Massive pipeline of defence tenders

20 October, 2017

With an estimated $7 billion worth of tenders on the horizon for defence infrastructure in the next 12 months, the sector is in healthy shape says Laing O’Rourke Defence Sector Leader Mike Rinaudo.

Rinaudo, who will be in Perth for CCI’s WA Defence Conference on November 3, says it’s an exciting time to be in the industry.

“The pipeline is massive,” he told CCI’s The Guide.

“I recently mapped potential infrastructure tenders in defence coming into market in the next 12 months and it’s in excess of $7b around Australia.”

Laing O’Rourke, an international engineering enterprise and a tier 1 constructor, has undertaken some of the Defence Department’s largest single site infrastructure projects since World War II including the Moorebank Units Relocation project in NSW.

The company, which has delivered about $1b of defence projects across the country, was managing contractor on the $870m project to move the Department’s assets from the 190ha site to a 110ha site at Holsworthy Barracks.   

Rinaudo says projects about to go out to tender, possibly before Christmas, that will use a WA supply chain if successful include work at the RAAF base in Tindal, near Katherine for the stage 6 redevelopment and works for the KC-30 aircraft. Both projects will be worth more than $800m.

“There’ll be a two-fold opportunity for design consultants in the first instance and then sub-contractors in the second instance. That will depend on who can flex and stretch from Perth to Tindal because it’s quite a distance,” Rinaudo says.

With the Federal Government committing to a continuous shipbuilding program maximising Australian industry, sustainment infrastructure will be required to support the new naval fleets with Henderson Maritime Precinct and HMAS Stirling confirmed as sustainment shipyards requiring continued investment to support the expanding fleet.

Rinaudo says he’s also trying to “sniff out” when the tender for managing contractor for sustainment of the SEA projects will be released and if he was a “betting man” he’d say mid next year.

“You could quite easily say the infrastructure work to support new naval capability will be tendered next year and that would be a lot of work at HMAS Stirling. What it looks like and how they are going to break down the infrastructure opportunity against all of the ship programs, I have no visibility of that yet. Noting the timeline, I think they have to bid it next year.

“The other thing we’d look at from Perth is Osborne North (South Australia). I do know some companies stretch from Perth to Adelaide, so that’s potentially another $600m that will come to market next year as well.”

Rinaudo is keen to hear from WA companies about their capabilities and will talk about local participation opportunities at the WA Defence Conference.

The conference will also feature presentations from:

►Looking to do business with defence? Hear from key decision-makers at the 2017 WA Defence Industry Conference. Get your tickets here.