News Review: Government reforms to naval ship repair sector | ADM Aug 2010

The Federal Government has named the industry teams that will be invited to tender for long-term contracts for the repair and maintenance of Navy’s major fleet units.

Greg Combet, minister for defence materiel and science, said this initiative would provide industry and Navy with greater certainty and stability in the repair and maintenance of the Navy’s major fleet units through the use of long-term, performance-based contracts.

“These reforms will provide business with greater certainty, workers in the industry with greater job security and will play a key role in the delivery and support of naval capability,” Combet said.

The industry entities that will be invited to participate in the respective Request for Tender processes are:

• For the group comprising HMA Ships Success, Manoora, Kanimbla and Tobruk (homeported at Garden Island NSW): ASP Ship Management, BAE Systems, KBR/Rolls Royce, Babcock/UGL Infrastructure, Forgacs/Teekay, Thales, and DMS Maritime/Transfield.

• For the group comprising the four Adelaide class frigates (homeported at Garden Island NSW): BAE Systems, KBR/Rolls Royce, Thales, and DMS Maritime/Transfield.

• For the group comprising the eight Anzac class frigates (split between Fleet Base West and Garden Island NSW): BAE Systems, Babcock/UGL Infrastructure, Thales, and DMS Maritime/Transfield.

Combet said this initiative offered the opportunity to further transform Australia’s naval ship repair sector.

“It will provide industry with greater certainty of work effort, thereby providing incentive to develop the workforce and invest in necessary infrastructure.

“In so doing, Defence will realise lower costs in the repair and maintenance of its major fleet units,” Combet said.

Defence sources have said it is too early to speculate on the future of the Garden Island dockyard in Sydney. Thales’ lease on the yard and drydock there expires in 2013, after the current tender closes, which means it has an effective monopoly on naval support facilities around Fleet Base East and HMAS Kuttabul.