Powered by MOMENTUM MEDIA

Website Notifications

Get notifications in real-time for staying up to date with content that matters to you.

Government strengthens local involvement with changes to tender process

government strengthens local involvement with changes to tender process

The Minister for Defence Industry Christopher Pyne has announced changes to the process companies undertake when responding to defence tenders, with a strong emphasis on maximising Australian industry involvement.

The Minister for Defence Industry Christopher Pyne has announced changes to the process companies undertake when responding to defence tenders, with a strong emphasis on maximising Australian industry involvement.

Minister Pyne said the changes will strengthen the requirement for Australian involvement in Defence projects.

Advertisement
Advertisement

"We are changing the process companies undergo when responding to tenders for defence equipment," Minister Pyne said.

"The Australian Industry Capability Plan Template has been strengthened in line with government’s defence industry policy of maximising Australian industry involvement in meeting Australia’s defence capability goals, creating thousands of long-term jobs across the country and economic growth.

"This new template demands more than ever before from defence companies, driving them to outline how and where they will involve Australian industry, before we will even consider their bid."

The changes have been made to explicitly address:

  • the tenderer’s strategy for maximising Australian industry involvement in the project and enduring Australian industry capability benefit beyond the work period;
  • maximised inclusion and evidence of having positively engaged Australian small to medium enterprises and Indigenous business enterprises;
  • proposed investment in innovation, and collaborative research and development efforts in Australia;
  • establishing, transitioning or enhancing skills, knowledge, systems, technology and infrastructure within Australian industry; and
  • identification and promotion of Australian defence export opportunities and as a contributor to the global supply chain.

Minister Pyne said this new template has already been used across some of the future shipbuilding projects and will now be used across any appropriate procurements.

PROMOTED CONTENT

"We have already used the new template in our Offshore Patrol Vessel and Future Frigate requests for tender and are now rolling it out across all relevant materiel procurements," Minister Pyne said.

"This reflects the seriousness with which this government takes ensuring we are maximising Australian industry involvement in our Defence capability and the thousands of jobs that will flow from this commitment.

"It is also a clear signal to overseas large contractors wishing to do business in Australia that they need to take Australian defence industry capability seriously."

The move comes after much debate around how much Australian industry will contribute to the $50 billion Future Submarine Project.

While the previous CEO of DCNS Sean Costello put forward a 90 per cent Australian industry contribution figure, there are fears it could fall well below that to just 60 per cent.

More information about defence tendering and contracts can be found here.

 

Government strengthens local involvement with changes to tender process
DCNS-Future-sub.jpg
lawyersweekly logo

The inaugural Defence Connect AIC Summit will place you with key decision-makers and stakeholders within the defence industry to discuss the government’s intention to improve AIC and increase the nation’s sovereign production, defence capability and resilience. Don’t miss your chance to be part of this event, register for free today to attend the live stream on 22 October. Register your interest to attend, visit: www.defenceconnect.com.au/aic-summit

more from defence connect

NSW firm tapped to build Army vehicle fleet
Sep 24 2021
NSW firm tapped to build Army vehicle fleet
A multimillion-dollar contract has been awarded to a Port Macquarie-based business for the develop of rough terrain vehicles. ...
Sep 24 2021
QUT to develop technology to identify fallen Australian soldiers
The Morrison government has granted the Queensland University of Technology with a $2.2 million contract to develop forensic techn...
Sep 24 2021
MH-60R Seahawk achieves operational milestone
The Royal Australian Navy helicopter has surpassed 2,000 flight hours while on deployment in south-east Asia. ...