The Federal Government has released tender documentation to the companies short-listed for a group maintenance contract on the Navy's Adelaide class frigate fleet.
In a statement Minister for Defence Materiel Mike Kelly said BAE Systems, Rolls Royce/KBR, and Thales were in line for the contract, and the work was expected to boost the nation's ship repair sector.
“It demonstrates the Government’s commitment, through the Defence Materiel Organisation, to transform the naval ship repair sector and apply innovative contracting practices to get the best outcome for the Navy, for industry and for every Australian taxpayer,” he said.
The contract will initially last five years, but has the potential for year-on-year extensions if the quality and service requirements are met.
The Government said the latest contract follows the first group maintenance contract signed in May last year for repair and maintenance on eight ANZAC class frigates.
Over the last few months unions and shipbuilding companies have urged the Federal Government to meet with industry leaders and map out a shipbuilding plan for the future.
The Australian Manufacturers' Workers Union said last month it feared for the job security of 1,000 workers at the Williamstown shipyards in Melbourne, and BAE also warned of a “significant gap” in work.