ADF Embraces Innovation by Supporting Prototypes

In March 2023 the Australian government ‘accelerated’ AUKUS by committing to the acquisition of three US Navy Virginia class nuclear fast attack submarines in 2032 and commencing immediate development of ‘Advanced Capabilities’ under Pillar Two of the AUKUS Alliance agreement between Australia, the United Kingdom, and the United States. https://www.pm.gov.au/media/joint-leaders-statement-aukus 

The decision to ‘accelerate’ AUKUS initiatives was informed by outcomes of the 2023 Houston-Smith Defence Strategic Review (DSR) which provided specific directions to Defence with immediate effect. The DSR identified a methodical and comprehensive process to achieve long-term and sustainable implementation of defence initiatives. Another key finding of the DSR was the need to strengthen national security by bolstering sovereign manufacturing capability in Australia to sustain our own defence. https://www.defence.gov.au/about/reviews-inquiries/defence-strategic-review 

Changes recommended by the DSR have gone into effect and created opportunity for Australian SME manufacturers to get involved with the new defence agenda and explore new business opportunity as suppliers to the Australian Defence Force (ADF). Two key initiatives that benefit SMEs include: 1) the establishment of the Advanced Strategic Capabilities Accelerator (ASCA) which has been given the role of bringing capability to our armed forces at speed, www.asca.gov.au and 2) the ADF shift to support the development, testing and proving of prototypes. www.minister.defence.gov.au/media-releases/2024-01-30/new-generation-drone-prototypes-take-part-strategic-capabilities-accelerator-challenge 

AUKUS and the DSR provided the catalyst to redefine ADF procurement strategies. One important facet of this shift lies in increased use of flexible procurement strategies that provide manufacturers with unprecedented new opportunity to innovate and assist the ADF to keep up with rapid technological advancements in an era and geopolitical landscape characterised by dynamic change.

Traditionally a prolonged and rigid process, Australian defence procurement involved years of meticulous planning, development of detailed technical specifications and contract negotiation. This process didn’t take into account rapid advancements in technology, creating the problem that defence acquisitions through a protracted process might result in obsolete technology before it enters military service.

DSR presents manufacturers with a more adaptive and innovative framework. Central to this change is the increasing practice of inviting and developing prototypes to meet defence requirements, a method used by the UK and USA to open doors to industry innovation and rapid advancements. This shift in emphasis presents a twofold opportunity for Australian industries:

The emphasis on prototypes aligns with the fast-paced nature of contemporary security challenges. By encouraging manufacturers to develop prototypes, the ADF acknowledges the importance of swift responses to evolving threats. This approach expedites procurement and ensures cutting-edge technologies are deployed more promptly, enhancing national security capabilities.

Fostering a culture of prototype development empowers manufacturers to showcase their innovation and creativity. Instead of being bound by rigid technical specifications, companies can now leverage expertise to create functional prototypes that align with defence requirements. This accelerates the pace of technological advancements and through AUKUS, positions Australian manufacturers as pioneers in defence innovation on the global stage.

Prototype development creates a testing ground for novel ideas and concepts, and a more iterative and collaborative process, where manufacturers and defence stakeholders can work closely to refine and enhance prototypes based on real-world feedback. This collaborative approach helps to ensure final products meet the precise needs of the end-users.

The move to trial flexible procurement strategies is a game-changer for manufacturers, offering them the latitude to tailor their involvement based on capabilities and growth strategies. The ability to engage in various types of defence contracts, from prototyping to full-scale production, provides a spectrum of opportunities for companies of different sizes and specialisations. Under this process small, agile enterprises can capitalise on the prototyping phase to showcase their niche innovations and secure vital contracts. This fostering of a more diverse ecosystem of manufacturers contributes to national security and achieving the national aim of greater sovereign manufacturing capability.

Through its support for prototyping the ADF not only accelerates the pace of defence innovation in Australia but also creates a more inclusive and dynamic ecosystem for Australian manufacturers. This shift is not just about meeting defence requirements; it's about unleashing the full potential of Australian ingenuity in safeguarding the nation's security in an ever-changing world.