Commercial Division within the Capability Acquisition and Sustainment Group (CASG) assists Defence to manage commercial risk in the capability and procurement lifecycle, consistent with the Commonwealth and Defence accountability framework. The following guidance and general information have been made available to industry to assist when tendering for work and entering into a contractual arrangement with Defence.
Better Practice Guides (BPGs) should be considered better practice guidance for Defence staff undertaking procurement activities.
The CASG Cost Principles apply to all procurements. They are mandatory for all procurements valued at greater than two million Australian dollars (AUD$2m), and guidance for all others, unless exemptions apply.
The aim of the CASG Profit Principles is to provide guidance in the determination of Defence contract pricing where market competition does not occur.
The Financial Statements Presubmittal Program (FSPP) and Approved Contractor Viability Program (ACVP) are intended to streamline existing Financial Investigation Service (FIS) processes in order to reduce the cost of tendering for both Capability Acquisition and Sustainment Group (CASG) suppliers and Defence.
Where a contract contains a formula for the escalation of prices according to published indexes, it is the preference of the Commonwealth that indexes from the Financial Investigation Service (FIS) Endorsed Indexes List are used.
Performance Based Contracts (PBC) are structured to motivate the supplier to achieve required outcomes, rather than merely achieving specified levels of transactions.
Defence's position on liability is founded on the Defence Liability Principles that have been developed in consultation with Defence industry.
The Approved Contractor Insurance Program (ACIP) is a joint Defence and Industry procurement reform initiative that involves a periodic centralised review of participating Defence companies' global / group and local insurance programs.
The Master Guarantee Program is a commercial reform that allows Defence prime contractors with a signed Master Deed of Guarantee and Indemnity to apply it to multiple contracts with Defence. The program also allows Defence prime contractors to pre-agree amendments to the ASDEFCON template Bank Guarantee.