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The Minister for Defence Science and Personnel Warren Snowdon and the Minister for Defence Materiel Mike Kelly today announced changes to the way in which military superannuation retirement pay will be indexed for the Defence Forces Retirement Benefits (DFRB) scheme and the Defence Force Retirement and Death Benefits (DFRDB) scheme.

The schemes were closed in 1972 and 1991, respectively.

From 1 July 2014, payments to military superannuants aged 65 and over, within the DFRB and DFRDB schemes, will be indexed to the higher of the Consumer Price Index (CPI) or the Pensioner and Beneficiary Living Cost Index (PBLCI).

The estimated cost over four years is $34 million. Currently, there are some 56,500 superannuants in the two schemes and approximately 26,700 are aged 65 and over who will benefit from this announcement.

This measure strikes the right balance by assisting many of our older military retirees while being fiscally responsible in the current economic climate.

PBLCI was first used as an indexation factor for the age pension in September 2009 and the Government has decided to include it in the indexation of military superannuation retirement pay for the two schemes.

The Government acknowledges the advocacy of ex-service organisations on this issue and in particular the Returned and Services League of Australia and the Defence Force Welfare Association.

Today’s announcement builds on a comprehensive program of support and recognition by the Australian Government for our veteran community since 2007.

The Government will continue its commitment to engage with service and ex-service organisations to consider the benefits and support available to our current and former service personnel.

Media contacts:

Minister Snowdon’s office: Marcus Butler (02) 6277 7820

Dr Kelly’s Office: Robbie Rynehart (02) 6277 7730 or 0459 810 654

Defence Media Operations (02) 6127 1999

Minister for Defence Materiel Dr Mike Kelly AM MP today announced a significant ongoing employment opportunity for regional Australia with the selection of three industry consortia to progress to the second stage of the tender process for the Domestic Munitions Manufacturing Arrangements (DMMA) Project.

The DMMA Project will establish successor arrangements to those currently in place under the Strategic Agreement for Munitions Supply and the Mulwala Agreement. These measures expire in June 2015.

Dr Kelly said the project intends to deliver a commercial-based arrangement for the production of munitions, propellant and high explosives.

“This will include incorporating operations at the Australian facilities into an established global supply chain,” Dr Kelly said.

“The DMMA contributes to the identified Priority Industry Capability for Selected Ballistic Munitions and Explosives.

“The tender offer includes the Benalla munitions facility and Mulwala explosives and propellants facility.”

The shortlisted consortia will be invited to enter the second stage of the tender process, including the planned release of a Request for Tender in early 2014.

The shortlist includes:

• Alliant Techsystems Inc (ATK), teaming with NOIA Nominees Pty Limited, American Ordnance LLC, and Day & Zimmerman Inc;

• BAE Systems Australia Limited, teaming with Expal Systems SA (supported by BAE UK and BAE USA); and

• Thales Australia Limited, teaming with General Dynamics-OTS, NAMMO, and Winchester Australia.

A decision on the successful tenderer is expected in the third quarter of 2014.

Minister for Defence Materiel Dr Mike Kelly AM MP today announced a significant ongoing employment opportunity for regional Australia with the selection of three industry consortia to progress to the second stage of the tender process for the Domestic Munitions Manufacturing Arrangements Project (DMMA).

The DMMA project will establish successor arrangements to those currently in place under the Strategic Agreement for Munitions Supply and the Mulwala Agreement.  These measures expire in June 2015.

Dr Kelly said the project intends to deliver a commercial-based arrangement for the production of munitions, propellant and high explosives.

“This will include incorporating operations at the Australian facilities into an established global supply chain,” Dr Kelly said. 

“The DMMA contributes to the identified Priority Industry Capability for Selected Ballistic Munitions and Explosives.

“The tender offer includes the Benalla munitions facility and Mulwala explosives and propellants facility.”

The shortlisted consortia will be invited to enter the second stage of the tender process, including the planned release of a Request for Tender in early 2014. 

The shortlist includes:

  • Alliant Techsystems Inc (ATK), teaming with NOIA Nominees Pty Limited, American Ordnance LLC, and Day & Zimmerman Inc;
  • BAE Systems Australia Limited, teaming with Expal Systems SA (supported by BAE UK and BAE USA); and
  • Thales Australia Limited, teaming with General Dynamics-OTS, NAMMO, and Winchester Australia.

A decision on the successful tenderer is expected in the third quarter of 2014.

Media contacts:

Dr Kelly’s office: Robbie Rynehart (02) 6277 7730 or 0459 810 654

Defence Media Operations (02) 6127 1999

 The Minister for Defence Materiel the Hon Dr Mike Kelly AM MP has announced that up to 150 Australian jobs are expected to be created as a result of contracts signed today.

The contracts are related to Phase 3B of Project LAND 121 – ‘Project Overlander’ and were signed by Rheinmetall MAN Military Vehicles Australia and Haulmark Trailers (Australia) for the supply of the Australian Defence Force’s next generation of trucks and trailers.

A contract signature ceremony was held at Damascus Barracks in Brisbane hosted by the Head of the Defence Materiel Organisation’s Land Systems Division, Major General Paul McLachlan AM CSC.

Dr Kelly said the new vehicles, modules and trailers to be delivered under LAND 121 Phase 3B would see Defence acquire the next generation of vehicles in protected and unprotected configurations – representing a significant increase in safety, capability and protection for the Australian Defence Force (ADF).

The 2013 Defence White Paper outlined the requirement to provide around 2700 protected and unprotected medium and heavy vehicles, together with trailers and specialist modules, under Project LAND 121 Phase 3B. These will include: medium and heavy recovery vehicles; medium and heavy tractors; heavy integrated load-handling vehicles (self-loading hook lift trucks); and medium-weight tray variants (with cranes and tippers).

“The vehicles will have enhanced performance and protection representing a significant increase in safety, as well as providing consistency across the fleet, ensuring improved efficiency in operator training and simplifying logistic support to land forces,” Dr Kelly said.

“The maintenance and through-life support for the vehicles and trailers will be undertaken in Australia and is in addition to the previously approved LAND 121 Phase 3A that is replacing the current fleet of ADF light unprotected field vehicles and trailers.

“This phase included the acquisition of around 2150 unprotected Mercedes Benz G-Wagon 4×4 and 6×6 vehicles and trailers to enable tactical training.”

Media contacts:

Dr Kelly’s office: Robbie Rynehart 0459 810 654

Defence Media Operations (02) 6127 1999

Minister for Defence Materiel Dr Mike Kelly AM MP today attended the Australian Military Sales Office (AMSO) Forum for Foreign Defence Attachés, held at the Australian Industry Group offices in Canberra, ACT.

The AMSO was established in 2012 to bring government-to-government sales, defence industry export facilitation, and surplus materiel disposals functions into the same organisation.

“AMSO incorporates the Global Supply Chain (GSC) Program, International Materiel Cooperation, Defence major assets disposals and the former Defence Export Unit,” Dr Kelly said.

“It also undertakes government-to-government sales on behalf of Australian defence industry and the Australian Defence Force.

“AMSO works closely with other parts of Defence, industry and foreign governments to increase Australia’s defence-related exports.”

The forum was attended by a number of foreign defence diplomats, including representatives from some of Australia’s long-time allies, such as the United States of America, United Kingdom, France, and New Zealand.

Representatives from Australia’s regional partners, as well as new and emerging markets for the Australian defence industry also attended.

Dr Kelly said the AMSO had already achieved a number of successes in the disposals, trade mission and GSC programs.

“This includes $35 million generated in export sales from trade events in the past few months.

“I’d like to congratulate the team on the work already done, and look forward to future success,” Dr Kelly said.

 

Media contact:
Dr Kelly’s office: Robbie Rynehart (02) 6277 7730 or 0459 810 654
Defence Media Operations (02) 6127 1999

Minister for Defence Materiel Dr Mike Kelly AM MP today addressed representatives of Australian companies at a Joint Strike Fighter (JSF) industry day outlining the benefits and opportunities associated with the multi-billion dollar program.

The Canberra event was attended by about 100 representatives from Australian industry, US companies involved in the F-35 program and US and Australian Government staff working on industry aspects of the F-35 program.

The Australian companies represented included those presently supplying components and services to the program as well as candidates for future sustainment of the Royal Australian Air Force and world-wide F-35 fleet. 

Dr Kelly told the audience the Australian Government is committed to the JSF program, the world’s largest military aerospace program ever undertaken.

“Australian industry is well placed to capitalise on the Government’s investment in the program, winning $329 million in contracts to date,” Dr Kelly said.

 Over the past 12 months, the program has seen very steady progress and the production of aircraft is going very smoothly.

Dr Kelly said while Australian companies are currently bidding for work making parts for the construction of F-35 aircraft, in the near future there will be opportunities to bid for work associated with the maintenance and support of the world-wide F-35 fleet.

Dr Kelly congratulated Australian companies who have already secured contracts on the JSF, including Quickstep Technologies, Marand Precision Engineering, Lovitt Technologies, TAE, Ferra Engineering, Levett Engineering and Broens.

“Support provided by the Defence Materiel Organisation’s Industry Support Program, Skilling and Training Programs, as well as the Defence Materials Technology Centre and the Global Supply Chain Program have all helped Australian industry secure work,” Dr Kelly said.

“The ability of Australian companies to be ‘world class’ and cost competitive in high technology aerospace manufacturing processes requires world leading innovation and a highly trained and well managed workforce.”

 

Media contacts:
Dr Kelly’s office: Robbie Rynehart 0459 810 654
Defence Media Operations (02) 6127 1999