Logan-based company, Holmwood Highgate, has successfully entered the defence supply chain network with their contract to supply Rheinmetall MAN Military Vehicles Australia (RMMVA) under the Department of Defence's Project LAND 121 Phase 3B.
In July 2013, Australia's Defence Materiel Organisation (DMO) announced the successful contract for Phase 3B of Project LAND 121 to supply the Australian Defence Force's next generation of logistic trucks. The $1.6 billion contract was won by RMMVA while the contract for the supply of the trailers was awarded to Haulmark Trailers under a separate contract.
Rheinmetall is one of the world's leading suppliers of defence technology, including wheeled and tracked military vehicles, weapons, ammunition, simulation solutions, command and control technology, force protections systems and sensors. Rheinmetall MAN Military Vehicles is Rheinmetall's centre of excellence for logistic and tactical wheeled vehicles.
Under the LAND 121 Phase 3B contract, RMMVA will supply the Australian Army with more than 2500 medium and heavy military logistical trucks and nearly 3000 modules, with the vehicles to be delivered from late 2016 through to 2020.
RMMVA Managing Director Peter Hardisty said the company was committed to ensuring Australian industry had every opportunity to compete on merit for all supply contracts identified for local procurement.
After securing the LAND 121 Phase 3B contract, RMMVA turned to Defence Industries Queensland to help identify Queensland companies with the specific capabilities to undertake work placement.
In 2013, Defence Industries Queensland established the Heavy Vehicle Network. A particular focus of the network is to assist Queensland companies in the heavy vehicle sector to access opportunities under the LAND 121 and LAND 400 projects. With the network in place, Defence Industries Queensland was able to assist RMMVA to quickly connect with industry.
Defence Industries Queensland facilitated an RMMVA industry supplier day to outline the larger subcontract opportunities on offer. With the assistance of Heavy Vehicle Network partners, Industry Capability Network Queensland (ICN), 75 companies were pre-qualified to attend the supplier day. Working closely with RMMVA in a targeted approach, 30 companies were short-listed to participate in business matching with RMMVA procurement personnel and their tier one suppliers.
Holmwood Highgate approached Defence Industries Queensland in 2014 about possible opportunities for the company in the defence industry and how the company could position itself as a supplier. Holmwood Highgate designs and manufactures a complete range of tankers for use in the petroleum, bitumen and chemical industries along with special builds for industry sectors such as mining. Following a site visit, Defence Industries Queensland designed a strategy for Holmwood Highgate to assist them to meet their objectives. Activities included:
- attending Heavy Vehicle Network events including the RMMVA supplier day
- business matching arranged with RMMVA
- a two-day supply chain capability-improvement audit undertaken by ICN
- referrals to project implementation service providers.
Following this program of assistance and a competitive tender process, Holmwood Highgate became one of four companies in Australia to be awarded a contract by RMMVA. Under the contract worth more than $65 million, Holmwood Highgate will design and manufacture 22 integrated fuel tankers, 123 bulk water and bulk water pump storage modules as well as 131 bulk fuel and bulk fuel pump and storage modules for the new Army truck fleet.
The contract has already led to the creation of nine new positions and is expected to further secure at least 40 jobs at Holmwood Highgate’s Loganholme facility. More importantly, Holmwood Highgate will develop a new product as a result of this contract to add to its already substantial product portfolio.
Defence Industries Queensland continues to provide support to Queensland companies through raising the awareness of defence and prime contractor requirements from industry, guiding companies on how to better engage with defence projects, raising company capabilities to access defence opportunities and providing the necessary linkages between defence, primes and Queensland companies.