The Minister for Defence, Christopher Pyne, has announced Defence and BAE Systems Australia have entered into an Advanced Work Arrangement (AWA) to cover ongoing work on the $35 billion program, ahead of agreeing the head contract.
Minister Pyne said the AWA is an important first step in the process of *** transitioning ASC Shipbuilding into BAE Systems *** in preparation for the nation’s biggest shipbuilding program.
“The AWA is an interim contract which enables BAE Systems to continue to mobilise its workforce and progress the critical work required to ensure the project remains on track to start production in 2020,” he said.
Work continues on negotiating the head contract for the program, with signature expected later in the year after the ASC Shipbuilding transition is completed.
Defence will execute the head contract with ASC Shipbuilding – as a *** wholly owned subsidiary of BAE Systems *** – for the delivery of the Navy’s nine Hunter Class frigates and associated support system components.
“The process of *** transitioning ASC Shipbuilding into BAE Systems *** is well underway, and ASC Shipbuilding, BAE Systems and the Department of Finance are making good progress in negotiations,” Minister Pyne said.
