On 1 May Tenix Defence and Saab Systems signed a new contract with Defence Materiel Organisation (DMO) for the through life support of the Australian Defence Force’s ANZAC class ships and shore facilities.

The contract known as the ANZAC ship Integrated Material Support (IMS) Program Alliance will last for a minimum of three years (2010) or maximum of nine (2016).

It includes the depot level maintenance of between one to three ships at any one time throughout the period of the contract- with the eight Royal Australian Navy ships in service going through a Usage Upkeep Cycle of nine months between maintenance availabilities.

Overall the ANZAC Systems Program Office (SPO) estimates that it will manage more than 170 small to medium changes, about $1 billion worth of work, under the IMS contract.

Among these updates are a Harpoon, Mine and Obstacle Avoidance System, propulsion plant control and monitoring system obsolescence upgrade, and communication systems upgrades in line with projects SEA 1772 and 1778. The contract also provides for major projects such as Anti Ship Missile Defence, an $800 million project to deliver multiple threat capability to the ANZAC Class.

DMO has established the contract so that every three years an opportunity exists to review its conditions and the performance of the contractors, evaluating them against key performance indicators and key commercial principles laid down by DMO Chief Executive Officer, Dr Stephen Gumley, during the initial negotiation stages.

DMO ANZAC SPO Director, Chris Eggleton, said the contract signed in May is a completely new vehicle for the delivery of materiel support to the ANZAC class ships.

‘It builds on the knowledge and skills developed through the ANZAC construction, the ANZAC in-service support contracts and the old ANZAC alliance; embodying lessons learnt, particularly in the areas of risk apportionment and contemporary cost models,’ Mr Eggleton said.

‘Government created a strategic infrastructure when it built the ANZACs in-country and DMO has now preserved and improved that infrastructure by signing a contract with the two major contributors to the initial delivery of that capability,’ he said.

Saab and Tenix possess valuable experience developed over the past 16 years of building and supporting the ANZAC ships.

Tenix built all ten ships at their dockyard at Williamstown , Victoria and Saab was the designer for the combat systems software.

Mr Eggleton said the contract - being an alliance - has removed many of the commercial contract boundaries between areas of the SPO opening the way to deliver increased capability with fewer staff.  

‘Our suppliers and ship repairers will be the beneficiaries of improved work instructions and better levels of quality control and contracted quality assurance as a direct result of this contract,’ he said.

Key stakeholders celebrate the signing of the ANZAC ship Integrated Material Support (IMS) on the 27 April 2007.