The Australian Government has selected BAE Systems as a ‘capability life cycle manager’ (CLCM) to support the Royal Australian Navy’s (RAN) Hobart-class destroyer fleet.

The six-year contract has an estimated value of approximately $98.099m (A$155m).

It has been awarded to BAE Systems after a competitive tender process.

The contract requires the selected industry partner to take on a new approach for enhancing the efficiency and capability of the RAN’s vessels.

As the CLCM, BAE Systems will officially take care of the Hobart-class warships throughout their service life.

The company will work in close coordination with the Regional Maintenance Centre East, which is being established, under this new concept, to maintain different classes of ships.

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Work also involves providing a major combat management system upgrade to the destroyers in 2024.

The contract is expected to sustain nearly 100 employment opportunities for local industry in Australia’s Sydney region.

Australian Defence Industry Minister Pat Conroy said: “Extending our partnership with BAE Systems for our Hobart-class destroyers will ensure vessels are fit-for-purpose, reliable and available when and where they are needed.”

“We’re committed to investing in our local defence industry and our assets with an upgrade to our Hobart-class destroyers valued between $2.1bn (AUD$3.4bn) and $3.33bn (AUD$5.1bn) to be delivered at Osborne Naval Shipyard, which will create 300 jobs in South Australia.”

Appointment of CLCM is a first-of-its-kind effort to provide critical in-service sustainment support services to the RAN’s assets.

This Hobart-class contract is part of Future Maritime Sustainment Model’s implementation under the Australian Department of Defence’s (DoD) Plan Galileo.

Contract also falls under the DoD’s $125bn (A$200bn) investment plan.

Besides, this latest award follows the appointment of Raytheon as the first CLCM for the RAN’s Arafura-class offshore patrol vessels.