The contract, initially awarded to Qantas in 1999, includes renewal options.
It covers a range of maintenance, engineering and logistic support activities performed by Qantas Defence Services for the Royal Australian Air Force's (RAAF) Air Lift System Program Office (ALSPO) based at RAAF Base Richmond.
The Head of Qantas Defence Services, Glen Steed, said the extension continued the strong long-term relationship between the two organisations.
"Qantas Defence Services regards this extension as an opportunity to continue pursuing the Strategic Reform Program goal of reducing support costs for the C-130H," Steed said.
"We are proud of our 10-year relationship with DMO and the RAAF.
"The extension confirms that Qantas Defence Services has demonstrated real cost savings through ‘smart sustainment' initiatives."
DMO's Head of Aerospace Systems Division, Air Vice-Marshal Col Thorne, commended Qantas Defence Services for their support of the C-130H over the past 10 years.
"We look forward to a continued strong relationship that delivers real operating cost reductions over the next three years," Air Vice-Marshal Thorne said.
A wholly owned subsidiary of Qantas Airways Limited, Qantas Defence Services has an annual turnover of over $140 million and employs approximately 500 people.
It provides maintenance, supply, deeper maintenance and training support to a range of major Defence aerospace capability systems, including Special Purpose Aircraft, T56 and Adour propulsion systems and the KC-30A Multi Role Tanker Transport (both the military-derivative conversion of the A330 to the KC-30A and the weapon system Through Life Support).
Approximately 200 Qantas Defence Services personnel are employed at RAAF Base Richmond providing C-130H support services.