May 19, 2010 14:45 UTC
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.
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