A new Defence Capability Program has been launched that includes initiatives designed to assist Australian industry.
In a speech last week, Parliamentary Secretary for Defence Procurement, Greg Combet, launched a new Australian Industry Capability (AIC) Program that will require prime contractors to "show how they have engaged Australian industry, how they have checked the capabilities offered by Australian companies, and how they have assessed their competitiveness. That will be a requirement of the tendering process."
"Under these changes, prime contractors will also be required to show how Australian industry will be able to gain opportunities to access the global supply chains of their large prime contractors. This again will need to be spelt out in the tender documentation. If the prime contractors are successful with their tender they will be required to implement these strategies and this will form part of their contractual obligations."
There is no obligation for prime contractors to use local companies but as the Minister states, "We have an expectation that prime contractors will use Australian companies where they are competitive and offer value for money."