Value-for-money principle guides new defence contract with Raytheon

The signing of an agreement between the Defence Materiel Organisation (DMO) and Raytheon Australia for the ongoing maintenance and repair of the Australian Defence Air Traffic System (ADATS) is the latest in a series of reform measures designed to maximise value for money, the department of Defence has said.

Head of the DMO’s Electronic Systems Division Michael Aylward said the remediated follow-on support contract is part of an ongoing program of reform.

“The announcement represents a five-year, $72 million investment for Australian industry and as part of DMO’s ongoing Strategic Reform Program, the new contract will save an estimated $14 million,” Aylward said.

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