The Australian Industry Capability (AIC) Program Investment supports the 2024 Integrated Investment Program and its requirement to achieve value for money. The AIC Program aims to:

• provide opportunities for Australian companies to compete on merit for defence work within Australia and overseas
• influence foreign prime contractors and original equipment manufacturers, including Australian subsidiaries, to deliver cost-effective support
• facilitate transfer of technology and access to appropriate intellectual property rights
• encourage investment in Australian industry.

The AIC Program is an important mechanism to ensure consideration and inclusion of Australian industry capability, especially for the Sovereign Defence Industrial Priorities (SDIPs). Defence has identified 7 SDIPs, which represent the industrial capability Defence requires in Australia. For more information, visit the Defence Industry Development Strategy page.

Criteria

For tendered solutions to represent value for money, tenderers must describe how their proposed approach will enhance Defence industry capability and capacity.

AIC Plans are sought for all Defence procurements where either:

• the value of the tender is expected to exceed $20 million
• procurement will impact a Sovereign Industrial Capability Priority (SICP).

This includes government-to-government procurements, foreign military sales and direct commercial sales

AIC plan data item descriptions (DIDs) are included with the ASDEFCON suite of tendering and contracting templates.

Public plans

Under the AIC Program, it is a requirement that tailored versions of AIC plans be prepared for public release.

Public AIC Plans set out the plans and forecasted opportunities that contracted Defence suppliers will provide Australian industry in defence capability and procurement activities.

The level of detail incorporated into each Public AIC Plan ranges from brief high-level summaries to more detailed statements depending upon the scope and complexity of the Australian industry component of the procurement.

The level of detail published will also depend on the security, commercial restrictions or caveats that apply to the information and the likelihood of any requirement to amend contracts and their associated AIC Plans over their agreed term.