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Figures obtained as part of a freedom of information request by former independent senator Rex Patrick has shown that the Australian Submarine Agency employed more contractors than ADF staff.
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A staff headcount seen by Defence Connect has revealed that Australia’s peak agency overseeing the delivery of nuclear-powered submarines employed 56 members of the Australian Defence Force (Defence Submarine Unit) alongside a total of 58 contractors.
The headcount was contained within briefing notes prepared for ASA chief operating officer Megan Lees ahead of budget estimates in October.
Despite having more contractors than members of the ADF, the briefing notes outlined the number of contractors “are expected to grow until FY2026-2027”.
The ASA employed 306 Australian Public Service personnel.
The revelation comes as Defence confirmed engaging embattled professional services firm PwC to support the Nuclear-Powered Submarine Taskforce, the forerunner to the ASA.
In total, Defence spent $8,055,928.56 with PwC between 2021 and 2023 over two separate contracts, with one contract phase costing Defence $560,142.57 for just 12 weeks of consulting work.
PwC was embroiled in a widely reported tax scandal in early 2023, which saw senior partners at the firm share confidential Commonwealth information with clients to avoid paying tax.
Leaked internal emails from PwC showed that confidential tax information was shared with over 50 of the company’s partners, some of whom then used the information to approach 14 global companies.
The figures were sourced in talking points developed for the head of the ASA, Vice Admiral Mead, for budget estimates, who justified the engagements, outlining that “value for money was a core consideration in the Nuclear-Powered Submarine Taskforce’s engagement of PwC”.
The ASA has not engaged with PwC since its creation on 1 July 2023.
Speaking to Defence Connect, an ASA spokesperson explained the taskforce’s engagement with PwC: “The Nuclear-Powered Submarine Taskforce entered into two contracts with PwC, during the 18-month consultation period.
“At no time was PwC briefed into any security compartment, nor were they part of any development of the Optimal Pathway during the 18-month consultation period.”
