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Capability Acquisition & Sustainment Group

Program Guidelines: Financial Statements Presubmittal Program and Approved Contractor Viability Program

Introduction

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.

FSPP and ACVP are intended to reduce the need for CASG suppliers that regularly submit tenders to Defence to submit duplicate financial information in those tenders, and to streamline the evaluation of financial viability in Defence procurement processes.

Participation of suppliers in FSPP or ACVP is subject to these Program Guidelines. By lodging documents for FSPP or ACVP with FIS, suppliers agree to these Program Guidelines.

Financial Statements Presubmittal Program (FSPP)

Overview

FSPP is a Defence reform initiative that provides certain suppliers with the opportunity to reduce administrative effort in responding to approaches to market by allowing them to presubmit certain financial information (including audited financial statements with the appropriate accompanying notes) once per year directly to FIS rather than with each tender.

Eligibility

Participation in FSPP is voluntary. CASG suppliers (or the holding entities where an ASIC class order is lodged) that are required by the Australian Securities and Investments Commission (ASIC) to lodge audited financial statements are eligible to participate.

Suppliers may also include their Related Bodies Corporate (as defined in section 9 of the Corporations Act 2001 (Cth)) as participants in FSPP by providing financial information in respect of those bodies. Suppliers are to obtain the prior consent of any Related Bodies Corporate before providing their financial information to Defence.

All suppliers that are participating in FSPP are listed in the FSPP Register.

Information required to be lodged

Suppliers apply to participate in FSPP by lodging the following information:

  1. the full name of the supplier;
  2. any trading or business name;
  3. if a company, the registered office, principal place of business and an outline of the company structure;
  4. the date and place of incorporation;
  5. details of individual shareholders holding 20 percent or more of any issued share capital;
  6. particulars of any foreign national or foreign bodies or organisations in a position to exercise or influence control over the supplier;
  7. details of Related Bodies Corporate;
  8. for a foreign firm or company, details of its registration, incorporation and place of business in Australia, the name of any Australian representative and its ABN (if any);
  9. if an Australian company, its ACN/ARBN and ABN as applicable; and
  10. copies of audited Annual Statement of Financial Position, Income Statement and Statement of Cash Flows with the appropriate accompanying notes for the three previous financial years for the supplier. If the supplier is part of a group of companies, those documents or the equivalent information is to relate to the tenderer as a single entity, unless granted relief under the relevant ASIC class order.

All supplier information and audited financial statements with accompanying notes are to be lodged by suppliers at: FIS.Lodgements@Defence.gov.au

Once suppliers have lodged the information requested in these Program Guidelines they will receive an automatically-generated email identifying that their information has been received by Defence. Defence may contact suppliers if any information is missing or inadequate.

When Defence is satisfied that the information described above has been received from a supplier, it will list the supplier, and any Related Bodies Corporate whose financial information has been provided by the supplier, in the FSPP Register. The supplier and any listed Related Bodies Corporate will be considered to be participating in the FSPP while they remain listed in the FSPP Register. If a supplier is listed on the FSPP Register this does NOT mean that it has been evaluated by FIS as being financially viable, only that it is participating in the FSPP.

Suppliers should allow at least 10 business days (excluding the two week period beginning on Christmas Day) for FIS to receive and process FSPP financial information and update the FSPP Register. If, at the time of submitting a tender, a supplier's name is not included in the FSPP Register (either as a supplier or Related Body Corporate) then the supplier is not considered to be participating in FSPP and will need to lodge any financial information required by the request documentation as part of its tender.

To continue participation in FSPP, suppliers are to lodge audited financial statements and accompanying notes annually as soon as practicable following the end of their financial year and advise FIS, as soon as practicable, of any changes to information previously lodged in response to paragraphs a & i above.

Key suppliers participating in the FSPP may be invited to participate in ACVP and be granted ACVP status as described below.

Approved Contractor Viability Program (ACVP)

Overview

ACVP is a Defence reform initiative that prequalifies as financially viable a small number of key suppliers with a proven record of financial viability and a positive business outlook.

Eligibility

Participation in ACVP is voluntary and is open only to key suppliers and their Related Bodies Corporate that are participating in FSPP and that have been invited to participate in ACVP by Defence.

All suppliers that have ACVP status are listed in the ACVP Register.

Requirements for Participation

Suppliers participating in ACVP are to:

  • maintain ongoing participation in FSPP (including annual submission of required supplier information and audited financial statements);
  • regularly engage with FIS via Supplier Review Meetings at which financial performance is reviewed;
  • continue to be assessed by FIS as presenting an acceptable risk in relation to financial viability; and
  • advise FIS of material adverse developments in their financial viability as soon as they are known to the supplier's management.

Transitional Arrangements

FSPP and ACVP provisions are in the process of being included in Defence contracting templates.Therefore, some published request documentation may not reflect FSPP or ACVP requirements. During this transitional period, suppliers participating in FSPP or ACVP should continue to submit financial information as part of their tenders if directed to do so by the applicable request documentation.

Even if request documentation does not refer to ACVP, suppliers should indicate in their tenders if they have ACVP status.

Use of Information

Suppliers agree that Defence may use, retain and copy the information submitted by suppliers for the purposes of FSPP or ACVP for:

  1. tender evaluation;
  2. preparation, negotiation and management of any contractual or other legal arrangement with the supplier; and
  3. verifying the currency, consistency and adequacy of information provided under any procurement process conducted by Defence.

Defence will treat financial information submitted by a supplier for the purposes of FSPP or ACVP as confidential, but may disclose such information:

  1. if required by law or statutory or portfolio duties, or required for public accountability reasons, including following a request by parliament or a parliamentary committee;
  2. for the purpose of defending any claim or proceeding;
  3. if it is in the public domain otherwise than due to a breach of confidence; or
  4. to a third party for the purposes of that third party assisting Defence in implementing the FSPP or ACVP, assessing financial viability, evaluating a tender submitted by the supplier or preparing or negotiating contracts with the supplier. Such third parties will be obliged maintain the confidentiality of the information and Defence may obtain appropriate confidentiality undertakings from the third party prior to disclosure.

Nothing in these Program Guidelines changes or affects the ownership of intellectual property rights in the information lodged with FIS by suppliers for the purposes of FSPP or ACVP.

Defence's rights

Defence may:

  1. consider information obtained from other sources than the supplier to assess a supplier's financial viability or eligibility for participation in the FSPP or ACVP; and
  2. seek clarification information from a supplier where to do so would not be inconsistent with any applicable conditions of tender.

Changes to these Program Guidelines

These Program Guidelines are subject to change at any time by Defence publishing a new version of these Program Guidelines. Suppliers that continue to participate in FSPP and/or ACVP after any such change agree to comply with the new Program Guidelines.

Cancellation and Withdrawal

If suppliers fail to comply with these Program Guidelines, or cease to be eligible to participate in FSPP or ACVP, then their participation (and their Related Bodies Corporate) in either or both of FSPP or ACVP may be cancelled upon written notice from Defence.

Suppliers may withdraw from the FSPP or ACVP or both at any time by notifying FIS by email (FIS.Feedback@defence.gov.au).

Further Information

All requests for assistance and advice on the FSPP and the ACVP should be directed to FIS.Feedback@defence.gov.au.