MEDIA RELEASE

DPAO 157/98

Thursday, August 13, 1998

AEROSPACE ACQUISITIONS DIVISION TEAMS WITH SVERDRUP
TECHNOLOGY AUSTRALIA - CONTRACT SIGNING

Benefits including greater efficiency and reduced cost are expected to flow from a five-year contract the Defence Department signed with Sverdrup Technology Australia (SvTA) in Canberra today.

The project, systems engineering and technical assistance (PSETA) firm will provide standing offer assistance to projects involving F111, P3 Orion and F/A18 Hornet aircraft and weapons systems in the Air Force inventory such as Sparrow and Sidewinder missiles.

"This contract draws together several activities under the one umbrella to increase efficiency in the use of contractor provided services within the Defence Acquisition Organisation," said Project Director Group Captain Gary Thies.

GPCAPT Thies said the contract signing represents the beginning of an alliance for the common benefit and advancement of Australian industry, the ADF and ultimately the Australian people.

"The Defence Reform Program and the associated Industry Policy recently announced by our Minister for Defence Industry, Science and Personnel, Mrs Bishop, demands that all elements of Defence get smarter in how we do business and maximise the involvement of industry and its world class practices," he said.

"This contract is endorsed by the Defence Acquisition Program Executive as a trial of greater Defence industry involvement in its acquisition processes."

GPCAPT Thies said Sverdrup Technology brings a wealth of experience to the RAAF from similar contracts with the US Air Force and NASA.

"They are a highly experienced and professional group which is linked to proven Australian contractors," he said. "The contract is performance based with outcome based award fee incentives and their profit margin is directly linked to continued high levels of performance which the company is confident of achieving."

GPCAPT Thies said the contract guarantees 70 per cent local content and emphasises 'timely transfer of professional skills and knowledge to the Australian personnel within Sverdrup, its team mates and the Defence Acquisition Organisation'.

He added that SvTA have set up a headquarters in Canberra and that work will actually begin on August 24.

Further information: Group Captain Gary Thies (02) 6266 1933 (w)