Minister for Defence Materiel – Defence Australian Industry Capability Plans to be made public

Minister for Defence Materiel Jason Clare today announced that the details of the Australian Industry Capability Plans (AICPs) for all future major Defence acquisition projects will be made public. 

AICPs set out the plan by Defence companies to maximise opportunities for the involvement of Australian industry in major Defence capability projects. 

“This is an important reform for Australia’s Defence Industry,” Mr Clare said. 

“It will ensure the commitments made by major Defence companies to Australian industry are public and they are held accountable for them.” 

Earlier this year Mr Clare made a number of reforms to strengthen Australian Industry Capability Plans. This included: 

  •     The reduction of the threshold for mandatory AICPs from $50 million to $20 million for all eligible Defence acquisition contracts;
  •     The removal of the ability of a company to arbitrarily reduce the level and type of work included in an AICP;
  •     The inclusion of a new clause in the Conditions of Tender allowing a company to be excluded from a tender if they have previously failed to    meet their AICP obligations; 
  •     The addition of AICP performance in the Company Scorecard used by Defence to assess a company’s performance; and
  •      Putting AICP performance in the DMO Project Manager’s Charter to make project teams accountable. 

“This is the next step. It is a common-sense idea,” Mr Clare said. 

“The Australian Defence Industry Network and a lot of Australian small and medium enterprises I have met with have asked for this and the Government has delivered.” 

AICPs are also required for major sustainment contracts. The details of AICPs for major sustainment contracts signed after 1 January, 2012 will also be publicly released. 

The detail published on each acquisition or sustainment AICP will depend on a range of factors including security classifications and commercials restrictions. 

These reforms follow the Prime Minister’s announcement on 6 October of measures to strengthen opportunities for Australian industry to compete for work across Government.  

Media contact: Korena Flanagan – (02) 6277 7620

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