Australia will buy 10 new Alenia C-27J Spartan tactical transport aircraft to replace the Vietnam-era Caribou aircraft retired from service in 2009.
The Australian National Audit Office (ANAO) looked into this procurement following a complaint from opposition defence spokesman David Johnston.
He said other potential suppliers had provided information which raised questions about whether the Alenia deal would provide value for money.
ANAO concluded it did, on the basis that the C-27J would do everything defence required at the lowest cost.
This was a contentious procurement which pitted the C-27J against the Airbus C-295.
Defence favoured the C-27J on the basis that it could fly further and faster with a greater load capacity, in particular its ability to carry special operations vehicles.
For that reason, it opted for a direct procurement of C-27J aircraft through the US military as a Foreign Military Sale (FMS) deal rather than a full tender process.
news.com.au
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