On 25 October 2006 the Project invited Expressions of Interest from Industry to enter into a Strategic Partnership with Defence for the delivery of approximately 4000 Level 5 units and associated supporting facilities, infrastructure and services at up to 17 existing Defence sites across Australia in all States and Territories with the exception of Tasmania. As per Phase 1, the Strategic Partner for Phase 2 will be responsible for the planning, development, construction, financing, maintenance and operation of these facilities, potentially under Public Private Partnership (PPP) arrangements over 30 years.

Additional units may be sought by Defence during the course of the Phase 2 contract term, subject to value for money considerations.

The former Parliamentary Secretary to the Minister for Defence, Peter Lindsay, announced on 20 March 2007 that four consortia had been short-listed as potential partners in the delivery of Phase 2 Project Single LEAP.

The four short-listed consortia are:

• Living In Partnership, a consortium comprising Thiess Pty Ltd, United Group Services Pty Ltd, Westpac and Commonwealth Bank;
• Pinnacle Housing (LEAP 2), a consortium comprising Babcock and Brown Australia Pty Ltd, Hansen Yuncken Pty Ltd, John Holland Pty Ltd, Spotless P & F Pty Ltd and St Hilliers Contracting Pty Ltd;
• Plenary Living (LEAP 2) Pty Ltd, a consortium comprising Plenary Group Pty Ltd, Deutsche Bank AG and Compass Group (Australia) Pty Ltd; and
• Ubique Infrastructure Services Pty Ltd, a consortium comprising ABN AMRO Australia Pty Ltd, Leighton Contractors Pty Ltd and Transfield Services (Australia) Pty Ltd.

Parliamentary Public Works Committee approval for the Project was provided on 20 June 2007.

The short-listed consortia were asked to respond to a detailed request for proposal on 13 July 2007 and responses were received in November 2007.

A Government decision for Phase 2 Single LEAP is anticipated in the second half of 2008 and occupation of the Phase 2 accommodation should commence progressively in the 2010 – 2011 timeframe .