Chapter 1

[1]        Journals of the Senate, No 25—8 February 2017, pp 852-853.

[2]        Note: To date the committee has also held additional hearings in Rockhampton on 12 July 2017 and Townsville on 14 July 2017. These hearings will be covered in an upcoming report.

[3]        Australian Government, Department of Defence, 2016 Defence White Paper, p. 10.

[4]        Australian Government, Department of Defence, 2016 Defence White Paper, pp 9, 24.

[5]        Australian Government, Department of Defence, 2016 Defence White Paper, pp 19, 101.

[6]        Australian Government, Department of Defence, 2016 Defence Industry Policy Statement, p. 8.

[7]        Australian Government, Department of Defence, 2016 Defence White Paper, p. 110.

[8]        The Commonwealth Procurement Rules are the keystone of the government's procurement policy framework. They are the basic rule set for all Commonwealth procurements and govern the way in which entities undertake their own processes. See https://www.finance.gov.au/procurement/procurement-policy-and-guidance/commonwealth-procurement-rules/ accessed 24 July 2017.

[9]        Department of Defence, Submission 9, p. 33.

[10]      Mr Steve Grzeskowiak, Deputy Secretary, Defence Estate and Infrastructure Group, Proof Committee Hansard, 8 June 2017, p. 29.

[11]      The Hon Christopher Pyne MP, Minister for Defence Industry, Speech to CEDA State of the Nation 2017, 1 June 2017.

[12]      The Hon Christopher Pyne MP, Minister for Defence Industry, 'Turnbull Government moves to increase Australian involvement in Defence projects', Media release, 29 June 2017.

[13]      The Hon Malcolm Turnbull MP, Prime Minister, 'Launch of the Defence White Paper', 25 February 2016.

[14]      Senator the Hon Fiona Nash, Minister for Regional Development, 'Regional Jobs boost through Defence White Paper investment', Media release, March 2016.

[15]      The Hon Christopher Pyne MP, Minister for Defence Industry, Speech to CEDA State of the Nation 2017, 1 June 2017.

[16]      Department of Defence, Submission 9, p. 8.

[17]      South Australian Government, Submission 3, p. 2.

[18]      See http://www.defence.gov.au/id/Cultana/Default.asp accessed 21 July 2017.

[19]      See http://www.defence.gov.au/id/Cultana/Default.asp accessed 21 July 2017.

[20]      Parliamentary Secretary to the Minister for Defence the Hon Darren Chester MP, Parliamentary Secretary to the Minister for Defence – Defence celebrates expansion of Cultana Training Area, Media release, 31 July 2014.

[21]      Proof Committee Hansard, 8 June 2017, p. 25.

[22]      Brigadier Purdey, Department of Defence, Proof Hansard, 8 June 2017, p. 23.

[23]      Brigadier Purdey, Department of Defence, Proof Hansard, 8 June 2017, p. 22.

[24]      Brigadier Purdey, Department of Defence, Proof Hansard, 8 June 2017, p. 23.

[25]      Brigadier Purdey, Department of Defence, Proof Hansard, 8 June 2017, p. 23.

[26]      South Australian Government, Submission 3, p. 3.

[27]      South Australian Government, Submission 3, p. 2.

[28]      See http://www.defence.gov.au/woomera/about.htm accessed 21 July 2017.

[29]      South Australian Government, Submission 3, p. 2.

[30]      Department of Defence, Submission 9, p. 8.

[31]      South Australian Government, Submission 3, p. 4.

[32]      South Australian Government, Submission 3, p. 4.

Chapter 2 - Issues raised with the committee

[1]        Submission 2, p. 1. See also South Australian Government, Submission 3, p. 3.

[2]        Mr Johnson, Proof Committee Hansard, 8 June 2017, p. 1.

[3]        Mr Johnson, Proof Committee Hansard, 8 June 2017, p. 2.

[4]        Proof Committee Hansard, 8 June 2017, pp 33, 36.

[5]        Proof Committee Hansard, 8 June 2017, p. 33.

[6]        Proof Committee Hansard, 8 June 2017, p. 38.

[7]        Proof Committee Hansard, 8 June 2017, p. 16.

[8]        Mr Johnson, Proof Committee Hansard, 8 June 2017, p. 3.

[9]        Submission 3, p. 5.

[10]      Submission 4, p. 3.

[11]      Mr Johnson, Proof Committee Hansard, 8 June 2017, p. 2.

[12]      Proof Committee Hansard, 8 June 2017, p. 16.

[13]      Proof Committee Hansard, 8 June 2017, p. 17.

[14]      Proof Committee Hansard, 8 June 2017, p. 20.

[15]      Proof Committee Hansard, 8 June 2017, p. 40.

[16]      The First Principles Review was commissioned in August 2014 to ensure that Defence is fit for purpose and is able to deliver against its strategy with the minimum resources necessary. The final report was released on 1 April 2015.

[17]      Mr Grzeskowiak, Proof Committee Hansard 8 June 2017, p. 29.

[18]      Proof Committee Hansard 8 June 2017, pp 28-29.

[19]      Submission 2, p. 2.

[20]      Submission 2, p. 4.

[21]      Members include Defence, industry, finance and representation from the South Australian Government. See Submission 3, p. 4.

[22]      Submission 3, p. 4.

[23]      Submission 3, p. 5.

[24]      Ms Sarah Joyce, Commercial Manager, Max Crane & Equipment Hire Pty Ltd, Proof Committee Hansard, 8 June 2017, p. 14.

[25]      Proof Committee Hansard, 8 June 2017, p. 15.

[26]      Mr Johnson, Proof Committee Hansard, 8 June 2017, p. 4.

[27]      Ms Paula Osborn, Deputy Chief Executive Officer, Regional Development Australia Far North, Proof Committee Hansard, 8 June 2017, p. 14. See also Submission 4, p. 1.

[28]      Proof Committee Hansard, 8 June 2017, p. 14.

[29]      Ms Paula Osborn, Deputy Chief Executive Officer, Regional Development Australia Far North, Proof Committee Hansard, 8 June 2017, p. 15.

[30]      Proof Committee Hansard, 8 June 2017, pp 16, 19.

[31]      Ms Osborn, Proof Committee Hansard, 8 June 2017, p. 19.

[32]      Proof Committee Hansard, 8 June 2017, p. 20.

[33]      Proof Committee Hansard 8 June 2017, p. 33.

[34]      Proof Committee Hansard 8 June 2017, pp 33-34.

[35]      Proof Committee Hansard 8 June 2017, p. 34.

[36]      Proof Committee Hansard 8 June 2017, p. 38.

[37]      Proof Committee Hansard 8 June 2017, p. 38.

[38]      Proof Committee Hansard 8 June 2017, p. 38.

[39]      Proof Committee Hansard 8 June 2017, p. 39.

[40]      Proof Committee Hansard 8 June 2017, p. 39.

[41]      Proof Committee Hansard 8 June 2017, p. 40.

[42]      Proof Committee Hansard 8 June 2017, p. 40.

[43]      Proof Committee Hansard 8 June 2017, p. 45.

[44]      Proof Committee Hansard 8 June 2017, p. 45.

[45]      Proof Committee Hansard 8 June 2017, p. 46.

[46]      Proof Committee Hansard 8 June 2017, p. 49.

[47]      Mr Mitchell and Ms Osborn, Proof Committee Hansard, 8 June 2017, p. 21. 

[48]      Proof Committee Hansard, 8 June 2017, p. 35.

[49]      Mr Grzeskowiak, Proof Committee Hansard 8 June 2017, p. 24.

[50]      See http://www.defence.gov.au/id/cultana/faqs.asp#3 accessed 28 July 2017.

[51]      Brigadier Beutel, Proof Committee Hansard, 8 June 2017, p. 26.

[52]      Brigadier Beutel, Proof Committee Hansard, 8 June 2017, pp 24-25.

[53]      Brigadier Beutel, Proof Committee Hansard, 8 June 2017, p. 25.

[54]      Brigadier Beutel, Proof Committee Hansard, 8 June 2017, p. 25.

[55]      Brigadier Beutel, Proof Committee Hansard, 8 June 2017, p. 26.

[56]      Brigadier Beutel, Proof Committee Hansard, 8 June 2017, p. 30.

[57]      Mr Grzeskowiak, Proof Committee Hansard 8 June 2017, p. 29.

[58]      Proof Committee Hansard, 8 June 2017, p. 34.

[59]      Proof Committee Hansard, 8 June 2017, p. 45.

[60]      Proof Committee Hansard, 8 June 2017, p. 45.

[61]      Proof Committee Hansard, 8 June 2017, p. 39.

[62]      Proof Committee Hansard, 8 June 2017, p. 35.

[63]      Proof Committee Hansard, 8 June 2017, p. 40.

[64]      Proof Committee Hansard, 8 June 2017, p. 35. See also https://www.business.gov.au/centre-for-defence-industry-capability accessed 26 July 2017.

[65]      Proof Committee Hansard, 8 June 2017, p. 9.

[66]      Proof Committee Hansard, 8 June 2017, p. 9.

[67]      Proof Committee Hansard, 8 June 2017, p. 11.

[68]      Brigadier Beutel, Proof Committee Hansard, 8 June 2017, p. 25.

[69]      Proof Committee Hansard, 8 June 2017, p. 16.

[70]      Proof Committee Hansard, 8 June 2017, p. 18.

[71]      Proof Committee Hansard, 8 June 2017, p. 19.

[72]      Proof Committee Hansard, 8 June 2017, p. 34.

[73]      Mr Johnson, Proof Committee Hansard, 8 June 2017, p. 7.

[74]      Proof Committee Hansard, 8 June 2017, p. 18.

[75]      Proof Committee Hansard, 8 June 2017, pp 45-46.

[76]      Proof Committee Hansard, 8 June 2017, p. 4.

[77]      Proof Committee Hansard, 8 June 2017, pp 44, 47; see also Spencer Gulf Cities, Submission 2, p. 2.

[78]      Proof Committee Hansard, 8 June 2017, p. 41.

[79]      South Australian Government, Submission 3, p. 4.

[80]      Proof Committee Hansard, 8 June 2017, p. 41 See also Spencer Gulf Cities, Submission 2, p. 2.

[81]      Proof Committee Hansard, 8 June 2017, p. 41.

[82]      Proof Committee Hansard, 8 June 2017, p. 41.

[83]      Proof Committee Hansard, 8 June 2017, p. 44.

[84]      Proof Committee Hansard, 8 June 2017, p. 41.

[85]      Proof Committee Hansard, 8 June 2017, p. 49.

[86]      Brigadier Cameron Purdey, Director General Logistics, Army, Department of Defence, Proof Committee Hansard, 8 June 2017, p. 23.

[87]      Proof Committee Hansard, 8 June 2017, p. 44.

[88]      Mr Johnson, Proof Committee Hansard, 8 June 2017, p. 2.

[89]      Brigadier Purdey, Proof Committee Hansard, 8 June 2017, p. 23.

[90]      A Defgram is internal advice to staff.

[91]      Mr Grzeskowiak, Proof Committee Hansard 8 June 2017, p. 28.

[92]      Proof Committee Hansard, 8 June 2017, p. 22.

[93]      Proof Committee Hansard, 8 June 2017, p. 26.

[94]      Proof Committee Hansard, 8 June 2017, p. 26.

[95]      Proof Committee Hansard, 8 June 2017, p. 15.

[96]      Mr Grzeskowiak, Proof Committee Hansard 8 June 2017, p. 22.

[97]      Mr Grzeskowiak, Proof Committee Hansard 8 June 2017, p. 29.

[98]      Commonwealth Procurement Rules, 1 March 2017, paragraph 5.3, p. 13.

[99]      See https://www.finance.gov.au/procurement/procurement-policy-and-guidance/commonwealth-procurement-rules/ accessed 26 July 2017.

[100]    Mr Grzeskowiak, Proof Committee Hansard 8 June 2017, p. 31.

[101]    Proof Committee Hansard 8 June 2017, p. 8.

[102]    Proof Committee Hansard 8 June 2017, p. 8.

[103]    Proof Committee Hansard 8 June 2017, p. 8.

[104]    Proof Committee Hansard 8 June 2017, p. 13.

[105]    Proof Committee Hansard 8 June 2017, p. 8.

[106]    Proof Committee Hansard 8 June 2017, p. 10.

[107]    Proof Committee Hansard 8 June 2017, p. 34. See also Mr Theunis Victor, Chairman, Heavy Industry Cluster Group, Regional Development Australia, Whyalla and Eyre Peninsula, Proof Committee Hansard 8 June 2017, p. 34

[108]    Proof Committee Hansard 8 June 2017, p. 40.

[109]    Proof Committee Hansard 8 June 2017, p. 45.

[110]    Proof Committee Hansard 8 June 2017, p. 9.

[111]    Joint Select Committee on Government Procurement, Buying into our Future: Review of amendments to the Commonwealth Procurement Rules, June 2017 pp 75-77, 133.

[112]    Joint Select Committee on Government Procurement, Buying into our Future: Review of amendments to the Commonwealth Procurement rules, June 2017 p. 134.

[113]    The IPP was launched on 1 July 2015 and its purpose is to leverage the Commonwealth's annual multi-billion procurement spend to drive demand for Indigenous goods and services, stimulate Indigenous economic development and grow the Indigenous business sector. See https://www.pmc.gov.au/indigenous-affairs/economic-development/indigenous-procurement-policy-ipp accessed 14 August 2017.

[114]    Mr Grzeskowiak, Proof Committee Hansard 8 June 2017, p. 28.

[115]    See https://www.finance.gov.au/blog/2016/12/09/Dynamic-Sourcing-for-Panels/ accessed 26 July 2017.

[116]    Ms Jane Wood, Acting Assistant Secretary, Non-Materiel Procurement, Department of Defence, Proof Committee Hansard, 8 June 2017, p. 32.

Chapter 3 - Conclusion and recommendations

[1]        Mr Grzeskowiak, Proof Committee Hansard, 8 June 2017, p. 32.

[2]        Mr Johnson, Proof Committee Hansard, 8 June 2017, p. 4.

[3]        Mr Dorward, Proof Committee Hansard, 8 June 2017, pp 33-34.

[4]        Mr Stuppos, Proof Committee Hansard, 8 June 2017, p. 41.

[5]        Dr Johnson, Proof Committee Hansard, 8 June 2017, p. 49.

[6]        Joint Select Committee on Government Procurement, Buying into our Future: Review of Amendments to the Commonwealth Procurement Rules, June 2017, p. vi.

[7]        Joint Select Committee on Government Procurement, Buying into our Future: Review of amendments to the Commonwealth Procurement rules, June 2017 p. 134.

[8]        Mr Grzeskowiak, Proof Committee Hansard, 8 June 2017, p. 29.