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The Department of Defence and Ai Group have formally established an agreement on industry engagement and negotiation principles to support the development of Australia’s defence industry capabilities.
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Ai Group chief executive Innes Willox and Capability Acquisition and Sustainment Group deputy secretary Tony Fraser signed the Engagement and Negotiation Principles in Canberra on Thursday on behalf of defence industry and Defence.
The agreement articulates a set of core principles, values and shared objectives for engagement between Defence and all defence industry participants. It provides guidance on expected behaviours underpinning engagements and negotiations during the procurement process.
As part of the agreement, both parties have identified a series of mutual benefits, including:
- Strengthened, enhanced and more positive relationships based on mutual trust and respect;
- Promotion of good faith engagements and negotiations;
- Reduced transaction costs through enhancing the effectiveness of engagements and negotiations;
- Strengthened reputations and stakeholder perceptions for both Defence and industry; and
- Mutually beneficial outcomes for both Defence and industry with a shared goal of achieving "best for capability outcomes" for the ADF.
"This document has been developed collaboratively between Defence and industry and is underpinned by strong commitment from all involved. It creates a solid base for strengthened, enhanced and more positive relationships based on mutual trust and respect," Willox said.
Additionally, the agreement identifies a series of steps that will be used as reference points by both parties to inform a code of conduct during any engagement and/or negotiation, including:
- Working collaboratively and promoting honesty, trust and mutual respect and high ethical standards as the key foundations of all engagement;
- Communicating with appropriate openness, and in a clear and timely manner, including in relation to levels of authority, delegations, attendees and escalation;
- Timely communication of the number of and role of all attendees;
- Understanding and respecting the approval processes of Defence and industry participants;
- Engaging and negotiating from a position of 'fact rather than emotion';
- Where doing so, facilitating the interests of Australian SMEs, including Indigenous and disability enterprises;
- Emphasising the importance of time frames and efficient use of resources; and
- Accepting, respecting and upholding decisions, while taking responsibility and accountability to deliver on commitments.
Fraser said both Defence and the Australian government were committed to the development of a robust, resilient and internationally competitive Australian industry base and that the signing of the principles would further strengthen the link between Defence and industry.
"Durable relationships between Defence and industry are critical to the development and growth of defence industry and ultimately the achievement of Australia’s defence capability goals," Fraser said.
