Downer EDI Secures $3.05B Defence Base Services Deal
Downer EDI has just landed a massive new defence contract, and it’s worth a staggering $3.05 billion. This deal has been awarded by the Australian Department of Defence and is focused on delivering what’s called Property and Asset Services—or PAS for short. The contract officially begins in February 2026, and while the initial term is set for six years, there are extension options built in that could see it run for as long as a decade.
Now, what exactly does this involve? Under the PAS contract, Downer will be responsible for maintaining and operating Defence bases and estates. That means everything from facilities upkeep and aerodrome operations to land management, training areas, and range management. Integration services will also be included, ensuring that Defence sites run smoothly and are prepared to support the evolving needs of Australia’s Defence Force.
Also Read:What makes this contract particularly significant is the geographical coverage. Downer is set to take charge of operations across New South Wales, the ACT, and Queensland—two of the largest Defence regions in the country. This is a step up from their current role under the Estate Maintenance and Operation Services agreement, which covered a smaller footprint. Essentially, their responsibilities are expanding in both size and scope.
For Downer, this isn’t unfamiliar ground. The company has been a trusted Defence partner for over 80 years, providing sustainment, infrastructure, and estate services across generations. Peter Tompkins, the Chief Executive Officer of Downer Group, highlighted this history by saying the company is proud to serve as custodian of Defence estates. According to him, their work supports the environments where Australia’s Defence personnel train, operate, and prepare for the challenges ahead.
What also stands out is the role of small and medium enterprises in this arrangement. Downer plans to leverage a supply chain of more than 900 businesses, many of them local, to deliver services across 30-plus major Defence bases. This approach not only ensures efficiency but also spreads the economic benefit through regional communities, creating jobs and reinforcing Australia’s industrial base. There’s also an emphasis on improving environmental outcomes, which aligns with Defence’s broader sustainability goals.
If all extension options are exercised, Downer could be delivering these services until 2036, shaping the way Defence bases are run for the next decade. It’s not just about keeping facilities in order—it’s about making sure Australia’s Defence Force has the infrastructure, training areas, and operational environments it needs to stay agile and capable in a changing world.
So, in simple terms, this is more than just a maintenance contract. It’s a $3 billion commitment to ensure that Defence bases are equipped, resilient, and future-ready—while also supporting local industries and communities across some of Australia’s most important Defence regions.
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