Sovereign Industrial Capability Assessment Framework Update Matt - - PowerPoint PPT Presentation

Sovereign Industrial Capability Assessment Framework Update

Matt Ramage, Assistant Secretary Defence Industry 10 October 2017

Sovereign Industrial Capability Assessment Framework Guidance

• Defence will evolve the Priority and Strategic Industrial Capability policy to

improve the identification and management of sovereign industrial capabilities that develop and support our Defence capabilities

• The Framework will improve identification and management of the sovereign

industrial capabilities at the strategic level through an improved identification and management plan for sovereign industrial capabilities; and at a project level

• “Those capabilities that are so important to Australian Defence missions that

they must be developed or supported by Australian industry because

• verseas sources do not provide the required security or assurances we need”
• Clearly support Defence preparedness and operations, be technically and

commercially feasible and affordable for Australian industry to maintain

• Six assessment criteria: Protection of Intent; Independence of Action;

Interoperability Limits and Benefits; Assurance of Supply; Essential Skills Retention; and Leverage Comparative Advantage

Sovereign Industrial Capability Hierarchy

• Sovereign Defence Capabilities (e.g. JORN) that Defence must

maintain an independent capability to operate and sustain

• Sovereign Industrial Capabilities that are particular source of strategic

advantage, or where their absence poses an acceptable risk to Defence’s ability to achieve its mission

• Sovereign Industrial Enablers (e.g. the Naval Shipbuilding Industry)

are elements of the industrial base that directly support Defence preparedness and operational requirements

• Industrial Base Sovereignty (e.g. Advanced Manufacturing and Heavy

Engineering) that delivers enablers and allows Australia to quickly mobilise industrial resources during crisis

Sovereign Industrial Capability Principles

• The initial Sovereign Industrial Capabilities must be:
• Realistic – will continue to rely on international partners for many of
• ur major platforms and systems with limits to sovereignty
• Absolute priorities to achieve the Defence mission where Australia

must have an independent industry capability. Small subset of defence industry policy and opportunities

• Clear and actionable – not so broad as to be unmanageable, but not

so narrow that they are fixed in current companies or technologies

• Managed across strategy, force design, capability, and industry

planning – understand them properly and connect to decisions

• Provide the means to test the policy and its implementation

Sovereign Industrial Capability Determination

• Used a comprehensive process to identify and refine the proposed

Sovereign Industrial Capabilities flowing from:

• Strategic guidance – Defence White Paper and Defence Planning

Guidance

• Application of the assessment criteria and supporting questions

across the Integrated Investment Program capability programs

• Refinement with strategy, force design, capability and program

managers of absolute priorities for Australian industry sovereignty

• Finalisation of the scope, scale, and description of the initial priority

Sovereign Industrial Capabilities

• Finalisation of the implementation plan, timings, and resources

Disposal

Possible Sovereign Industrial Capability Implementation Approach

Sovereign Industrial Capability Management System Identify and review Sovereign Industrial Capabilities Capability Life Cycle Force Design

Guidance

Program/ Project Definition IIP Programming/ Procurement Australian Industry Capability Requirements Sovereign Industrial Capability Industrial Health Assessment and Support Sustain and adapt in-service ·Strategic management by Defence Industry Policy Division ·Capability life cycle consideration ·Defence Innovation Hub/Next Generation Technologies Fund ·Centre for Defence Industry Capability business assistance, skilling, and grants ·Export Oversight – Control and Support ·Technology roadmaps and regular health assessment

Questions?