2010 Contract For Air Sustainment Services To The Middle East Area Of Operations

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22nd October 2010, 09:33pm - Views: 587

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Issued by Ministerial Support and Public Affairs, Department of Defence, Canberra, ACT

Media contact: 02 6127 1999, Fax: 02 6265 1545

MSPA 497/10

Friday, 22 October 2010

2010 Contract for Air Sustainment Services

to the Middle East Area of Operations

Defence has entered into a two year contract with Adagold Aviation Pty Ltd for the

provision of air sustainment services to the Middle East Area of Operations (MEAO). 

The contract was signed on 22 October 2010 and will commence on 23 November


The contract represents a substantial improvement in value for money to the

Commonwealth, with significant savings over the two year term of the contract.

Following a complaint about aspects of the tender, the Secretary of Defence

commissioned a probity review on 15 July 2010 into the 2010 tender for the provision

of MEAO air sustainment services. This review was undertaken by Defence’s Chief

Audit Executive.  Concurrently, Defence’s probity review process was independently

validated by PricewaterhouseCoopers. 

Deloitte Touche Tohmatsu and the Australian Government Solicitor were

subsequently engaged in 02 September 2010 to conduct an additional independent

assessment regarding the financial viability of the preferred tenderer and the overall

selection process. Those aspects were beyond the scope of the Chief Audit

Executive’s probity review. 


That assessment did not identify any evidence of bias in the process, any outside

influence that could have compromised the overall selection process or any reason

that would suggest that the tenderer was not a fit and proper organisation. These

findings were consistent with the outcome of the Defence probity review.  

Media contacts:

Defence Media Liaison:

02 6127 1999 or 0408 498 664

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