Downer Secures $3.05 Billion Defence Contract Expanding Its Estate Services Footprint
Downer EDI Limited has won a $3.05 billion contract to provide base and estate services to the Australian Department of Defence, significantly expanding its operational regions and responsibilities over the next decade.
- New $3.05 billion contract awarded for six years with potential extensions
- Contract covers New South Wales, Australian Capital Territory, and Queensland
- Services include facilities maintenance, aerodrome operations, and land management
- Expansion from current contract footprint to two of Defence’s largest regions
- Leverages a supply chain of over 900 small and medium enterprises
A Major Win for Downer in Defence Infrastructure
Downer EDI Limited has secured a significant new contract valued at approximately $3.05 billion to deliver base and estate services to the Australian Department of Defence. This contract, part of the Defence’s Base Services Transformation program, marks a substantial expansion of Downer’s role, extending its footprint to cover the New South Wales, Australian Capital Territory, and Queensland regions.
Scheduled to commence in February 2026, the initial term of the Property and Asset Services (PAS) contract runs for six years, with options to extend up to a maximum of 10 years. This long-term engagement underscores the Department of Defence’s confidence in Downer’s capabilities and the company’s long-standing relationship with Defence, which spans over 80 years.
Expanded Scope and Operational Responsibilities
The PAS contract represents the next generation of Defence’s base and estate services, encompassing a broad range of responsibilities. Downer will manage facilities maintenance, aerodrome operations, land management, training area and range management, as well as integration services across more than 30 major Defence bases. This is a notable increase from its previous Estate Maintenance and Operation Services (EMOS) contract, reflecting a strategic growth in both scale and complexity.
Downer’s CEO, Peter Tompkins, highlighted the company’s pride in supporting Defence estates and emphasised the importance of enabling an agile and capable Defence force. He also noted the role of Downer’s extensive supply chain, which includes over 900 small and medium enterprises, in driving efficiencies and improving environmental outcomes across Defence sites.
Strategic and Environmental Implications
This contract not only reinforces Downer’s position as a key player in Defence infrastructure services but also aligns with broader government priorities around sustainability and local industry engagement. The emphasis on environmental outcomes suggests that Downer will be expected to integrate innovative practices to reduce the ecological footprint of Defence estates.
Moreover, the contract’s duration and scale provide Downer with a stable revenue stream and a platform to deepen its expertise in managing complex government infrastructure. The expanded geographical coverage also presents opportunities for operational synergies and enhanced service delivery across multiple Defence regions.
Looking Ahead
As the PAS contract rolls out, market watchers will be keen to observe how Downer leverages its supply chain and technological capabilities to meet Defence’s evolving needs. The potential extensions up to 10 years add an element of long-term strategic planning, with implications for Downer’s workforce, investment, and innovation strategies.
Bottom Line?
Downer’s expanded Defence contract sets the stage for a decade of strategic growth and operational innovation.
Questions in the middle?
- How will Downer integrate environmental initiatives across the expanded Defence estate portfolio?
- What operational challenges might arise from managing such a geographically diverse contract?
- How will the contract extensions impact Downer’s long-term financial and workforce planning?
