The Australian Defence Force (ADF) has awarded Naval Ship Management (NSM) Australia an AUD1.5 billion (USD1.1 billion) contract to support and sustain the Royal Australian Navy’s (RAN’s) landing helicopter dock ships (LHDs) and LHD Landing Crafts (LLCs) for up to 15 years.
NSM is a 50/50 joint venture between Babcock and UGL. The contract is for an initial five years (Babcock share for this initial period AU$250 million) with the expectation of two further five year extensions.
The partnering agreement, which was won in a competitive process, sees NSM appointed Asset Steward of the largest vessels in the Royal Australian Navy: two flagship Canberra Class LHDs – HMAS Canberra (L02) and HMAS Adelaide (L01) – and their 12 associated amphibious LLCs. The joint venture will begin the work to sustain and support these critical vessels in July 2019.
This significant award builds on Babcock’s long standing relationship with the Australian Defence Force. NSM provides sustainment support to the Royal Australian Navy’s fleet of ANZAC class frigates through to the end of their life. Babcock also supports the Australian Defence Force’s ground support equipment.
“NSM has a proven track record in innovation, performance, collaboration and building the Australian workforce capability with similar sustainment programmes. We are looking forward to working with them to ensure safe delivery of the LHD assets, ensuring they are both available and performing as required”, said Christopher Pyne, the Australian Minister for Defence.
“We are delighted to have been chosen for this strategically important role which builds on our existing relationship with the Australian Defence Force. Through NSM we will apply Babcock’s digitally enabled asset management capabilities to support this strategically important capability over the next decade and beyond”, said Archie Bethel, Babcock Chief Executive.