Boeing Preferred Tenderer for F-111 Contract

Boeing Preferred Tenderer for F-111 Contract

MEDIA RELEASE

THE HON. JOHN MOORE, MP

Friday, 18th August, 2000 MIN220/00

Boeing Preferred Tenderer for F-111 Contract

The Minister for Defence, John Moore, today announced that Boeing Australia Limited has been selected as the preferred tenderer for a major part of the long term support of Australia's F-111 aircraft.

Boeing will establish the 501 Wing F-111 Weapon System Business Unit and the complementary F-111 Block Upgrade Program at RAAF Base Amberley in Queensland.

The agreement will involve Boeing in the deeper maintenance and associated integrated logistic support of the RAAF's F-111 aircraft. The Company will also design, test and incorporate future upgrades to the F-111 weapon system.

"These two agreements are examples of the Federal Government's policy of building strategic partnerships with Australian industry. They are part of a coordinated strategy to establish an indigenous capability within Australian industry to support the F-111 weapon system through to its planned withdrawal from service in 2020," Mr Moore said.

"The estimated value of both contracts exceeds $500 million and will contribute significantly to increased private sector investment in the Ipswich area."

The Weapons System Business Unit contract is for a ten year period with two, five year options. The Block Upgrade Program will cover the same period and is flexible enough to allow for the development and installation of enhancements to the F-111s, as required.

"On current planning, initial orders of around $85 million will be placed for upgrades over the next three years," said Mr Moore.

Boeing Australia Limited has extensive aerospace initiatives centred on Amberley. Flow-on benefits from today's announcement will include enhanced infrastructure at Amberley to create in southeast Queensland a major aerospace Centre of Excellence, as well as long term increases in employment and skills.

The establishment of the Weapon System Business Unit is an outcome of the Defence Reform Program. Outsourcing its work is estimated to achieve a realisable cost saving of $26 million over the initial ten year contract period.

ENDS

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