Article Posted on : - May 18, 2010

Australian M88A2 HERCULES. Australian MoD Photo.

SYDNEY (BNS): Australia Ministry of Defence Materiel and Science on Tuesday announced General Dynamics Land Systems Australia (GDLSA) as a preferred contractor for the maintenance of the Australian Army’s most important armoured fighting vehicles.

General Dynamics has proposed a five year deal for the sustainment of armoured fighting vehicles with savings to Australian taxpayers and greater efficiencies for the Australian Army. The value of the contract is likely to be in excess of $100 million over the five year period, according to an Australian MoD news release.

“General Dynamics Land Systems Australia (GDLSA) has been named the preferred contractor in an announcement that could pave the way for the creation of 42 highly skilled maintenance jobs in the northern suburbs of Adelaide, Melbourne, Brisbane and Darwin,” Greg Combet, Minister for Defence Materiel and Science, said in the release.

“Under this proposal GDLSA could be rewarded for good performance with an extension to the life of the contract,” Mr Combet said.

The Australian Army currently has a fleet of more than 300 Abrams Tanks, M88A2 HERCULES and Australian Light Armoured Vehicles.

“Working together, the Defence Materiel Organisation (DMO) and GDLSA will strive to deliver both efficiencies and real cost savings in the way that these vehicles are sustained. This is in line with the Government’s Defence Strategic Reform Program,” he added.

The DMO and the Department of Defence acquisition and sustainment arm will begin negotiations with GDLSA, to place the armoured fighting vehicles maintenance contract by October 2010.