Media Release

Defence has selected QANTAS as the preferred tenderer for its next travel contract.

The new contract will replace the current Defence travel contract which has been held by QANTAS and which terminates on 29 February 2000. Contract negotiations would commence immediately.

Announcing the result, the Head Defence Corporate Support Group, Peter Sharp, said that Defence had sought tenders for a Comprehensive Travel Service covering both current air and ground travel, and travel administration. No tender met Defence's requirements on travel administration and this would be worked on over the next 12-18 months to build on recent internal reforms and to lower administrative costs further.

Mr Sharp said that four strong tenders had been received, with QANTAS the preferred tenderer against value for money criteria.

The contract for travel would be for five years and have a value of some $400m. Savings from the new contract were expected to be at least 10% above the current levels, and these savings would be transferred to investment in Defence capability.

Further Information:

Ann Thorpe Tel: (02) 6265 3522
Fax: (02) 6266 7459

Issued by the Defence Public Affairs Organisation, Department of Defence, Canberra, ACT, 2600

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