Business is focused on accelerating capability

Defence can do ­little without industry, so how can we best help deliver capability at speed?

Australian-owned digital-first contractor Built delivered Hanwha Defence Australia’s new Armoured vehicle Centre of Exellence (H-ACE).

This has already been a big year at the nexus of Defence and industry. Drawing on the National Defence Strategy, the Integrated Investment Plan, the Defence Industry Development Strategy, and recent conferences, it’s clear that momentum is building.

As Defence Industry Minister Pat Conroy has said: “Defence is committed to being a better, faster and more collaborative partner for industry.” Land Forces will no doubt reinforce this, with army restructuring fast for littoral ­manoeuvres and long-range fires.

Difficult decisions have been made by government to increase defence spending while also culling unaffordable projects.

As we would all want in a healthy democracy, there is debate about the relative priorities of capabilities and the balance between defence and other national imperatives.

Quoting a senior ADF officer recently, “I am ready to lead my troops into enemy machine gun fire to defend the free speech of those who criticise Defence and its strategy”. So it is clear that government and Defence are focused, moving fast, and engaging with industry to good effect.

The stage is set, but the strategic environment remains as urgent as ever, and many of the procurement processes, funding approvals, and hard work of project delivery are still ahead of us. Defence can do ­little without industry, so how can we best help deliver capability at speed?

Accelerated delivery is a constant drumbeat. As a senior executive from a prime said recently, “Everyone likes having more money, but for Defence the challenge is to spend it”.

It’s significant that Capability Acquisition and Sustainment Group’s $14.5bn spend last year was the highest it has ever been. Building on this achievement – and recognising the correlation between spend and capability – at Built, we see new ways to keep accelerating.

Working directly with Defence, we welcome opportunities for early contractor involvement (ECI) to bring the benefits of digital engineering (DE) into design, to allow for supply chain optimisation and better cost planning. ECI is nascent in Defence, but its benefits are ­proven, including the creation of more harmonious partnerships.

Bringing contractors into national programs earlier generates procurement and project management efficiencies, taking the pressure off a limited in-house ­capacity – put simply, by creating larger and faster projects that place the risks where industry expertise can best address them.

Rupe Hoskin is a strategic defence adviser for Built.

Establishment of the Defence Infrastructure Panel (Contractors) facilitates this, while also allowing Defence to ensure competition and market sharing.

Given upcoming demand and Defence’s finite capacity, much can also be achieved by funding primes to work directly with the construction industry.

This is a strong partnership – moving at commercial speed, enabling the primes to deliver on tight deadlines and budgets once they have the go-ahead from Defence, and creating location options unconstrained by the Defence Estate. Recent example includes Hanwha Armoured vehicle Centre of Excellence in Geelong (delivered by Built 2½ months early).

Other opportunities are emerging for guided weapons and explosive ordnance, with further scope to extend into the logistics facilities that will be required in Northern Australia.

Minimum viable capability requires an ongoing cultural shift – ruthlessly prioritising to achieve an affordable and sufficient mass of operational effect, rather than too few exquisite platforms and facilities. Industry can help here, applying DE through digital twins to model and optimise capability.

As a senior ADF officer recently expressed, “Do what’s needed, no more, get it done, then we can adapt over time”. As we know well from commercial work, there is a world of difference between what project sponsors need (and can pay for) and what users would like – we can help sharpen the pencil in these discussions.

Sovereignty has now been defined in the DIDS in a way that caters for Australia’s constraints of scale and skillsets, and that leverages our international partnerships.

We would note that businesses that are truly Australian-owned and local (such as Built) provide advantages at times of strategic competition and resource scarcity.

We serve one nation only, all our decisions are made onshore, our supply chain and employees are local, and our economic contribution is entirely for Australia.

Land Forces comes at an exciting time, and we look forward to the next phase of announcements and procurements, so we can roll our sleeves up and deliver capability at speed for Australia.

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Rupe Hoskin AM is a strategic defence adviser for Built and co-founder of strategy and leadership consultancy Balance Partners.