Minister for Defence Materiel Dr Mike Kelly AM MP today announced the release of the Group Maintenance Contract Request for Tender for the Navy’s Adelaide Class frigate (FFG) fleet.
“This is the second of the grouped-asset, long-term, performance-based contracts for the repair and maintenance of the Navy’s major surface ships,” Dr Kelly said.
“It demonstrates the Government’s commitment, through the Defence Materiel Organisation (DMO), to transform the naval ship repair sector and apply innovative contracting practices to get the best outcome for the Navy, for industry and for every Australian taxpayer.
“The DMO has now received all the technical clearances necessary to release the tender documentation to the three ‘short-listed’ companies: BAE Systems, Rolls Royce/KBR and Thales Australia.”
The contract will be for an initial five-year period, with the potential for rolling year-on-year contract extensions if contracted quality and service level requirements are met and efficiencies are achieved, up until the life-of-type of the Adelaide Class of ships.
Today’s announcement follows the first Group Maintenance Contract, signed in May last year, for the repair and maintenance of the Navy’s eight ANZAC Class frigates.
“Already under the first contract with Naval Ship Management (Australia), a joint venture between Babcock and United Group Infrastructure, Defence is reporting savings on a like-for-like scope of work in the order of 20 percent,” Dr Kelly said.
“We have long recognised that the grouping or ‘batching’ of ship repair and maintenance events offers the potential for real savings by reducing the administrative burden of per-event tender contracting, providing greater certainty of revenue streams and work effort, and promoting better planning.
“This initiative will provide industry with the predictability and stability it needs to achieve efficiencies, to offer job security to its workforce and to invest in capital infrastructure.”
The Group Maintenance Contract model also offers benefits to the Royal Australian Navy through improved forecasting and planning of maintenance localities and duration, and the opportunity to realise lower costs while achieving greater continuity in the repair and maintenance of its ships.
Dr Kelly’s office: Robbie Rynehart (02) 6277 7730 or 0459 810 654
Defence Media Operations (02) 6127 1999