News: New Collins support contract for ASC | ADM August 2012

A new maintenance and support contract for the Collins submarines has been signed following negotiations between the Defence Materiel Organisation (DMO) and ASC Pty Ltd. The In-Service Support Contract (ISSC) has been put in place to deliver more efficient and effective sustainment services that will improve the availability and reliability of the Collins Submarine fleet.

The Coles Review into Submarine Sustainment emphasised the importance of entering into the ISSC. Coles described it as a “game changer” for Collins sustainment noting that there were perceptions that the ASC was operating inefficiently on a forward funded cost-plus contract for sustainment.

Starting on 1 July, the new ISSC is a rolling five-year contract with options to be exercised subject to satisfactory performance. It replaces the Through Life Support Agreement (TLSA) entered into in 2003, which failed to deliver the required operational outcomes for Navy. In May, the Government allocated an additional $700 million for Collins Class submarine sustainment as part of the 2012-13 Defence Budget.

ASC Managing Director Steve Ludlam, said that this would mark a new era for the maintenance of the Collins Class submarines.

“This experience and the lessons learned have provided valuable input in creating the new ISSC to ensure performance and efficiency continues to gain pace,” he said.