ASC snares $2.2 billion Collins sustainment contract

The federal government has confirmed submarine builder ASC Pty Ltd in its role sustaining and updating Australia’s Collins class submarines.

The government signed a new four-year sustainment contract with ASC, securing shipyards in South Australia and Western Australia as the centres of excellence for submarines.

This new contract will provide work valued at over $2.2 billion, ensuring job security for more than 1,100 workers at Osborne, SA and Henderson, WA.

The contract follows the recently announced life-of-type extension (LOTE) programme for the Collins class submarines, which will commence with HMAS Farncomb in 2026 at Osborne Naval Shipyard.

The government has earmarked up to $5 billion keeping the Collins class submarines as a strike and deterrence capability.

The Minister for Finance Katy Gallagher said: “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.

“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.”

Australian industry will have significant opportunities to maintain one of the most capable conventionally‑powered submarines in the world, with around 90 per cent of the Collins class’ platform sustainment budget being spent in Australia, according to a statement.

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.

Further reading:
Government approves Collins submarine life extension works

Picture: Defence/Collins Class Submarine at Henderson Marine Complex, Western Australia