Signed $292 Million Contract At Australian Airshow
Lockheed Martin and Australian
Aerospace signed a multi-year contract last week at the Avalon Air
Show to provide Through Life Support (TLS) for the C-130J Super
Hercules fleet operated by the Royal Australian Air Force. The
contract was awarded by the Defence Materiel Organization (DMO) at
a signing ceremony at the air show.
DMO's Aerospace Division head, Air Vice-Marshal Colin Thorne,
said the Through Life Support Contract, valued at $292 million,
offered the best value for money for Defence and the Australian
taxpayer.
"This contract will provide innovative solutions to C-130J
maintenance and is designed to reduce the cost of ownership into
the future. The DMO, Royal Australian Air Force, Australian
Aerospace and Lockheed Martin will work closely in order to provide
ongoing support to the C-130J aircraft fleet, thereby increasing
availability to the Air Force," Air Vice-Marshal Thorne said.
The five-year performance based contract links annual contract
extensions to contractor performance and cost reduction, thereby
promoting efficiency and delivering real cost savings.
"The award of this contract to support the Royal Australian Air
Force fleet of C-130s shows the confidence our customers have in
our capabilities," said Chris Antone, vice president of business
development for Global Sustainment in Lockheed Martin Aeronautics.
"We've structured our Global Sustainment enterprise through a
business model to meet the myriad needs of our customers."
Subject to contractor performance, support of C-130J aircraft
will continue under this contracting strategy until the fleet's
planned withdrawal date.
"This contract will create over 80 additional industry jobs in
the Sydney/Richmond area over the next 12 months," Air Vice-Marshal
Thorne said.
As part of the contract, Australian Aerospace and Lockheed
Martin will deliver services including aircraft maintenance,
engineering and supply chain management. C-130J engine support will
continue to be provided by StandardAero under an existing contract
arrangement.
"As the Original Equipment Manufacturer (OEM) of the C-130J, our
systems engineering and product expertise provides long-term
benefits tailored to customer requirements," Antone said.
The new concept of contractor-led support being considered by a
number of governments provides opportunities for Lockheed Martin
and its partners to offer best-value total life-cycle support to
air forces around the world.