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.
Babcock Australia has been appointed as the Capability Life Cycle Manager (CLCM) for the Royal Australian Navy’s Anzac-class frigates under a new five-year contract.
In this role, Babcock will provide engineering, spare parts supply and asset management services throughout the ships’ service life. The company will also work with small and medium-sized enterprises as a single point of contact for spare parts and asset management, helping to distribute work across a broader Australian industrial base.
The contract will support more than 70 defense industry jobs in Western Australia and New South Wales from mid-2026.
The appointment forms part of the Australian Government’s $150 billion investment in a secure, sustainable and continuous naval shipbuilding and sustainment program.
The Capability Life Cycle Manager is a key element of defense’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.
The CLCM contracts are designed to improve the efficiency and effectiveness of asset management across Australia’s maritime fleet while providing greater long-term certainty for industry. Deputy Secretary Naval Shipbuilding and Sustainment David Hanley said the five-year contract would strengthen asset management for some 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,” Hanley said.
The partnership will ensure the continued sustainment of the navy’s Anzac class vessels and their support systems while creating further opportunities for Australian industry to contribute to fleet sustainment, Hanley added.
Defense is building a continuous sustainment environment aimed at ensuring the navy’s fleet is ready when and where it is needed, with greater agility to operate across Australia and the wider region.
In what the government describes as an increasingly challenging strategic environment, the approach is also intended to strengthen the security of Australia’s sea lines of communication and maritime trade in support of commitments outlined in the 2026 Defence Strategic Review.
The contract also provides longer-term certainty for the defense industry, enabling companies to invest, grow and strengthen regional capacity.