Lockheed Martin signs $700 million contract to design combat system for future submarines
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A $700 million contract to design the weapons system for the Navy's fleet of 12 new submarines will create 200 jobs mostly in SA, the Federal Government says.
The Australian arm of defence giant Lockheed Martin was awarded the work in 2016, after it was preferred to US rival Raytheon.
That came months after French company DCNS won the long-anticipated $50 billion future submarines contract to build the new vessels, which will replace the Navy's ageing Collins Class fleet.
The Federal Government said the latest contract with Lockheed Martin Australia sets out the terms of the project, including the $700 million price tag.
"Today marks a further step forward in our partnership with Lockheed Martin Australia in delivering a fleet of regionally superior submarines to Australia," Defence Industry Minister Christopher Pyne said.
"This contract will cover work to 2022, including the design of the combat system and procurement activities to select subsystem and component suppliers."
In recent weeks, the future submarines program has been hit by allegations of fraud, as well as claims of cost blowouts and delays.
But Mr Pyne insisted the program "remains on time and on budget".
As part of the submarine replacement program, the French Suffren — or Barracuda — will be modified to replace its nuclear propulsion with conventional diesel electric power.
At the time DCNS was awarded the contract, Prime Minister Malcolm Turnbull stressed the submarines would be built in Adelaide and the project would create 2,800 Australian jobs.
It is unclear if the 200 jobs flagged today are included in that figure.
In June, DCNS also appeared to back away from its commitment to complete 90 per cent of the submarine build in Australia, telling a Senate committee it did not plan to directly involve Adelaide-based ASC in construction.
Topics: navy, defence-industry, defence-forces, defence-and-national-security, defence-and-aerospace-industries, federal---state-issues, adelaide-5000, sa, osborne-5017, australia
