The program extension agreement, commencing this month, will see NSM deliver engineering services for the sustainment and total asset management of the eight frigates as part of the long-term Australian Warship Asset Management Agreement (WAMA).

Babcock Australasia chief executive David Ruff said the NSM's impressive performance secured the five-year extension.

"I am delighted that we are continuing to support the critical maintenance of Australia’s Anzac fleet," Ruff said.

"Our performance, which is underpinned by our comprehensive global naval marine engineering experience, reflects the maturity of our operations here in Australia. We have had a long and successful history of working with the Australian Navy and we look forward to enhancing that relationship."

Babcock recently secured a $33 million contract to provide ground support equipment services to the Australian Defence Force. The contract will create 16 new South Australian jobs.

Under the $33 million contract, Babcock will deliver engineering, maintenance, supply support, acquisition and sustainment management services, contributing to aviation across Air Force, Navy and Army. Ruff said the company already has proven expertise in asset management, having provided services to companies across the defence and commercial sectors, including Qantas Group, the British military and both the London Fire Brigade and the Metropolitan Police.

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Babcock is also one of the two companies looking to secure the contract to run the Naval Shipbuilding College.