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 overseas sources do not provide the required security or assurances we need” o 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: o Realistic – will continue to rely on international partners for many of our major platforms and systems with limits to sovereignty o Absolute priorities to achieve the Defence mission where Australia must have an independent industry capability. Small subset of defence industry policy and opportunities o Clear and actionable – not so broad as to be unmanageable, but not so narrow that they are fixed in current companies or technologies o Managed across strategy, force design, capability, and industry planning – understand them properly and connect to decisions o 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: o Strategic guidance – Defence White Paper and Defence Planning Guidance o Application of the assessment criteria and supporting questions across the Integrated Investment Program capability programs o Refinement with strategy, force design, capability and program managers of absolute priorities for Australian industry sovereignty o Finalisation of the scope, scale, and description of the initial priority Sovereign Industrial Capabilities o Finalisation of the implementation plan, timings, and resources
Possible Sovereign Industrial Capability Implementation Approach Sovereign Industrial Capability Management System Capability Life Cycle Force Program/ IIP Australian Sustain Disposal Design Project Programming/ Industry and adapt Identify and Guidanc e Definition Procurement Capability in-service review Requirements Sovereign Industrial Capabilities Sovereign Industrial Capability Industrial Health Assessment and Support · 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
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