NSM awarded contract for OPV maintenance at Henderson

The Babcock Australasia-owned NSM (Australia) has been awarded a five-year contract initially worth $32 million for maintenance at Defence’s new Regional Maintenance Centre West at Henderson, Western Australia, following a competitive tender process.

RMCW is scheduled to be fully-operational in the third quarter of next year, initially supporting sustainment of the Arafura class offshore patrol vessels.

The contract was signed on October 13 and would create up to 150 new jobs, according to a statement from Defence on Tuesday, and the initial value of $32 million held potential to increase to as much as $300 million.

The new maintenance centre is the second of four new sustainment centres around Australia for Navy vessels, and would help “build resilient local and regional supply chains” according to Defence.

The first of these, worth $70 million, was awarded to Cairns’s NORSTA Maritime in January.

“NSM will be the key link between Defence and industry to boost this local sustainment capability, providing more, and longer-term, work packages and jobs for local industry,” said the Deputy Secretary for Defence’s Naval Shipbuilding and Sustainment Group, Tony Dalton.

“This contract is just one part of the ongoing investment in the Henderson region to bolster Defence sovereign capability and industry participation.”

NSM (previously known as Naval Ship Management) was established in 2012 as a joint venture between Babcock and UGL to sustain the Navy’s Anzac class frigates.

Babcock announced in February that it would buy its then-partner’s 50 per cent share, reportedly worth $60 million.

Picture: (L-R) Babcock Australasia’s Chief Executive Officer David Ruff, Babcock Australasia’s Managing Director – Defence Andy Davis and Director General Major Surface Ships Commodore Brad Smith CSC during the Regional Maintenance Provider West contract signing ceremony at HMAS Stirling in Western Australia. (Credit: Simon Casson/Defence)