The Draft AIC Enhanced Contractual Framework and supporting elements are intended to support the capture of specific and measurable AIC commitments. This will promote greater accountability to help support the achievement of AIC objectives.

Defence has changed the approach for the AIC from a ‘one-size-fits-all’ approach across its acquisition and sustainment contracting templates to a more flexible and scalable approach. This will enable greater alignment with the unique aspects of each procurement, consistent with the defence industry being one of the fundamental inputs to Defence capability.

The changes in the framework are all directed at:

  • maximising opportunities for Australian industry to participate in each procurement, while recognising the core role of the defence industry in delivering ADF Capability
  • strengthening contractual terms to ensure requirements are achieved, through revised tendering processes and the inclusion of specific, measurable contractual commitments to enhance accountability

Under the new framework, key enhancements are to elevate AIC as a 'core' clause with strengthened contractual obligations that contractors must comply with. To complement these obligations a new AIC remediation regime will be implemented.

The enhanced contractual framework will not be applied retrospectively. Defence will adopt a phased implementation approach across the ASDEFCON template suite from 1 January 2021.

The first package of draft documents (the AIC core package) is now available for consultation and comprises:

  • updated Conditions of Tender, Conditions of Contract (and Glossary), and Statement of Work
  • new Australian Contract Expenditure Measurement Rules
  • extracts from relevant artefacts which describe the enhanced framework

What is the Australian Industry Capability Program?


The Australian Industry Capability (AIC) Program is designed to meet key objectives of the 2016 Defence and Industry Policy Statement (DIPS). In accordance with the DIPS, 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.

How do I give feedback?


All feedback should be sent to procurement.ASDEFCON@defence.gov.au using the ASDEFCON AIC Enhancements Feedback Log.

Consultation closes at 5:00pm AEDT Monday 30 November 2020.