From the moment it was established, the Defence Industry portfolio had a crystal clear focus.

It was to deliver world-class capability for our Defence Force, export our Aussie ingenuity abroad, broaden the horizons of Australia’s small and medium businesses – and create thousands of Australian jobs in the process.

In June 2019 I was honoured to be asked to take the reins to ensure our Defence programs were delivering for the Australian defence industry.

It has been an extremely rewarding experience and has made me very proud knowing my primary responsibility is to not only deliver for Australian industry, but to ensure the men and women of the Australian Defence Force have what they need to keep Australians safe.

Soon after taking on the role, I embarked on what I called my “100-Day Review”.

This was about identifying the areas in the Defence Industry portfolio that our Government needed to address to deliver on our long-term plan to create a truly sovereign defence industry.

Most in industry would know that my unwavering focus has been to deliver greater support for small business, both in Defence and in industry.

We must also recognise, though, that we need international prime contractors in our defence industry and must develop partnerships with them to deliver major Defence programs.

This is so the men and women of the Australian Defence Force, who are entrusted to protect Australia and Australians, have the best capability on offer. This cannot be compromised.

We also need to strike the right balance to ensure these large companies comply with the rules set by our Government and deliver on contractual obligations to help us deliver a stronger defence industry.

This means transferring intellectual property from overseas to Australia, investing in the Australian economy, creating new Australian jobs, opening long-term opportunities for Australia’s small and medium businesses and developing new Aussie-know-how and know-why for our workforce.

Over the decade ahead and through the Morrison Government’s ambitious $270 billion investment in Defence capability, we will achieve a truly sovereign defence industry.

This has all culminated in a new ‘five pillars’ approach to supporting defence industry:

  1. A new and enhanced Australian Industry Capability (AIC) contractual framework
  2. An independent AIC Plan Audit Program
  3. Commonwealth Procurement Rules (CPR) guidelines update
  4. Centre for Defence Industry Capability (CDIC) Review and its implementation
  5. Australian Standard for Defence Contracting (ASDEFCON) Review

These five pillars encapsulate my vision and approach to changing the way we support and do business with defence industry.

The first pillar, the creation of the new and enhanced AIC contractual framework, involves strengthening core AIC commitments and significantly expanding AIC provisions in contracts.

The second pillar, the establishment of the Independent AIC Plan Audit Program, is to provide guaranteed protections for the Australian taxpayer and our small and medium businesses in defence industry.

The audit program is a targeted program and the tool we will use to ensure major Defence companies are meeting their AIC obligations.

The third pillar was the significant update to the CPR guidelines aimed at better supporting Australian businesses.

For procurements above $4 million, the guidelines now define AIC and sovereign capability as an economic benefit to be assessed as part of the value for money consideration in the CPRs.

Defence has started to roll out more effective guidance to its tender evaluators with respect to AIC.

It will amend its procurement templates to strengthen the application of our Government’s AIC policy and will develop AIC-specific training for Defence tender evaluators.

The fourth pillar, the review of the CDIC, will now turn to ensuring we implement its recommendations to provide more tailored and enhanced support to Australian businesses.

Given the challenges thrown up by the COVID-19 pandemic, it is more important than ever that we continue to develop new ways to support the Australian defence industry.

After almost four years in operation, the CDIC has shown its value in helping more small and medium sized businesses access opportunities in the defence sector.

Implementing the review’s recommendations will ensure that the CDIC continues to connect Defence and small business in a simpler, more cost-effective and more outcomes-oriented way.

The fifth and final pillar is the overhaul and review into ASDEFCON.

I will oversee this review, which will aim to simplify and streamline contracting and subcontracting templates and remove unnecessary complexities that put unnecessary pressures on Australian businesses.

The Terms of Reference to remove the barriers within ASDEFCON, and the consultation process, will be finalised and released in November.

These five pillars are the culmination of a substantial change to how we do business with industry.

We are placing small business front and centre of Defence decision-making.

We are going to provide enhanced and more tailored support to Australian businesses.

And we will cut red-tape, processing times and costs to businesses who contract with Defence.

I am here to support Australian businesses, deliver a sovereign defence industry and ensure the men and women of the ADF have what they need to keep Australians safe.

Our Government will continue to deliver on this commitment.

Monday, 28 September 2020 23:50

23rd September - Latest Defence News from ADA-Vic

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Wednesday, 23 September 2020 00:24

16th September - Latest Defence News from ADA-Vic

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Wednesday, 23 September 2020 00:13

9th September - Latest Defence News from ADA-Vic

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Strengthening how Defence does business with Australian industry

  
Tuesday, 22 September 2020 21:44

CDIC Review Complete

 

More support for business following CDIC review

 Joint media release: Minister for Defence, Senator the Hon Linda Reynolds CSC
Tuesday, 15 September 2020 07:18

Ten Ways to Succeed in Australian Manufacturing

 

AMGC has just released their new report, "Ten Ways to Succeed in Australian Manufacturing"
 

This report arrives at a critical juncture in the current economic climate. Our manufacturers responded to the COVID-19 pandemic with distinction. Now, we rely on Australian manufacturing to be one of the country’s heavy lifters in leading the economy out of recession and on to the road toward a solid recovery with greater capability.

This "Ten Ways" report aims to help manufacturers identify areas where they may want to seek extra assistance. It is arranged so that any of the ten recommendations can be used independently, or in combination, depending upon a business’s circumstances. It contains clear advice and local case studies to explain how to implement steps for change.

Australia can transition from being a lucky country to a smart country. We know that when Australian manufacturers ‘add value’ to a product or service it is greatly respected and becomes more globally competitive. Australian manufacturing carries a strong reputation internationally, it is a broad capability that cuts across all sectors, and now is the time to seize the momentum that is underway.

AMGC is enormously proud of its 2,500+ members’ efforts. This report reflects the achievements of successful manufacturers and we are pleased to share many of the winning formulas with you.

 

This report complements previous AMGC insights into what can make Australian manufacturing more competitive. It follows:

Building Resilience in Australian Manufacturing
Advanced Manufacturing – A new definition for a new era
Sector Competitiveness Plan

 
Monday, 14 September 2020 01:49

ADA-Vic announces new Alliances Manager

 

ADA-Vic is delighted to announce Adam Evans as its new Alliances Manager for the Victorian Defence Alliances.
 
On behalf of ADA-Vic, which delivers this important program for the State Government, Chairman, Bryan O’Connor confirmed the appointment. He celebrated the significant contribution by outgoing Alliances Manager, Charlotte Morris, whose efforts have developed the most integrated and well delivered industry alliance program in the region.
 
“Victoria maintains an extremely dynamic and effective defence industry base. This program, thanks mostly to the efforts of Charlotte, has showcased outstanding Victorian SMEs and provided an excellent framework to support SMEs in Defence supply chains. Now, as Victoria prepares for the economic recovery from COVID-19, the VDA activity becomes even more crucial,” Bryan O’Connor remarked.
 
“Adam is a respected and well-known Victorian entrepreneur, he has led a number of digital and collaboration projects with VDA previously. He is well prepared to deliver the service required during these challenging times, supported by ADA-Vic. During the dedicated and deliberate handover period, Charlotte and Adam will work collaboratively with stakeholders to help position the VDA membership for ongoing success.” said Sean Farrell, the CEO of ADA-Vic.
 
Adam is an active participant in state and national discussions on the value of the dynamic SME base and is a highly effective leader. He will build on Charlotte's legacy and help the Victorian Government, ADA Victoria and the VDA membership continue to deliver outstanding service to defence industry.
 
“Victorian companies have a long and proud history of collaborating to support the national Defence effort in hard times. As we start the recovery phase of our COVID-19 response, we have an incredible opportunity to unlock this potential again. Through the VDA program we can find and connect this potential, and with ADA-Vic mentoring, support and advocacy, Victoria can deliver world leading technologies from right here in our backyard,” said Adam Evans.
 
Charlotte will continue to provide mentoring support to Adam and the VDA as she moves on to continue to support Defence and defence industry by growing the supply chain’s capability and capacity through the DMTC’s Industry Capability Development Program. Adam has commenced the handover and will assume responsibilities on the 1st October 2020.


A copy of the announcement is available to download at the bottom.

 

Tuesday, 01 September 2020 07:54

1st September, 2020 - ADA-Vic Newsletter

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Want to increase your confidence and conversions when pitching your business? 
 

In partnership with Marketing Entourage, the Australian Defence Export Office (ADEO) has developed a five week online pitch training course to support Australian defence industry companies looking to better promote their capabilities.

 

Download the brochure at the bottom of this post.

 

The program is specifically designed to improve the chances of export success for Australian defence industry companies engaging with foreign military and supply chain companies such as international primes. The training is delivered through a series of webinars, online modules and one-to-one pitch practice sessions.

Companies will be provided with the opportunity to have their pitch reviewed by people in highly experienced Defence and prime acquisition.

The online pitch training course is fully subsidised by the ADEO.

We hope to help all companies in the Australian defence industry, although companies who have who have recently participated in an industry delegation with TDA will receive priority for the first cohorts.

There will be several cohorts across the financial year, commencing 7 September 2020, with around 20-30 companies in each.

We anticipate that it will take around 2-4 hours per week to complete the course, and businesses can have as many people as they see fit complete it together under one registration.

 

 

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