ANNOUNCEMENT: Minister for defence Christopher Pyn.
ANNOUNCEMENT: Minister for defence Christopher Pyn. DAVID MARIUZ

Pyne: Deal embraces industry expertise, cuts costs

DEFENCE Industry Minister Christopher Pyne MP announced this week that Defence had entered into agreements with four Australian industry-led teams to more effectively engage with industry.

Mr Pyne said the "Major Service Provider agreements” (MSP) represented a fundamental change to Defence's Capability, Acquisition and Sustainment Group (CASG) which will now work more effectively for the Australian Defence Force.

He said the MSPs will support CASG in tasks like workforce planning and management, industry and supply chain management, and longer term partnerships.

"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,” Mr Pyne said.

He said the arrangement would provide better value for money for the Commonwealth.

Minister Pyne said the agreements were achieved through talks with industry, including the four successful MSP teams led by Jacobs Australia, Nova Systems Australia, Kellogg Brown and 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,” Mr 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, more service provider arrangements will be delivered.

He said the new Defence Services Support panel will make available the expertise of more than 350 companies to support Defence in delivering capability during the future.

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