Aust + NZ Defence Directory 2021-22

AUSTRALIAN + NEW ZEALAND DEFENCE DIRECTORY 2021/22 INDUSTRY GROUPS, ASSOCIATIONS & GOVERNMENT DEPARTMENTS THE NATION BUILD

NEW SOVEREIGN INDUSTRIAL CAPABILITY PRIORITIES D efence businesses in Australia and New Zealand have faced extraordinary challenges during the COVID-19 pandemic. Well before the pandemic highlighted challenges to supply chains, Defence was already working to ensure access to the most critical industrial capabilities that underpin Australia’s defence preparedness. Defence is committed to achieving the Government’s vision for a robust, resilient and interna- tionally-competitive Australian industrial base. Australia’s Sovereign Industrial Capability Priori- ties (the ‘Priorities’) reflect the industrial capabilities Australia must have access to, or control over, to help us meet the challenges of our rapidly evolving and dynamic security environment. They will also increase our self-reliance as we continue our recovery from the COVID-19 pan- demic. The Minister for Defence Industry, Melissa Price, announced four new Priorities, in August 2021, in addition to the 10 Priorities identified through the 2018 Defence Industrial Capability Plan. The new Priorities are:

• Robotics, Autonomous Systems, and Artificial Intelligence;

Stephen Moore Assistant Secretary Defence Industry Branch Department of Defence

• Precision Guided Munitions, Hypersonic weapons, and Integrated Air and Missile Defence Systems;

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Space; and

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Information Warfare and Cyber Capabilities.

Defence recognises that a strong partnership with industry is fundamental to developing Defence capabilities, and we are closely engaging with industry partners to further refine these new Priorities and develop industry and implementation plans. These plans will focus on the areas most critical for the delivery of each Priority through the identification of critical industrial capabilities. The publication of these plans will provide industry with the confidence to understand and invest in those capabilities most sought after by Defence. Many of the actions included in the industry and implementation plans will come directly from insights provided by Australian business. The eight industry and implementation plans already published also include a list of initiatives and programs to support Australian industry, including the Sovereign Industrial Capability Grants Program. Working closely with the Centre for Defence Industry Capability and Depart- ment of Industry, Science, Energy and Resources, Defence delivers capital expenditure grants that provide funding to small and medium businesses contributing to the development, maintenance and enhancement of the Priorities. Since the grant program opened in November 2018, 99 grants have been awarded to Australian small and medium businesses, with a combined value of $55.6 million. It should come as no surprise that the Priorities are considered during the Defence procurement process – after all, Defence has considered industry as a fundamental input to capability since 2016. These days, before a Defence project goes out to tender, an internal assessment determines if the project includes any of the industrial capabilities needed in Australia. Where the Priorities apply, tenderers are required to include in their response the steps they will take to build, maintain, or enhance those capabilities locally. The evaluation of each bid takes account of its ability to deliver an Australian industrial response; this assessment is considered alongside capability, cost and schedule as part of the decision-making process. But it is not enough to apply the Priorities during the tender process alone. By the tender stage, businesses need to be established and ready to deliver the requirement. To support the development of an industrial base, Defence’s involvement starts much earlier in the Defence Capability Life Cycle – at the strategic planning stage. That’s why Defence is ensuring that industry is considered at the earliest possible stage in our planning and procurement processes. Defence firmly believes that a strong partnership between Defence and industry is fundamental to developing Defence capabilities. This goes beyond the ability to win or award contracts, and goes to the heart of keeping our nation safe and secure. This partnership includes working with New Zealand businesses. It includes increased development and enhancement of the newly announced Priorities. It extends to access- ing a pool of skilled, security-vetted personnel, and support to enter the export market. It involves improving the measurement of our defence industry and understanding our supply chain. Together these steps will help us reach our objectives set out in the 2020 Defence Strategic Update and Force Structure Plan.

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