Prioritizing Defence Industry Capabilities: Lessons for Canada from Australia

A number of Canadian acquisition announcements over the past few years have generated significant debate about a variety of issues like whether or not Canada should have a separate procurement agency, whether or not industrial and regional benefits are appropriate and whether or not Canadian companies should be given preference over international companies. In discussions about improving our procurement process Australia is often used as an example because the nations are generally considered to be similar in size with respect to GDP, population and military. This study examines Australia’s approach to establishing a defence industry policy with a set of Priority Industry Capabilities and how that policy connects with military procurement in order to identify those lessons that might be useful for Canada as it seeks to improve its own procurement process and its relationship with the defence industry. The study looks at some important background information on the Australian experience and then looks more specifically at the most recent articulation of policies in Australia. Although Australia is not without its own challenges, there are a number of lessons that stand out for Canada. This study discusses the lessons for Canada and recommends that government spends the time and effort required to connect a series of related policy documents that provides industry and others with an articulation of what the government of the day intends to do and what their priorities are moving forward. It also recommends a holistic review of the entire procurement process to determine what is working well and what actually needs fixing would be useful.