Capital Equipment Acquisition

The Defence Planning System identifies and recommends to Government the requirements for new military capabilities or changes to existing capabilities. A subset of planning processes is used to ensure that the best options to achieve the required capabilities are identified, subjected to a variety of cost-benefit analyses and recommended for Government's consideration.

FORCE DEVELOPMENT BASE PAPERS scope in detail the nature of capability issues identified in the Government’s strategic guidance and identify a broad funding estimate, and timeline for addressing the issue, and confirm the capability performance required.

Once these outlines are endorsed, Base Papers are then developed to examine and assess feasible options for addressing the issue. Options may include changes to doctrine, organisation, training, leadership, manpower, facilities and/or equipment. Each option is analysed against policy, financial and operational measures to identify the most cost effective solution.

Base Papers are usually prepared for capability developments that need to occur in the outer years of the planning horizon (i.e., the 5-20 years)

FORCE DEVELOPMENT PROPOSALS take the most cost-effective solution determined by the Force Development Base Paper, and carry out detailed assessments of all aspects of the solution – equipment acquisition issues, logistic support, personnel changes, through-life costs, etc. Force Development Proposals are developed to a level of detail required for a User Requirement Specification which is used by those tasked to acquire and commission the preferred solution.

Force Development Proposals are usually first completed for capability developments as they come into the near-term planning horizon (ie. 1-5 years). They are reviewed annually in an effort to continually improve costing and other relevant information in each Proposal.

  • CABINET APPROVAL IN PRINCIPLE is obtained before proposals are developed in greater detail.
  • THE STATEMENT OF REQUIREMENT specifies the detailed requirements that any solution must provide.
  • A RISK ASSESSMENT is conducted to identify and mitigate the risks involved in a project.
  • THE REQUEST FOR TENDER seeks tenders from industry for solutions that satisfy the detailed Statement of Requirement.
  • AN INDEPENDENT VERIFICATION AND VALIDATION ensures that the correct processes have been followed.
  • AN EVALUATION OF TENDERS is conducted to ensure that tenders satisfy the Statement of Requirement, and recommend a Preferred Tenderer and seek a Best and Final Offer.
  • CABINET APPROVAL TO COMMIT is required before contracts can be signed.
  • THE PROCESS CONTINUES with Project Management, Introduction to Service, Through-Life management.
This page was last reviewed on 8 January 2013.