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Billion-dollar defence deal, structural reorganisation for Toll


Greg Combet, Minister for Defence Personnel, Materiel and Science, has announced that the Toll Group’s Toll Transitions Pty Ltd has been selected as the preferred tenderer for the provision of removal and relocation administration services to Australian Defence Force (ADF) members.
 
Defence currently relocates around 23,000 ADF members and their families each year as part of the military posting cycle, Mr Combet said.
 
This new contract is also important to Defence as it combines two previous contracts into one. This streamlined approach allows ADF members further convenience and less red tape when they are required to move.
 
To assist ADF members and their families throughout this process, the new contract for the first time will provide one contact point for both removal and relocation services.
 
The contract will be the largest removal contract in Australia and involves locations all around the country, including regional and remote areas.
 
Industries such as removalists, accommodation providers and airlines will benefit from this contract through sub-contracting arrangements. A significant number of these businesses are likely to be small to medium enterprises, Mr Combet said.
 
The contract is for 5 years with the option for four, one-year extensions at the discretion of Defence and dependent on performance. The total cost of both removal and relocation components is more than $1 billion for the first five years.
 
Defence expects to sign the contract with Toll once the contractual issues are finalised. The removal and relocation contract will commence on 1 July 2010.
 
“We are pleased to announce that Toll Transitions, the Toll Group’s specialist relocations business, has been notified they have successfully tendered for the contract with the Department of Defence for the provision of both Removal Services (RS) and Relocation Administration Services (RAS),” said Toll Group Managing Director, Paul Little.
 
“The initial five year period is expected to generate revenues of more than $1 billion, and if the extensions are granted total revenue of around $2 billion would be expected.” Mr Little said.
 
Removal services involves the movement of the personal and household effects of Defence members. Relocation Administratio...
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