Senator Johnston said the contract will be for an
initial period of four and half years with the potential for contract
extensions to an anticipated value of $130 million.
“If contracted quality and service level requirements are met
and efficiencies are achieved, the contract can be extended to the
ship’s withdrawal from service dates,” Senator Johnston
said.
Senator Johnston said this was the second of the grouped-asset, long-term,
performance-based contracts for the repair and maintenance of the
Navy’s major surface ships.
Planned work on the frigates will be undertaken at Navy’s Garden
Island facility in Sydney.
“It demonstrates the Government’s commitment, through
the Defence Materiel Organisation to apply innovative contracting
practices to get the best outcome for the Navy, for industry and for
every Australian taxpayer.”
“We have always recognised that the grouping of ship repair
and maintenance work 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.”
Senator Johnston said the design of the contract will provide both
industry and Navy with greater certainty and stability in the repair
and maintenance of the guided missile frigates.
