Three companies have been shortlisted to tender for the supply of patrol boats for the Royal Australian Navy, after they were endorsed by Defence Minister Robert Hill.
The shortlisted tenderers are ADI, Defence Maritime Services partnering with Austal, and Tenix.
ADI would construct the boats in Newcastle, DMS and Tenix in Perth - providing significant economic and employment opportunities in these areas.
"Competition for the final shortlist to go on to stage two of the contract process was intense - highlighting the fact that Australia has a competitive small vessel shipbuilding industry," Senator Hill said.
"Nine companies provided tenders, seven of which qualified to produce the vessels.
"The shortlisted tenderers were selected through a robust process based on merit in accordance with the criteria laid down in the request for tender and the information offered in company responses.
"The final three companies selected to go to the next stage of the tender process were competitive and proposed to meet the Australian industry involvement targets for construction (65 per cent) and in-service support (90 per cent).
"Both Cairns and Darwin, where the new boats are expected to be operated from, should also benefit from the through life logistics support activities that will take place there."
Senator Hill said other regions were also likely to benefit as individual systems and equipment fitted to the boats were likely to be sourced and supported from companies based throughout Australia.
After evaluating two possible procurement options, the Government has decided to directly purchase the boats. The use of private financing to deliver the boats and associated through-life support was also considered.
However, advice provided to the Government indicated that there was uncertainty about whether the requisite capability could be provided on a value for money basis while also ensuring that the transaction would be classified as an operating lease for accounting purposes.
The shortlisted companies will be invited to provide detailed tender proposals by the end of October. Defence expects to be in a position to recommend to Government a preferred tenderer by late this year, with a view to signing the in the new year.
This would ensure the replacement patrol boats would be ready for service in the second half of 2004, consistent with the Government's 2000 Defence White Paper commitments.
"The current fleet of 15 Fremantle Class Patrol Boats have served the Navy and Australia well but they are aging and costly to maintain," Senator Hill said. "These new vessels will provide the RAN men and women who operate them with a more capable, modern and reliable vessel in which to help them better protect Australia's coastline. They will also provide the Navy's patrol boat capability for the next 20 years."
FACT SHEET : Patrol Boats for Australia's Border Security Patrol Boat Tender Shortlist Announced
