Defence in negotiations for new Land Materiel Maintenance contract
27 March 2013
Defence is negotiating with preferred tenderer Transfield Services (Australia) regarding the new Land Materiel Maintenance Service (LMM) contract.
The LMM Contract will be a landmark agreement that will underpin efficiency reforms in the Australian Defence Force’s logistics system.
The LMM contract is for the provision of maintenance for land-based assets, such as military vehicles and general equipment.
While the negotiations to finalise the contract progress, Defence has entered into an early services agreement with Transfield Services to enable initial transition activities to begin in the lead up to the new contract taking effect from 1 July 2013.
The LMM Services contract arrangements will replace three existing Defence contracts for maintenance services which are due to expire on 30 June 2013.
Transfield Services employs more than 24,000 people globally and provides operations, maintenance and construction services to over 20 industries across 11 countries. The company is a global provider of operations, maintenance and construction services to the resources, energy, industrial, infrastructure, property and defence sectors.
Within the defence sector, Transfield supplies asset management services to the Defence estate and land equipment, as well as providing Defence with comprehensive technical and logistics services, including airfield fire fighting, aircraft refuelling.
If Defence cannot reach a contractual arrangement with Transfield Services, Defence reserves the right to suspend or terminate negotiations with the preferred tenderer and revert to one or more of the other competing tenderers.
The new contract is expected to be awarded before 30 June 2013 with an initial term of six years.
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