Naval Ship Management (NSM), a 50/50 joint venture between Babcock and UGL, has been awarded the contract is for an initial five year period with the expectation of two further five-year extensions, the engineering services company said in a statement on Monday.
The partnering agreement sees NSM appointed asset steward of the largest vessels in the Royal Australian Navy: two flagship Canberra Class Landing Helicopter Docks (LHD) and their 12 associated amphibious LHD landing crafts.
The joint venture will begin the work to sustain and support these critical vessels in July 2019.
The award builds on Babcock's long-standing relationship with the Australian Defence Force. NSM provides sustainment support to the Royal Australian Navy's fleet of ANZAC class frigates through to the end of their life. Babcock also supports the Australian Defence Force's ground support equipment.
"We are delighted to have been chosen for this strategically important role which builds on our existing relationship with the Australian Defence Force,” Babcock CEO Archie Bethel said in a statement. “Through NSM we will apply Babcock's digitally enabled asset management capabilities to support this strategically important capability over the next decade and beyond."