The Australian government has signed a $1.5 billion open-ended sustainment contract with Australian companies for lifetime sustainment of ANZAC-class frigates.

The strategic partnership with BAE Systems Australia Defense, Saab Australia, and Naval Ship Management Australia -- a joint venture between UGL and Babcock -- streamlines a number of existing sustainment contracts, the Department of Defense said on Friday.

"The strategic partnership between [the Department of] Defense and industry ensures the ANZAC-class frigates will remain highly capable, safe, environmentally compliant, and cost-effective until their planned withdrawal dates," the department said.

The agreement value of $1.52 billion is for its first eight years and will provide certainty to the principal partners to invest in growing skills and capabilities.

The agreement will also provide increased opportunities for the engagement of small-to-medium sized businesses in the Australian maritime industry.

The majority of the sustainment work will be done in Henderson, Western Australia.

ANZAC-class frigates displace 4,000 tons, are 387 feet in length and have a speed of 27 knots. The first such frigate was commissioned in 1996. Construction of a replacement class frigate is to begin in 2020.

Thales wins Royal Thai Navy contracts
Paris (UPI) Apr 29, 2016 -The Royal Thai Navy has commissioned Thales of France for the modernization of two mine-hunter vessels and for a communications suite on a new patrol vessel.

The combined value of the two contracts was not disclosed.

Under the first deal, Thales will be the prime contractor for the upgrade two Bang Rachan-class mine-hunters, which were built in the 1980s. It will be responsible for the revised vessel design, repairs and modernization, the procurement of needed equipment and the platform integration.

The upgraded ships will be equipped with new solutions, including a machinery control system, navigation systems, upgraded communications capabilities, Sonar TSM 2022 MkIII with M-CUBE command and control suite and a multi-influence signature range to manage RTN ships' signatures.

Thales will work with the local industry to manage the work. It will also provide training and integrated logistic support for the RTN.

The second contract is for the supply of a combat, navigation and communication suite for a second Krabi-class offshore patrol vessel being built by Bangkok Dock.

Thales said it will supply VARIANT surveillance radar, STIR 1.2 EO Mk2 fire control radar and VIGILE Electronic Support Measures with SKWS chaff launcher. A tactical data link, Link RTN and LINK-Y Mk2 are included. They are internal and external communication systems. Thales will also be responsible for their integration.

Also to be integrated on board the vessel are a 76mm gun, two 30mm guns and Harpoon missiles.

The ship is expected to be commissioned in the second half of 2018, Thales said.