The government has signed a six-year contract with BAE Systems to take on a new sustainment role designed to optimise the capability of the RAN's Hobart class destroyers.
The $155 million contract is the result of a competitive tender process which will support around 100 local industry jobs in the Sydney region.
“We are operating in an increasingly uncertain strategic environment; we have to ensure we have the necessary skill and capability, coupled with robust supply chains, here in Australia to equip and enable our Defence force,” said Minister for Defence Industry Pat Conroy.
“We know how critical the local Defence industry is to that effort and to building our sovereign naval capability. Extending our partnership with BAE Systems for our Hobart class destroyers will ensure the vessels are fit-for-purpose, reliable and available when and where they are needed.”
The new approach will see a Capability Life Cycle Manager installed for the Hobart class destroyers – the first of its kind for a major in-service asset, as part of the realisation of the Future Maritime Sustainment Model under Plan Galileo. The plan is Defence’s new national approach to sustainment in support of continuous naval shipbuilding.
Under the new approach, BAE Systems will steward the destroyers through life, including a significant upgrade to their combat management system in 2024. The Capability Life Cycle Manager will work with Regional Maintenance Centre East, which as part of the new approach is being established to maintain multiple asset classes: BAE Systems’ team will operate from the existing Destroyer Enterprise facilities based at Fleet Base East.
“We’re committed to investing in our local Defence industry and our assets with an upgrade to our Hobart class destroyers valued between $3.4 and $5.1 billion to be delivered at the Osborne Naval Shipyard, which will create 300 jobs in South Australia," Minister Conroy said.
“We welcome the Commonwealth’s decision and look forward to working alongside the Navy and our Enterprise partners to deliver this vital capability," BAE Systems Maritime Australia Managing Director, Craig Lockhart, said.
“Our established team has deep knowledge of the Hobart Class Destroyer and will deliver a proven Enterprise and collaborative approach that focuses on dependable delivery today and innovative ways of sustaining the class into the future.
“This is another example of how BAE Systems Australia is helping to deliver the next generation of naval capability and building local industry to help keep Australia secure.”
The appointment of BAE Systems follows the appointment of Raytheon as the Capability Life Cycle Manager for the new Arafura class offshore patrol vessels in December 2020.