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.

FMI: www.lockheedmartin.com, www.airforce.gov.au/