The five-year contract, valued initially at $32 million with the potential to increase to up to $300 million, was signed on 13 October 2022 at Henderson, Western Australia, after a competitive tender process, and is expected to create up to 150 local Defence industry jobs.
As part of Defence’s new, innovative approach to sustainment of Navy’s surface ships, NSMwill coordinate the delivery of maintenance for Navy vessels in the region, and build resilient local and regional supply chains.
Tony Dalton, Deputy Secretary for Defence’s Naval Shipbuilding and Sustainment Group, highlighted the importance of strong Defence industry partnerships to Australia’s Defence capability.
“NSM will be the key link between Defence and industry to boost this local sustainment capability, providing more, and longer-term, work packages and jobs for local industry,” Mr Dalton said.
“It is important to have effective industry partnerships and resilient supply chains, ensuring our Navy ships and patrol boats are available and up to the job when needed.
Mr Dalton said the partnership demonstrated a focus in the West on building sovereign naval capability through reducing barriers to entry for small and medium businesses across the supply chain.
“This contract is just one part of the ongoing investment in the Henderson region to bolster Defence sovereign capability and industry participation.
“As part of the naval shipbuilding enterprise, we are also building a number of ships at Henderson and investing in new facilities across the precinct.”
Regional Maintenance Centre West will be based at Henderson and is on track to be fully operational in the third quarter of 2023, initially supporting the sustainment of Navy’s new Arafura class offshore patrol vessels. It is the second of four in a national network of strategically located sustainment centres being established to support the fleet.