The Commonwealth government has tasked the prime with providing combat system support for Australia’s Collins Class submarine fleet.
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Raytheon Australia has been awarded a $322 million contract to provide in-service support for the combat system aboard the Royal Australian Navy’s fleet of six Collins Class submarines ahead of the delivery of next-generation SSNs promised under the AUKUS agreement.
The five-year contract includes a life-of-type extension from 2026, ongoing sustainment, and selected capability enhancements.
The Deputy Secretary of Naval Shipbuilding and Sustainment, Tony Dalton, noted the importance of the work amid a rapidly deteriorating geostrategic environment.
“The ongoing sustainment and upgrade of these boats will help maintain a capability advantage and ensure our fleet is ready to meet the challenges across our strategic environment,” Dalton said.
“We are committed to working closely with industry to sustain our Collins Class submarines, an important task that currently supports over 1,600 jobs across South and West Australia.”
Michael Ward, managing director, Raytheon Australia, welcomed the opportunity to continue supporting the Australian submarine enterprise.
"For over two decades we have been supporting Australia’s submarine fleet with a focus on the combat systems. This new contract establishes Raytheon Australia as the Combat System Manager for the Collins class submarine fleet with a clear objective of delivering superior operational outcomes," he said.
"We look forward to continuing to contribute to this vital strategic capability."
This latest contract builds on Raytheon Australia’s record of support for the Collins Class fleet since the submarines first entered service.
The company has since built a local workforce of approximately 133 employees across Australia.
This award forms part of the Commonwealth government’s broader $200 billion investment in continuous naval shipbuilding and sustainment capability through the 2040s.
The contract also builds on a planned extension of the fleet’s service life, given uncertainty regarding the timeline of delivery for the nuclear-powered submarines.
Deputy Prime Minister and Minister for Defence Richard Marles has not ruled out proceeding with the life-of-type extensions (LOTE) for the Collins Class fleet, promised by the former government.
The Collins LOTE program would involve rebuilding each submarine once it achieves 30 years of service, with each upgrade scheduled to take approximately two years.
The submarines would reportedly be rebuilt by ASC in Adelaide, with the work to be supported by Saab Kockums, the original co-builder of the fleet.