The Australian Government has awarded a five-year contract valued at more than $129 million to Babcock Australia for the sustainment of the Royal Australian Navy’s Anzac-class frigates. According to the Australian Department of Defence, the company has been appointed as the fleet’s Capability Life Cycle Manager (CLCM) and will provide engineering, asset management, and spare parts supply services starting in mid-2026.
Australian Department of Defence press release:
The Australian Government is investing more than $129 million in a new contract with Babcock Australia to sustain the Royal Australian Navy’s Anzac class frigates and strengthen Australia’s commitment to continuous maritime sustainment.
Babcock Australia has been appointed the Capability Life Cycle Manager (CLCM), providing engineering, supply of spare parts and asset management services throughout the ships’ service life.
This five-year contract will support over 70 defence industry jobs based in Western Australia and New South Wales from mid-2026.
This appointment is part of the Australian Government’s $150 billion investment in a secure, sustainable, and continuous naval shipbuilding and sustainment program for Australia.
Deputy Secretary Naval Shipbuilding and Sustainment David Hanley said the five-year contract will strengthen the asset management for several of Australia’s most critical maritime vessels.
“Building a strong sovereign naval shipbuilding industry is not only good for jobs, it’s essential for our national security, Mr Hanley said.
The Capability Life Cycle Manager is a key element of Defence’s national approach to sustaining the Navy’s surface fleet under the Maritime Sustainment Model, as outlined in the 2024 Naval Shipbuilding and Sustainment Plan.
Defence is building a continuous sustainment environment to ensure Navy’s fleet is ready when and where it is needed, with greater agility to operate across Australia and the region.
In today’s challenging strategic environment, this approach strengthens the security of Australia’s sea lines of communication and maritime trade, supporting key 2026 Defence Strategic Review commitment.
The Capability Life Cycle Manager contracts improve the efficiency and effectiveness of asset management across Australia’s maritime fleet.
This partnership will ensure sustainment of Navy’s Anzac class vessels and their support systems.
Babcock Australia will work with small and medium size enterprises, acting as a single point of contact for supply of spare parts and asset management enabling work to flow across a broader industrial base.
“This partnership will strengthen opportunities for Australian industry to contribute to sustainment of our Navy’s fleet,” Mr Hanley said.
Importantly, the contract provides long-term certainty, allowing defence industry to invest, grow and strengthen regional capacity.