Strengthening Opportunities For Local Industry

Senator Fawcett welcomes the Minister for Defence Senator the Hon Marise Payne’s announcement that local industry will have more opportunities to participate in major Defence infrastructure projects.

At a hearing held in Pt Augusta on 8 June 2017, the Senate Foreign Affairs, Defence and Trade Committee heard local businesses emphasise the importance of maximising opportunities for them to participate in Defence infrastructure projects.

The Local Industry Capability Plan pilot projects will require tenderers bidding for major capital facilities projects to state clearly how they have engaged with local industry in providing their tendered solution, and how local industry will specifically be involved in delivering the work packages that underpin the project.

The framework will be piloted by three projects that will go to market in the next few months, including the Explosive Ordnance Logistics Reform Program. This $230 million project covers 12 defence sites including the Explosive Ordnance Depot at RAAF Edinburgh, South Australia.

The pilot projects will inform the development of a Defence Industry Participation Policy the Minister for Defence will release in the first half of 2018. The Policy will provide a more consistent approach to maximising Australian and local industry involvement in Defence procurement of $4 million and above, recognising that Defence procures a range of different equipment, services, and support across many sectors of the Australian economy.

Quotes attributable to Senator Fawcett

Local companies make an important contribution to Australia’s defence infrastructure and we can, and should, do more to maximise those opportunities.

The Turnbull Government is making an unprecedented $200 billion investment in Defence and is determined to ensure local industry is given a fair chance to help deliver this historic program.

This pilot is fundamentally about ensuring that local companies in the vicinity of our Defence bases, facilities and training areas are properly considered and provided the opportunity to compete and win work.

Ends.