Skilling Australia’s Defence Industry (SADI) Program

Assessment Criteria For SADI Proposals

SADI is a reimbursement programme, and does not fund training costs retrospectively. A Company commits to conducting one or more skilling activities with the outcomes and costs forecast and agreed in advance. After the training activity is completed, the Company submits an official Tax Invoice for the actual costs incurred.

The proposed training activity must target an identified shortage in trade, technical or professional skill sets; and contribute to the development or delivery of in-country Defence capability. The SADI programme cannot support proposals which include claims for wage costs, General Business Management, Leadership training or Conference/Seminar/Summit/ Symposium or Convention attendance. Submissions must address the SADI Strategic Statement of Requirements. All SADI proposals for support under the SADI programme are considered in a non-competitive environment and on their own merit.

SADI supports the number of personnel to be trained “over and above” the company’s baseline. The baseline is the average number of personnel trained in the activity over the past three years. (Note 1) The SADI programme provides support for the direct costs of training, which may include:

• Course/tuition fees;
• Where available, a ten-year summary of the company’s (including predecessors) skilling programs. A minimum of the previous three years is required;
• Lecturer / Training Provider fees;
• Reasonable supervisory costs (for on-the-job training);
• Course materials (text books, manuals, other equipment or supplies specific to the training);
• Venue hire (for off-site training where a fee occurs);
• Specified remote and Original Equipment Manufacturer travel costs; and
• Training programme development.

Note 1: In response to the current economic climate, baseline requirements have been temporarily removed as of 1 March 2009.

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Participation in the SADI programme requires a shared investment in training. The Company is required to demonstrate its commitment to the training programme and take responsibility for the indirect costs of training including:

• Anticipated productivity loss during training;
• Employee costs such as wages and superannuation;.
• Hospitality, catering, trainee accommodation and allowances;
• Reasonable supervisory costs (for on-the-job training);
• Advertising and recruitment costs; and
• Infrastructure.

Support for the cost of economy airfare/s is available for trainees travelling to or from rural and remote locations or for trainees travelling to and from Original Equipment Manufacturer training, providing that the skills transfer benefit is clearly demonstrated in the SADI funding proposal. Support for the cost of economy airfare/s and accommodation (at the established Defence non-SES rate) is available for the Training Provider if clearly justified in the SADI funding proposal.

A percentage of funding support for the modification or development of a training package may be considered. Proposal justification should include the skills shortage addressed and the capability benefit. Sufficient detail regarding the modifications/development required and the forecast costs of teaching resources, materials and tools must be provided. It should be noted in the submission if the course is to be made available to other defence industry companies.

SADI does not provide support to Registered Training Organisations directly, but through Companies that have sourced training development expertise that the Commonwealth recognises as providing value for money.

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The SADI Agreement

Under Commonwealth Legislation and Defence policy, a formal, legally binding Agreement is necessary between the Company and the Commonwealth in order for the SADI programme to provide financial support for training activities.

A standard Agreement template has been specifically designed for the SADI programme. The Agreement varies significantly from other Defence and DMO contracts, as no exchange of goods or services takes place. Open book accounting is a requirement of companies participating in the programme, with audit access if required.

The Agreement contains standard Terms and Conditions, including an Agreement Schedule showing costing information provided in the SADI proposal form. This costing information provides a justification for expenditure, which must align with the SADI Strategic Statement of Requirement and demonstrate value for money. Amendments to the standard Terms and Conditions can be negotiated; however, advice is required from the Legal Services Branch of the DMO for all variations. This will delay the finalisation of a SADI Agreement if left until the end of the application process.

The revised SADI Agreement has been designed to cover multiple training activities and training to be conducted over a 12 month period. If a training activity will extend over 12 months, a new proposal must be submitted.

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Preparing A SADI Application

Section B should include essential company details and details of the contact officer.
Section C provides an overview of the work undertaken by the Company, the number of employees and the principal Defence contracts.
Section D should include all information about the training activities to be conducted; with a new section D completed for each training activity.
Section E is the Activity Costing section for calculation of reimbursable costs. Costs should be entered at the GST exclusive rate, with GST costs identified. Not all items will be claimable under SADI, so the proposal requires evidence of Company investment in training activities.
Section F may include additional information where it enhances the level of understanding of the proposal, or offers useful background information (e.g. the course syllabus).

Once completed, the SADI proposal form will capture the information required by the Commonwealth to assess suitability for SADI support. The proposal should be submitted electronically for consideration. A SADI case manager will contact you once your proposal is registered and will assist you to progress your proposal to final Agreement.

Once the Agreement has been signed by both parties, you may commence the scheduled training. In order to claim reimbursement of agreed costs you will be required to submit correctly rendered Tax Invoices in accordance with the terms of the Agreement.