The Australian Department of Defence (DoD) is encouraging industry suppliers to apply for the fourth generation of contracts to deliver services to defence bases.

Australia Defence Industry Minister Melissa Price said that the federal government hoped that the long-term contracts to service defence bases would add around $882m (A$1.2bn) per annum into the Australian economy.

Price said: “Defence wants to hear from suppliers that can contribute to the delivery of base services with investments that will provide a massive shot in the arm to our economic recovery from Covid-19.

“Importantly, these will include opportunities for small to medium businesses, in both local and regional areas, to participate in the supply chain for the delivery of these services.”

According to Price, base services play a key role in providing on the ground estate maintenance, sustainment as well as other services.

These services support the Australian Defence Force (ADF) workforce and strengthen the country’s defence capabilities.

The current contracts will provide services to more than 70 major bases, 300 properties and 25,000 buildings.

These contracts created 3.3 million work orders a year. They also generated over 6,700 local and regional industry jobs.

Price added: “This is an opportunity for prospective industry suppliers to inform defence of current insights into industry trends, capacity and preferred enabling conditions to deliver service excellence.

“Service delivery will be modernised, incorporating new technologies and user experience preferences such as apps to receive updates on base services requests.”

According to the DoD, the existing base services contracts are due to expire in 2024.

Last month, the Government of Australia awarded ten contracts for the defence industry to support the development of new capabilities for the armed forces.