The five-year Program Agreement has been developed over an 18-month transition period, and will generate revenue to UGL of approximately $250 million, as previously announced1
CIMIC Group Chief Executive Officer Michael Wright said: “Supporting the Australian Defence Force by providing efficient and cost-effective asset management to the Commonwealth for these critical Defence assets is a priority for CIMIC Group.”
UGL Managing Director Jason Spears said: “UGL has a long association with the Royal Australian Navy. As an active partner within the Naval Ship Management joint venture we are pleased to continue supporting the performance and availability of the ANZAC fleet.”
Under the Program Agreement, Naval Ship Management (a 50:50 joint venture between UGL and Babcock) and its alliance partners will provide sustainment support to the Royal Australian Navy ANZAC Class Frigates, with a focus on fleet availability, efficiency and cost optimisation.
The agreement was formed as part of Naval Ship Management’s existing Warship Asset Management Agreement with the Commonwealth of Australia. Follow on Program Agreements will be awarded under the Warship Asset Management Agreement, subject to the achievement of certain key performance indicators, over the life of the ANZAC Class Frigates.
1 As announced by UGL on 29 April 2016.