Naval Ship Management wins $1.1bn Australian LHD and LLC contract

4 December 2018 (Last Updated December 5th, 2018 05:08)

The Australian Government has awarded $1.1bn contract to Naval Ship Management (NSM) to sustain the Royal Australian Navy’s landing helicopter docks (LHD) and LHD landing crafts (LLCs) for up to 15 years.

Naval Ship Management wins $1.1bn Australian LHD and LLC contract
The Royal Australian Navy’s Canberra-class amphibious ship HMAS Canberra steams in close formation. Credit: U.S. Navy Combat Camera photo by Mass Communication Specialist 1st Class Ace Rheaume.

The Australian Government has awarded $1.1bn contract to Naval Ship Management (NSM) to sustain the Royal Australian Navy’s landing helicopter docks (LHD) and LHD landing crafts (LLCs) for up to 15 years.

NSM is a 50/50 joint venture between Babcock and UGL Engineering. It has been appointed as asset steward of two Canberra-class LHDs and their 12 associated amphibious LLCs.

The contract has an initial performance period of five years with two further five-year extensions. Of the total contract value, Babcock’s share for this initial five-year period amounts to A$250m ($184.11m).

Australian Defence Minister Christopher Pyne said: “Naval Ship Management has a proven track record within similar sustainment programmes, with proven performance in innovation, collaboration and building Australian Defence Industry workforce capability.

“More than 1,000 direct and indirect jobs will be supported in Sydney and across a national supply chain through this contract is which is valued at more than $1.5bn.”

“More than 1,000 direct and indirect jobs will be supported in Sydney and across a national supply chain through this contract is which is valued at more than $1.5bn.

“This large-scale, long-term sustainment contract will provide Australian Defence Industry, and small to medium enterprise with the confidence they need to invest in growing the skills and capabilities of their workforce.”

Work to sustain and support the capability will begin from July next year.

The RAN operates two LHDs, HMAS Canberra that was commissioned on 28 November 2014, and HMAS Adelaide commissioned on 4 December 2015.

NSM also provides sustainment support such as fleet availability, efficiency and cost optimisation for the country’s Anzac-class frigate fleet under a contract awarded in 2016.

In 2012, the joint venture was awarded group maintenance contract for the repair and maintenance of the Anzac frigates.