Babcock signs $NZ300 million agreement with the New Zealand Defence Force

Babcock International Group announced on April 22 that it has renewed a $NZ300 million agreement with the Government of New Zealand which will see the company deliver through life engineering support services across the New Zealand naval fleet for the next seven years.

Under the renewed contract, Babcock New Zealand will assume the role of Prime Systems Integrator (PSI) for the Royal New Zealand Navy under a five year + two agreement. The New Zealand Ministry of Defence may also access this agreement enabling even greater opportunities for efficiency, cost management and vessel availability for the Navy.

Babcock operates New Zealand’s largest marine engineering and maintenance support facility in Devonport, Auckland, which is also home to the RNZN and its fleet of eleven surface ships. While support of those vessels is the primary objective of the agreement, the site also boasts New Zealand’s largest dry-dock which enables a range of commercial ship maintenance to be undertaken alongside Navy work.

Babcock Australasia Chief Executive Officer Craig Lockhart said the agreement gave the NZDF total “reach back” into the Babcock Marine and Technology Division which supports naval operations around the globe.

“This agreement not only introduces a new and improved commercial relationship but integrates our teams in a way where we can achieve much greater levels of program availability, capability and certainty of delivery at lower cost,” Mr Lockhart said.

“The new arrangement has allowed for significant numbers of New Zealand Naval personnel to be integrated within the Babcock structure providing real benefits to both organisations.”


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