Parliamentary Secretary to the Minister for Defence - Billion dollar contracts to support Defence

Five contracts for billions of dollars worth of support services to Defence bases across the country were signed this week, Parliamentary Secretary to the Minister for Defence, the Hon Darren Chester MP, announced today.

“These contracts will provide key services for Defence bases — everything from routine maintenance and security to pest control, waste management, transport, and even airfield operations,” Mr Chester said.

A total of 10 contracts will be signed, each with an initial term of six years and up to four years of extensions. During the 10-year period the contracts are collectively worth more than $9 billion.

Deputy Secretary Defence Support and Reform Steve Grzeskowiak, who signed the contracts on behalf of the Commonwealth, said the tender process had offered “a once in a decade opportunity to achieve real savings and improvements to service delivery”.

“Signing these contracts at the same time has given us a unique opportunity to streamline the way base services are delivered across the country,” Mr Grzeskowiak said.

“We have been able to achieve new efficiencies and business improvements, while ensuring our people on bases receive a consistently high standard of service across the country,” he said

The contracts signed today are with UGL Services Pty Ltd, Aurecon Australia Pty Ltd, Transfield Services, Veolia Environmental Services Pty Ltd and Wilson Security. Further contracts will be signed in the coming weeks.

Defence is continuing to negotiate with the remaining preferred tenderers and will make an announcement once the next round of contracts have been signed.

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