“Defence procurement must change to meet the strategic circumstances outlined in the DSR and to ensure Australia reaps the full benefits of the opportunities presented by the construction of Australia’s nuclear powered submarines (SSN-AUKUS). We will simplify Defence’s approach to contracting, increase its risk appetite, and shorten the time it takes to receive project and contract approvals, to deliver capability at speed while maintaining appropriate levels of governance.”
Defence Industry Development Strategy, page 33
Defence has updated the ASDEFCON Conditions of Contract for the complex and strategic materiel acquisition templates by standardising common core provisions.
The updates follow the launch of the Defence Industry Development Strategy by the Honourable Pat Conroy MP, Minister for Defence Industry. The Defence Industry Development Strategy establishes the framework and principles for Australia’s defence industry policy.
Key areas of reform
The Defence Industry Development Strategy focused reform of the contracting framework on three key areas:
- Revision and simplification of the ASDEFCON suite of contracts.
- Development of additional, more flexible contracting mechanisms.
- Additional guidance, training and assistance to Defence procurement staff, to ensure the contracting frameworks are implemented in accordance with the principles of tailoring, agility, flexibility and risk appetite.
The Defence Industry Development Strategy at chapter 5 included an Action Step to modify ASDEFCON Complex and Strategic Materiel templates into a standardised suite of common core requirements.
Updated templates
High complexity templates
- Strategic Materiel
- Complex Materiel Volume 2
Medium complexity templates
- Complex Materiel Volume 1
How Opportuna Legal can help
Opportuna Legal advises defence contractors and suppliers on the ASDEFCON suite of contracts and Defence procurement requirements. If you need guidance on ASDEFCON conditions or defence contracting, contact Opportuna Legal.
Anthony Jarvis is the Managing Partner of Opportuna Legal, a corporate and commercial law firm based in Perth, Australia. Anthony advises private companies, founders, and boards on M&A, capital markets, corporate governance, and commercial contracts. Anthony advises business owners and family groups on trust structuring, succession planning, and corporate governance.
Contact: reception@opportunalegal.com.au | (08) 6110 3748
This article is general information only and does not constitute legal advice. Readers should obtain professional advice specific to their circumstances before acting on any of the information contained in this article.