BAE Systems has signed a new contract to continue supporting Australia’s strategic Over the Horizon Radar (OTHR) system that will deliver major savings in support of the Defence’s Strategic Reform Program (SRP). The five-year contract extension, with options to extend for a further nine years is valued at AUD $116 million.

Under the contract, 120 BAE Systems employees (based in Adelaide and the Northern Territory) will provide maintenance, logistics, engineering development, installation, verification and validation, operator training and support to the operation and enhancement of Radar Three and other key elements of the Jindalee Operational Radar Network.

The Company has supported OTHR development, sustainment and operations since the mid-1980s. Throughout the contract, BAE Systems has pursued initiatives to deliver savings and efficiencies.

BAE Systems’ managing director, Jim McDowell, said when the SRP was announced in 2009, the company committed to deliver further cost savings. “Working closely with the OTHR Systems Programs Office and in line with the SRP, the new agreement will deliver in excess of 16 percent savings over the five year contract.”

He added, “Working closely alongside the OTHR Systems Programs Office we have been able to achieve an agreement that includes both the necessary cost savings and incentivisation framework, and one that incorporates a culture of continuous improvement.”