Defence streamlines service provider arrangements

Minister for Defence Industry, the Hon Christopher Pyne MP, today announced Defence had entered into Major Service Provider (MSP) agreements with four Australian industry led teams to more effectively engage with industry.

Minister Pyne said the MSP agreements represent a fundamental change to how Defence’s Capability, Acquisition and Sustainment Group (CASG) service providers will work together to acquire and sustain capability for the Australian Defence Force (ADF). The Major Service Providers will support CASG in tasks like workforce planning and management, industry and supply chain management, and longer term partnerships to better deliver capability.

“The agreement actively encourages healthy competition in the market, including fostering a viable and vibrant small-to-medium enterprise (SME) sector for ‘above the line’ subject matter expertise,” Minister Pyne said.

“Not only does this arrangement recognise industry’s importance as a fundamental input to capability, it will also deliver better value for money to the Commonwealth.”

Minister Pyne said this has been achieved through an interactive and competitive dialogue process with industry, including with the four successful MSP teams led by Jacobs Australia, Nova Systems Australia, Kellogg Brown & Root (KBR), and Downer EDI Engineering Power.

“The MSP agreement will also ensure an enhanced and sustainable capability exists within both Defence and industry to support current and future Commonwealth work requirements,” Minister Pyne said.

“All the MSPs provided a competitive price for the delivery of services and are committed to working with, growing, and developing the Australian Defence industry sector.”

By mid-2018 a further tranche of service provider arrangements will be delivered. The new Defence Services Support panel will make available the expertise of over 350 SMEs to support Defence in delivering capability.

Further details on the four MSPs involved in the agreement, which comes into effect on 1 February 2018, can be found online at: www.defence.gov.au/CASG