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.
The Master Deeds of Guarantee and Indemnity and pre-agreed template Bank Guarantee will reduce the cost of tendering by removing the need to negotiate a Deed of Guarantee and Indemnity and/or Bank Guarantee on a contract by contract basis.
Defence is inviting selected Defence prime contractors to participate in the program. Participation by companies in the program is voluntary. At present, the companies that have executed Master Deeds of Guarantee and Indemnity and pre-agreed template Bank Guarantees are:
Master Guarantee and Indemnity
The terms of each Master Deed of Guarantee and Indemnity are based on the ASDEFCON template Deed of Guarantee and Indemnity as modified by agreement between Defence and the contractor.
Contractors participating in the Master Guarantee Program can indicate in a tender response whether they propose that their Master Deed of Guarantee and Indemnity will apply to the resultant contract if they are successful.
Where a successful tenderer has proposed that it will apply, the project will arrange for the tenderer to execute a Master Guarantee Deed of Amendment to apply the Master Deed of Guarantee and Indemnity to the new contract.
Pre-Agreed Bank Guarantee
The terms of each pre-agreed Bank Guarantee are based on the ASDEFCON template Bank Guarantee as modified by agreement between Defence and the contractor.
There is no Master Bank Guarantee for contractors, meaning a new Bank Guarantee must be executed with the contractor for each new contract (where applicable).
All requests for assistance and advice in relation to the Master Guarantee Program should be directed to the ASDEFCON help desk at procurement.ASDEFCON@defence.gov.au .