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rowid	image	timestamp	memento	first_capture	last_capture	current_status	text	mime	status	url	urlkey	digest	length	file_path
93		20130503132153	https://web.archive.org/web/20130503132153/http://www.defence.gov.au/dmo/id/aic/Introducing_AICprogram_28May12.ppt	2013-05-03	2014-03-11	500	THE AUSTRALIAN INDUSTRY CAPABILITY PROGRAM Australian Industry Capability Directorate COMMERCIAL ENABLING SERVICES DIVISION The Australian Industry Capability Program • Introducing the AIC Program • Industry Requirements • AIC Plans and Deeds • AIC Program Templates • For Tenderers • Waivers • Audits • Key Contacts and Resources COMMERCIAL ENABLING SERVICES DIVISION Introducing the Australian Industry Capability Program • Defence strategy, the capability needs of the ADF and the requirement to achieve value for money determine Defence’s investment priorities and the need for any specific in-country industry capabilities. • The Defence and Industry Policy Statement (DIPS) 2010 aims to ensure the ADF receives the materiel, systems, and support it requires on a value for money basis and sets out the policy requirements to be implemented under the AIC program that will enable this objective to be achieved. • Under DIPS 2010, the AIC program aims to: – provide opportunities for Australian companies to compete on their merits – influence foreign companies to deliver cost effective Defence solutions – facilitate transfer of technology – encourage investment in Australian industry COMMERCIAL ENABLING SERVICES DIVISION Introducing the Australian Industry Capability Program • Unlike its predecessor, the Australian Industry Involvement (AII) program, the AIC program is not a percentage-based framework. Rather, it aims to create opportunities for Australian industry to compete for Defence work on a value for money basis. • Accordingly, the AIC program works through contracts – or their equivalent - with Australia’s domestic industry capability requirements addressed via AIC Plans and AIC Deeds. • AIC Plans and Deeds proposed in Tenders and negotiated and agreed under respective contracts – or their equivalent - record the specific industry arrangements that will deliver the desired industry outcomes. • To represent value for money, tendered solutions should describe how the proposed approach will enhance Defence industry capability and capacity. COMMERCIAL ENABLING SERVICES DIVISION Introducing the Australian Industry Capability Program • AIC Program requirements apply to all eligible procurements progressed under the Capability Lifecycle: – Needs – Requirements – Acquisition – Through-Life Support – Disposal COMMERCIAL ENABLING SERVICES DIVISION Introducing the Australian Industry Capability Program • Within DMO’s Commercial Group, an AIC Directorate has been established to facilitate implementation of the AIC program • The AIC Team informs development of and promotes Defence’s AIC policy settings and engages across Defence (including CDG), DMO and industry. • The AIC Directorate also facilitates integration of other Defence industry programs, where appropriate, including: – Global Supply Chain (GSC) Program – Concept Technology Demonstrator (CTD) Program – Rapid Prototyping, Development and Evaluation (RPDE) – Priority Industry Capability Innovation Program (PICIP) – Skilling Australian Defence Industry (SADI) Program – Defence Industry Innovation Centre (DIIC) – Defence Materials Technology Centre (DMTC) COMMERCIAL ENABLING SERVICES DIVISION Industry Requirements • Industry Requirements define the activities, tasks, or work packages in Tenders – or equivalent - that Tenderers are to respond to. • Industry Requirements are specific to individual procurements but in each case address relevant: – Priority Industry Capabilities (PIC); – Strategic Industry Capabilities (SIC); and – Project / Product Specific Industry Capabilities (PSIC). • Procurement officers should seek assistance from the AIC Directorate when developing Industry Requirements. COMMERCIAL ENABLING SERVICES DIVISION Industry Requirements • Priority Industry Capabilities (PIC) are those industry capabilities deemed to confer an essential strategic advantage by being resident within Australia, and which, if not available, would significantly undermine defence self-reliance and ADF operational capability. The PICs are discussed in DIPS 2010. • Strategic Industry Capabilities (SIC) are industry capabilities that provide Australia with enhanced Defence self-reliance, ADF operational capability, or longer term procurement certainty. The SICs are discussed in DIPS 2010. • Project / Product Specific Industry Capabilities (PSIC) are those industry capabilities determined by the Project or Product Sponsor that aim to enhance or improve the capability delivered through inclusion of Australian companies. • Local Industry Activities (LIA) are those industry activities proposed in tender responses that address the Industry Requirements. COMMERCIAL ENABLING SERVICES DIVISION Building Industry Capability Through Industry Requirements COMMERCIAL ENABLING SERVICES DIVISION Industry Capability Needs Analysis Industry Industry Solution (Included in Tender Response, or equivalent, and carried into the Contract) Systems Engineering Design Training Electronic Warfare System of Systems Integration Protection of Comms etc Training Data Mgt PIC 1 PIC 2 SIC 1 PSIC 1 Industry Requirements (for inclusion in Tender, or equivalent) Planning and management of upgrades to the battle and communication systems to ensure compatibility with XYZ capabilities in the Network Centric Warfare Environment. Provision of subject matter expertise for the development of manuals and training delivery as a result of each system upgrade. Industry Requirement 1 Industry Requirement 2 Local Industry Activity 1 Local Industry Activity 2 Local Industry Activity 3 Industry Requirements • Industry Requirements are expected to be refined over time as the Project / Product progresses through the procurement lifecycle. • Procurement officers need access to the respective Statement of Work (SOW) and Functional and Performance Specification (FPS) to develop the Industry Requirements. COMMERCIAL ENABLING SERVICES DIVISION Stage DCP Entry RFT Release Contract Industry Capability Needs PICs: EW; MSCS SICs: RMUFRWA PSIC: Training Industry Requirements Industry Requirement 1 Industry Requirement 2 Industry Requirement 3 Industry Requirement 4 Local Industry Activities AIC Plan AIC Schedule Local Industry Activities/ AIC Deed Opportunities AIC Plans and Schedules • AIC Plans – An AIC Plan must be sought for all Defence procurements, including Government to Government, Foreign Military Sales, and Direct Commercial Sales (US) procurements, where the value of the tender is expected to exceed $20 million; or – The procurement will impact upon a Priority Industry Capability (PIC). COMMERCIAL ENABLING SERVICES DIVISION • AIC Program Requirements for Contract Change Proposals AIC Plans and Schedules COMMERCIAL ENABLING SERVICES DIVISION Prime Contract =>$20m AIC Plan AIC Schedule Required CCP 1 CCP 2 CCP 3 LIAs to be Identified Survey & Quote Survey & Quote Survey & Quote Summed & Captured in AIC Plan Annually Local Industry Activities captured AIC Report Submitted AIC Deeds • Government to Government and FMS procurements are not exempt from the AIC program requirements and are addressed through AIC Deeds. • AIC Deeds – An AIC Deed formalises Defence’s expectation that international Primes will market test and engage Australian industry, where cost effective to do so. – The requirement for an AIC Deed is to be underpinned by a business case. – The likelihood of success in achieving AIC program requirements is influenced by access to the relevant Technical Data and Intellectual Property. – AIC Deed Annexes are contract deliverables. – It is anticipated that the majority of AIC Deeds will be agreed for the provision of Through-Life Support services. COMMERCIAL ENABLING SERVICES DIVISION AIC Deeds COMMERCIAL ENABLING SERVICES DIVISION ADF US DoD FMS Program Office US Company Australian Industry LOA LOR Market Test & Contract Deliverables AIC Deed AIC Annexes Deliverables $ $ $ DEFMAT (W) AIC Program Templates • Examples – AIC Plan – AIC Deed COMMERCIAL ENABLING SERVICES DIVISION AIC Plan AIC Schedule LIA Description AIC Progress Report AIC Deed For Tenderers • Common faults in tender responses: – Focus on administrative content (e.g. travel, freight, insurance, bank fees) instead of industry capability. – Fail to address Industry Requirements. – Fail to describe how Australian industry will be market tested. – Fail to address associated Intellectual Property (IP) requirements. – Fail to link LIAs to the Work Breakdown Structure and Price Schedule. – Propose opportunities for Australian industry that are contingent upon the company winning other tenders. COMMERCIAL ENABLING SERVICES DIVISION AIC Program Waivers • Under certain circumstances – e.g. an urgent operational requirement or ITAR or IP restrictions – a waiver may be sought from having to comply with specific AIC program requirements. • All requests for waivers must identify the specific AIC program requirement to be waived (e.g. AIC Plan or AIC Deed). • All requests for AIC Program Waivers are to be endorsed by the respective CDG/ DMO Division Head and approved by DMO’s HCES. • Procurement officers are encouraged to consult with the AIC Directorate when developing and staffing requests for waivers. COMMERCIAL ENABLING SERVICES DIVISION AIC Program Audits • DIPS 2010 requires DMO’s AIC Directorate to conduct audits on Systems Program Office (SPO) AIC program management arrangements. • AIC Program Management Audits will commence in 2012 and will focus on confirming that AIC Plans and Deeds are being developed, implemented, and managed in accordance with Defence’s AIC program policy requirements. • Where audits identify a requirement for remedial action, DMO’s CES Division will assist the relevant SPO rectify the identified deficiencies. COMMERCIAL ENABLING SERVICES DIVISION Key Contacts and Resources • AIC Program Information and Resources - www.defence.gov.au/dmo/id/aic • General AIC Enquiries - aic.info@defence.gov.au • Director AIC Program: Mr Christopher Ament – Christopher.Ament@defence.gov.au COMMERCIAL ENABLING SERVICES DIVISION The Australian Industry Capability Program Questions? 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