joint venture between UGL and Babcock), and the Commonwealth will streamline a number of existing contracts for the whole-of-life sustainment for the ANZAC Class Frigates. The majority of the sustainment work will be done in Henderson, with additional work at Fleet Base East, cementing Henderson as one of Australia’s naval shipbuilding and sustainment centres.
The open ended sustainment contract has a value of over $2 billion for the first eight years and will provide certainty to the principal partners to invest in growing skills and capabilities. It will also provide increased opportunities for the engagement of small-to-medium sized businesses in the Australian maritime industry.
The strategic partnership between Defence and industry ensures the ANZAC Class Frigates will remain highly capable, safe, environmentally compliant, and cost effective until their planned withdrawal dates.
The sustainment contract comes after the Turnbull Government’s recent naval shipbuilding decisions, which have secured long-term jobs for Western Australia. These include the construction of up to 21 steel-hulled Pacific Patrol Boats in Henderson, beginning in 2017, and the construction of Offshore Patrol Vessels, which will shift to Henderson from 2020.
The sustainment contract allows early implementation of key recommendations of the First Principles Review by enabling Defence to focus on governance functions while contracting industry to plan, manage and deliver the sustainment of the ANZAC Class Frigates
The sustainment contract ensures that the ANZAC Class Frigates remain a potent capability for the Royal Australian Navy until the Future Frigates, which will begin construction in Adelaide in 2020, enter service.