Brisbane-based company NIOA has been selected for Tranche 1 of the Lethality System project which will create 23 new jobs while providing an enhanced capability and optimised weapon systems to the Australian Defence Force (ADF).
Valued at more than $7 million, the first stage contract will see NIOA approach the market, and test and evaluate weapon systems to provide recommendations to Defence in an open, impartial and transparent manner.
Defence Minister Linda Reynolds said the awarding of the contract to NIOA follows a recent announcement of a new 10-year contract with the company for the tenancy at the Benalla munitions factory in Victoria, in a new deal expected to create up to 100 jobs.
“This contract reflects this Government’s commitment to Australian industry, as outlined in the release of the Defence Strategic Update 2020. It also supports the Munitions and Small Arms Sovereign Industrial Capability Priority in securing domestic capability,” Minister Reynolds continued.
“There are significant opportunities for Australian suppliers to offer weapon systems including ancillaries and munitions, and services across all three tranches of the project, which will create even more Australian jobs over the years to come.”
Defence Industry Minister Melissa Price said the contract includes performance based measures which are supported by a sound governance framework.
“This contract is a great outcome for an Australian company which has set a target of 100 per cent Australian industry content for this stage of the project,” Minister Price added.
“It demonstrates the Morrison Government’s commitment to maximising Australian industry involvement across all our projects.”