Babcock and UGL joint venture Naval Ship Management Australia has been selected as preferred bidder for Royal Australian Navy's (RAN) Group Maintenance Contract (GMC) for its eight Anzac-class frigates.
The new GMC is expected to be valued at A$300m for the first five year period and has an option to extend for a further five years.
The final contract is likely to be awarded and signed by the end of June 2012 and will become operational following a transitional phase on 1 January 2013.
Babcock chief executive Peter Rogers said the selection has reinforced its growth prospects in the Australian naval support market.
"We look forward to working with the Australian Government and developing a long-term relationship as we support its plans to deliver a new, cost-efficient, integrated naval support solution," Rogers added.
Each Anzac-class frigate is equipped with a 127mm main gun, Sea Sparrow surface to air missiles and can embark an anti-submarine helicopter.
Based on the Blohm + Voss Meko 200 modular design, the frigate has been developed at Tenix's Williamstown yard in Victoria, Australia to provide command and control, weapons, equipment and sensors flexibility.
Powered by combined diesel or gas turbine system, the 118m-long vessel has a displacement capacity of 3,600t, speed of 27kt, a maximum range of 11,000km and can accommodate a crew of 163.
The frigate incorporates Sceptre A radar warner, a decoy system which includes an SLQ-25A towed torpedo and Nulka anti-missile hovering offboard decoy to provide radio frequency seeker anti-ship missiles protection.
The team has also been selected for the amphibious and afloat support ships' GMC tender, which is expected to be released by mid 2013.
Image: HMAS Anzac frigate will be equipped with a 127mm main gun, Sea Sparrow surface to air missiles.