Australia selects Navantia for new replenishment ships

Spanish shipbuilder Navantia has been selected to construct two replenishment ships for the Royal Australian Navy (RAN), Minister for Defence Marise Payne has confirmed.

In comments provided to IHS Jane's by her office on 11 March, Payne said Navantia has been chosen as the preferred tenderer for the replenishment ship requirement, known as SEA 1654 Phase 3, and that the company will now be invited to participate in the "Offer Definition and Improvement Activity [ODIA] and negotiations".

"The tender process is ongoing. Following the conduct of the ODIA and negotiations, Defence will return to government for consideration of Second Pass approval, likely in mid-2016," she said. The programme received preliminary first pass approval in June 2014.

According to the recently published Integrated Investment Program that accompanied the defence white paper, the replenishment ship programme is valued at AUD1 billion to AUD2 billion, including operations and sustainment. Payne said local industry will receive a portion of this funding for unspecified services.

"Tender documents identified the need for Australian industry capability for both the proposed acquisition and support contracts," she said. "Local Australian industry content under the acquisition contract is estimated to provide a combined value of in excess of AUD100 million."

Payne said the two replenishment ships are required by the RAN "as soon as possible", but that the "previous government was advised that Australian shipyards do not have the capacity to complete the ships in the required time given the size of the ship and the limitations of the shiplift and yard capacity at Osborne [facilities operated by state-owned ASC in South Australia]."

SEA 1654 Phase 3 seeks to replace the RAN supply ships HMAS Success (OR 304) and HMAS Sirius (O 266) with off-the-shelf acquisitions. To meet the requirement Navantia offered the RAN a design proposal based on the Spanish Navy's auxiliary oiler replenishment ship SPS Cantabria , which entered service in 2011.

Source:  IHS Janes