The Australian Defence Ministry Tuesday said that the Defence Materiel Organisation (DMO) has signed a $52.9 million contract with BAE Systems Australia for the joint supply of five maritime satellite communications terminals for two major ship programs.
“The $52.9m deal is an extension to an existing contract which has already seen the successful delivery of 14 satellite terminals, on-time and on-budget,” the Hon. Greg Combet MP, Parliamentary Secretary for Defence Procurement, said in a statement.
The maritime satellite communications terminals contract for the Air Warfare Destroyer (AWD) and Landing Helicopter Dock (LHD) Amphibious Ships programs would result in an estimated direct saving of $20m to the Commonwealth, Combet added.
“The concurrent purchase of terminals for both major ship programs and utilization of the existing supply chain generates major savings and lowers the risk of the procurement, achieving a win-win for all parties,” Combet said.
DMO worked with BAE Systems and AWD Alliance partner Raytheon [RTN] Australia to ensure the requirements of the two major ship programs are met, and to lock-in these significant savings within a limited timeframe, he added.