DMS, a 50/50 joint venture between International security and services contractor Serco and P&O Maritime Services, said the fleet marine services contract has an option for a 1-year extension.

The original contract for a broad range of harbor and off-shore services was awarded to DMS in 1997.

Services include berthing and refueling of ships, commissioning and modifying vessels to suit local and international requirements, as well as setting up integrated logistics management.

It also handles basic recruit training, deep diving teams and the sophisticated requirements of submarine rescue operations. DMS operates eight ocean-going vessels, some up to 2,000 tons, and more than other 100 assorted harbor craft.

Support vessels used on the contract include tugs, fuel and water barges and rigid-hull inflatable boats deployed within Australia at navy bases and also around the world where needed by the navy.

DMS Maritime was founded as Defense Maritime Services in 1997 specifically for the original navy contract. DMS also provides harbor and ship services for the Australian Customs Service National Marine Unit.

The company was selected in 2003 as prime contractor to the Australian government for delivery and through-life support of the navy's fleet of 12 Armidale Class Patrol Boats, a 270-ton, 186-foot vessel capable of 25 knots.

The vessels, four in all, were built for DMS by Austal Ships, based in Henderson, Western Australia. The ships have a Rafael Typhoon stabilized gun mount fitted with two 25mm M242 Bushmaster 12.7mm machine guns.

Serco has supported the Australian military for more than 15 years, providing garrison support to the army, maritime engineering and technical services to the navy and logistics, engineering standards policy advice and aircraft maintenance support to the air force.

Christopher Hyman, chief executive officer of Serco Group, welcomed the renewal of the DMS contract. "Over the last decade we have built a leading position in defense support services in Australia serving our customer," he said.

"In renewing this fleet marine services contract, we have demonstrated our capacity to deliver real efficiencies and service improvements and we look forward to continuing our strong long standing partnership with the Australian navy."

Earlier this month, Serco announced that it received a new single-award, indefinite-delivery, indefinite-quantity contract with the U.S. Navy's Fleet and Industrial Supply Center in Norfolk, Va.

Serco will perform hazardous material management services and provide consolidated HAZMAT re-utilization and inventory management program support to the Navy center's Hazardous Material Program Office.

The deal has a 1-year base period with four 1-year option periods and is valued at around $88 million, if all option years are exercised.

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