$1.2 billion Anzac sustainment contract secures jobs

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The Hon Christopher Pyne MP

Minister for Defence Industry

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2 March 2018

The jobs of almost 1700 workers have been secured by the signing of a landmark extension to the sustainment contract for our Anzac Frigates.  


Minister for Defence Industry, the Hon Christopher Pyne MP, today announced the extension of an agreement with BAE Systems Australia, Saab Australia, and Naval Ship Management Australia (a joint venture between Babcock and UGL).


Minister Pyne said the $1.2 billion 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,” Minister Pyne said. 


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


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


Minister Pyne said the five year program of sustainment work is unique in the maritime domain and provided long term certainty to Defence industry, enabling the continued investment in skills and capability development. 


“This is an exciting development as it provides increased opportunities for local industry to get involved in this booming sector.”


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.”

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