Transfield Services secures significant and expanded Defence contract

View the ASX Statement Transfield Services announced today that it has secured a significant contract to manage Australian Defence facilities across Western Australia, the Northern Territory, Victoria, Tasmania and South Australia under the Defence Support Reform Group’s Base Services Retendering project.

The initial contract term is for six years, with options to renew for up to further four years. The annualised value is $270m.

Under the new contract, the Company will provide Estate Maintenance and Operation Services (EMOS) including estate upkeep and land management, Hospitality and Catering in the regions above, where they have secured the EMOS contracts. The Company has also been awarded national contracts at selected sites for Aircraft Refuelling, Rescue & Fire Fighting and Retail Stores and provision of Petrol, Oils and Lubricants operations.

“This contract extends the decade long partnership that we have had with Defence in providing direct support services across the Navy, Army and Air Force. It underpins our Defence business for the next six years, and contemplates a further four years beyond that,” said Graeme Hunt, Managing Director and Chief Executive Officer of Transfield Services.

“In particular it adds to our current Western Australia operations and establishes a presence in the Northern Territory; two areas of key strategic focus for Defence.”

The new contract replaces prior agreements under which Transfield Services supplied Garrison Support and/or Maintenance Services to Defence bases in Victoria, Western Australia, Northern NSW and South Australia.

The Company also holds contracts to maintain the Australian Army’s wheeled and tracked vehicles as well as providing paint blasting and maintenance services on the Royal Australian Navy’s Air Warfare Destroyers and Collins Class submarines.