Naval ship management secures long term contract with Commonwealth

04 May 2016

A long-term contract (Warship Asset Management Agreement) for the sustainment of the Australian ANZAC Class Frigates was signed on 29 April 2016, on board HMAS Ballarat in Sydney Harbour.

This contract represents a strategic partnership between BAE Systems, SAAB, Naval Ship Management (NSM, a joint venture between Babcock Pty Ltd and UGL Ltd) for the sustainment and total asset management of the ANZAC Frigates through to the end of their life.

This contract, for whole-of-life support of the class, has a total value of over AU$2 billion for the first eight years and will continue until the introduction into service of the future Frigates.

The value to NSM, which is a 50/50 joint venture, is an estimated AU$600M, during the initial eight year period.

The operational start date is 1 July 2016 and brings together and rationalises a number of existing contracts.

NSM will be responsible for maintenance delivery, bringing together an integrated schedule and elements of logistics supply previously undertaken by the Commonwealth of Australia.

Craig Lockhart, Babcock’s Chief Executive Officer in Australia said: “This is Babcock Pty Ltd’s largest contract to date and is another step forward in establishing Babcock / NSM as one of Australia’s leading ship sustainment organisations.  Improving efficiency for our customer, not only does this contract secure our long-term involvement in supporting the ANZAC Class until their service ends, but it also provides a platform to grow and develop our equipment support solutions and maintenance techniques.

“The skills and expertise of our people combined with those of the UGL workforce will play a significant part in delivering this important support to the Royal Australian Navy”.

Ross Taylor, CEO of UGL said:  “The ongoing success of NSM is testament to UGL’s depth of experience in maintenance and asset management combined with Babcock’s expertise as the UK’s leading naval support business. NSM provides UGL with a meaningful footprint and credibility in Australian Defence to seek growth opportunities within this sector.

“UGL, in joint venture with Babcock, looks forward to working in alliance with the Commonwealth, BAE and Saab to deliver an efficient and cost-effective solution in the long term sustainment of the ANZAC Ships.”

Media contact:

Graeme Nayler - Director, Corporate Development, Australia

Tel: 61884401499

Mob: 61417223295