US multinational Lockheed Martin has won the contract to provide logistical services for New Zealand’s defence forces.
Defence won’t comment on the deal at this stage because it is in contract negotiations but sources say the contract could be worth as much as $160 million over several years.
"Project Alexander", as the deal is known, was planned on the back of two logistics services contracts, at Trentham and Waiouru, that are due to expire in June 2010.
Defence wanted the replacement contract to align with other Defence Force contracts as they expired.
The new contract becomes operative in June. Lockheed Martin is understood to have proposed a large supply facility near Ohakea.
Thales, which recently signed a deal to provide integrated ticketing systems to Auckland, was the underbidder for the business.
Lockheed Martin, which was formed in 1995 through the merger of Lockheed and Martin Marietta, is the single largest contractor and largest IT provider to the US Federal Government. It employs 140,000 staff worldwide and turned over nearly US$42 billion last year.
The company has three divisions: aeronautics, space systems, and systems and IT.
In 2000 Lockheed Martin signed a 10-year contract with Airways New Zealand to modernise the country's air traffic systems.