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Capability Acquisition & Sustainment Group

Approved Contractor Insurance Program (ACIP) Initiative

The Approved Contractor Insurance Program (ACIP) is a joint Defence and Industry procurement reform initiative that involves a periodic centralised review by the ACIP Management Team of participating Defence companies' global / group and local insurance programs.

The purpose of the review is to pre-qualify a participating company's insurance program (ie grant ACIP status), provided that the ACIP Management Team is satisfied with the insurances maintained by the company. The benefits of pre-qualification include:

  1. streamlining and reducing the administrative burden and costs associated with compliance checking and management of certain contract insurance issues, specifically by:
    1. reducing tender and contract data deliverable requirements; and
    2. reducing tender evaluation, contract negotiation and contract management effort;
  2. improving risk management within CASG, particularly in respect of insurable risks that arise in connection with the performance of Defence contracts;
  3. subject to stringent confidentiality safeguards, improving transparency and understanding of participating Defence companies' global / group and local insurance policies; and
  4. developing a corporate level relationship between the ACIP Management Team and participating Defence companies' global risk and insurance managers.

Companies granted ACIP status are deemed to comply with insurance requirements in individual contracts and are relieved of the obligation to provide evidence about their insurances to CASG during both the tendering and contract management phases of the procurement. Importantly, however, this 'exemption' does not apply with respect to any contract specific insurance requirements that fall outside the company's ACIP.

The ACIP Initiative is currently open to the 'top' 6-7 major Defence companies. Participation by companies in the program is entirely voluntary. The ACIP Register lists those companies currently holding ACIP status.

Explanatory information on ASDEFCON insurance clause is contained in the ASDEFCON Insurance Handbook V2.0.

The following eleven ASDEFCON Insurance Case Studies have been developed to assist Defence staff select the correct insurance policies for their procurement from the available options in the ASDEFCON insurance clause. They are based on brief fictional scenarios and cover all the insurance policy options in the ASDEFCON insurance clause.

Case Study #1 Contract for the supply of munitions
Case Study #2 Design and construct contract
Case Study #3 GFF Licence
Case Study #4 Acquisition of goods uniforms and shoes
Case Study #5 Members Required in Uniform
Case Study #6 Supply of services on Defence property
Case Study #7 Aviation acquisition contract
Case Study #8 Aviation in service support contract
Case Study #9 Marine acquisition contract
Case Study #10 Marine in service support contract
Case Study #11 Contract for the provision of warehousing services

Guidance on what information should be contained in an Insurance Certificate of Currency can be found in the Guidance Note - Insurance Certificates of Currency.

All requests for assistance and advice in relation to the ACIP Initiative should be directed to the ACIP Management Team.

Please note that while the ACIP Management Team will endeavour to assist with insurance issues, the following areas are outside the scope of the ACIP Initiative:

  1. liability risk assessment advice such as the quantum of policy cover required for a specific contract;
  2. insurance broking assistance and advice on market rates for insurance policies;
  3. assurance in relation to non-ACIP insurances beyond identifying the need for them and/or their seamlessness with the ACIP;
  4. advice on how to structure insurances to obtain best value for money; and
  5. advice on whether insurance premiums have been properly allocated to contracts.