Reform continues to provide value
25 July 2013
The signing of an agreement between the Defence Materiel Organisation (DMO) and Raytheon Australia for the ongoing maintenance and repair of the Australian Defence Air Traffic System (ADATS) is the latest in a series of reform measures designed to maximise value for money.
Head of DMO's Electronic Systems Division Michael Aylward said the remediated Follow-on Support Contract is part of an ongoing program of reform.
“The announcement represents a five-year, $72 million investment for Australian industry and as part of DMO’s ongoing Strategic Reform Program (SRP), the new contract will save an estimated $14 million,” Mr Aylward said.
“This outcome is the latest in a series of long-term, performance-based contracts the DMO has negotiated for sustainment of Australia’s military capability.”
The contract offers benefits to the Australian Defence Force (ADF) through improved maintenance, engineering and logistics support for military air traffic management systems, at reduced cost, and better aligned to Defence’s operational requirements.
The ADATS contract will be for an initial five-year period, with the potential for rolling year-on-year contract extensions if quality and service level requirements are met and further efficiencies are achieved.
ADATS is scheduled to be replaced in phases through Project AIR 5431 commencing 2017, delivering the Defence Air Traffic Management and Control System.
Requirements include the acquisition of a transportable and deployable Air Traffic Control capability, replacement of the existing sensor suite of primary and secondary surveillance radars, and new air traffic management automation systems.
Other contracts recently reformed by DMO include the Collins Class Submarine In?Service Support Contract (ISSC), the Group Maintenance Contract for the Navy’s Adelaide Class frigate fleet and Group Maintenance Contract for the repair and maintenance of the Navy’s eight ANZAC Class frigates.
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