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Downer Group announces four-year Defence extension

Downer Group announces four-year Defence extension

Downer EDI Ltd has announced its Defence Major Services Provider consortium, Team Downer MSP, had been awarded a contract extension by the Capability, Acquisition and Sustainment Group (CASG) to continue supporting the Critical Systems Branch (CSB) within the Joint Systems Division of the Department of Defence.

Downer EDI Ltd has announced its Defence Major Services Provider consortium, Team Downer MSP, had been awarded a contract extension by the Capability, Acquisition and Sustainment Group (CASG) to continue supporting the Critical Systems Branch (CSB) within the Joint Systems Division of the Department of Defence.

Valued at $154.5 million, the contract extension is for an additional four-year term and will see Team Downer MSP continue to deliver services for CASG until 2023, with CASG holding the option to extend services by another four years, with subsequent 12-month renewals based on performance.

In 2018, Team Downer MSP was awarded the first ever Integrated Work Package and has been working with CSB collaboratively to provide a range of services that significantly expands the capability and capacity of the Department of Defence’s workforce.

The contract extension incorporates a new process that simplifies the existing conditions and shifts current operations from a transactional model to strategic engagement, enabling the realisation of the full benefits of the MSP contracting model. 

The extension also introduces an outcomes-based delivery (OBD) model. The new OBD model moves away from the traditional time and materials-based cost model and benefits both Defence and the SME community by agreeing upfront on the scope and is an opportunity to provide a fixed price for deliverables. 

Team Downer MSP’s consortium members include Downer (including AGIS and Envista), SYSTRA Scott Lister, Providence Consulting Group and DXC Technology.