Nigel Pittaway | Melbourne
The tender process for the replacement of the Special Purpose Aircraft (VIP) fleet has been completed and Defence is set to enter into contract negotiations with the preferred tenderer, a Defence spokesperson confirmed late last week.
The leases on the current Boeing 737-BBJ and Bombardier Challenger 604 aircraft are due to expire in mid 2019 and the spokesperson said Defence has been working through a “competitive, staged procurement process, to develop considered options” with industry.
“Defence intends to present a range of potential options to Government for consideration; including revised support services and considerations for potential fleet replacement in the future,” the spokesperson said.
“The managing contractor selection will be announced when the procurement process has been completed and the relevant parties have been notified. The timing for this is still to be determined and a precise date is not available at this time.”
A Request For Proposal was released to industry in November 2015 for a managing contractor to provide services for the maintenance, support, and replacement of the SPA fleet.
Two companies were shortlisted in June 2016 and they were subsequently involved in a project definition study, prior to the Request For Tender being released in December.
“This tendering activity does not, in itself, constrain Government consideration as to a replacement SPA fleet mix, including the types of aircraft, or when replacement is to occur,” the spokesperson added.
In addition to the tender negotiations, future SPA capability will include a partial VIP interior and secure communications suite fitted to the second of two Airbus KC-30A Multi-Role Tanker Transport aircraft being acquired under Project Air 7403 (Government Transport and Communications capability) and due for delivery in early 2019.
There had been speculation that the SPA replacement activity may have been deferred followed the tabling of future BBJ and Challenger flying hours in the 2016-17 Defence Portfolio Budget Statement released last week, which showed no reduction up until FY2020/21, but Defence says this is not so.
“The purpose of the PBS is to inform the proposed allocation of resources to government outcomes by entities within the portfolio. As the SPA replacement remains under consideration, Defence is utilising the current fleet arrangements for budgetary planning purposes,” the spokesperson said. “It is expected that the operating costs of any replacement fleet will be similar to the current arrangement, therefore this method of budgetary planning is considered prudent. Once a decision has been made on the replacement SPA fleet, the Portfolio Budget Statements will be updated accordingly.”