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Delivering sustainment through collaborative partnerships

In 2018, Naval Ship Management (NSM) won the $1.5 billion contract to sustain and support the Royal Australian Navy’s largest ships, the two Landing Helicopter Docks and their 12 Landing Craft.

When the former Minister for Defence, Christopher Pyne, congratulated NSM on the LHD contract win, he referenced the company’s success on the Anzac program:

“Naval Ship Management has a proven track record within similar sustainment programs, with proven performance in innovation, collaboration and building Australian Defence Industry workforce capability,” Minister Pyne said at the time.

NSM’s Joe Smith said the LHD contract had seen the company invest significantly in its capabilities in Sydney, where the LHDs are based and most of the work will take place.

NSM had also reached out to the naval supply chain in NSW, and is forming collaborative partnerships with small business companies to fulfil the work.

“A robust and sovereign supply chain has always been important to us, which is why we look to create enduring and productive relationships with our suppliers – and the LHD contract is an opportunity to extend the breadth and depth of our supply chain, whilst also providing more information and certainty to our local providers,” said Smith.

“We always try to ensure that the benefits of a long-term contract flow down to our suppliers, so they too can confidently and continually invest in their personnel, capability and capacity.”

NSM’s approach, says Smith, was to take the “enterprise” perspective.

“We recognise that to provide the best service to the Commonwealth we need to collaborate with companies that specialise in doing the things we don’t do, so leveraging our robust and extensive supply chain in an effective manner, is all part of delivering sustainment successfully,” he said.

Naval Ship Management (NSM) Australia was formed in 2010 as a Joint Venture between Babcock and UGL. In 2022, Babcock acquired the remaining shareholding in NSM. NSM is now fully owned and trades under Babcock.

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