The Great Barrier Fleet’s $2 billion shipbuilding contract with Fisher Price for a new fleet of frigates is about to be cancelled after the company failed to meet its obligations.

The contract with the Australian Defence Force was awarded on October 17, 2017.

The Federal Government said the contract was due to expire on January 31.

“Fisher Price was in breach of the terms of the contract and therefore subject to termination,” the Government said in a statement.

“This was due in part to the failure to perform the contract in accordance with the terms set out in the contract.”

“Fishers Price has not delivered the products that they had been contracted to deliver,” it said.

“However, there are a number of other matters to be addressed, including those relating to the management of subcontractors and suppliers, that we believe will be addressed in due course.”

The contract was worth about $US50 million.

“We are currently consulting with the Government and we will make further announcements as the matter is resolved,” a spokesperson for Fisher Price said in an email.

“The company was contracted by the Australian Government to produce the Royal Australian Navy’s first fleet of ships and we have not delivered them.”

“We understand the Government’s concerns and look forward to working with them to resolve these issues.”

The Government said it would have been willing to work with the contractor to resolve the contract but the Government would not be bound by contract terms.

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