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The Australian Defence Force’s Collins Class submarine fleet will be maintained under a new four-year sustainment contract signed with government-owned submarine builder ASC.
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ASC will provide work valued at over $2.2 billion under the sustainment contract signed with the federal government, as part of a $4 to $5 billion government commitment to keep the Collins Class submarines as a potent strike and deterrence capability.
Significantly, this contract follows the recently announced life-of-type extension (LOTE) program for the Collins Class submarines, which will commence with HMAS Farncomb in 2026 at Osborne, South Australia.
Minister for Defence Industry Pat Conroy said the contract also secures Australia and Western Australia as the centres of excellence for the sustainment of submarines.
“The Albanese government is investing in Australian industry to maintain our sovereign capability in sustaining one of the most capable conventionally powered submarines in the world,” he said.
“This is a vote in confidence in the more than 1,600 highly skilled workers across South Australia and Western Australia who have been instrumental in maintaining this critical capability.
“This new contract further ensures these workers have certainty in Australia’s national naval shipbuilding and sustainment enterprise and helps to grow the workforce required to build and sustain Australia’s future nuclear-powered submarines.”
Around 90 per cent of the Collins Class’ platform sustainment budget is being spent in Australia, according to the government.
The new contract is expected to directly ensure job security for more than 1,100 highly skilled workers at Osborne, South Australia, and Henderson, Western Australia. The new contract directly supports employment for more than 700 people in South Australia and 400 people in Western Australia. The LOTE program provides work for about 500 people in South Australia.
“ASC is Australia’s sovereign submarine sustainment partner and platform system integrator with experience in submarine build, testing, commissioning and certification, including physical integration of US combat systems,” Minister for Finance Katy Gallagher said.
“Using its unrivalled knowledge of Australian submarine operating conditions, with an existing workforce and supply chain and leading-edge technology with ongoing research and development, ASC will deliver safe, high-quality sustainment services to the Royal Australian Navy.”
Earlier this month, WA Defence Industry Minister Paul Papalia CSC and acting minister for training and workforce development Hannah Beazley signed a memorandum of understanding with ASC to promote and develop the Western Australian defence industry in support of AUKUS milestones.
The memorandum of understanding will seek to promote and develop the Western Australian defence industry and support the sustainment of Australia’s conventional and nuclear-powered submarines to be delivered as part of the AUKUS trilateral partnership.
