Defence extends NIOA strategic munitions deed

Australian owned defence manufacturer NIOA will supply the Australian Defence Force with munitions well into the second half of this decade, following Defence’s decision to extend its Major Munitions Deed (MMD) by five years.

NIOA Australia and New Zealand CEO Ben James said the decision shored up supplies against growing international supply chain pressure and responded to priorities identified in the Defence Strategic Review (DSR).

Under the MMD, the prime is able to deliver more than 50 different munitions to the ADF, including small calibre ammunition, 40mm products, 120mm tank ammunition, aircraft decoy flares, smoke and 30mm ammunition.

The MMD was established as a five-year, wide-ranging and flexible munitions standing offer deed with options to extend munitions acquisitions for a further 10 years in two five-year increments.

James said: “The DSR noted the requirement to rapidly acquire ammunition stocks from existing suppliers and contractors.

“NIOA is proud to be extended as Defence’s strategic supply partner for the range of natures included in the MMD supporting ADF preparedness.

“Through the MMD, NIOA, with supply partners Northrop Grumman, Vista, Rheinmetall, Winchester and RUAG, will provide options to directly support accelerated preparedness objectives identified in the DSR.”

James said NIOA’s partnership met Defence’s objectives for reduced transactional costs associated with munitions supply arrangements, consolidated supply arrangements and modernising selected ADF munitions.

NIOA is the largest supplier of non-guided munitions to the ADF delivering Australia the medium calibre munitions for the LAND 400 Rheinmetall Boxer CRV, a selection of mortar capability, as well as the products listed under the MMD.

Picture: NIOA