Babcock Australasia (Babcock), partnering with Saab Australia (Saab), has been selected as the Frigate Capability Life Cycle Manager (CLCM) to deliver critical asset management, engineering and supply chain services to ensure the Royal Australian Navy’s (RAN) Anzac-class frigates remain seaworthy, materially ready and available into the future.
“We are delighted to be continuing our long-standing support for critical maritime sustainment for the Royal Australian Navy from Henderson, Western Australia, in partnership with Saab," Babcock Australasia, Acting CEO, Leah Grantham, said.
“Babcock is proud to deliver this vital work uplifting sovereign capability, creating local jobs, strengthening the economy and ensuring the Anzacs remain operational, seaworthy and ready to meet Australia’s defence needs now and into the future."
The new, five-year contract is valued at around $117.5 million. Babcock and Saab will work closely with Defence to manage the Anzac capability through the remainder of their lifecycle as the RAN transitions to a new fleet of surface combatants.
“This contract reflects the strength of our partnership with Babcock, bringing together complementary capabilities to deliver sovereign and future‑focused sustainment outcomes for the Royal Australian Navy," Saab Australia, Managing Director, Andy Keough, said.
“Building on more than 35 years supporting Australia’s naval capability, Saab brings deep expertise in combat systems integration and sustainment, together with our role as the Australian Combat Management System (AusCMS) provider, to ensure the Navy’s frigate fleet remains ready to meet current and future demands.”
Both companies have supported Anzac sustainment as key members of the Warship Asset Management Agreement (WAMA) and through Babcock’s long-term partnership with the New Zealand Defence Force as Strategic Maritime Partner, maintaining 100 per cent of the Royal New Zealand Navy fleet.
Babcock is also the Regional Maintenance Provider West (RMP-West), supporting the RAN deliver maintenance to the Anzac Class fleet and other vital vessels.
The Australian Government will invest more than $129 million in the new contract with Babcock Australia. This is a part of the government’s $150 billion investment in a secure, sustainable, and continuous naval shipbuilding and sustainment program for Australia.
Deputy Secretary Naval Shipbuilding and Sustainment David Hanley said the five-year contract will strengthen the asset management for several of Australia’s most critical maritime vessels.
“Building a strong sovereign naval shipbuilding industry is not only good for jobs, it’s essential for our national security,” Hanley said.
The Capability Life Cycle Manager is a key element of Defence’s national approach to sustaining the Navy’s surface fleet under the Maritime Sustainment Model, as outlined in the 2024 Naval Shipbuilding and Sustainment Plan.
The partnership will ensure sustainment of Navy’s Anzac-class vessels and their support systems. Babcock Australia will work with small and medium-sized enterprises, acting as a single point of contact for supply of spare parts and asset management enabling work to flow across a broader industrial base.
“This partnership will strengthen opportunities for Australian industry to contribute to sustainment of our Navy’s fleet,” Hanley said.