The Australian Industry Capability (AIC) program, initiatives to assist the Australian defense industry, were launched Feb. 26 by the Parliamentary Secretary for Defence Procurement, Greg Combet, during his keynote address to the 5th annual Australian Defence Magazine Congress in Canberra.
“The announcement of these programs fulfils Labor’s election commitment to emphasise preference for Australian content and require tenderers to develop detailed strategies for involving Australian industry to the greatest possible extent,” Combet said.
The AIC program is to ensure Australian companies can access the global supply chains of large prime contractors.
“To help enable this, contractors will be required to demonstrate in their tenders how they will give opportunities to involve Australian companies–including how they will be able to gain access to the global supply chains of the large prime contractors,” he said.
“The successful companies will be required to implement these strategies and this will form part of their contractual obligations.”
Key elements launched were the update to the Defence Policy Procurement Manual (DPPM) and the electronic publication of the AIC Practitioner’s Information and Tool Kit, which is available through the Defence Materiel Organisation website ( http://www.defence.gov.au/dmo).
The tool kit provides guidance to defense and industry stakeholders on how to implement, monitor and report on their AIC obligations. Users include companies creating an AIC plan and Ministry of Defence project teams who release tender documentation and evaluate responses.
The information provided in the DPPM and tool kit was largely shaped by industry input during the AIC policy development.
Combet assured industry the AIC policy was not set in stone.
“The policy will be shaped over the next six to 12 months with further consultation and by the new Defence White Paper,” he said.