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Australian Defence White Paper 2009

Australian Defence White Paper 2009

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Published by Theatrum Belli

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Categories:Types, Brochures
Published by: Theatrum Belli on May 03, 2009
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16.14 A signifcant proportion of the funding allocated to Defence for the procurement of goods and services is

likely to go to locally-based companies, which are a key element of the Australian industrial landscape.

The Government expects Defence to ensure best value for money in Defence spending, based on open

and effective competition.

16.15 Major defence acquisitions are large in scale and scope. Some sensitive or classifed programs can

only be delivered by skilled Defence professionals. The DMO's and industry's workforces need to be

highly skilled if the ADF is to gain maximum return on the Government's investment.

16.16 The DMO and Australian industry face many challenges in delivering the required capability to the ADF.

In the recent past, Defence's major capital equipment projects have suffered schedule delays because

of constraints on the availability of suffcient skilled Defence industry workers. This has resulted in

unplanned slippage of defence capital expenditure and schedule delays against agreed milestones.

16.17 While Defence will seek to maximise the spending in local defence industry, such expenditure must

be managed within the acceptable cost, schedule and risk constraints of the strategic guidance in this

White Paper. Project requirements must ultimately refect the demands of operational performance,

but they need to be tempered by an understanding of cost, risk and what the market can deliver,

including 'off-the-shelf'. The Government needs to make informed decisions about the appropriate mix

of cost, risk and capability. Consequently, the Government has decided that military-off-the-shelf and

commercial-off-the-shelf solutions to Defence's capability requirements will be the benchmark against

which a rigorous cost-beneft analysis of the military effects and schedule aspects of all proposals

will be undertaken. Such an approach is consistent with the Defence Procurement and Sustainment


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