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Australian Defence Capability Plan Covers 4-Year Frame

Jul. 19, 2012 - 02:17PM   |  
By Nigel Pittaway   |   Comments
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Sydney — The new Australian Defence Capability Plan (DCP) announced in early July was developed following consultation with Australian defense industry and has been aligned with the four-year forward estimates period in the budget. That means it now includes only projects that will achieve either first or second pass approval within the four-year period.

The new DCP reflects strategic and defense requirements outlined by the 2009 defense white paper and provides guidance to industry regarding capability development priorities, including project cost, schedule and local content.

The latest version replaces an earlier one publicly released in 2009 and updated in 2010 and again in 2011. The document will list 111 projects, with a value across the life of the projects of more than 153 billion Australian dollars ($157.9 billion).

For the first time, a Defence Capability Guide has been developed to complement the DCP. It is intended to provide guidance to industry on projects for six years beyond the four years covered by the DCP.

“We think this will give industry a much better guide as to government intentions; linking the Defence Capability Plan directly to the four-year budget forward estimates period gives more certainty to industry,” said Australian Defence Minister Stephen Smith, when announcing the plan in Darwin with Jason Clare, minister for defense materiel,. “At the same time, the six-year Defence Capability Guide will give industry some indication as to what might be included in the DCP in following years.”

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