From left to right, members of the PLIC workshop. Ms Sherene Alexander – Executive Officer Industry Capability Definition; Miss Katrina Geddes – Graduate Industry Capability Definition; Mr Andrew Smith – Assistant Director Industry Capability Definition; Mr Ben Halton – Executive Officer Industry Capability Definition; Mr Scott Huxtable – Director Communications SPO; Mr Daryl Mouser – Director Radio Frequency SPO; Mr Shane Kingston – Director Satellite Communications SPO; Mr Peter Sidman – Contractor to Defence.

Australian defence industry is vital to the support of Australian Defence operations, and the ADF is dependent on a support base that includes both local and overseas suppliers. Since the release of the Government’s Defence and Industry Policy Statement 2007 in March, team members from Industry Division have been developing a framework to investigate the current Australian defence industry support base and identify the Priority Local Industry Capabilities (PLICs) that reside within it.

‘PLICs’, as they have affectionately become known, are a necessary component of the Defence and Industry Self-Reliance Plan (DISRP), which will lay out a strategic approach to equipping and sustaining the ADF. PLICs are described as industry capabilities that confer an essential national security and strategic advantage by being resident in-country. The rising cost and complexity of military equipment however, makes it increasingly difficult to sustain a full range of in-country industry capabilities, meaning Defence must identify priority industries so that limited resources can be directed towards supporting those that are deemed to be the most strategically important.

The recognition of strategically important PLICs will affect ADF decisions regarding how to structure supply and support, hence forming an essential component of strategic choice. Defence needs to observe the cost of providing and maintaining each of the products or services considered strategically valuable to the ADF, taking into account the risk of being denied access in both peace and war, as well as Australia’s essential security needs. This will allow Defence to establish adequately assured and cost effective lines of supply and support.

The identification of a PLIC follows a rigorous assessment methodology. For example, when examining a major system utilised in current operations, the platform is broken down into its relevant sub-systems and significant components, such as a hull or turret. Once each sub-system or component is identified, attributes are measured against a risk matrix. The matrix rates the criticality of the sub-system to operational performance. It also assesses the reliance on industry support, including such aspects as whether the system is Australian unique and the lead time for spares or repairs. Based on the highest risk ratings, potential PLIC’s can be identified for further analysis.

Once Defence has identified PLICs within the local support base, they will monitor the health and sustainability of these areas, with the opportunity to intervene if the industry capability is at a risk of not meeting Defence’s likely needs. The Government may respond where necessary to the problematic areas by customising its procurement of equipment and other services from industry; particularly it will enable Defence to take into account priority local capabilities when considering the capital acquisition program.

To date Defence has developed data on potential PLIC’s (focused on support to current operations in the first iteration) which will be further analysed before being presented to Government in the DISRP for approval. Subsequent investigation will expand the PLIC set to include all other current capabilities and an analysis of the future PLIC needs based around the Defence Capability Plan. While the DISRP is a classified document, outcomes from it will be included in the 2008-18 Defence Capability Plan. Also, the evolving Australian Industry Capability Programme is putting in place a number of procedures to ensure that industry and Defence will have an approach to developing and sustaining the identified PLIC.