Strategic Partnership For ANZAC Sustainment

13 May 2016

A long-term contract (Warship Asset Management Agreement) for the sustainment of the 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 $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 $600 million, 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.

“This is Babcock Pty Ltd’s largest contract to date and is another step forward in establishing NSM as one of Australia’s leading ship sustainment organisations,"Craig Lockhart Babcock CEO in Australia said.

"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”.

"NSM provides UGL with a meaningful footprint and credibility in Australian Defence to seek growth opportunities within this sector, Ross Taylor CEO UGL said.


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