The federal government has awarded a $41 million contract to Tomago engineering firm Varley Group to upgrade the Australian Defence Force's deployable infrastructure.
Defence Industry Minister Melissa Price was meant to be in the Hunter region on Monday with local Liberal candidates to announce the contract, but she tested positive for COVID on a rapid antigen test.
Defence Minister Peter Dutton said in a media statement that the Varley deal was part of an $89 million program to upgrade kennels for military working dogs, power generators, hygiene and catering when forces are deployed in conflicts or for disaster relief.
The government said the contract would create 80 jobs at Varley.
"Sovereign defence manufacturing is a critical part of the government's commitment to keeping our region safe," Mr Dutton said in the media statement.
Australian industry will contribute to the management, systems engineering, manufacture, modification, technical documentation, logistics and training elements of the project.