The Morrison Government has commenced the first stage of Tranche 1 of the Lethality System project which will create 23 new jobs while providing an enhanced capability and optimised weapon systems to the Australian Defence Force (ADF).
This first stage contract, valued at more than $7 million, will see Brisbane-based company NIOA approach the market, and test and evaluate weapon systems to provide recommendations to Defence in an open, impartial and transparent manner.
Minister for Defence, Senator the Hon Linda Reynolds CSC said the contract delivers on the Government’s commitment to use our $270 billion investment in Defence capability to create Australian jobs.
“This contract reflects this Government’s commitment to Australian industry, as outlined in the release of the Defence Strategic Update 2020. It also supports the Munitions and Small Arms Sovereign Industrial Capability Priority in securing domestic capability,” Minister Reynolds said.
“There are significant opportunities for Australian suppliers to offer weapon systems including ancillaries and munitions, and services across all three tranches of the project, which will create even more Australian jobs over the years to come.”
Minister for Defence Industry Melissa Price congratulated NIOA on being selected for Tranche 1 of the project.
“This contract is a great outcome for an Australian company which has set a target of 100 per cent Australian industry content for this stage of the project,” Minister Price said.
“It demonstrates the Morrison Government’s commitment to maximising Australian industry involvement across all our projects.”
The contract will be conducted in an open, impartial and transparent manner.
It includes performance based measures which are supported by a sound governance framework.
The awarding of this contract to NIOA follows a recent announcement of a new 10-year contract with NIOA for the tenancy at the Benalla munitions factory in Victoria, in a new deal expected to create up to 100 jobs.