The government of Australia has entered into a new four-year, AU$2.2 billion (US$1.4 billion) sustainment contract with South Australia-based naval shipbuilder ASC as part of the life-of-type extension (LOTE) program for the Royal Australian Navy's (RAN) Collins-class diesel-electric submarines.
HMAS Farncomb will be the first of the RAN's six Collins-class submarines to undergo sustainment and capability enhancement under the LOTE program. The work to upgrade Farncomb will commence in 2026 at ASC's facilities in Osborne.
The Australian Department of Defence (DOD) said the LOTE program will ensure the future availability of the Collins-class submarines without compromising on submariner safety. The government's decisions on the LOTE program have been informed by advice from the DOD as well as independent expert advice.
The DOD said the sustainment contract awarded to ASC will directly ensure job security for more than 1,100 highly skilled workers at Osborne and at Henderson in Western Australia. The department said the contract directly supports employment for more than 700 people in South Australia and 400 people in Western Australia. The broder LOTE program provides work for about 500 people in South Australia.
