Back to the Future with the Defence Delivery Agency

The Albanese government announced what it referred to as the biggest overhaul of Defence in 50 years when it unveiled plans to establish a single procurement arm – the Defence Delivery Agency this week. Under the reform the Capability and Sustainment Group, the Naval Shipbuilding and Sustainment Group and the Guided Weapons Explosive Ordnance enterprise will become one entity from July 2026 and form a standalone autonomous agency from 2027. Defence Minister Richard Marles said the move was aimed at addressing cost overruns and delays in Defence projects and bringing more commercial rigour to procurement decision-making. The agency will be headed up by a candidate selected from the private sector with considerable industry experience required. However, the reforms came under scrutiny from several Senators in Parliament’s Senate Estimates. Greens Senator David Shoebridge asked Defence Secretary Greg Moriarty how the DDA was any different to the old procurement arm the DMO (Defence Materiel Organisation) which operated from 2000-2015. The rationale for the DMO was that it too would be more independent of Defence and bring more commercial acumen to Defence procurement. H

Senator Pocock backs SME case in defence procurement

Independent Senator David Pocock also used an Estimates hearing this week to ask about ongoing concerns Australian SME’s were missing out on Defence contracts and too much Defence work was going offshore or to foreign companies based in Australia. But CASG deputy secretary Chris Deeble said Defence was engaging more often and readily with Australian SME’s, citing engagement with AIDN as a case in point. He said Team Defence Australia also worked with SME’s to assist with defence exports and exhibiting at industry conferences overseas. He said Defence also engaged with SME’s through the Global Supply Chain program and through the Australian Industry Capability Plans (which require the Primes to engage local SME’s). But Senator Pocock said there had been an ANAO report which said the AIC program was not working to the benefit of Australian industry. Mr Deeble acknowledged the findings of the report, and he said Defence understood it had failed to adequately monitor AIC plan implementation. He said Defence was

Australian firms appeal for greater share of Defence contracts

A group of Australian defence companies has released new modelling showing even a small domestic shift in weapons and equipment contracts could lift Australia’s GDP by $8 billion and create an additional 43,000 jobs. The modelling reported in The Australian this week found only two Australian firms were in the country’s top 15 Defence contractors. The reporting was carried out by Delta Pearl Partners and commissioned by the Sovereign Australian Prime Alliance which included Austal, Nioa, Nova Systems, Gilmour Space Technologies, Droneshield and Macquarie Technology Group. The modelling found that if only 10 per cent of current defence procurement contracts were moved to Australian suppliers it would add an extra $8 billion to GDP. The report argued that defence procurement funding was one of the most powerful levers available to government to maximise domestic economic benefit, create high value jobs and ensure genuine sovereign capability. AIDN CEO Mike Johnson has urged government to reform Defence procure

Export catalogue open for business

Defence Industry Minister Pat Conroy has invited Australian defence industry companies to showcase their products and services to international governments via the 2026 Australian Defence Export Catalogue. Submissions to the Catalogue are now open – with participation raising the profile of Australian defence industry to key decision makers in international markets. The Australian Defence Export Catalogue supports Australia’s sovereign defence industrial base – a key priority outlined in the 2024 Defence Industry Development Strategy and National Defence Strategy. Currently in its ninth edition, the Catalogue highlights export-ready products and services from more than 336 companies across every state and territory in Australia. Submissions for the Australian Defence Export Catalogue can be lodged via the web portal until 16 January 2026.

National AI Plan focus on SME’s

The Albanese Government has allocated $17 million under its new National AI Plan to assist SME’s to adopt AI. The plan indicates legal changes may be required to a raft of legislation to accommodate AI. This includes altering, laws relating to cyber security, critical infrastructure, consumer protection, privacy, amending laws regarding online safety and copyright laws. However, there is also a strong focus in the plan on supporting AI adoption in the workplace as well as education and training. This includes an initial $17 million to assist the SME sector to continue adopting and managing AI systems. The Government also admits in the plan that $17 million is just a start and the SME sector will need much more support in future as AI opportunities and potential harms evolve. Businesses can also take advantage of the more than $1 billion on offer as part of the National Reconstruction Fund which focusses on critical technologies including AI. The plan also will devote $30 million to establishing an AI Safety