Australia Moves Closer to Performance-Based Contracts for Armored Vehicle Support
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The Australian Army has a fleet of more than 300 armored vehicles that include M1A1 Abrams tanks, M88A2 HERCULES recovery vehicles, and wheeled ASLAV armored personnel carriers. In response to maintenance cost concerns, and larger trends in the global defense industry, General Dynamics Land Systems Australia proposed a 5-year, performance-based support contract, with greater incentives for improved efficiencies and performance than are found in current contracts. Australia’s current Labor Party government is looking for over $1 billion from more efficient operations under its Defence Strategic Reform Program, so the proposal fell on receptive ears.
GDLS-Australia have now been announced as the preferred tenderer for the support contract. The value of the contract is likely to be in excess of A$ 100 million, and Australia’s DMO will begin negotiations with a view to negotiating a contract by October 2010.
Contracts & Key Events
May 18/10: Australia’s Minister for Defence Personnel, Materiel and Science, Greg Combet, announces that General Dynamics Land Systems Australia is the preferred bidder:
“General Dynamics Land Systems Australia (GDLSA) has been named the preferred tenderer in an announcement that could pave the way for the creation of 42 highly skilled maintenance jobs in the northern suburbs of Adelaide, Melbourne, Brisbane and Darwin…”
The firm produces the ASLAV and M1A1, but the M88 Hercules is a BAE systems product, and so are Australia’s M113 family tracked APCs. The Department of Defence’s acquisition and sustainment arm, the DMO will commence negotiations with GDLSA shortly, with a view to having a contract in place by October 2010.
