14 December 2010 Media Statement

Defence clothing contract ‘best possible value’

Auckland apparel company Pacific Brands Holdings (NZ) Ltd has won a new five-year contract to supply clothing and personnel support items to the New Zealand Defence Force.

“This is the best possible value for money for the Defence Force and the taxpayer,” Defence Minister Wayne Mapp said, announcing the selection of the company, which trades as Yakka Apparel Solutions (YASL).

“Ensuring Defence Force people have the right equipment to get the job done wherever they are is a top priority.

“YASL has offered innovations, especially around the use of technology, and at the same time provided significant savings.

“The Defence Force currently spends around $22 million per year on clothing and personnel support items for ts people. The new contract can provide immediate savings of around a million dollars per year,” he said.

In an open tender process the Defence Force assessed companies on value for money and a range of non-price attributes. They included experience in military clothing manufacture and research and development capabilities.

YASL’s tender relies largely on the same range of sources, suppliers and services as under their previous contract, with a number of enhancements in key areas

The clothing contract is for a term of five years with two, two-year rights of renewal. The total estimated value of the contract is around $200 million

“We are committed to promoting a healthy Defence industry in New Zealand by buying New Zealand-made items where it is prudent to do so. This choice emphasises that commitment,” the Minister said.

ENDS

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