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The first stage of Tranche 1 of the Lethality System project is now underway. Valued at over $7 million, the arrangement will see Brisbane-based company NIOA approach the market, testing and evaluating potential weapon systems to report recommendations to Defence.
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Under the broader framework of the LAND 159 Lethality System project, NIOA will assist with the replacement and modernisation of 26 weapons systems currently in use by the Australian Defence Force. To be delivered in three tranches over the next decade, the project will equip the men and women of the ADF with next-generation pistols, assault rifles, machine guns, sniper rifles, direct fire support weapons and munitions.
Minister for Defence Linda Reynolds said the contract builds on the recent $270 billion Defence Strategic Update 2020, as well as the Munitions and Small Arms Sovereign Industrial Capability Priority.
With the contract creating 23 additional jobs, Minister Reynolds added that there are “significant opportunities for Australian suppliers to offer weapon systems including ancillaries and munitions, and services across all three tranches of the project”.
Minister for Defence Industry Melissa Price congratulated NIOA on being selected for Tranche 1 of the project.
“This contract is a great outcome for an Australian company which has set a target of 100 per cent Australian industry content for this stage of the project,” Minister Price said.
“It demonstrates the Morrison government’s commitment to maximising Australian industry involvement across all our projects.”
NIO was one of three companies down-selected in a competitive process for the project in June 2019.
The contract will be conducted in an open, impartial and transparent manner.
It includes performance-based measures that are supported by a sound governance framework.
The award of this contract follows the recent announcement of a new 10-year contract co-tenancy at the Commonwealth-owned Benalla munitions factory in Victoria, in a new deal expected to create up to 100 jobs.
Subject to business case approval, some of the ammunition for the LAND 159 program will be manufactured at the Benalla plant.
