Defence Business August/October 2018

Issue 44 August-October 2018
EXCLUSIVE INTERVIEW:
MAJOR GENERAL
KATHRYN TOOHEY
LAND FORCES
JOINT STRIKE FIGHTER • FRIGATES • TRANSPARENCY • CYBER •
SPACE AGENCY • INDUSTRY 4.0 • SKILLS • EDUCATION

August-October 2018 Defence Business CONTENTS 3
8
18
23
04 FROM THE DESK OF THE CEO
07 NEWS IN BRIEF
08 LAND FORCES: ACCELERATED WARFARE PRESENTS
OPPORTUNITY FOR DEFENCE INDUSTRY
12 AUSTRALIA’S NEW FRIGATES: STRATEGIC SIGNALS
15 DTC CALLS FOR GREATER TRANSPARENCY
AROUND AUSTRALIAN INDUSTRY CONTENT
18 FORMER ASTRONAUT:
DEFENCE KEY TO SPACE SUCCESS
23 FORCE ORDNANCE: THE ANATOMY
OF A NEW DEFENCE BUSINESS
25 ANTICIPATING YOUR NEXT SECURITY
BREACH - AND PREVENTING IT
26 NATIONAL CYBER SECURITY CENTRE
27 NEW DIRECTION FOR DTC MEMBER AWARDS
28 ADA: A NEW CHAMPION FOR DEFENCE INDUSTRY
30 STRATEGIES TO OVERCOME THE STEM SHORTFALL
33 AN AUSTRALIAN DEFENCE PERSPECTIVE FOR
INTERNATIONAL VISITORS TO LAND FORCES
34 ACHIEVING MORE TOGETHER
36 NOW’S THE TIME FOR AUSSIE SMES TO SHINE:
GETTING ONBOARD THE FOURTH WAVE
40 NEWS IN BRIEF
42 INDUSTRY WELCOMES STRIKE FIGHTER SPIN-OFFS
FRONT COVER
Australian Army soldier, Corporal Oliver Brandon, from the
2nd Battalion (Amphibious), Royal Australian Regiment,
covers a doorway during urban assault training with United
States Marines at Kaneohe Bay, Hawaii, during RIMPAC 18.
25
34
42
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www.dtc.org.au
CEO
Margot Forster
EDITOR
Tracy Pierce
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4 FROM THE DESK OF THE CEO
August-October 2018 Defence Business
From The Desk Of The CEO, Defence Teaming Centre
By CEO Margot Forster
Australia’s multi-billion-dollar investment in sovereign capability and the establishment
of a sustainable export market demands a new level of professionalism as we embark
on this historic national undertaking.
As a consequence, the Defence Teaming Centre (DTC), along with AIDN-Victoria
(AIDN VIC), have elected to retire their membership with AIDN National and join forces
with the Henderson Alliance to more effectively represent our collective membership on
the national stage.
This has led to the formation of the Australian Defence Alliance (ADA). This new body
is a strong and reinvigorated partnership with AIDN VIC and the Henderson Alliance in
Western Australia, that represents nearly 1,000 nationally-based SMEs. It has already
received a positive reaction from State and Federal governments, and from the Primes,
which validates this pivotal decision.
The ADA is an alliance of associations. It now provides a singular voice on policy and
advocacy issues into key stakeholders such as the Commonwealth government,
Primes and other key bodies.
Participating organisations maintain their sovereignty and manage their day-to-day
affairs in accordance with their constitutions and charters, supporting their members
as usual.
Our three organisations are now working together to finalise our memorandum of
understanding (MoU) and a set of principles for collaboration through inclusion,
advocacy, messaging and programs offered to members. In addition, we have adopted
a collaborative approach for working with Government and industry stakeholders.
WHAT DOES IT MEAN FOR MEMBERS?
As mentioned above, the ADA has a charter to bring a new level of professionalism
to industry representation on the national stage. We acknowledge the historic
contribution of volunteer management and the associated goodwill, however
Australian defence industry associations must now lift their sights.
A key benefit for members will be the cooperation on national events which
develop industry capabilities and promote collaboration of interstate SMEs.
The ADA will also establish shared service delivery across state boundaries e.g.,
DTC to provide services inside WA through Henderson Alliance; AIDN VIC
sharing policy development with DTC and Henderson Alliance on discrete areas
of commercial interest.
Members will also see a greater commitment of time and resources to promote
innovation and collaboration between interstate SMEs and promote research and
development across the industry.
As we move forward, our foundation services will continue to evolve and
improve, including:
• Discounted access to high quality networking events to encourage collaboration
and teaming across defence industry
• Professional representation at workforce and industry councils to highlight
the needs of defence industry members and to inform defence industry policy
development
• The continual promotion of member capabilities to potential opportunities
in the sector with Defence, Defence Primes and between members.
THE DTC’S ROLE
The DTC presently has close to 300 members, consisting of Primes, SMEs, service
providers and educational institutions. While initially DTC was previously focused on the
defence industry in South Australia, a large proportion of our membership are national
entities, or companies seeking to expand interstate. In recent years, the feedback we
have been receiving from our members and other key stakeholders is that the DTC
should take more of a national focus and, where appropriate, should extend its services
outside of South Australia.
MANAGING DIVERSITY
ADA has members all over Australia. In each of the states our members are in, there
will be differences of opinion. Defence policy however will always be made with
national considerations in mind. ADA recognises all defence programs are a national
endeavour and we will reinforce this approach at every turn.
FRAMEWORK
ADA will adopt the principles of “ISO 44001-2016 Collaborative Business Relationship
Management Systems - Requirements And Framework” as the foundation of the
relationships between the various associations joining the ADA. Participation will be
formalised through an MoU, a framework whereby the following can be achieved:
• Operate under the banner of the ADA for the purpose of unity and provision of a
strong voice on strategic and policy matters impacting defence and dual-use SMEs.
• Development of timely joint policy positions and advocacy to relevant parties/
agencies and provision a single point of contact for the Federal government
(this will rest with AIDN VIC during the formative stages.)
• Sharing of information, data and resources where there is an efficiency benefit in
relation to cost and time.
MOVING FORWARD
ADA will be positioned to be “The National Voice for SME Policy, Strategy and
Advocacy in Dual-Use and Defence Industries”.
However, it encourages member associations to retain their own individuality and
regional service delivery to its existing membership. It is with a strong diversity of
capability, knowledge and skills that Australia will get the best out of its indigenous
defence industry.
Other associations are welcome to join the ADA. Participation by any advocacy
and/or peak body with equity in the Defence and/or dual-use industry space is
encouraged. Wide interest in participation is envisioned, further strengthening
collaborative and cohesive national SME representation. While DTC and AIDN VIC
are no longer members of AIDN National we will of course continue to collaborate
with AIDN state chapters. DTC will continue to provide the highest level of service to its
members. We aim to be nationally and internationally recognised as a model industry
body that supports its members to develop capabilities and increase competitiveness
for opportunities in the national and global defence markets.
HIGH STAKES
The unprecedented investments in Australian defence programs are leading to
unprecedented growth in the sector. However, with this growth comes risk and
this risk must be managed. Australia must get the implementation of our defence
programs right.
Australian companies – both those already working in defence and those who are not –
have so much to offer. ADA’s collaborative approach is required to connect opportunity
to capability and capacity.
DTC LOGO
As the symbol of what the we stand for, the DTC logo is an important international
brand. We have updated our logo to reflect our value proposition: Connecting,
Developing and Advocating for our members. Members should be proud to showcase
their support for Australia’s defence industry through Defence Teaming Centre
membership and we encourage you to proudly display the logo on your company
stationary and promotional material.

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August-October 2018 Defence Business
NEWS IN BRIEF
7
Battlespace Comms
Art Therapy First
Boeing's Currawong Battlespace Communications
System has achieved Initial Operating Capability (IOC) on
schedule and just four months after its Initial Material
Release. The Australian Defence Force now has the
world's most advanced battlespace communication
system to transfer secure data, voice and video between
Australian headquarters and deployed forces globally.
In other news, Boeing has been selected to provide crew
instruction and to operate, sustain, modify and upgrade
its C-17 Aircrew and Maintenance Training Systems
at the Royal Australian Air Force Base in Amberley,
Queensland, and 15 US Air Force locations.
Best In Class
A three-year research project into the role of
art therapy for Post-Traumatic Stress is now
underway thanks to The Road Home.
In an Australian first, academic researcher Holly
Bowen from the University of South Australia
is exploring the benefits of art therapy with the
aim of it becoming a prescribed therapy for
veterans with post-traumatic stress in the future.
A primarily non-verbal therapy, art can provide
a powerful outlet for patients as it gives them
another way to express their emotions.
To find out more about this research and
how The Road Home supports veterans and
emergency service personnel visit:
theroadhome.com.au.
And don’t forget, The Road Home’s annual
Remembrance Business Breakfast will be held
at the Adelaide Convention Centre on Friday
November 9 and tickets are now on sale.
Art Therapy participant David Gillard
Exporter Of The Year
Good Design Australia recently awarded “Best in Class –
Engineering Design” to the Humanihut Shelter System,
a scalable, easily deployed, field infrastructure solution.
Partnered with the Humanihut team of Neale Sutton,
Andrew Hamilton and John Brooks for over three years,
Kadego has been working as integral design partners.
With an initial contract with the SA State Emergency
Service, and global orders pending, the systems is
set to see a multitude of humanitarian, defence and
commercial uses.
Electricity Interconnector
REDARC Electronics has been awarded the Exporter
of The Year Award at the Manufacturers Monthly
Endeavour Awards.
The Endeavour Awards recognise the achievements of
industry leaders and rewards excellence in Australian
manufacturing.
This is the premier awards program within the industry
and brings together some of Australia’s key innovators
from the manufacturing sector.
The Exporter of The Year Award category is for companies
that have successfully entered, or are developing, an
export market with a new or existing locally-made product.
The SA Government is investing up to $14 million
to accelerate early works on construction of an
interconnector between South Australia and New South
Wales to provide more reliable and affordable electricity
to both states. “An interconnector between South
Australia and New South Wales will enable the export
of our abundant renewable energy resources across the
border whilst delivering more reliable and affordable
electricity to both states,” said Premier Steven Marshall.
Technoweld
Technoweld is now collaborating with the global leader
in welding research and technology, The Welding
Institute (TWI) to offer internationally recognised welding
engineering services. In addition to the company’s
traditional service offerings of welding inspection,
supervision, management, consultancy and training,
this strategic relationship will now allow Technoweld to
offer advanced NDT methods and fatigue testing. Under
the collaborative agreement, the company will also
undertake a world-leading R&D project into fatigue
performance which is likely to have exciting applications
for Defence shipbuilding.
The DTC would like to acknowledge the support of our sponsors
ANZ
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8 LAND FORCES
August-October 2018 Defence Business
Accelerated Warfare Presents
Opportunity For Defence Industry
Army’s recently announced focus on “accelerated warfare” presents a significant
opportunity for technologically innovative businesses, according to Major General
Kathryn Toohey, Head Land Capability.
Speaking prior to Land Forces 2018, Major General Toohey said “accelerated
warfare is underpinned by rapidly changing technology.”
“Army is thinking deeply about how we can ensure we are leveraging leading
edge technology - and on occasion bleeding edge technology – to give us a
capability advantage.”
In his pivotal Futures Statement released in August, Chief of Army Lieutenant General
Rick Burr, described Accelerated Warfare as both the operating environment and a
description of “how we respond”.
“Accelerated Warfare provides the start-state for how we think, equip, train,
educate, organise and prepare for war,” he said. “This is a critical step in
becoming future ready."
Major General Toohey said Army seeks to develop functionally based requirements
“to allow industry to offer their best technology.”
“A number of our programs now support spiral development,” she said. “We have
a battle rhythm of regular engagement with government rather than the waterfall,
big acquisition approach that our platform projects have taken in the past, and will
necessarily need to take in the future.”
The technology refresh planned for systems on the Land 400 vehicles is a good
example of ensuring Army capability remains relevant.
“The Land 400 vehicle, the hull, will be in service for decades but the systems on
board the vehicle, will be refreshed more regularly. That tech refresh will be managed
through the Capability Acquisition and Sustainment Group (CASG) as the sustainer of
the vehicles.”
GETTING NOTICED BY ARMY
Major General Toohey said Army will have a strong presence at Land Forces,
adding with a laugh: “We’re always on the hunt for great capability.”
She also cited a range of other pathways that businesses could access to ‘engage’
with Army, including: The Defence Innovation Hub; Army’s annual Innovation Day in
Canberra; Centre for Defence Industry Capability (CDIC); the Defence Innovation
Portal and the Land Environmental Working Group (see separate story on page 11).
“Army has an excellent relationship with industry, noting that our formal commercial
relationship with industry is managed by CASG,” she said
“That relationship is obviously with the Primes but is also with SMEs and I believe that
Army is the Service that touches the most SMEs across Australia.
“Army looks to engage with industry as early in the capability lifecycle as we can.
That engagement is to ensure that Army separates science from science fiction and
to ensure that we have a good understanding of our needs and requirements before
CASG initiates the formal market solicitation process.
“Army understands that we need to work really closely with industry to deliver the best
capabilities to our soldiers.
“I would say that a strong relationship is always two way. Both Army and industry need
to ensure our engagement remains meaningful, honest and open. We continually look
at ways to improve this."
PROFIT AND PATRIOTISM
Defence Business magazine asked Major General Toohey if SMEs needed a shift in
mindset, from seeing defence as an area of potentially lucrative revenue, to being a
‘partner’ in delivering capability in the national interest? How do we work together to
build that trust and collaboration at the working level?
“Small business needs to do both,” she said. “To be successful they need to make
a profit. My experience is that they can make a profit but at the same time also
effectively partner with us to deliver capability. The successful companies are just as
invested in delivering world class capability to Army soldiers as we in uniform are.
“They see it as not just an investment in their company; it’s an investment in
their nation.
“When I speak to people from defence industry, they often talk about how
strongly they relate to the important role they fulfil in delivering and sustaining
defence capabilities.
“And a lot of people in industry are ex-uniformed members. I relate to the saying
‘you can take the person out of the uniform but you can’t take the uniform out of
the person’. They go on to find other ways to continue their service, such as working
in defence industry.”
LAND FORCES
The biennial Land Forces industry exposition is described as “a comprehensive
showcase of products, services and technologies for the armies of Australia, Asia and
the Indo-Pacific region and provides a direct conduit between major industry suppliers
and key government and military decision-makers."
Over 500 exhibitor companies from 23 countries participated in the Land Forces
Exhibition 2016. The 2016 Chief of Army Seminar attracted a total of 34 international
military, industry and scientific delegations from 18 nations, including 16 Chiefs of
Army or senior military commanders.
Australian Army Soldiers from 7th Brigade run to a position during live artillery practice.

August-October 2018 Defence Business
LAND FORCES
9
Head of Land Capability, Major General Kathryn Toohey talks to Mr Brian Gathright, BAE Systems Australia.

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August-October 2018 Defence Business
LAND FORCES
11
Major General Kathryn Toohey joined the Australian Army in 1987. A former Director-
General Integrated Capability Development (CDG), she was appointed the Head of
Army’s Land Capability division in 2017. In the same year, she was conferred with the
Medal of the Order of Australia for her service to the Australian Defence Force in the
fields of capability development and education.
She outlined (below) a range of pathways that firms can use to ‘do business’
with Army.
THE DEFENCE INNOVATION HUB facilitates innovation activities from initial concept,
through prototyping and integrated testing.
“We are big users of the Innovation Hub. Land Combat, Amphibious Warfare and
Special Operations is actually one of the Innovation Hub’s three priority streams.”
INNOVATION DAY
Army’s annual Innovation Day in Canberra has been highly successful and is now in its
fifth year.
“The process is that we invite industry to put their proposals forward. We then select
companies to demonstrate their equipment or capability at Innovation Day.
“In the morning, companies set up in a trade show type format and we talk to each
company about their capability. In the afternoon we run the Army equivalent of a
Shark Tank, where we get each company to pitch their idea or proposal.
“We then identify those ideas that are worth investing in and that have the ability to
operationalise. The whole intent of the day is to get capability in the hands of soldiers
within 12 months.
“We are currently working with a few companies today that came out of Army
innovation Day 2017."
The next Innovation Day is in Canberra on 25 October 2018. Proposals are submitted
via the Special Notices platform and closed on 22 August 2018.
CENTRE FOR DEFENCE INDUSTRY CAPABILITY (CDIC)
Designed to help transform the Defence and industry relationship, facilitate innovation
and exports, and fund defence industry development, critical defence business maturity
and skilling. It has advisors in all States and Territories.
Australian Army soldier Corporal Max Bree tests out the Zero
Latency technology as part of a previous Army Innovation Day.
“CDIC has a national network of business advisors, specialists who link industry
with defence. Those business advisors also provide advice, support, information and
guidance in terms of how to best engage as part of the defence market."
DEFENCE INNOVATION PORTAL
The Defence Innovation Portal connects industry and research organisations with
Defence innovation investment opportunities. It is open all year.
“The Defence Innovation Portal provides an opportunity for industry to put forward
their innovative ideas for assessment by the department.”
LAND ENVIRONMENTAL WORKING GROUP
The annual meeting of the Working Group is being held in Adelaide on September 3
this year.
“It’s really an opportunity for Army to talk to a broad group of industry people about
what we are doing and seeking to deliver from a land capability perspective.”
Registrations are now closed.
A DefendTex representative talks to Head of
Land Capability Major General Kathryn Toohey
at the Army Innovation Day 2017.
Chief of Army, Lieutenant General Rick Burr.
ACCELERATED WARFARE
The following are excerpts from the Futures Statement released by Chief of Army,
Lieutenant General Rick Burr (pictured left).
• “As an Army in Motion, our profession demands a continuous contest of ideas.
This requires wide engagement across Defence, whole of government, industry,
academia and our international military partners as well as with new and emerging
partners. Our aim is to strengthen our joint warfighting philosophy to meet the
challenges of the future while also being strategy and concept-led.”
• “I require all of Army, at every level, to discuss and debate the themes framed
through the notion of future conflict, or what Army is now describing as
Accelerated Warfare.”
• “We must leverage emerging technology as a potential source of advantage,
integrating new technologies within the joint force. Partnerships through
teaming with our international military partners, industry and academia will be of
paramount importance to unlock potential and strengthen relationships for mutual
benefit.”
More information on how to contribute will be released during the Chief of Army’s
Land Forces Seminar on September 4, 2018.
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12 FUTURE FRIGATES
August-October 2018 Defence Business
Australia’s New Frigates: Strategic Signals
By Nick Childs, Senior Fellow for Naval Forces and Maritime Security, International Institute for Strategic Studies
Australia’s decision to purchase the BAE Systems Type-26 Global Combat Ship signals
the country’s focus on high-end naval capabilities. The United Kingdom has won its
most significant naval export contract in nearly half a century with the Australian
government’s choice of the BAE Systems’ Type-26 Global Combat Ship (GCS) design
for its new generation of Royal Australian Navy frigates, to be called the Hunter class.
But the decision may also say much about the Australian government’s strategic
calculations as well as the trend in this sector of the naval market of moving back
towards more high-end capabilities in the face of renewed state-on-state competition,
the proliferation of advanced weaponry and growing maritime challenges, particularly
in anti-submarine warfare (ASW).
HIGH-END CAPABILITIES TO THE FORE
By common consent, the BAE Systems design was the most advanced and capable of
the three final contenders in the frigate competition. However, one possible handicap
was that, unlike the offerings from Spain’s Navantia and Italy’s Fincantieri, there is still
no completed Type-26 in the water, thanks in large part to a slow UK procurement
process for the Royal Navy (RN). Defence-industrial-base issues were also a significant
part of the plan for Australia’s A$35 billion (£20bn) SEA 5000 programme, as it has
been known, and here it was felt that Navantia and Fincantieri held stronger hands.
It is still the case that the programme is expected to create and sustain some 4,000
Australian shipbuilding jobs over the next 30 years. But BAE Systems’ triumph over
its rivals suggests that capability priorities were in the end critical in the Australian
government’s choice. The perception of an increasingly contested and challenging
maritime arena, especially with the proliferation of modern submarines, placed a
premium in Canberra’s eyes on investing in high-end capabilities. That, plus the
ambition of remaining a critical and interoperable ally of the United States.
These impulses can also be seen in Canberra’s choice of the French Shortfin Barracuda
design for its next-generation submarine under the SEA 1000 programme, and the
purchase of P-8A Poseidon maritime-patrol aircraft and F-35A Joint Strike Fighters. But
the ability of the Australian government to afford this shopping list may be open to
some debate.
The trend back towards more high-end capabilities, as a result of the shifting strategic
backdrop, is noticeable in other similar programmes, such as the future Canadian
Surface Combatant programme. And the US Navy has shifted from the lightly armed
Littoral Combat Ship programme to the more robust and capable FFG(X) requirement.
European navies have in the recent past tended to focus more on lower-end maritime-
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August-October 2018 Defence Business
FUTURE FRIGATES
13
security requirements, as with the German Navy’s F125 ‘stabilisation frigates’. Berlin’s
next surface combatant, however, will focus on ASW and higher-end capabilities again.
The new Australian ships will differ significantly from the RN’s Type-26s, with a US
combat system fitted and mainly US weapons used. The RN ships will have a weapons
suite that includes European missile manufacturer MBDA’s Sea Ceptor system for air
defence. But there will still be commonality, particularly in terms of ASW capability,
that will assist in interoperability with the UK. And while the ships will be built in
Australia, UK component suppliers are likely to benefit, for example in the areas of
propulsion, other auxiliary systems and sonar fit, perhaps to the tune of some £2–3bn.
The affordability of the RN’s own frigate programme may also benefit from some
increased economies of scale.
STRATEGIC CONSIDERATIONS
With a programme like SEA 5000, a government is buying not just a capability but also
a defence-industrial relationship. The awarding of the contract to BAE Systems seems
certain to help cement moves towards a renewed UK–Australia defence and strategic
tie-up, and Westminster’s ambition to regenerate strategic influence in the region.
When France’s DCNS, now Naval Group, was awarded the Barracuda submarine
contract in 2016, the then French defence minister, Jean-Yves Le Drian, colourfully
responded that it meant France was married to Australia for the next 50 years.
Interestingly, all three contender nations deployed ships to Australian waters to support
their bids. Without a Type-26 to demonstrate, the RN earlier this year sent the Type-
23 frigate HMS Sutherland, equipped with the Type 2087 sonar that will go into the
Type-26, to underscore the value of a bespoke ASW platform. It seems to have been
a successful ploy. But the deployment of HMS Sutherland was also part of a broader
push to re-establish a UK naval presence in the region, with three RN ships in all in the
region this year, after a gap of five years. The Australian decision may both encourage
and facilitate the UK in sustaining this into the future.
There is an irony in the success of Type-26 GCS design in Australia, and the fact that it
may now finally justify the label of ‘global combat ship’. It was meant to be exportable,
Prime Minister of Australia, the Hon. Malcolm Turnbull, MP; Minister for Defence, Senator, the Hon.
Marise Payne; and Chief of Navy, Vice Admiral Tim Barrett, AO, CSC, RAN; Look over the model of
new frigate at the announcement of the Nine Hunter Class Future Frigates in Adelaide, SA.
but the consensus was that it had become too big, sophisticated and expensive to
achieve success. That, and the RN’s inability to afford the design in the numbers it
wanted, led to the inception of a cheaper and supposedly more exportable design, the
Type-31e (with the ‘e’ meant for export). But the change in the strategic maritime focus
has breathed new life into high-end requirements and, it seems, the Type-26 GCS. The
question is whether success in Australia will have an effect on the UK Type-26-based
bid in Canada. New Zealand is also looking for a new frigate, and will certainly be
influenced by the Australian move. The UK government will be hoping that success in
Australia will also have a trickle-down effect on encouraging interest in the Type-31e,
and a sustained revival in UK naval-export prospects that is a driving element of its new
national shipbuilding strategy.
Reprinted with permission from International Institute for Strategic Studies (IISS),
The Military Balance Blog.
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August-October 2018 Defence Business
AUSTRALIAN INDUSTRY CONTENT
15
DTC Calls For Greater Transparency Around
Australian Industry Content
By Margot Forster, CEO, Defence Teaming Centre
The recent media debate about transparency and defence
contracts needs mature analysis from several angles,
according to DTC CEO, Margot Forster.
The DTC agrees that calls for greater financial transparency
is important - but these should not be blown out of
proportion.
“In fact, the DTC believes more pressing need is for
accountability in achieving the promised levels of Australian
Industry Content,” she said.
“We are on the cusp of the greatest nation building exercise Australia has ever seen.
The benefits will be enormous, if we get it right.
“There is a need in the early stages of our sovereign capability build up to set the
ground rules for measurement and accountability around Australian Industry Content.
This will be best achieved as part of a collaborative, continuous improvement mindset
from al parties.”
BACKGROUND
The Australian Strategic Policy Institute stated that “the government needs to
demand Defence provide greater public transparency in its planning and reporting”.
This led to a debate on financial transparency, which played out in the mainstream
media, with a focus on changing financial reporting to be against original budgets,
not revised budgets.
The ABC and other media also reported claims that the Future Submarine program
was likely to blow out by billions of dollars. This was strongly rejected by the
Defence Department.
THE REAL ISSUE
While not ignoring the need for financial transparency, the DTC believes the more
immediate need is for transparency around Australian Industry Content and better
policy in the areas of:
• Contracting
• Transparency and how this drives accountability
• Metrics and mechanisms for enforcement.
“We would like to see a review of current Australian Industry Content (AIC)
commitments across defence programs, compared to actual delivery,” said Margot.
“For this to be effective, we first need to agree on the audit mechanisms.
“Part of this would be identifying industrial and skills shortages and how these
are assessed for sovereign sustainment implications and how they inform policy
development. How the workforce is trained is part of the intellectual property that
must be transferred to achieve sovereign capability.”
Other issues highlighted by the DTC include:
• Creating transparency around how Primes incorporate global supply chain
involvement in their Australian Industry Content planning.
• Ensuring overseas opportunities are included as part of the calculations.
• How AIC is impacted when commercial terms and conditions are finalised. For
example, Rheinmetall has changed the number of units for delivery and the costs.
What does this mean for SMEs in the AIC plan?
• What Government will do to establish horizontal acceptance with partner nations
across standards, etc.
Opportunities To Improve The Australian
Industry Capability Policy
By Audra McCarthy, Executive Director Industry Development, Defence Teaming Centre
Whilst AIC Policy is not new, the revised reporting
requirements, renewed focus on contracting thresholds
and greater scrutiny on AIC Plans during the tender process
means the policy is beginning to take hold and is poised
to put Australian industry at the forefront of bid strategies
going forward.
1. There is confusion about the finer detail of the
$20m threshold in the Australian Industry
Content Policy Guidelines. During my time with
Lockheed Martin I often fielded questions from Original Equipment Manufacturers
(OEMs) for the Combat System Program, such as:
a. Does the $20m threshold only relate to the initial contract? What happens
if the initial contract is $15m and a contract change proposal, which is
typically negotiated between the contractor and Prime/Defence takes the
value over $20m?
b. If the Program Office or Prime contractor fails to invoke the Australian
Industry Content (AIC) requirements, where is the governance in the system to
ensure this is captured?
The DTC recommends the Policy Guidelines are enhanced to make the $20m
threshold clearer.
2. The implementation guide produced by CASG is a great tool for assisting Primes
and overseas OEMs to better understand the requirements of AIC Policy from
a practical implementation perspective. The DTC recommends a process is
established to ensure links and references to policy are kept updated and relevant.
3. Instead of the policy being regarded as an additional compliance requirement, the
DTC suggests industry fast-track its training and awareness of the policy to invoke
cultural change which will support smarter sourcing and procurement decisions.
This would encourage industry to view AIC less of a governance burden and
therefore an overhead cost, and more about good business practice.
4. The AIC Policy places expectations on the Prime to demonstrate how it will commit
to supporting and developing Australian industry. Many OEMs - and the majority
of Primes that have offices in Australia - do not have a good understanding of
this concept. The DTC has received comments from Primes and OEMs that the
responsibility to develop and nurture Australian industry is a cost to doing business
which is not covered by the contract and therefore should not be the responsibility
of the Prime. It has been claimed that during negotiations, costs attached to supply

AUSTRALIAN INDUSTRY CONTENT
16 August-October 2018 Defence Business
chain development activities are not regarded as program costs and therefore
these activities must be funded from a Prime’s profit. This has led to comments
being made that the government is shifting the economic cost and responsibility
of developing an Australian industrial base to Primes and OEMs. The DTC believes
there is a degree of misunderstanding in the market on this concept and feels
clarification could be provided by providing more information to OEMs and
Primes on this point. It is appreciated that the AIC Policy team continually provide
information to the market both through group workshops and 1:1 sessions with
Primes, OEMs etc. In fact, the DTC has received significant feedback from industry
on how much this service is valued. However, the DTC believes there is scope to
increase the level of information provided to the market on this concept, focusing
more on the provision of advice from a practical implementation perspective. The
DTC appreciates this may be difficult for Defence to achieve for probity reasons.
A valuable outcome for industry would be to use a third party to deliver this
information, leveraging from the guidance and expertise of the AIC Policy team
and hands-on industry experience.
5. The policy repeatedly requires organisations to provide evidence of activities. In
most cases, very little guidance is provided as to what evidence may look like or
examples provided of what acceptable evidence might be. The DTC would like to
see examples of suitable evidence provided, where possible.
6. Whilst the policy talks about the provision of a draft AIC Plan, it also provides
scope for the draft plan to be matured during contract negotiations. The DTC feels
industry, particularly the SME community, requires a degree of confidence that the
AIC Plan submitted in the tender - and the subsequent approved AIC Plan - should
not be drastically different documents. SMEs would like to have greater visibility of
the governance processes which will be applied in ensuring the final AIC Plan does
not differ drastically from the original draft Plan.
7. The guidelines talk about the approval processes for changes to AIC Plans as part
of Contract Change Proposals (CCPs). It appears these processes vary from program
to program within Defence with the level of knowledge and understanding of AIC
Policy requirements and approval processes varying significantly. The inconsistent
understanding and application of AIC Policy by Defence programs makes it difficult
for industry to do business with Defence. The DTC feels greater education and
collaboration between Defence’s industry offices within programs and the AIC
Policy Team needs to occur to align the practical implementation of the policy
guidelines with the governance mechanisms at the program level.
8. The policy requires contractors to regularly report progress against Plan, however
this reporting is done internally to Defence. The DTC has received feedback from the
SME community that they would like to see greater visibility of progress against the
plan. Whilst the DTC appreciates there is a fine balance between reporting progress
and divulging commercial information, the DTC feels a balance could be struck
where high level values are reported. This could be reported as a graph, thereby
assisting contractors to demonstrate transparency and progress against Plan.
9. The Local Industry Activity Tables require contract values to be reported exclusive
of GST, while the Overheads Tables requires values to be reported inclusive of
GST. The differential treatment of GST is confusing to industry, especially overseas
OEMs. The DTC would like to see GST treated consistently for reporting purposes,
to remove any opportunity for confusion. If Defence insists GST inclusive values
must be used for the Overheads Table, then it is suggested this be clarified on page
19 of the guide.
"...the DTC feels a balance
could be struck where high
level values are reported."
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18 SPACE AGENCY
August-October 2018 Defence Business
Defence Key To Space Success
Colonel Pamela Melroy

STS-120 Commander Pamela Melroy and Pilot George Zamka are
suited in their orange launch and entry suits and on their way to
NASA's Shuttle Landing Facility.
Astronauts Piers J. Sellers (left) and David A. Wolf, STS-112 mission specialists attired in their Extravehicular Mobility Unit (EMU) space suits,
AD_ENHENAPR_11. are photographed in the Quest Airlock on pdf the International Page Space 2 Station 22/ (ISS) 02/ prior to 11, the first scheduled 10: 45 session AM of extravehicular activity
(EVA). Astronaut Pamela A. Melroy, pilot, is visible in the centre. Photos courtesy of NASA.
After a post-landing news conference, members of the STS-120
crew pose for photographers. From left are Pilot George Zamka,
Mission Specialist Scott Parazynski, Commander Pamela Melroy
and Mission Specialists Stephanie Wilson and Doug Wheelock.
AD_ENHENAPR_11. pdf Page 2 22/ 02/ 11, 10: 45 AM
AD_ENHENAPR_11. pdf Page 2 22/ 02/ 11, 10: 45 AM
Born in Palo Alto, California, Colonel Pamela Melroy is one of only two women who
commanded a space shuttle. She has logged more than 924 hours in space.
Now with Adelaide-based Nova Systems, she was selected as an astronaut candidate
by NASA in December 1994 after having logged more than 6,000 hours flight time in
more than 50 different aircraft with the US Air Force.
She is a veteran of Operation Just Cause and Operation Desert Shield/Desert Storm,
with more than 200 combat and combat support hours. With NASA, Colonel Melroy
also served on the Columbia Reconstruction Team as the lead for the crew module and
served as Deputy Project Manager for the Columbia Crew Survival Investigation Team.
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1. You helped gather information from space industries for the reference
group tasked with setting up the Space Agency. Based on that exercise,
what do you believe will be the keys to building a successful space
industry in Australia?
A successful space industry depends on the proper relationships between the
space agency, defence, other organisations, and industry. Defence is a major
customer and it would be a tragedy to develop space capabilities that the ADF is
not interested in buying. So government needs to coordinate to ensure that they
are encouraging capabilities with value to Defence. Defence Primes must also
look at their global supply chains to see where domestic Australian capabilities
can produce cost and time efficiencies and communicate that to the agency. All
of industry – especially startups - must tell the space agency what infrastructure
and regulatory certainty they need to close their business cases. Robust and candid
dialogue will be the central key to success.
2. Can you articulate the importance of Defence in making the Australian
space industry a success.
Defence is a critical element in the space community. They are the biggest
customer of space capabilities in Australia! Defence also has technology
development expertise that is dual-use and can enable new commercial capability.
As well, Defence has a unique perspective on the security aspects of space
technology. From both a policy and a technology standpoint, Defence has a central
role to play in enabling the space industry.

20
SPACE AGENCY
August-October 2018 Defence Business
3. You talk about Australia finding its niche, that leapfrogging is a path to
success and about the need to focus on space economic development.
Where and how do you believe we should focus our efforts?
The Expert Reference Group’s report pointed to several excellent areas for technology
development where Australia has a potential edge. Communications and
ground stations, space situational awareness, position navigation and timing, and
advanced earth imaging are all near term capabilities of interest. However, areas of
research such as quantum communications, space physics, remote medicine, radar,
and robotics and remote asset management are all “leap ahead” areas that should
be investigated. In particular I think that space-qualifying robotic mining and asset
management capability will be potential key enabler for lunar, Mars, and asteroid
exploration. Of course, the great thing about nurturing an innovation community
is the potential that someone will come up with a new and brilliant idea that is not
on the list – we must be prepared to recognise it and encourage it.
Another area ripe for leapfrogging is in policy. Currently many countries who have
been active in space for a long time have laws, regulations and policy oriented
toward government space programs. As the commercial space industry grows,
those policies don’t fit very well, and governments are scrambling to modify their
approach. Australia has very little baggage in this area and can start with a fresh
approach that supports industry.
4. The debate over best location. Your views?
I think it is a bit of a distraction, and needs to be resolved quickly so the agency can
get on with its agenda which is focused on the whole of Australia. All of the states
have capabilities and should have an interest in developing the space economy in
their state, so we need to move in the direction of working together as quickly as
possible, and focus on what industry says it needs.
5. You have said you hope the agency will stop the brain drain and Nova
Systems' Jim Whalley says it’s inspirational for our next generation of STEM.
Australia’s been losing ground in STEM… do you have a view on this?
I have a very strong view on this! Almost every week I get introduced to an
Australian who has moved to the US or Europe so they can have exciting jobs
in space. Most of them have been extraordinarily successful. They are extremely
excited that there is a chance they could come back to Australia at some point
in the future. They represent a critical resource as we need them to provide the
experience that we can build the industry around. That’s the good news, and we
need to encourage and enable them to come back. However, the next generation
is just as significant an issue and the news is not as good. Defence has the same
issue as they look forward to Future Submarine and Future Frigate. As Jim says,
space can inspire a younger generation to be excited about STEM, whether they go
on to a job in space or elsewhere in Defence. This is another potential partnership
area between Defence and the Australian Space Agency.
6. What is the greatest single danger to the success of the Agency?
The single greatest danger is a lack of leadership on the part of the government.
Economic development is not about subsidies. Other countries have governments
that provide leadership around policy, regulations, and infrastructure to charge
Astronaut Pamela A. Melroy, STS-112 pilot, attired in a training version of the shuttle launch and entry
suit, awaits the start of a mission training session at the Neutral Buoyancy Laboratory (NBL) near the
Johnson Space Center (JSC).
their space economies. This is incredibly important as we transition from a purely
governmental capability to a truly commercial space economy. But it takes
consistency, listening to industry, and staying the course.
7. Your words: “Australia has to have the industrial base to support
participating … and not just being a user of the services.” Can you
provide some examples where this development needs to take place?
I’m particularly excited about space situational awareness and debris monitoring!
The tech barrier to entry is fairly low, and there is a huge need for diverse
geographic sensors to enable a more real-time and persistent custody of space
objects. In addition, there is an equally huge need for predictive analytics.
8. Can you tell us about the work you are doing with Nova Systems and how
Nova Systems views the future.
I can’t say enough about how far-thinking and supportive the Nova Group has
been! Jim Whalley in particular realised that the first years of the agency would
be critical to get industry and government communicating to enable long-term
success. He asked me to provide my insights and advice to literally all comers
– government, industry, and academia – to get people connected and being
thoughtful and strategic about the future of the space industry in Australia. It’s
been an amazing experience! I am so grateful - the vast majority of people have
welcomed me to living in Australia, and spoken freely about their excitement,
hopes, needs and concerns. The rising tide of the space economy in Australia will
ultimately float all boats, but it will take some upfront investments to ensure that
happens. Nova Systems is very forward thinking in this area.
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August-October 2018 Defence Business
FORCE ORDNANCE
23
Force Ordnance:
The Anatomy Of A New Defence Business
By Monika Leniger-Sherratt, Chief Executive Officer, The RLD Group Of Companies
Land Forces will mark the official launch of our new division under the RLD Group,
which includes well known companies, Nightforce Optics, Lightforce Australia Pty Ltd,
Horus Vision Reticle Systems and Euro Optics Australia. This division – Force Ordnance
– is a small arms systems solution provider and represents a significant increase in RLD
Group’s investment in the defence sector.
As an Australian small arms specialist, Force Ordnance will provide Australia with a
sovereign capability that will also fulfil the objectives of the government’s Global Export
Strategy. And from the outset I would like to acknowledge that the Defence Teaming
Centre has been instrumental in providing advice and opening doors.
By way of background, several RLD Group companies already supply military and law
enforcement agencies. Nightforce Optics supplies world’s best optics to global defence
and law enforcement agencies. Lightforce has provided IR lighting to Defence.
Force Ordnance will focus on providing small arms systems to military, law enforcement
and government communities. This new venture will leverage RLD’s significant footprint
in the US, where we have achieved healthy sales of optics to the commercial market.
Two fundamental keys to the success of the Force Ordnance division will be:
• Engaging with a US-based OEM, that is already a well-respected supplier to global
Defence and law enforcement
• Utilising our world-class expertise in precision manufacturing to new heights to
offer tailored solutions with the fastest order-to-delivery turnaround in the world.
Our thinking is in step with the DTC’s emphasis on smaller companies embracing
collaboration as an intelligent pathway for growth. That is why we are partnering
with a well-known OEM in the United States, which has a strong record as a designer,
manufacturer and supplier of small arms systems to our target clients. We will
announce the partnering company at our official Force Ordnance launch event during
the 2018 Land Forces Conference. The plan is to further refine the products offered by
the US company to suit localised needs, using our advanced manufacturing in South
Australia. Manufacturing will commence in September.
In theory, this plan sounds relatively straightforward. However, even with our 35-year
history of achievement across a variety of sectors, increasing our presence in defence
represented a major challenge for RLD. We recognised the need to combine industry
and defence experience, without having to continually resort to first-principles reviews.
This is where the Defence Teaming Centre has been extremely supportive, specifically:
• At the start of this journey, we benefited from participation in DTC networking
events and information sessions.
• Two employees were then exposed to all facets of the ADF through SADILP, which I
highly recommend as a substantial leadership program.
• At the same time, we received timely advice and information regarding approaches
to government and updates on key happenings within defence.
• More recently, introductions to defence-related industries and high-level contacts
has been invaluable, and this alone is a compelling reason for any business to take
up DTC membership.
In achieving this wonderful sovereign capability for Australia, there are so many factors
we must get right. Our reputation for high quality lighting systems and the world’s
finest rifle optic will not guarantee the success of Force Ordnance alone, nor will the
fact that we export to more than 50 countries. These aspects will be contributors, as
will a symbiotic relationship with our new partner’s commitment to ever-improving
quality standards and through life support. So too is recognising the uniqueness of
each market and offering design innovation; we intend to offer more than 48 variants
of small arms as we pursue domestic and global growth.

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August-October 2018 Defence Business
CYBER
25
Anticipating Your Next Security Breach
- And Preventing It
Defending against cyber threats is critical to safeguarding sensitive organisational and client information.
Yet even with the best IT, the everyday behaviour of employees poses one of the greatest vulnerabilities.
Defence companies represent high value targets for professional and state-sponsored
hackers, with companies describing attacks as “relentless” and “sophisticated”.
While many firms in the defence industry are technologically strong, evidence suggests
that staff pose the greatest risk of a security breach. Unintentional, naïve human error
that leads to an incident is an all too familiar story for Dr. Malcolm Pattinson, a Senior
Research Fellow in the Adelaide Business School of The University of Adelaide and an
Information Security Consultant.
“Employees might possess functional expertise, but do not necessarily have the
knowledge and attitude to detect suspicious cyber activities,” he said.
“By 2015, social engineering was the number one attack approach. Humans have now
become the prime target of cyber attackers, rather than hardware and software."
“Rather than seeing a particular enterprise as a single entity, attackers now look at
an enterprise as collections of individuals. This means that they often decide to target
specific people instead of enterprise infrastructures or applications.”
IBM research has identified that "human error" is a contributing factor in 95 percent of
all incidents investigated.
“More specifically, computer users’ naïve and accidental behaviours are deemed to be
the most frequent cause of information security breaches”, said Dr Pattinson, who has
been researching information security for more than 20 years.
CAN YOU PREDICT BREACH POINTS?
A positive way of looking at the problem is to consider employees as “the first line of
defence”. Dr Pattinson is part of a collaborative team that has developed a predictive
tool – the Human Aspects of Information Security Questionnaire (HAIS-Q) - that focuses
on the Information Security Awareness (ISA) of individuals within an organisation.
“Traditional security consultants focus on the technical aspects of an information
system,” said Dr Pattinson.
“The HAIS-Q complements an organisation’s tried and trusted IT security controls. It
focusses entirely on the human factors that can render ineffective the best technical
security strategy and systems.”
The team of six from the University of Adelaide and the Defence Science and
Technology Group (DSTG) has been working with banking, insurance and
government organisations.
“It is an effective way to determine how you should improve your user training to
obtain the best return on your cyber security dollar.”
The HAIS-Q is an effective instrument for measuring Information Security Awareness
(ISA) and it has demonstrated a strong, positive relationship between knowledge,
attitude and behaviour.
WHAT IS INFORMATION SECURITY AWARENESS?
Dr Pattinson said definitions of ISA tend to focus on two aspects. The first is the extent
to which employees understand safe information security behaviours, which are often
outlined in their organisation’s information security policies, rules and guidelines.
The second aspect focusses on the extent to which employees are committed to, and
behave in accordance with best practice, which is often outlined in information security
policies, rules and guidelines.
“Improved organisational security culture is associated with higher scores,”
said Dr Pattinson. Participants who had a higher score on the HAIS-Q also had
better phishing performance.
“We evaluated the extent to which individual differences, such as personality may
be associated with HAIS-Q scores. For example, we found that two personality
characteristics, namely, ‘conscientiousness’ and ‘agreeableness’, were associated
with a higher score”. That is, they behaved in a more risk-averse manner.
Organisations also need to view security from an organisational culture context.
For example, is the culture Individualist or Collectivist?
Dr Malcolm Pattinson
EXPLAINING THE HAIS-Q
The HAIS-Q can predict aspects of computer security related behaviour.
Administering the HAIS-Q with employees can identify strengths and weaknesses,
where more education and training is required. Further to that, the baseline
results allow practitioners to compare their employees’ ISA against the ISA of
working Australians.
It is a 63-item measure that assesses seven focus areas:
1. Password management
2. Email use
3. Internet use
4. Social media use
5. Mobile devices
6. Information handling
7. Incident reporting
Each focus area is further divided into three specific sub-areas, resulting in 21
areas of interest, each of which is measured via a separate knowledge, attitude
and behaviour item.
The HAIS-Q can be used before and after introducing a training intervention to
assess its effectiveness.
The HAIS-Q provides an "audit" of the naive and unintentional behaviour
of computer users, which complements hardware and software information
security audits.
FUTURE THREATS
A recent global survey of 461 cybersecurity managers and practitioners revealed
that the majority of respondents were very concerned about the growth of the
Internet of Things.

CYBER
26 August-October 2018 Defence Business
In an Individualist society like Australia, people are not good at reporting other people’s
poor behaviour. In Australia, a person who reports on another individual is regarded
negatively as a “dobber”.
“This presents a particularly interesting challenge for Australian organisations, which
may be less problematic in other cultures,” he said.
In regards to email use, the sub-area of most concern was clicking on links in emails
from unknown senders. But emails that appear to be from a known individual could still
be phishing emails, where the sender has been spoofed.
“While the respondents were aware that accessing dubious websites could compromise
information security, they seemed to think it was safe to download any files onto a
work computer”. This highlights the trade-off between security and the need to get the
job done.
“Essentially, results suggest that employees value the convenience of downloading files
to assist them in completing their task, over the risk that these files could pose”.
“Password management is an area where user awareness has improved considerably in
recent years.
“Similarly, two of the assessed areas of Information handling, namely, disposing of
sensitive print-outs and leaving sensitive material lying around, have posed threats to
organisations for a long time. Consequently, well-established training and practices may
have increased employees' awareness of the risks and consequences.
“This is in contrast with email use, Internet use and Social media use, which had the
worst scores as they involve the dangers of online environments which organisations are
still grappling with.”
SOCIAL ENGINEERING THREAT
Phishing emails use social engineering and technical subterfuge to steal
consumers’ personal identity data and financial account credentials. People who
made impulsive decisions were found to be poor at detecting phishing emails
because they didn’t stop and think before taking action.
New National Cyber
Security Centre
The Federal Government is supporting cyber safety and jobs with the opening of
the new headquarters of the world-leading Australian Cyber Security Centre.
This state-of-the-art centre will protect national critical infrastructure, businesses
and the Australian public.
The Prime Minister, Malcolm Turnbull, said in a statement: "Cyber crime continues to
grow. The Government has seen a significant increase in business email scams, mostly
targeting businesses with fewer than 10 employees.
"With the opening of this purpose-built national cyber security centre in Canberra
today, we are significantly enhancing our capacity to grow Australia’s cyber
resilience in partnership with industry, businesses, universities, not-for-profit
organisations and governments.
"The new Australian Cyber Security Centre will draw on the expertise from the ICT
community, law enforcement, defence, universities and security agencies, as well as
international partners, to increase the skills and capabilities needed to protect and
defend our interests.
"It will be the central hub for cyber security information, advice and assistance to
all Australians. A global monitoring capability, equipped with advanced cyber threat
detection and warning systems will help to keep Australians safe – 24 hours a day,
seven days a week.
"Effective online security is vital for a modern, technology-driven economy. It is critical
to our wellbeing, prosperity and security. That’s why the Turnbull Government has
integrated the Centre into the Australian Signals Directorate, which has a long history
of excellence in cyber security and access to world-leading technology.
"The Australian Cyber Security Centre forms a critical hub for the Joint Cyber Security
Centres located in all capital cities, which facilitate stronger partnerships between more
than 150 organisations across private and public sectors.
"The Australian Cyber Security Centre will deliver on the Government’s cyber security
priorities, in three critically important areas:
• to provide cyber security advice and assistance to businesses and the community
• to prevent and disrupt offshore cyber-enabled crime
• to protect the specialised tools ASD uses to fulfil its functions
"The new cyber.gov.au website will replace a number of Government cyber security
websites and services, including ACORN and acsc.gov.au. This important step will
provide businesses and individuals with one single place to report cybercrime and find
advice on cyber security practices.
"Empowered by our partners across the Australian community, in industry, business and
research, the new Australian Cyber Security Centre is best placed to harness evolving
technology and tradecraft and lead the nation in protecting us from harm."

August-October 2018 Defence Business
AWARDS
27
New Direction For DTC Member Awards
The DTC Member Awards have been significantly
revamped for 2018, to reflect the ongoing evolution of
the DTC.
“Collaboration, vision, risk taking – these are some of
the qualities that will be rewarded through our new-look
Awards,” said DTC CEO, Margot Forster.
Winners of the prestigious DTC Member Awards will be
announced at the DTC Annual Defence Industry Dinner
and Awards Ceremony on November 8. The Awards
categories are:
THE DTC TEAMING AWARD
Recognises organisations that achieve mutual business
success as a result of collaboration, and build the
awareness of collaboration and teaming practices.
THE DTC GROWING OR EMERGING AWARD
Will be awarded to a visionary SME (fewer than 50 FTEs)
that is a growing success in the defence sector, or has
been in business for a period of time but is now ‘hitting
their stride’ and strategically planning for the future by:
• Having an innovative product or service to ensure
future growth
• Using creative and strategic thinking to innovate,
compete and stand out
• Has the courage to take a risk
THE DTC RESILIENT AND ADAPTIVE AWARD
Recognises a SME (fewer than 200 employees)
that has stood the test of time, showing a strong
commitment to transformation, sustainability and
innovation.
Evaluation criteria for this award includes showing
persistence, resilience and fit for growth,
as well innovation into new products or markets,
and investment in training, technology and new
business models.
The independent judges are representatives from a
variety of organisations who have relevant experience
or an understanding of operating a business in the
defence sector.
Issue 40 August/September/October 2017
Industry Leaders
INSIDE THIS ISSUE:
Spanish Skills Transfer
Henderson Alliance
Cybercrime Opportunities
The 2017 Award winners on the cover of Defence Business.

28 ADA
August-October 2018 Defence Business
Victorian based company Marand is an Australian industry leader in the global F-35 program.
ADA: A New Champion For
Defence Industry
The Defence Teaming Centre, AIDN Victoria and the Henderson Alliance have formed a
collaborative membership body, the Australian Defence Alliance (ADA).
As outlined on page 4 of this issue of Defence Business, the ADA will provide nationally
focussed and professional strategy, policy and advocacy for the SME community.
“The Alliance provides the framework for the Defence Teaming Centre, AIDN VIC and
Henderson Alliance to work collaboratively, whilst allowing each organisation to retain
its own identity and membership business model,” said DTC CEO, Margot Forster.
“This arrangement strengthens the DTC's ability to connect, develop and advocate for
our members and I am excited to make this announcement as we continue to support
members during the rapidly changing landscape of defence industry.”
HMAS Parramatta being prepared to undock after her Anti-Ship Missile
Defence upgrade at BAE Systems Henderson Shipyard, Western Australia.
Australian
Maritime College
Providing the future leaders in the
global maritime industry.
The growing maritime, defence, marine and offshore sectors
are an exciting and strategic area of growth for the Australian
Maritime College and the University of Tasmania.
We are pleased to be a strategic partner in the Naval Shipbuilding
College, where we will collaborate with industry, government
and academia to deliver the expertise and workforce required
for Australia’s continuous naval shipbuilding program.
>amc.edu.au
CRICOS Provider Code (University of Tasmania): 00586B
HENDERSON ALLIANCE
The Henderson Alliance was established in 2017 to develop and promote the
capabilities of SMEs primarily in the acquisition and sustainment phases of Australia's
new shipbuilding programs - but in other defence and related industries as well.
Alliance Chairperson Rohan Green said the Henderson Alliance has three distinct
attributes to “bring to the table”:
1. SMEs with existing experience in defence acquisition and sustainment
2. those with extraordinary skills from the oil, gas, mining and energy sectors
3. a number of well serviced SME communities such as Henderson, Naval Base,
Malaga and Wangara.
“We have focused to date not just on information-sharing, SME capability
improvements and creating opportunities for our members to establish key linkages
with the Primes - but also interstate partnering, innovation and R&D activities.
“We don't see ourselves as a standard industry organisation - we are run by volunteers
and are therefore focused directly on achieving tangible outcomes with as little
bureaucracy as possible. We always take a very positive and collaborative approach -
and our Management Board includes representation from outside the industry to ensure
we bring in fresh ideas and professional focus.
“We have been positively collaborating with other organisations including DTC and
AIDN-Vic and given the synergies we saw the formation of the Australian Defence
Alliance as a natural step forward to share each others' professional resources and
create a positive single voice to government for SMEs. However, the ADA will never be
exclusive and we are always happy to look at new linkages and avenues of collaboration
with other groups. Certainly in the West we have an excellent relationship with AIDN-
WA and are always looking for ways to optimise our mutual alignment.
“Our current priorities include working with government and other parties to create
an improved industry structure in WA, one which ensures a clear focus and shared
outcomes. It's fair to say that the cut of the fabric in the past was less than optimal but
there are now very positive signs of a new tailoring at play.
“We will also continue to actively promote the defence industry capabilities of
WA and its talented SME sector - for instance we see great potential for WA to
provide components and support services to the frigate and submarine construction
projects in Osborne - and have already created interstate networks and partnerships
to facilitate this.
“But we also see an exciting new edge coming forward where we are looking at
creating fresh new synergies utilising the best innovations from other industries and
then working with R&D agencies to develop new products and initiatives.”
Defence Business will feature comments from AIDN-Vic in the next issue.
"Alliance Chairperson Rohan
Green said the Henderson
Alliance has three distinct
attributes to 'bring to the table'."

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STEM
30 August-October 2018 Defence Business
Strategies To Overcome The STEM Shortfall
An Interview with Dr Andrew Dowse AO, Air Vice-Marshal (retd), Director, Defence Research and Engagement, Edith Cowan University
The tertiary sector has a good
level of understanding about
the needs and opportunities
arising from the commitment
to developing sovereign
capabilities for defence. What
is the level of understanding
in schools, both at the State
departmental level and at the
individual school level?
The level of understanding in the
school sector is mixed. While the
Government’s ‘workforce behind
the Defence Force’ campaign has
given a broad understanding that
there will be job opportunities in
the Defence sector, in general I
don’t believe this has significantly
changed the intentions of students
in relation to STEM education.
Nationally we have seen a decline
in engineering degree enrolments since 2013, with this trend continuing in 2018.
Whilst it would be easy to conclude that the national media campaign hasn’t had an
effect on STEM education, we need to remember that high school students often make
their mind up about their tertiary education and their desired career by year 10, so
the campaign is unlikely to influence enrolments in the short term. A greater concern
however is that the employment and education implications of the Government’s
investment in Defence might not be obvious to many school students. More work
needs to go into informing school students of the opportunities.
How do you substantially reverse the national decline in interest in STEM?
How do you achieve a fundamental “mind shift” within the Australian
population?
There are three steps that will influence school students towards STEM education.
Firstly they need to be convinced that a particular area of employment is interesting
and something that they want to do. Secondly they need to be convinced that there
will be employment opportunities: financially attractive opportunities that will be
available at the end of their education. And thirdly, they need to understand the
education path to the desired career. The latter is important for STEM-related work,
especially early in high school, as students need to take the appropriate maths and
science subjects to be suited as tertiary candidates. Our university, like all Australian
universities, undertakes outreach programs with local schools to inform prospective
students of this information. However, our reach is limited and we all would benefit
from a national approach to informing school students about the value of STEM
education.
Gender equality within STEM has been an issue for many years. In the context
of fulfilling defence contracts, is there a new and heightened degree of
urgency? What is required to accelerate progress?
In order to have the workforce it requires to deliver the Integrated Investment Program,
Defence industry must be accessing talent from the whole population and cannot
allow our technical professions to remain male-dominated. I believe Defence industry is
starting to recognise this, but more importantly it has been recognised by professional
organisations such as Engineering Australia and Universities Australia. Initiatives such
as Women in Engineering, the Girls Programming Network and Science in Australia
Gender Equity (SAGE) are starting to have an impact towards balance. However, young
women still only represent about 18% of new engineering students, and between
2011 and 2016, female representation in the engineering workforce grew only from
11.8% to 12.4%. So clearly more work needs to be done, particularly at high school
level to encourage higher female interest in STEM.
What are the most common messages you are hearing from industry?
Are these being heard in Canberra, and at State level?
Defence industry wants a qualified workforce. However not enough companies see
this as a strategic investment to help grow the workforce, and resort to just-in-time
recruitment. Now some of this can be attributed to uncertainty as to their medium to
long term workload, although we have seen some of the more significant companies
strategically investing in scholarships. Another message is that many larger companies
are primarily looking for workers skilled through vocational training. Whilst this is
important in areas such as shipbuilding and cyber security in the short term, we
cannot ignore the importance of a portion of the workforce having a tertiary STEM
education, especially if we aspire to be an innovative industry. A final message is that
in the Defence sector, security clearances continue to be a challenge. I believe we’ve
seen significant improvement in Federal and State level engagement with the Defence
sector, through arrangements such as the Centre for Defence Industry Capability, hence
these and other messages are being heard by Government.
Addressing all ten sovereign industry capabilities is a logical and major
expansion of DIESC’s role. However, without an equivalent increase in
resourcing, is there the risk that DIESC could be ‘spread too thin’? Is there a
strategy to fulfil this new charter?
While shipbuilding is an important area of sovereign industry capability, it is not the
only area and we can’t ignore the rest of the sector. Hence it is important that there be
coordination between Government, industry and academia on the whole workforce
required for the Defence sector. There is a substantial risk that either DIESC would
be under-resourced to take on this broader role or, even if fully resourced, that the
size and complexity of the problem space could be unwieldy. I think a potential way
forward could be that the DIESC focus on national coordination of education and
skilling, and that each State has a representative on the DIESC and coordinate with
universities, TAFEs and Defence industry on local State requirements. But it is a work in
progress and DIESC is working on the strategy to move to this broader remit.
It would appear there is a need for greater Government funding, which needs
to be highly targeted? If that is the case, is there an estimate of the funds
required? What does DIESC need as a matter of priority?
There are three key priorities to produce the future workforce for the Defence sector.
The first is to identify what the gap is between what we are currently producing and
what is required in future. For shipbuilding, this workforce analysis is being led by the
National Shipbuilding College, which will inform universities and TAFEs about required
changes to courses and numbers. We also need to appreciate workforce requirements
for the broader Defence sector, and DIESC is working with Defence and industry to
better define that gap. Secondly, we need to attract enrolments to universities and
TAFEs in order to result in downstream increases in the workforce. This is an area in
which Government may assist in helping us inform prospective students/trainees,
whether they be currently at school or coming through a different path. The third
priority is to actually deliver the required education and skilling. There may be shortfalls
in resources required to deliver that training and education, but we won’t know until
we get a better idea of the gap that we are addressing. Government has expressed
a willingness to discuss reasonable funding requests should there be shortfalls. The
bottom line is that we have a plan and, while there are risks and hurdles to overcome,
there’s no reason we can’t get on with the job.

August-October 2018 Defence Business
STEM
31
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August-October 2018 Defence Business
LAND FORCES
33
An Australian Defence Perspective For
International Visitors To Land Forces
Australian Army soldier, Private Thomas Reid is deployed as part of the Force Protection element on Task Group Taji-7 in Iraq, tasked with ensuring the safety of Coalition forces at Taji Military Complex. Private Reid
is part of the 400-strong Australian and New Zealand contingent that is training Iraqi Security Forces to help ensure they are well postured to secure and stabilise areas cleared of Daesh. Task Group Taji is part of
Operation Okra, the Australian Defence Force's contribution to the United States led Global Coalition to combat the Daesh terrorist threat in Iraq and Syria.
For international visitors to Land Forces, a good insight into the Australian Government’s
defence direction can be gained from the comments made by the Minister for Defence
Industry, Christopher Pyne, during a previous trip to the United States.
“Our renewal program is an investment of 200 billion Australian dollars over the
coming decade," he said.
“This program, significant by any measure, will be transformative in terms of the
capability it will deliver to our Australian Defence Force.
“It will give us one of the most advanced air forces in the world, with the 5th
Generation Joint Strike Fighter working hand in hand with Super Hornet, Growler and
our own Wedgetail airborne early warning and control aircraft. The P-8 Poseidon and
the Triton unmanned aircraft will work together to protect our maritime approaches.
“At sea, on top of our 12 new Future Submarines, we will field the second largest
AEGIS equipped surface warship fleet in the world – with 9 Anti-Submarine Warfare
Frigates and 3 Air Warfare Destroyers.
“On land, we are renewing our armoured vehicle fleet, with new Combat
Reconnaissance Vehicles and Infantry Fighting Vehicles to join our upgraded Abrams
tanks, along with the digital communications system that will get the most out of these
platforms in an integrated way.
“In particular we are investing in the enablers that bring that force together –
communications systems, intelligence integration, sensor linkages, training areas and
base facilities.”
DEFENCE INDUSTRY POLICY
“At the forefront of all our procurement programs is Australian industry.
“We intend to embed not only shipbuilding, but defence industry generally,
as a significant, permanent, and technologically cutting-edge component of our
national economy.
“Our Defence Industry Policy Statement sets out how we are considering Industry at
every stage of our procurement process.
“Industry is a fundamental input to capability – these are the essential inputs that are
combined to achieve Defence capability."
"...we strongly encourage
international defence Primes to
invest in the leading capability
of Australian industry."

COLLABORATION
34 August-October 2018 Defence Business
Achieving More Together
Australian-based defence Primes and their supply chains do not have the capacity to
work with thousands of small Australian firms.
Faced with the threat of losing billions of dollars of contracts to established overseas
networks, the DTC is helping Australian companies to form – and formalise – new
alliances or teams.
“Just because you're an SME doesn’t mean that you are entirely locked out of these
significant opportunities,” said Dematec Automation CEO, David Hart.
“Attending the DTC workshop and hearing about how Nova Systems, QinetiQ and
PwC work together helped me to get a better understanding of how collaborating
can unlock opportunities.”
This led to Dematec and Smart Fabrication (Smart Fab) working with the DTC
to develop a formal Memorandum of Understanding (MoU) which was signed in
mid-August.
Dematec Automation is an engineering and design company that builds control
systems for major projects. It has developed a platform for sensors and monitoring
devices that can assist manufacturing companies to become more advanced in their
industrial processes. Smart Fab is a dynamic engineering and specialist steel fabrication
company. Its core business is the planning, design, construction and installation of a
wide range of metal fabrication products.
Both companies have been through the DTC’s collaboration program. The DTC also
provides advice and a variety of tools to assist the process, as well as articulating what
companies need in place to be eligible for defence contracts. Through a partnership
with Jones Harley Toole (JHT), the DTC has developed a suite of legal documents and
frameworks which support companies in coming together and collaborating for mutual
benefit. The document suite has been developed with SMEs in mind from the outset,
where the two organisations have worked hand-in-hand to ensure that the documents
are written in plain English and kept as short as possible.
“The fact that DTC offers documentation, the MoU framework and brings things such
as the ISO 44001 standard to the table helps step you through a process,” said David.
“However, there’s a lot of value in getting experienced facilitation. We could
have sat there tearing our hair out and trying to work through the template but a
knowledgeable facilitator can pull you through the process and drag you out of the
rabbit hole if you're obsessing over some minor detail that really doesn’t matter.”
While Smart Fab and Dematec have worked together informally in the past, the MoU
provides the basis to be more proactive.
First, however, the relationship must extend beyond the two executive teams, to build
relationships between the organisations.
“Collaboration is a great way to amplify the capabilities of our organisation by finding
other likeminded companies that share similar values and aspirations that we can work
with. In that way, the whole can be better than the sum of the parts,” said David Hart.
“It’s critical that the teams have an opportunity to meet each other and get a little bit
more understanding of what each other do.
“But at the executive level I think we need to start looking at opportunities that we can
immediately start to leverage from each other’s client books that we haven't been able
to service before. There’s probably some low hanging fruit where we can get started on
some initiatives relatively quickly.

August-October 2018 Defence Business
COLLABORATION
35
To deliver on the Federal Government’s $200bn Defence spend over the next
decade and develop a sovereign industry base, Australia needs more mediumsized
businesses. Medium-sized businesses reduce risk to Prime defence
contractors and make the decision to choose an Australian company over an
overseas incumbent supplier, much easier.
Yet small business makes up as much as 98% of all firms in some States.
Inter-firm collaboration is one approach to “create” medium-sized companies,
or teams of small companies which upon forming a team, have similar
characteristics to a medium-sized business.
The DTC program “Achieving More Together – A Deep Dive into Inter-Firm
Collaboration” explores the types of behaviours, culture and frameworks that
are conducive to successful collaboration.
The program was presented by David Pender, Principal of Knowledge
Perspectives and Adjunct Senior Lecturer at the Adelaide University
Business School.
(L-R) Margot Forster (CEO, Defence Teaming Centre), Simon Kennedy (MD, Smart Fabrication), Mark Stevens
(Director of Finance, Marketing & Governance, Dematec Group) and David Hart (CEO, Dematec Group).
“Then we can be a lot more strategic. For example, if a potential project comes up
where we don't have the capability to fulfill it all, we need to go and find someone to
work with to go and address it.
“It’s also about being a bit more aspirational and saying we’re an SME of 20 people
in our own right and we can only grab a very small segment of the defence work off
the back of our resources and our own capability. Can we work with others who
share similar values and aspirations to access opportunities that would otherwise
not be present?”
The words “relationship” and “values” are common themes.
David firmly believes, “the relationship is key to it all”.
“It is generally better if the relationship precedes the formalities,” he said.
“The formalities are probably more about a commitment to set aside the time
and resources to properly understand what both organisations do and to actually
strategically target opportunities out of it.
“It might be like getting married, where you've been in a relationship and the marriage
ceremony is when everyone comes together and sees the commitment.”
THE FUTURE
“The next step will be going along to the DTC webinar on ISO 44001 (collaborative
business relationship management systems).
“And that’s where organisations like the Defence Teaming Center are important.
You're bringing together a whole lot of organisations who have the potential to
collaborate but until you've formed those relationships and understood who some
of these other businesses are then it's pretty hard to even get started.
“So, I think continuing down that path is something that we’ll certainly do, and we’ll
have to also look at our internal capabilities and the areas that we don't have core
competencies in or we don't have partners that have core competencies to see if there
are gaps that are holding us back.
“We’re also not particularly good at marketing ourselves. If even our long-term
customers don't understand the full scope of what we do, then the chances are
that businesses in the Adelaide landscape certainly don't, or they might have a
certain perception.
“So, I think it's an important process to get that information out there.”
The DTC workshops raise challenging items for discussion, but few are
more confronting than the idea of collaborating with competitors in order
to achieve capacity.
“Collaborating for scale rather than scope was one aspect I hadn't really considered.
I guess it would be challenging to get that level of trust right at the outset to have a
mutual understanding of what this means, how it's going to be executed and how that
would roll out over time," he said.
"Collaboration is a great way to
amplify the capabilities of our
organisation by finding other
likeminded companies that share
similar values and aspirations
that we can work with. "

INDUSTRY 4.0
36 August-October 2018 Defence Business
Now’s The Time For Aussie SMEs To Shine:
Getting Onboard The Fourth Wave
By Emilio De Stefano and David Pender
With all the buzz about Industry 4.0, Australian defence sector SMEs face some
clear strategic choices. They can become part of a drive to take small Australian
manufacturers to the forefront of global defence supply chains, or they can step aside
and let it pass them by. The $200 billion defence investment over the next decade
provides the catalyst. Australia will never really compete with Europe (and others) in
high volume production processes. Low volume, high value products and processes
(like those in defence) are a different matter.
WHAT IS INDUSTRY 4.0?
The 4.0 signifies the “fourth wave” in the industrial era. Each previous wave produced
disruptive changes to how things were made, what was possible to make and even,
how we lived our lives. The first wave created cities; the second goods that more
people could afford; the third improved quality and efficiencies. Each wave was long
lasting, albeit each had a shorter timeframe than its predecessor.
The fourth wave brings together physical and digital systems, making them work
together in ways that were nearly unimaginable 15 years ago. Cloud computing, the
Internet of Things (IoT), data analytics and machine learning all enable digital systems
to monitor the physical in near real time and make intelligent decisions that feed back
into the physical to improve performance.
The four industrial revolutions (Image courtesy of Wikipedia).
WHAT IS SO DIFFERENT? SOFTWARE TOOLS AND PREDICTIVE MAINTENANCE
HAVE BEEN AROUND FOR YEARS.
Two things are different: cost and speed. These enabling technologies are now
affordable. Once only for big players due to their high capital cost, these tools are now
DELIVERING LAW DIFFERENTLY.
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August-October 2018 Defence Business
INDUSTRY 4.0
37
available as a “pay-per-use” service. Through advances in sensor technology, internet
speeds, cloud computing and third-party IoT platforms (e.g. Amazon Web Services and
Microsoft Azure), we can now get more data, more quickly for ultra-fast analysis and
make informed decisions based on it. Industry 4.0 goes beyond one factory; it connects
actors within the value chain – you to your suppliers as well as you to your customers.
practice in this space looks like. We have the Federal Government support for Industry
4.0 – where the Prime Minister has established the Prime Minister’s Industry 4.0 Task
Force. We can continue to work closely with industry leaders. We can encourage our
education institutions to produce the right mix of skills and talent in their graduates. It
can, and must happen.
WHAT ARE THE BENEFITS?
Without venturing into the deep unknown, Industry 4.0 benefits revolve around 4 key
areas – business models, productivity, how we compete and market requirements.
Business Models Productivity How we compete
Create and capture
new forms of
value.
Create new
business models
and improve
existing ones.
Mass customisation is one of the most exciting benefits that could come out of
Industry 4.0. It has potential to see many of the traditional manufacturing industries
that have gone offshore over the last few decades (i.e. textiles), being reshored as
the labour component of the overall cost of manufacture is reduced and transport is
stripped out as one of the last remaining activities in the value-chain that creates no
value for the customer.
Reduce downtime.
Improve
maintenance
processes.
Improve product/
service quality.
Change the basis
of competitive
advantage.
Radically improve
supply chain
integration.
Market
requirements
Enable “mass
customisation”
Reduce the time
to market for new
products/services.
Provide
greater ease
in sustainment
services.
WHAT IS THE DTC DOING TO SUPPORT SMES WITH THE TRANSITION?
The DTC will support its members in Industry 4.0 understanding and adoption.
Knowledge is being gathered through trade shows, from industry leaders and through
working closely with other industry associations and various agencies. A program to
support understanding and adoption is being planned for an early 2019 roll out.
CONCLUDING THOUGHTS
Technology is developing at a fast pace. Industry 4.0 tools will continue to improve,
probably become cheaper and certainly even easier to use.
Now is the time for Australian SMEs to come to grips with the concepts and
technologies Industry 4.0 offers and begin the planning process for adoption.
We can lead in the mass customisation space.
Then at the right time, adoption won’t entail “jumping a huge chasm” but will just
be another step in the journey.
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WHAT ARE THE CHALLENGES FOR AUSTRALIAN SMES?
Leadership appetite and uncertainty. SME leaders have to become comfortable
that the idea is for them and figure out the investment priority in terms of cash
and time. Uncertainty because starting points are unclear, there are competing
ideas in the market that are generating confusion and little education or training
is presently available.
IS GERMANY LEADING THE CHARGE?
Whilst standout Industry 4.0 exhibits were on show at Hannover Messe 2018 : SEW
Eurodrive, Siemens and Festo, German SMEs are still not far along the industry 4.0
journey. Only one fifth are using Industry 4.0 technologies themselves. These SMEs
use design and simulation tools far and wide, but paper-based production systems are
still the norm, and few are feeding ‘as-built’ information back into the original design
model to create what is known as a ‘digital twin’. As evidenced in the DTC’s recent visit
to Germany however, adoption roadmaps are being developed by SMEs and companies
are thinking about how they can digitise their operations. In short, the Germans
lead from the integrator’s perspective, although it seems the German SME sector is
struggling with many of the same challenges our SMEs struggle with.
Image courtesy of BAE Systems Australia: Two NTP ANT Student Consoles installed with new APC monitors.
MIL-SPEC/GVA Compliant Solutions » Mission Systems » Thin Clients »
» Displays » Panel PCs » Consoles » Sensor Fusion Systems »
» Quality of Life Systems » Rackmounts » UPSs » Trackballs & Keyboards »
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CAN AUSTRALIA GET INVOLVED IN THE INDUSTRY 4.0 JOURNEY AND IS IT
POSSIBLE FOR AUSTRALIAN SMES?
Greenfield sites are being established for SEA 1000, SEA 5000 and LAND 400. Australia
has a unique opportunity if we exploit the opportunities at hand and establish the
foundations to digitise our defence infrastructure over the next few years. There’s
no reason why we can’t have the Germans visit in 5 to 10 years to see what best
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Mantra Group
NHP
Operational Systems
Peer
ICT/electronics
APC Technology
Artis Group Pty Ltd
Automated Solutions Australia
AV Integration
Avinet
Belden Australia Pty Ltd
Christie Digital Systems Australia
CISCO
Cloud Culture
Clearswift
Codan Limited
Codarra Advanced Systems
CyberOps
DXC Technology
Consunet Pty Ltd
Critical Room Solutions Pty Ltd
Dedicated Systems Australia
DESA Australia
Don Alan Pty Ltd
EM Solutions
Entech Electronics
Finite Group APAC Pty Ltd
Intercad
Hendon Semiconductors
Keysight Technologies
Lencom Antennas
Logi−tech Pty Ltd
My Sky Technologies
Operational Systems
Palamir Pty Ltd
Redarc Electronics
RedStack
Rheinmetall Simulation Australia
SMS Management & Technology
Solinnov Pty Ltd
Supplied Solutions
Systech Consultants
Thinklogical
Ultra Electronics Australia
VeroGuard
Vocus Communications
Walter Breunig Intelligent
Platforms Pty Ltd
infrastructure
A. Noble & Son
Badge Constructions
Caledonia Scaffolding
JP Flynn
Sarah Constructions
logistics − transport
BT Transport & Logistics
Customs Agency Services
DHL Global Forwarding
Expeditors International Pty Ltd
manufacturing
Able Industries Engineering
Adlingtons Australia Pty Ltd
AFL Services
Aerobond
Airspeed
AJ Distributors
Alliance Automation Pty Ltd
Aluminium Dynamics
AML Technologies
ASC
Austal
Axiom Precision Manufacturing
Beak Engineering
B L Shipway & Co
C.E. & A Co. Marine Engineers
Capral Aluminium
Castech
Century Engineering
CNW Energy
Coiltek Manufacturing
Cold Logic
Cresta Plastics
Defence Coating Systems
Dematec Automation
Engraving Services Co
Ezy-Fit Marine Pty Ltd
Favcote Pty Ltd
Ferrocut
Form Cut Pty Ltd
GBT Industries
Hallite Seals Australia
Heatlie BBQ’s
Hill Defence Products
Humanihut Pty Ltd
IKAD Engineering
Intertek AIS
Intract
J3Seven Pty Ltd
Johnson Controls
K−TIG
KAEFER Integrated Services
Levett Engineering Pty Ltd
Lightforce Australia Pty Ltd
LS2 Engineering
Lucesco Lighting Australia Pty Ltd
MacTaggart Scott Australia
Marine Technicians Australia
Maxiport Engineering Pty Ltd
MG Engineering
Mincham Aviation
Morgan Advanced Materials
Navantia
Norseld Pty Ltd
Odense Maritime Technology
Oliver Technologies Pty Ltd
Ferretti International
PCM Group
PFG Group
Pirtek (Adelaide) Pty Ltd
Plasteel S.A.
PMB Defence
Praxis Aeronautics
Precise Machining & Manufacturing
Precision Components Australia
Pty Ltd
PRP Manufacturing
RGM Maintenance
Rowlands Metalworks
RUAG Australia
Sage Automation
Siemens
SMART Fabrication Pty Ltd
Snap−on Industrial Tools Australia
Sonnex Pty Ltd
Stramech Engineering
TAE Aviation
Taylor Bros Marine Pty Ltd
Technoweld
Toolcraft Pty Ltd
TRP Ductwork
United Fasteners SA Pty Ltd
professional services
Accord Property
Adelaide Airport Limited
Adelaide City Council
Adelaide Relocations
Adept Technology Pty Ltd
Advanced Focus
Alcolizer
AMOG Consulting
ARDworks Advisory
Asset Development Services
Austbrokers Terrace
Austest Laboratories
Connecting, Developing &
Advocating for defence industry.
The Defence Teaming Centre (DTC) is a member organisation that
connects, develops and advocates for Australian defence industry to
maximise opportunities in national and global defence markets.
Members include Prime Defence Contractors, Small-to-Medium
Enterprises, Professional Service Providers and Academic Institutions
that are involved in supplying and supporting Defence capability.
We provide tailored services to meet the needs of our members;
providing industry development and market awareness services to
help businesses grow and increase their presence in defence markets
across all domains including Air, Land Sea, Space and Cyber.
The Defence Teaming Centre|
enables business through:
> Connections, knowledge and expertise
> Industry development
> Support with exporting strategies
> Advocacy on defence industry policy
workforce and skilling issues
Innovation House East,
50 Mawson Lakes Boulevard, Mawson Lakes SA 5095
P +61 8 7320 1000 E business@dtc.org.au W dtc.org.au

Blue colour denotes new member
Australian Business Defence
Industry (ABDI)
Australian Organisation for Quality
(SA) Inc.
AWS Global
Axant Corporate Advisory
Boileau Business Technology
Bambrick Legal
Bentleys R&D (SA) Pty Ltd
BMT Design & Technology
Brand SA
British High Commission
Broadway Property
Capability Driven Acquisition Pty
Ltd
Cheesman Architects
City of Charles Sturt
City of Playford
City of Salisbury
City of Tea Tree Gully
Civil Contractors Federation
Color on Demand
Cornell Design
Cowell Clarke
Crown Relocations
D2D CRC Ltd
DEC Workforce Pty Ltd
Defence Reserves Support SA
Department of Education and Child
Development
Draeger Safety Pacific Pty Ltd
duMonde Group
Easy Skill Australia
EnvyUs Design
Ernst & Young Transaction
Advisory Services
Finlaysons Lawyers
Global Maintenance Upper Spencer
Gulf
Grant Thornton Australia Ltd
Greg Eaton
Heavypoint Pty Ltd
Helping Heroes Rehabilitation
Service
Heterodox Solutions Pty Ltd
Hughes Public Relations &
Communication Counsel
HunterNet
I C Frith
Intercultural Tailored Solutions
Inventure Partners
Johnson Winter & Slattery
Kinexus People
Knowledge Perspectives Pty Ltd
LogiCamms Australia Pty Ltd
Madderns
Maintenance Systems Solutions
ManpowerGroup
Migration Solutions
Modus Staffing
Northpoint Fleet Management
Officeselect
Omega Engineering Consulting
National Safety Council of
Australia LTD (NSCA)
Peter Page Holden
Piper Alderman Lawyers
Project Performance International
Qatar Airways
Quisk Design
Rapid Context
REALM Solutions (SA) Pty Ltd
RedBikini
Regional Development Australia,
Whyalla
& Eyre Peninsula
Rsultz Pty Ltd
S & L Holdings Pty Ltd
Salentis
Scottish Pacific Business Finance
Simulation Australasia
Skill Speak Consulting
Southern Cross Group Services
Pty Ltd
Sphere Advisory
Sudel Industries Pty Ltd
Sungard Data Centre Services SA
Sure People Solutions Pty Ltd
Talent International
TQCSI
Vintek Pty Ltd
Vipac Engineers & Scientists Ltd
We Create Print Deliver
Weld Australia
WGASA Pty Ltd
Workforce Blueprint (Wendy Perry
and Associates)
Work Ready Program
WSP Parsons Brinckerhoff
Yaran Business Services
YourDC
Zancott Recruitment
Zippy Indigenous Facilities
Services
systems engineering
Acacia Research
Aurecon Australasia
Babcock Pty Ltd
BAE Systems Australia
Boeing Defence Australia
Cadgile
CEA Technologies Pty Ltd
Cobham Aviation Services
Australia
Daronmont Technologies
Dassault Systemes
Department of Defence− Defence
Science and Technology Group
(DSTG)
elmTEK Pty Ltd
Eptec
Fincantieri Australia
Frazer− Nash Consultancy
General Dynamics Land Systems −
Australia (GDLS)
GHD Pty Ltd
GPA Engineering Pty Ltd
Kadego
Lockheed Martin Australia
Electronic Systems Pty Ltd
Luerssen Australia
Nova Systems
PREDICT Australia
Prism Defence
QinetiQ
Raytheon Australia Pty Ltd
Thales Australia
Saab Australia Pty Ltd
Supashock
Sydac Pty Ltd
training and education
Adelaide Training & Employment
Centre (ATEC)
Adelaide University
Bettcher
Flinders University
RMIT University
Specialist Training Australia
St Patrick's Technical College
TAFE SA
University of South Australia
DTC charities of choice
The Repat Foundation - The Road
Home
Legacy Club of Adelaide
Returned and Services League of
Australia (SA)
Partnership
More than just the platform. Navantia Australia provides tailored Through Life Support
solutions and integrated sustainment services that help keep Australia’s naval fleet at sea.
Your Partner at Sea
navantia.com.au

40 NEWS IN BRIEF
August-October 2018 Defence Business
Business Of Tomorrow
Cadet Pilot Program
Armistice Breakfast
Congratulations to the team at Advanced Focus,
which was selected as one of Westpac’s 2018 Businesses
of Tomorrow winners.
Businesses of Tomorrow rewards and recognises
businesses with the drive to shape Australia’s future.
The 2018 businesses were chosen from applications
across the country and represent the diversity of
Australia. Each winner demonstrates a clear purpose
and vision, deeply understands their customers’ needs
and has the capability to meet tomorrow’s challenges.
As a winner, Advanced Focus will attend a tailored
three-day Melbourne Business School program
focused on how to respond to disruption and map
their business’ future.
Open Day and Seminars
Austest Laboratories in Para Hills West (SA) will be
conducting an open day of its new facilities on September
19. In addition to a tour of its EMC and environmental
test facilities, the half-day event will include free seminars
on EMC and environmental product testing related to
defence and aerospace standards.
Cobham Aviation Services Australia launched its
Cobham Cadet Pilot Program in August.
Aspiring pilots with little or no flight experience
are eligible for the 53-week, world-class residential
program, which is being run in partnership with Flight
Training Adelaide.
The program comprises all the necessary and desirable
elements to prepare cadets for the role of First Officer
on Cobham’s highly-modified Dash 8 aircraft.
Sector Reform
Adept Technology hosted a breakfast event entitled
“Capitalise on Sector Reform: technology is your
competitive advantage” earlier this year.
The event was a sell-out as over 65 of SA’s IT and
business community leaders attended to hear three
presenters discuss how reforms and consumer
expectations have changed what was once a relatively
stable and risk averse industry. The event continues
to contribute to Adept’s mission to contribute to the
sustainability of SA’s IT economy.
The RSL SA is holding a Centenary of Armistice Breakfast
on Thursday, November 1 at the Adelaide Convention
Centre.
High Interest
More than 1000 Australian businesses have formally
registered their interest to be part of the Future
Submarine Program, through the Naval Group and
Lockheed Martin Australia (the combat system
integrator). Meanwhile, the Department of Defence
has re-engaged ASC to continue to deliver Royal
Australian Navy’s training services for the Collins class
submarine program. Also announced was a $230 million
contract for major upgrades of the Thales sonars on
the submarines. “It is critical that Australia maintain the
highest levels of submarine capability from the Collins
fleet until the Future Submarine enters service. The
sonar systems are the ‘eyes and ears’ of the submarines,
and Thales will bring together the best underwater
sensing technology from around the world to ensure the
Collins remains a potent force,” said Thales Australia
CEO Chris Jenkins.

August-October 2018 Defence Business
NEWS IN BRIEF
41
Rapid Award
Defence Tour
Rapid Context has been awarded the ACT Telstra
Small and Succeeding Business of the Year for 2018.
The company has provided significant research and
analysis services to Defence and defence industry over
the last four years and this award recognises it as a
thriving disruptor in the consulting market.
“Rapid Context is a research consultancy that is
passionate about providing robust evidence and
analysis to help our clients solve complex problems
and support senior leaders to make the important
decisions that lead to enduring change,” said Director,
Dr Samantha Crompvoets.
SAGE Automation opened its doors to 60 Defence and
defence industry personnel during a ‘behind the scenes’
tour of its Tonsley manufacturing facility and head office in
Adelaide. The company showcased its system engineering,
manufacturing and supply chain capabilities, highlighting
its all-encompassing work on the Collins Class submarine
Chilled Water Project. The tour was part of the Defence
Industry Study Course (DISC).
Workforce Expansion
Global Welding News
Intercultural Capability
Delegates attending Land Forces and other international
standard exhibitions need to think carefully about their
intercultural capability, which can be critical to success in
the defence sector.
“You may not even be aware of mistakes you are
making in dealing with high level contacts from other
countries,” said Pamela Murphy, Director at Intercultural
Tailored Solutions, which offers CQ (Cultural
Intelligence) Assessments.
Cobra Certification
EM Solutions' Cobra
M2 Maritime Satcom
Terminal has successfully
completed the WGS
testing and certification
process, and been
notified by the
certification authority
that the terminals are
now able to operate at
Ka-Band on the WGS
Satellite Network. The
testing phases of the
certification process
were completed by the Australian Certification Authority
within the Satcom Systems Program Office.
Best Business Class
In the 2018 Skytrax World Airline awards, Qatar Airways
has been awarded the World’s Best Business Class, Best
First Class Airline Lounge, Best Airline Middle East, and
the Best Business Class Seat.
“Through our pursuit of excellence, we promise to keep
innovating, expanding our network, and delivering an
unparalleled passenger experience that continues to
revolutionise the future of air travel,” the company said.
APC Technology has
appointed Ben Hodge in
the new role of Defence
Business Development
Manager. This hire is part
of the company’s recent
employment expansion,
which has included new
staff within the engineering and manufacturing teams.
“Over the last two financial years we have experienced
significant business growth, with a 52% increase in orders
putting us in a strong position to expand our work force,”
said Scott Begbie, Managing Director of APC Technology.
Robot Rumble
More than 80 Adelaide school students put their robots
through their paces at the inaugural ASC Robot Rumble,
with ASC graduate engineers and experts teaming up
with students to impart their knowledge and experience
and encourage STEM education.
“This is part of ASC’s efforts to encourage young
people to study Science, Technology, Engineering and
Mathematics subjects, and ultimately pursue STEMrelated
careers to grow the talent pipeline needed in
South Australia to resource the future submarine and
future frigate projects,” said ASC Chief Executive Officer
and Managing Director, Stuart Whiley.
AWD Brisbane Delivered
Navy’s second Air Warfare Destroyer, Brisbane, has
officially been handed over to Defence. It is the second of
three ships being delivered by the Air Warfare Destroyer
Alliance which comprises the Department of Defence,
Raytheon Australia and ASC Shipbuilding supported by
Navantia Australia.
Over the past decade more than 5,000 skilled Australians
have worked on the three Air Warfare Destroyers.
“This has laid the foundation for an Australian shipbuilding
and systems integration industry which will construct the
new Hunter class frigates in South Australia,” said Minister
for Defence Industry, Christopher Pyne.
AWS was represented by principal engineer Neville
Cornish and lead engineer Rahim Kurji at the 71st
International Welding Institute (IIW) General Assembly
and International Conference. AWS presented a paper
on the “Techno-economic Feasibility of Modified Pulse
Arc Deposition on Thick Sections of Quenched and
Tempered Steel”. This has been a collaborative project,
between AWS partners at The University of Adelaide,
Bisalloy, Adelaide Microscop and the Australian Nuclear
Science and Technology Organisation (ANSTO).This
project is one of the core elements of AWS’ “Defence
Ready Program,” where it has been working on,
among other things, the development of optimisation
techniques for the welding of quench and tempered
(Q&T) steels.
New Office
Helping Heroes has opened a new office in Geelong,
to complement its offices in Adelaide and Melbourne.
Services now cover all of Victoria and South Australia,
specialising in assistance to employers with recruitment
of transitioning ADF members via preliminary screening
of applicants, tailored training packages including
costs, on job support, ergonomic or worksite
assessments, short term work placements (including
insurance coverage) and organisation of Employer
Incentive payments.
Minister for Defence Industry, Christopher Pyne (right) and Premier
of South Australia, Steven Marshall, receive a brief on the bridge of
Air Warfare Destroyer, NUSHIP Brisbane, during a visit Techport, Outer
Harbour, South Australia.
“The AWD Program has also built a vast Australian supply
chain, comprising more than 2,700 suppliers.”

JOINT STRIKE FIGHTER
42 August-October 2018 Defence Business
Industry Welcomes Strike Fighter Spin-Offs
A United States Air Force F-35A Joint Strike Fighter flies during boom refuelling trials in the United States. The F-35A is equipped with symmetrical external stores for this trial.
With the first F-35s are due to arrive on our shores
within the next four months, there are two important
lessons for Australian industry:
• the “joint by design” approach has fundamentally
reshaped ADF procurement.
• success in defence requires a long-term and
collaborative commitment.
The technology advancement offered by the F-35
Joint Strike Fighter (JSF) has been the catalyst that has
reshaped the way the ADF considers joint capability
development and operations.
“Joint by Design” is the objective. The JSF is one of
many platforms that provide the ability for battlespace
information to be gathered and shared across multiple
platforms instantaneously.
It changes everything from how information is shared
and used, to how our war fighters are trained across
Navy, Army and Air Force.
THE NEED FOR LONG-TERM COMMITMENTS
“Australian industrial involvement has been a long and
arduous process for those involved, and the DTC and
other organisations have provided invaluable assistance,”
said DTC CEO, Margot Forster.
“Most of these organisations have been pursuing
opportunities and investing in their own businesses for
almost 10 years.
“This highlights the long and complex nature of global
supply chains. During this time, these organisations have
continually invested in themselves to continually improve
their systems and processes to meet the growing needs
of the supply chain.
“The Centre for Defence Industry Capability’s (CDIC)
Supplier Continuous Improvement Program (SCIP) has
been instrumental in providing many of these businesses
with the guidance and support needed to bring these
businesses up to world class standard.
“SCIP not only paves the way to help industry
understand what “world class” looks like, it educates
industry on the need to establish collaborative supply
chain relationships, which is paramount in programs
such as JSF.”
TWO BILLION REASONS TO BE PLEASED
So, as we prepare for their imminent arrival, what can
we expect?
Firstly, it is undoubtedly the most sophisticated fighter
aircraft ever built. It remains impossible to detect.
Secondly, Australia is also the first non-US partner to
accept F-35s with Block 3F capability (the F-35A).
And thirdly, more than 50 Australian companies have
been directly involved in $1 billion-plus contracts. This
figure is forecast to exceed $2 billion by 2023.
However, it is no surprise that the F-35 has been a
magnet for critics, given its trillion-dollar price tag, and
highly publicised delays teething issues.
On the other hand, as American Thinker points out:
“At a similar point in the development of the M1
Abrams tank, its critics were howling for program
cancellation because of the tank’s many developmental
bugs. The bugs were fixed and the M1 proved itself, in
battle, to be by far the deadliest tank in history.”
The Australian Government is describing this new
capability as a “step change” to counter the emergence
of advanced capabilities in the region.
There are three versions of the Joint Strike Fighter and 12
countries are taking delivery of the jet.
The Australian Government is investing in 72 F-35A
Lightning II aircraft to replace the current fleet of 71
ageing F/A-18A/B Classic Hornets. The first are slated to
arrive in Australia in December.
Minister for Defence Industry Christopher Pyne, is
upbeat about the benefits the F-35 is providing
Australian business.
“Australian industry continues to prove its global
competitiveness by performing better than initial
forecasts, with Australian industry involvement expected
to exceed $2 billion by 2023,” he said.
“The journey of Australian industry’s involvement in the
global F-35 Program has been one of great success and
long-term economic opportunity for Australia.”
He cited 2016 statistics that show the F-35 Program
supported more than 2,400 jobs across Australia, which
is set to grow to 5,000 by 2023.
Looking forward, Australia will play a pivotal role as a
regional maintenance and sustainment hub for Asia
Pacific. Australian industry has been chosen as the
maintenance hub for the engines, airframes and 64 of
65 components which have been assigned by the Joint
Project Office. RAAF Williamtown and RAAF Amberley
are both slated to be significant beneficiaries.
AUSTRALIAN INDUSTRY
EXAMPLES
• Marand Precision Engineering Marand
is manufacturing F-35A vertical tails
and opened a new facility in Melbourne
in January.
• Levett Engineering, located in Adelaide,
has supplied over $20 million in components.
• Earlier this year, Australia’s Varley Group
delivered its first two F-35 deployable
facilities. One will house ICT equipment used
on deployment, while the other will provide
a facility for duty personnel and mission
planning. Varley will manufacture a total of
29 over three years.
• Chemring Australia and Quickstep
Holdings have secured funding for product
development and cost reduction initiatives
for F-35 Lightning II countermeasure flares.
COUNTDOWN
The first two Australian F-35A aircraft are
scheduled to arrive for permanent basing at
RAAF Base Williamtown, New South Wales,
in December.
By the time of Final Operating Capability,
expected in December 2023, Australia will
have a training squadron and three operational
squadrons comprising 72 aircraft.

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• Committed to transferring our experience, capability and advanced engineering
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