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Long term partners, delivering cost effective sustainment solutions to ANZAC Class Frigates

Naval Ship Management (Australia) Pty. Ltd. is a Joint Venture between UGL and Babcock, established to execute the ANZAC Class Group Maintenance Contract (GMC Group 3).


The Group Maintenance Contract between the Commonwealth of Australia and NSM (AUST) was signed in May 2012 and was in full operation by October 2012.

This Contract represents a clear shift from previous short-term and unpredictable naval ship maintenance contracts to a new grouped asset (‘batched’), long-term, performance based contracting methodology for the repair and maintenance of the Navy’s major fleet units.

The move to a Group Maintenance Contract provides the following key benefits:

To Industry

  • Increased certainty of work promoting investment
  • A commonality of contract/expectation
  • A manageable and predictable level of effort that it can plan against and deliver efficiencies

To Navy

A single long-term partner delivering maintenance, resulting in:

  • Reduced costs and effort associated with performance based contracting
  • Efficiency gains through process improvement
  • An improved material state of the Class through iterative maintenance analysis / effectiveness reviews
  • Improved notice to ships’ crews of the planned location of maintenance and maintenance patterns
Success Story

Naval Ship Management (Australia) or NSM was established initially as a special purpose vehicle for the capture and then conduct of the Group 3 Group Maintenance Contract. Under this contract, NSM (AUST) undertake the planning, scheduling, management and execution of preventative and corrective maintenance for ANZAC Class Frigates and system support facilities on the East and West Coast of Australia.

NSM is a joint venture established by Babcock International Group and UGL Limited. Babcock brought its extensive knowledge of ship repair in support of the Royal Navy whilst UGL provided the in-country expertise and supply chain coupled with an alternate and proven approach to the conduct of project management on complex assets.

Over the past two years, NSM (AUST) has delivered very successful outcomes on behalf of the ANZAC SPO, through the full identification of the ANZAC Class maintenance reliability and then acquitting this maintenance on budget and to schedule.

NSM employs a ‘thin prime’ model for the provision of maintenance services to the Commonwealth. This means that NSM remain a lean but effective project planning and management organisation.

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