The title of the Williams Foundation Seminar held on October 24, 2019 was “the requirements for fifth generation manoeuvre.” But those presentations which dealt with the industry and the government-industry relationship highlighted that the legacy approach to setting requirements which not deliver effectively fifth-generation manoeuvre capabilities. The industrial-government eco system is evolving and that evolution needs to deliver cross-domain integration which requires government and industry to work together more effectively. And moving passed stove-piped platform acquisition and finding ways to shape Australian defense architectures which can subsume systems bought abroad within a more integrated Australian set of capabilities are two of the key tasks facing the Australian defense system. The Deputy Secretary of the Capability Acquisition and Sustainment Group provided his perspective in his presentation to the Seminar.

1. The Richard Williams Foundation
Establishing the Defence and Industry Partnerships for
Fifth Generation Manoeuvre
A.P (Tony) Fraser, AO, CSC
Deputy Secretary
Capability Acquisition and Sustainment Group

2. Our Shared Purpose and Need for Efficiency
• It is important to be as good as we can:
• - 2400 Australians currently deployed, had 11,000 on Exercise, many more at high
readiness depending on Defence and Industry Equipment and Support
• - $38.7bn Defence budget
• - CASG / Defence Industry ($66m per working day)
2

3. Defence Acquisition and Sustainment Environment 2019
• 2019-20 Portfolio Budget Statements - Defence AUD
$38.7bn:
• Defence Acquisition AUD $11.7bn (CASG to manage
AUD $8.8bn Mil Eqpt)
• Sustainment AUD $12bn (CASG to manage AUD $7.7bn
Mil Sus)
• Growth over Forward Estimates 2022-23
• Acquisition - AUD $19bn (CASG to manage AUD $14.8bn,
+69%)
• Sustainment - AUD $15bn (CASG to manage AUD
$10.4bn, +35%)
• 198 Projects managed by CASG (171 Majors)
3

4. Comparative Economic Indicators
4
Indicator Australia NZ France UK Germany Japan China USA
Exch Rate 1.0751 0.6148 1.6265 0.5316 1.8811 0.6148 1.6265 74.46 0.0134 4.8494 0.2062 0.686 1.4577
GDP USD$ 1432 206 2582 55% 2622 55% 3677 36% 4872 29% 12238 21% 19391 7%
GDP Growth 1.8 2.3 0.3 1.8 0.7 0.5 6.4 2.1
Unempl % 5.2 4.2 8.7 3.8 3.2 2.4 3.7 3.7
Population 25 5 67 37% 66 38% 83 30% 127 20% 1395 5% 327 8%
Inflation 1.6 1.5 1 2 1.4 0.9 2.5 1.6
Cash Rate 0.75 1 0 0.75 0 -0.1 4.2 2
Debt % GDP 41 22 97 85 85 253 48 105
Def Bgt AUD 38.7 2.9 56.9 68% 70.0 55% 62.8 58% 69 56% 258 22% 1000 4%
Def Bgt Euro 24 1.8 35.0 68% 43.0 55% 39.3 58% 615 4%
Def Bgt USD 26.5 2.0 39.1 68% 48.0 55% 44.3 58% 47 56% 177 22% 686 4%
Reg Troops 60 11 210 28% 150 40% 124 48% 247 24% 2035 3% 1362 4%
USD / Troop 0.453 0.181 0.186 0.320 0.357 0.190 0.087 0.504
Euro / Troop 0.399 0.162 0.167
Corp Tax Rate 30 28 33 19 30 31 25 21
As at 22 October 2019

5. L400-2
CMATS
JORN
OVERLANDER
MED/HEAVY
HAWKEI
ENHANCED
F88
SOVEREIGN INDUSTRY
Projects and Exchange Rate Variation
5

6. Small Business participation
6

7. Financial Year 2009-10 2010-11 2011-12 2012-13 2013-14 2014-15 2015-16 2016-17 2017-18 2018-19
Number of Approvals 28 28 46 27 26 35 39 74 111 115
• Number of cabinet approvals over the past decade.
Cabinet approvals
Increase of 310 percent
FPR est. June 2015
7

8. DEPSEC Observations and Expectations
– CASG, a One Defence “company”, is a much improved organisation with major
enduring First Principle Review improvements
– Investment Committee includes central agencies to ensure central agencies are
fully involved and committed with Government Defence decisions, providing
certainty to industry on decision and resources
– To retain this trust we need informed genuine tender cost, schedule and capability,
with shared and aligned transparency
– Under Continuous Improvement framework and culture, we will pursue
understanding and Defence costs and Industry costs, and the drivers, with genuine
appetite for reduced cost of ownership enabling increased margins
– I seek a dynamic defence and Industry 4.0, as we meet the demands for evolving
strategy, threat and technologies
– Funded Policies for Australian Industry are world leading, but still on an
improvement cycle, and will increase alignment
– A respectful and safe workplace is essential and we carry obligation on industry
– I seek to reinforce the power of Positive Leadership
– I am exceptionally proud of CASG and Defence Industry and what we have done,
and do, for our sailors, soldiers and Air Force personnel
8

9. Disruption
9

10. 10
The digital age – a game changer for Defence and Defence Industry