SYDNEY (Reuters) - The Australian government on Monday selected U.S.-based defence contractor Raytheon Co as the sole bidder for a ground-based air defence system contract worth up to A$2 billion ($1.50 billion).
The surface-to-air missile system will replace the country's 30-year-old short-range capability, which is due to be retired by early next decade, Defence Minister Marise Payne said in a statement.
"A modern and integrated ground-based air defence system is needed to protect our deployed forces from increasingly sophisticated air threats, both globally and within our region," Payne said.
Australia, a staunch U.S. ally, last year committed to increase defence spending by nearly A$30 billion over the next 10 years at a time when China's economic and military power is growing throughout the Asia-Pacific region.
Australia has been streamlining its military tendering process to more quickly acquire equipment. Raytheon Australia will receive a single supplier limited request for tender (RFT) for the ground-based air defence system by the end of June, the government said.
Raytheon Australia said its proposal was based on the Raytheon/Kongsberg Gruppen ASA National Advanced Surface to Air Missile System in use by seven countries, including the United States, Norway, Finland, Spain and the Netherlands.
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"Our solution combines proven U.S. and Norwegian technology and Australian innovation backed by local integration and sustainment capability," said Raytheon Australia Managing Director Michael Ward.
($1 = 1.3367 Australian dollars)
(Reporting by Jamie Freed)