Defence has entered into major service provider (MSP) agreements with four Australian industry-led teams, in an effort to better engage with industry.
Minister for Defence Industry Christopher Pyne said the agreements with Jacobs Australia, Nova Systems Australia, Kellogg Brown & Root (KBR) and Downer EDI Engineering Power represent a fundamental change to how Defence’s Capability Acquisition and Sustainment Group (CASG) service providers will work together to acquire and sustain capability for the Australian Defence Force.
The MSPs will support CASG in tasks like workforce planning and management, industry and supply chain management, and longer-term partnerships to better deliver capability.
"The agreement actively encourages healthy competition in the market, including fostering a viable and vibrant small-to-medium enterprise sector for ‘above the line’ subject matter expertise," Minister Pyne said.
"Not only does this arrangement recognise industry’s importance as a fundamental input to capability, it will also deliver better value for money to the Commonwealth."
Minister Pyne said the agreements were achieved through an interactive and competitive dialogue process with industry.
"The MSP agreement will also ensure an enhanced and sustainable capability exists within both Defence and industry to support current and future Commonwealth work requirements," Minister Pyne said.
"All the MSPs provided a competitive price for the delivery of services and are committed to working with, growing and developing the Australian defence industry sector."
Defence said by mid-2018 a further tranche of service provider arrangements will be delivered and the new Defence Services Support panel will also make available the expertise of over 350 SMEs to support Defence in delivering capability.