CANBERRA, Australia, July 25 (UPI) -- Australia's Defense Materiel Organization is touting a remediated follow-on maintenance and repair contract with Raytheon Australia as a cost-cutting reform.
The contract, for the maintenance and repair of the Australian Defense Air Traffic System will maximize value for money.
"The announcement [of the contract] represents a five-year, $72 million investment for Australian industry, and as part of DMO's ongoing Strategic Reform Program the new contract will save an estimated $14 million," said Michael Aylward, head of DMO's Electronic Systems Division.
"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 ADATS contract, for an initial five years, provides for annual extensions if quality and service level requirements are met and further efficiencies are achieved.
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 remediated by DMO and contractors are for maintenance and support of Collins Class submarines and Adelaide Class and ANZAC Class frigates.