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Contracting

 

ASDEFCON Suite of Tendering and Contracting Templates | Policy | Intellectual Property | List of Defence Contracts | Tendering Information  | Liability Risk Management Process | Defence Materiel Instructions (Procurement) | D+I Pre-Event Forum

ASDEFCON Suite of Tendering and Contracting Templates

 
  • The Australian Standard for Defence Contracting (ASDEFCON) suite provides a set of proforma documents for use by procurement officers when drafting request for tenders (RFTs) for the acquisition of goods and services by Defence. 

  • ASDEFCON Objectives: 
    The ASDEFCON suite of tendering and contracting templates seek to:

    • engender professionalism of Defence staff by providing tools and guidance for the ongoing development of procurement skills;
    • support the reprioritising of Defence contracting activities by facilitating RFT and contract development and management;
    • standardise and benchmark Defence's business practices and procedures by providing tools that:
      • support Commonwealth and Defence policies;
      • reflect 'best practice'; and
      • provide a framework for obtaining value for money and ensuring accountability;
    • improve relationships with industry through the engagement of industry in the development and enhancement of the tendering and contracting templates; and
    • lead contracting reform in Defence by taking into account the use of contracting options and strategies that reward performance.


  • ASDEFCON (Strategic Materiel) 
    ASDEFCON (Strategic Materiel) is for use when acquiring high risk, software intensive systems including major platforms.

    ASDEFCON (Strategic Materiel) Handbook Version 1.2
    February 2005

  • ASDEFCON (Complex Materiel) 
    ASDEFCON (Complex Materiel) is for use when undertaking complex acquisitions of equipment and supplies and consists of two volumes, each volume addressing a different level of complexity and risk. Volume 2 is the standard template and is aimed for use in medium to high risk procurements which do not justify the use of ASDEFCON (Strategic Materiel). Volume 1 has been developed as the shortform version of the standard template and is aimed for use in lower risk complex procurements where the supplies are commercial-off-the-shelf items and do not require any design, development or integration activities and where the contract will generally be complete within 2 years and cost less than $5 million.

  • ASDEFCON (Support) 
    ASDEFCON (Support) is for use in the provision of in-service support services for Defence materiel capabilities. ASDEFCON (Support) has been developed for use in Maritime, Land, Aerospace and Electronic support environments.

    ASDEFCON (Support) Handbook Volume 1 Version 1.1
    ASDEFCON (Support) Statement of Work Tailoring Guide version 1.1
    May 2004

  • ASDEFCON (Services) 
    ASDEFCON (Services) is for use when engaging external service providers, including consultants, professional service providers and service contractors. The template is to be used where the services to be procured are low risk, low value and of short to medium duration.

    ASDEFCON (Services) Handbook Version 1.0
    March 2005

  • ASDEFCON (Standing Offer for Services) 
    ASDEFCON (Standing Offer for Services) is for use when establishing a standing offer arrangement with a supplier or a panel of suppliers for the engagement of consultants and professional service providers to provide low value, low risk services to Defence up to an aggregate value of $5 million.

  • ASDEFCON (Standing Offer for Goods) 
    ASDEFCON (Standing Offer for Goods) is for use when establishing a standing offer arrangement with a supplier or a panel of suppliers for low value, low risk procurements of goods for Defence up to an aggregate value of $5 million.

    ASDEFCON Standing Offer For Goods Handbook Version 1.0
    October 2005

  • ASDEFCON (Shortform Goods) 
    ASDEFCON (Shortform Goods) is based on Form SP020, which contains the standard terms and conditions under which Simple Procurement is conducted by Defence. ASDEFCON (Shortform Goods) contains the same terms and conditions as Form SP020, but also includes a clause limiting the liability of the Supplier. The inclusion of the limitation of liability clause elevates any procurement using this template to that of a complex procurement. 

    ASDEFCON (Shortform Goods) Handbook Version 2.1
    July 2009

  • ASDEFCON (Shortform Services) 
    ASDEFCON (Shortform Services) is for use when acquiring low value, low risk and generally short term services where use of ASDEFCON (Services) is not appropriate. For higher risk services, ASDEFCON (Services) or ASDEFCON (Standing Offer for Services) are used.

    ASDEFCON (Shortform Services) Handbook Version 2.1
    July 2009

  • ASDEFCON Asset Library 
    The ASDEFCON Asset Library contains references made by ASDEFCON templates that must be included as part of the Request for Tender. The ASDEFCON Asset Library is comprised of Data Item Descriptions, Detailed Service Descriptions and DMO Checklists.

  • ASDEFCON Configuration doc
    The ASDEFCON Document Change Proposal (DCP) Form is the method used to change/correct errors in the ASDEFCON templates. DCPs go through a configuration management process for approval. In order to ensure best practice DCPs are welcomed from Defence and Industry.

  • General Conditions of Quotation (Form AC565) and General Conditions of Contract for the Supply of Goods and Repair Services (Form SP020) 
    The AC565 and SP020 general conditions are for use when undertaking a Simple Procurement to create a contract between the supplier and Defence.

  • ASDEFCON (Invitation to Register) 
    The ASDEFCON (Invitation to Register) is used to seek expressions of interest from Industry as to their willingness and capacity to participate in a procurement process to fulfil a known Defence requirement.

  • ASDEFCON (Request for Proposal) 
    The ASDEFCON (Request for Proposal) is designed to encourage suppliers to propose solutions, whether innovative or not, to achieve a desired outcome or resolve a specific problem.

  • Government Furnished Facilities Licence 
    The Government Furnished Facilities (GFF) Licence is the DMO and DSG approved template for use in conjunction with the ASDEFCON templates. It is for use when GFF will be provided under a Defence contract to a contractor for the purpose of assisting that contractor perform work under the contract.

  • DMO Toolbar, Style Set and User Guide 
    The DMO Toolbar and Style Set are designed to streamline and standardise formatting processes for the ASDEFCON suite of tendering and contracting templates.

 

Policy

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The following policy and guidelines are used by Procurement Officers when conducting procurement activities for the Australian Defence Organisation.
  • Defence Procurement Policy Manual 1 October 2009 Edition 

    The latest edition of the Defence Procurement Policy Manual (DPPM), DPPM 1 October 2009, has been released. DPPM 1 October 2009 is effective from 01 October 2009. This revised and updated edition of the DPPM is part of Defence and DMO's continued commitment to improvement and best practice in procurement.

    The following chapters and annexes have been updated in DPPM 1 October 2009:

    • Foreword;
    • Introduction;
    • Chapter 1.4 – Delegations for Procurement;
    • Chapter 2.3 – Standard Defence Contracting Templates;
    • Chapter 3.4 – Earned Value Management;
    • Chapter 3.13 – Ethics in Procurement;
    • Chapter 3.14 – Legislation Affecting Procurement;
    • Chapter 4.4 – Public Private Partnerships;
    • Chapter 4.10 – Services Contracts;
    • Chapter 4.12 – Defence Unsolicited Proposals;
    • Chapter 5.5 – Tender Advertising, Submission and Receipt;
    • Chapter 5.6 – Evaluation of Tenders;
    • Chapter 5.8 – Reporting Requirements;
    • Annex 5E and 5F – Defence Advertising Officers and Major Newspaper Advertising Deadline Guide;
    • Annex 5G – Tender Room Addresses; and
    • Updated Table of Contents, Defintions and Index

    The following chapters and annexes have been deleted::

    • Chapter 1.5 - Procurement Training;
    • Chapter 4.11 - Agency Relationships;
    • Annex 1B - Examples of Proposal, Procurement, and Contract Approver Submissions;
    • Annex 3C - Minimum Requirements for all Defence Acquisitions valued at $5Million and above;
    • Annex 3D - Employer Sponsored Superannuation Cover (Questionnaire);
    • Annex 3E - Interim Guidance on Determining Superannuation Liability;
    • Annex 4C - Employer/Employee Relationship; and
    • Annex 5D - Standard Letters.

    The information previously provided in chapter 4.11 has been included in chapter 4.10. All other parts of the DPPM remain unchanged from what was previously issued as DPPM 1 July 2009 on 01 July 2009.



  • Departmental Procurement Policy Instructions 
    Departmental Procurement Policy Instructions are released to promulgate information and guidance on recent developments in procurement policy, including changes to extant policy and the operation of new policy requirements.

  • Procurement Complaints Handling Policy 
    As of 5 November 2008, Defence Procurement Complaint Handing policy has been located in Chapter 5.7B of the DPPM.

  • Aerospace Systems Division Performance Based Contracting Handbook pdf
    Aerospace Systems Division guidance on the application and implementation of Performance Based Contracting to Aerospace Sustainment Contracts.

 

Intellectual Property

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  • Intellectual Property in Defence pdf
    (94 kb)
    Intellectual Property (IP) is a major contributor to Australia's national defence capability. In order to protect our national interests, Defence and Australian industry need access to some of the world’s most advanced technologies and creative developments.

    The uncertain nature of the current strategic environment necessitates a greater role for IP in the development and sustainment of national defence capability. Defence recognises that IP is a valuable resource and will ensure that it manages IP in its control or custody in an effective, efficient and ethical manner.  

    The Defence IP Policy website

 

List of Defence Contracts

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Liability Risk Management Process

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The allocation of liability between parties to a contract is an important part of many commercial negotiations.
  • Liability Risk Management Process pdf

    For both Defence and DMO a liability risk assessment (LRA) may need to be undertaken at various stages of the Defence procurement process, including:

    1. prior to procurement;
    2. where a tender process is necessary for a procurement, as part of the evaluation of a tenderer's proposal;
    3. during negotiation of the contract; and
    4. at the time of any contract change proposal

    DMO and Ai Group have collaborated to adopt, to the greatest extent possible, an agreed approach to the methodology to be employed when conducting such liability risk assessments. The papers that follow are the product of these discussions and are intended to set out a process for use by Defence and industry when conducting that part of the risk assessment for Defence procurement that is used in determining the allocation of Liability between contractual parties.

    The methodology is set out in the paper Liability Risk Management Process

    An accompanying Liability Risk Assessment Template to facilitate the conduct of a liability risk assessment is also available.

    General information on the background to the development of both the LRA methodology and LRA template can be found in a Discussion Paper.



 

Defence Materiel Instructions (Procurement)

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DMIs are Functional Level Policies issued under the authority of the System of Defence Materiel Instructions (SDMI) and apply to all DMO personnel involved in Simple, Complex or Strategic procurement activities.
  • DMI(PROC) 13-0-001 v2.0 pdf

    Defence Materiel Instruction (Procurement) DMI(PROC) 13-0–001 —Mandatory Procurement Policy Requirements for all Defence Materiel Organisation Acquisitions (Including Sustainment Procurements) to Contract Signature.

    DMI(PROC) 13–0–001 is the first in a series of DMI(PROC) establishing the mandatory policy requirements, Contract Services Gates, activities and the role played by the Office of Special Counsel in all DMO procurement activities.

    All procurements must comply with the sections of this DMI entitled “Requirements for all DMO acquisitions” and the exit criteria applicable to the Contracting Services Gates. The additional requirements listed under “Simple procurement” and “Complex/Strategic Procurement” may apply depending on the categorisation of the procurement.

    Additional requirements may be imposed by local business unit standard operating procedures, instructions or other Quality Management System (QMS) documents. However, this DMI takes precedence over local business rules imposing less stringent requirements.

    The DMI(PROC) 13-0-001 has been updated to reflect stakeholder feedback and relevant policy updates that have occurred since it was initially published 1 July 2009.


 

D+I Pre-Event Forum

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The Procurement and Contracting Forum was held as a pre-event to the Defence and Industry Conference (D+I) on Tuesday 30 June 2009.

In the last eighteen months, there have been significant changes within DMO with regards to procurement and contracting. The new Office of Special Counsel has been implemented, comprising DMO Legal and the Procurement and Contracting Branch. A centre led model for contracting services has been established. New procurement policies and templates have been released and a comprehensive procurement professionalisation agenda has begun.

 

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