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Defence Connect can officially reveal the long awaited details of the government’s audit into the Centre for Defence Industry Capability, commissioned by Defence Industry Minister Melissa Price.
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The Commonwealth government has published findings from its review of the Centre for Defence Industry Capability (CDIC), launched in April.
Following extensive consultation (140 submissions and more than 50 interviews), the review has found that while helping to drive “improved business operations” for some stakeholders, the CDIC’s business advisory and facilitation services have “become generic” and are “not sufficiently targeted at defence specific support”.
The review noted that dissatisfied CDIC clients lamented the “inconsistency or relevance of advice provided”, which they described as “generic and transactional in nature”.
Some stakeholders also criticised the CDIC’s engagement and workshop offers, which were viewed as “one size fits all” and “not appropriately tailored” to the varying needs of the industrial base.
Feedback from the CDIC’s grants program was “overwhelmingly positive”, however, some stakeholders noted that the guidelines would “benefit from allowing more flexibility for shifting business strategies over time”.
In a bid to address these pain points, the CDIC review has recommended relocating the CDIC to the Department of Defence to strengthen the alignment between Defence, defence industry and the CDIC.
Commenting on the findings, Minister for Defence Linda Reynolds said a genuine partnership between Defence and industry was critical to ensuring the industrial base “effectively supports Australia’s national security”.
“Making it easier for industry to work with Defence to access opportunities in the defence sector, such as through the work of the CDIC, is essential in this endeavour,” Minister Reynolds said.
“This government has faith in Australian businesses to provide the technological advances and superior capability that Defence needs to protect Australia’s national interests.”
Other recommendations from the CDIC review include:
- Updating the CDIC’s role and purpose to reflect the 2020 Force Structure Plan (FSP);
- Scrapping the 200-employee limit on businesses being able to access the CDIC’s services;
- The implementation of a CDIC focus stream for Indigenous and veteran-owned small businesses and improving employment outcomes for veterans post-separation from the ADF;
- Appointing a representative from the office of the Minister for Defence Industry to the CDIC’s advisory board; and
- Developing a communications program for industry policy documents.
According to Minister for Defence Industry Melissa Price, the review has provided the government with an opportunity to strengthen the CDIC and bolster support for businesses as they grapple with economic impact of the COVID-19 pandemic.
“Given the challenges thrown up by the COVID pandemic, it is more important than ever that we continue to develop new ways to support the Australian defence industry,” Minister Price said.
“The CDIC has a valuable role to play in supporting small and medium-sized businesses access Defence work and the review has identified a continuing need for the services provided by the CDIC.”
Minister Price added: “Implementing the review’s recommendations will ensure that the Centre continues connecting Defence and small business in a simpler, more cost-effective and outcomes-orientated way.”
Government response to recommendations
Minister Reynolds and Minister Price have confirmed that the government has accepted key recommendations regarding the relocation of the CDIC and scrapping the employee limit to boost access to services.
However, the government will not support the recommendation to add a representative from the Minister for Defence Industry’s office to the CDIC’s advisory board.
The remaining recommendations have been accepted “in principle”, and will be examined over the next six months before formal advice is issued to the government regarding implementation.
In addition to this, both ministers confirmed that both Defence and the Department of Industry, Science, Energy and Resources provided support for the review of the CDIC’s role and future operating model.
“After almost four years in operation, the CDIC has shown its value in helping more small and medium-sized businesses access opportunities in the defence sector. Aligning the CDIC more closely with Defence will build stronger stakeholder relationships that serve to maximise its value for building Defence capability,” Minister Price explained.
[Related: CDIC launches review of targets to better support Aussie defence industry]
