Agencies to go in generational defence shake-up
The federal government has announced a major overhaul of the Department of Defense in an effort to address systemic inefficiencies within the organization while increasing spending.
Deputy Prime Minister Richard Marles today confirmed that the Capability Acquisition and Sustainment Group, the Naval Shipbuilding and Sustainment Group and the Guided Weapons and Explosive Ordnance Group will be merged into a single organization called the Defense Acquisition Agency.
The reform has been framed as one of the biggest the country has ever seen and comes against increased security activity in the west with the expected arrival of allied Virginia-class submarines based at HMAS Sterling from 2027.
“This is one of the most significant reforms we have seen in defense and will massively change the way defense works,” Mr Marles said.
“This will greatly improve the quality of defense spending and ensure that as we spend more money in the defense budget, we do so in a way that ensures programs are delivered on time and on budget.”
The move was heralded in June, when Mr Marles criticized the department’s performance and claimed that 28 projects had been overworked in the total 97 years his government had been in office.
The new Defense Procurement Agency will report directly to ministers responsible for defense – Mr Marles and Defense Industry Minister Pat Conroy – and will have control over its own budget.
It will be led by a National Armaments Director who will be responsible for advising the government on procurement strategies and program delivery following government approvals.
Mr Marles said the government was trying to ensure defense investments were well spent.
“As the Government of Albania makes its largest ever investment in Defense in peacetime, it is important that we put in place the structures and systems that will enable the Australian Defense Force to deliver the capabilities we need quickly and on budget,” he said.
“The establishment of the Defense Procurement Agency will increase the professionalism and strategic focus of acquiring and sustaining Defense capability.
“This will promote stronger competitiveness, more accurate cost estimation and clearer accountability for the delivery of major projects.”
The new agency is expected to employ approximately the same number of jobs as the three incorporated agencies, with a workforce of 6,500.
The restructuring follows sustained pressure from the United States, Australia’s largest defense ally and a third of the Aukus tripartite partnership, to increase Australia’s defense spending as a proportion of national GDP.
Defense spending currently stands at around $60 billion annually and will increase to approximately $100 billion annually by 2034.
ASC charts WA growth
The changes to the structure of the Ministry of Defense come alongside an anticipated significant increase in defense presence and activities in Perth’s south.
State-owned ASC plans rapid growth in local workforce; 250 new jobs will be added by June of next year, hiring at the rate of one a day for the next seven months.
ASC is the nation’s submarine manufacturer and maintainer and is expanding in anticipation of the arrival of Virginia-class nuclear submarines on rotation from 2027 via HMAS Stirling at Garden Island.
Jobs will include corporate support roles, subsea platform training instructors, engineers, supply chain specialists, planning specialists and project and program managers.
ASC also added 70 early career employees in WA through 2025 and will hire a further 65 in 2026.
The organisation’s 900-strong WA workforce will grow to more than 1,100 by the middle of next year and is expected to grow to more than 1,600 by 2030.
ASC’s recruiting effort is only part of the picture.
The coastal Henderson area will be consolidated into a defense-only area in the coming years, resulting in the relocation of common user facilities in the area.
The multi-billion dollar refurbishment and expansion of HMAS Stirling is in various stages of growth, with more than $20 billion in local investment expected over the next 10 years.
Demand for housing in the Rockingham area is already rising and is expected to grow further, according to the Real Estate Institute of Western Australia, fueled by an influx of local and allied service workers into the area.
The Department of Defense struck a deal in October to build 550 new homes this year and next, to be rented by Defense Housing Australia in the coming years.
