Australia awards AU$1.2 billion contract for Anzac frigate upkeep

Australian defense industry minister on March 2 announced the signing of a AU$1.2 billion program for the five-year upkeep of Royal Australian Navy Anzac-class frigates.

The sustainment contract has secured the jobs of almost 1700 workers minister Christopher Pyne said on Friday.

The contract is an extension of an existing agreement with BAE Systems Australia, Saab Australia, and Naval Ship Management Australia (a joint venture between Babcock and UGL).

Pyne said the five year follow-on program of work covers sustainment of the eight Anzac-class ships and their shore support and training facilities.

“This strategic partnership will see highly skilled jobs secured around the country, including in small and medium-sized businesses,” Pyne said.

“The majority of the work will be done in Henderson, further cementing it as one of Australia’s naval shipbuilding and sustainment centers.”

Sydney, Adelaide, and Williamstown will also benefit as a result of this contract.

The agreement takes into account a key recommendation of the First Principles Review by enabling Defence to focus on governance while contracting industry to do what it’s best at – planning, managing and delivering the sustainment of the Anzac class.

“This is an essential piece in our long term strategy around continuous naval shipbuilding and sustainment in Australia,” Pyne said.