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Defence has locked in two major contract extensions to sustain the Collins Class submarines’ sonar and periscope systems well into the next decade, reinforcing the fleet’s role as a core element of Australia’s undersea deterrent.
Thales Australia has secured a five-year, $178 million extension to continue maintaining and upgrading the submarines’ advanced sonar systems. BAE Systems Australia has also been awarded a five-year, $89 million extension to sustain the fleet’s periscope capabilities. Both contracts will run through to the 2030s.
The extensions are part of the government’s broader $4–$5 billion program to ensure the six-strong Collins Class remains a potent, credible and enduring capability until its planned replacement by conventionally armed, nuclear-powered submarines under the AUKUS program.
Deputy Secretary Naval Shipbuilding and Sustainment Group, David Hanley, said the extensions were an investment in both capability and workforce stability.
“The government’s Naval Shipbuilding and Sustainment Plan is delivering potent naval capabilities to protect Australia’s national security and grow Australia’s sovereign industrial capability,” Hanley said.
Launched in the 1990s and built in Adelaide, the Collins Class submarines remain the backbone of the Royal Australian Navy’s (RAN) undersea warfare capability. Their combination of range, endurance and stealth allows them to operate across vast areas of the Indo-Pacific, a role that is only increasing in strategic importance amid rising regional competition.
The government said the new sustainment contracts will directly support more than 100 highly skilled Australian jobs, ensuring critical knowledge and expertise remain in-country. Both Thales and BAE Systems conduct much of their Collins Class work in South Australia and Western Australia, supporting not only RAN operations but also the wider sovereign defence industrial base.
Hanley added, “These contracts provide over 100 Australian workers with certainty in Australia’s national naval shipbuilding and sustainment enterprise.”
The Collins Class life-of-type extension program, including upgrades to propulsion, combat and sensor systems is central to avoiding any capability gap before the first nuclear-powered submarines arrive in the early 2030s.
The agreement will ensure the continued delivery of maintenance and logistics services, engineering and supply support, as well as program management for 16 periscope systems. Work will be carried out at BAE Systems’ purpose-built Mawson Lakes facility in South Australia and at HMAS Stirling in Western Australia.
Each Collins Class submarine is fitted with both an Attack and a Search periscope. These are regularly overhauled and recertified to guarantee their materiel readiness and ongoing structural integrity, ensuring the Royal Australian Navy’s (RAN) submarine force remains mission-capable.
Under its In-Service Support Contract, BAE Systems has built a strong local and global supply chain network, providing sovereign capability to sustain the RAN’s submarine fleet and support its mission of defending Australia and its national interests.
Andrew Gresham, BAE Systems Australia Managing Director, Defence Delivery, welcomed the contract confirmation, saying, "We are delighted to confirm a five-year contract extension, building on our large body of work with the Submarine Enterprise that ensures the continued operation of the periscope systems, which are critical for the Collins Class fleet."
During the original build phase of the Collins Class, BAE Systems, working closely with its supply chain partners, locally manufactured key components, including optics, electronics, cables and mechanical parts to achieve a high level of Australian industry content. This foundation continues to underpin the company’s ability to deliver critical sustainment services from within Australia.
Gresham added, "BAE Systems Australia is a long-term sovereign capability partner to the Royal Australian Navy with more than three decades of expertise in the manufacture and build, sustainment and upgrade of Collins Class submarine periscope systems."
Thales Australia's Scylla Sonar Suite comprises a number of sensors throughout the Collins class submarine, including the Thales Australia sovereign designed and developed, Towed Array Sonar. The Scylla Sonar comprises passive and active sonar arrays together with inboard processing and user interface software that allows the Acoustic Warfare Analyst to detect, track and classify noise sources in the ocean, passing critical information to the combat system and submarine command.
Jeff Connolly, CEO, Thales Australia welcomed the contract signing, saying, "Thales Australia is delighted to continue this important partnership with the Commonwealth and Defence to provide high-performing and sovereign technology that delivers national security protection to the Australian nation."
The Scylla in-service support contract consists of a range of services all delivered by teams based in NSW and WA. This includes planned maintenance activities, operational support, engineering support, obsolescence management, sonar upgrades and Towed Array manufacture and repair.
Thales Australia's Troy Stephen, VP of Underwater Systems added, "These advanced systems are designed, developed and sustained in Australia and the contract extension will support jobs and our local engineering teams in NSW and WA."
Gregg Bohan, Director, Undersea Warfare expanded on these comments saying, "Together with the Commonwealth, Navy and Industry Partners, Thales Australia is committed to maintaining and evolving Australia’s underwater systems capability sovereign, resilient and sustainable, with local engineering teams in NSW and WA supporting our submarine force."
Defence planners have repeatedly emphasised that a fully operational Collins fleet will remain critical to deterrence and maritime security for at least another decade.
Stephen Kuper
Steve has an extensive career across government, defence industry and advocacy, having previously worked for cabinet ministers at both Federal and State levels.
