Rheinmetall MAN Military Vehicles Australia has been down-selected as the preferred tenderer and will now enter into detailed negotiations to provide up to 2700 protected and unprotected medium and heavy vehicles under LAND 121 Phase 3B - Protected and Unprotected Medium and Heavy Vehicles.
Options will also be sought for approximately 1000 more unprotected vehicles for training purposes under LAND 121 Phase 5B.
Subject to successful negotiations, it is anticipated that approximately 35 per cent of the value of the Phase 3B work will be undertaken in Australia by Rheinmetall MAN and its Australian subcontractors.
The work in Australia will provide significant opportunities for Australian industry, including the installation of locally supplied bodies and modules, and integration of vehicle parts and testing.
This work is expected to be undertaken in Wacol, Brisbane.
The through life support for the vehicles is also expected to be undertaken in Australia.
Defence will also enter into negotiations with Haulmark Trailers, as the preferred tenderer to supply up to 2500 trailers for these medium and heavy vehicles.
Subject to satisfactory negotiations, the trailers will be manufactured at Haulmark’s Brisbane facility and this work is expected to create up to 75 jobs and sustain approximately 150 jobs.
Commercial negotiations are expected to inform second pass approval by Government in 2013.
Should a satisfactory commercial outcome not be achieved, Defence has reserved the right to engage other tenderers.
Subject to contract negotiation and the options exercised by Defence, the cost for Phases 3B and 5B is now expected to cost more than the original budget estimate from August 2007.