The contract, worth around $31 million, ensures the continued employment of nearly 100 local maintenance technicians and support personnel in Townsville, said Greg Combet, minister for defense personnel, materiel and science.

The contract also has five one-year options.

"This new contract offers increased value for money and a more balanced approach to risk when compared to the previous arrangements," said Combet. "This is in line with the principles that have been outlined in the government's Strategic Reform Program for Defense. The contract was sourced through a competitive open tender process."

The Australia army operates around 34 of the S70A-9 Black Hawk variant in numerous theaters and humanitarian efforts 5 Aviation Regiment, 171 Aviation Squadron and the School of Army Aviation. Tasks include tactical transport of infantry soldiers, search and rescue, medical evacuation, disaster relief and external carriage of heavy equipment including artillery howitzers and light vehicles. The army's Black Hawks were first manufactured in Australia in 1986 by Hawker de Havilland under license from Sikorsky.

BAE will carry out the support work at its renovated aircraft maintenance center in the northeast coast city of Townsville in the state of Queensland. The center was opened in August at a cost of around $9 million.

Renovations included the replacement of small, cramped hangars dating back to World War II but still used by BAE. The two new hangars are joined by a central atrium and cover 59,200 square feet. Each can accommodate an aircraft up to the size of a Boeing 737 and offer direct access to the city airport's taxiway.

The Black Hawks are already being upgraded with an improved electronic warfare self-protection system. However, in October the Ministry of Defense decided to scrap a more advanced version for the helicopters, called Project Echidna, because of the aircrafts' now limited lifespan.

Savings are expected to be around $43.5 million with the cancellation of the more advanced system, including the BAE Systems Australian-developed ALR-2002 radar warning.

The Black Hawk will remain the primary troop lift capability for the army until it is replaced by the MRH 90 and then withdrawn from service.

The MRH is the Australian variant of the NH90 tactical transport helicopter made by Eurocopter and will also eventually replace the navy's Sea King helicopters.

The first four MRH-90s were assembled in their European factories at Marignane, France, and delivered to the Australian army beginning in November 2007 and into 2008. The remaining 42 are being assembled by Australian Aerospace at its Brisbane facility to be delivered up to 2014.

The MRH-90 carries two pilots and 18 fully equipped combat troops up to 550 miles at around 180 mph.

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