In a fresh procurement headache, defence companies have been told to resubmit bids based on Australia buying 300 vehicles rather than 450 under the $27 billion project.
The Defence Department is examining slashing billions of dollars from the purchase of hundreds of armoured troop carriers by cutting the order by a third, freeing up funds for other projects including drones.understands the two contenders for the project, which is worth up to $27 billion, have been told to resubmit their bids based on Defence buying 300 infantry fighting vehicles instead of 450.
Known officially as Land 400 Phase 3, the planned purchase of the tracked infantry fighting vehicles is the single most expensive acquisition project in the army’s history. They were also told to prepare budgets based on how much it would cost for the government to increase the order in increments of 50 vehicles.The deadline for the revised bids is the end of July, with a decision now expected in September.
Another source said reducing the number of vehicles was at odds with long-term plans to add an extra brigade to the army, bringing the total number to four. That would imply a need for 600 vehicles.
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