The Australian Department of Defence (DoD) is currently assessing the full impact of Covid-19 on military procurement and sustainment programmes, a DoD spokesperson told Jane’s on 22 April.
The spokesperson said that the DoD is also conducting reviews of procurement and sustainment requirements as outlined in the government’s Integrated Investment Program (IIP), which was released in 2016 alongside the Defence White Paper.
The IIP outlines defence investment worth AUD195 billion (USD123 billion) through to the mid-2020s, with an emphasis on naval modernisation, although defence spending for fiscal year 2020–21 has been deferred. In response to Covid-19, the Australian government said in March that it had postponed national budgetary announcements until October 2020.
The Australian Department of Defence is monitoring the impact of Covid-19 on procurement programmes such as the acquisition of Hunter-class frigates from BAE Systems Australia. (Royal Australian Navy)
“[The DoD] is continuing to monitor and engage with its contracting base to understand the impact of Covid-19 on its acquisition and sustainment programmes,” the DoD spokesperson said.
“Where procurements are currently in the market or under contract, [the DoD] is committed to maintaining open and effective communication with its suppliers to assist in addressing the risks to business-as-usual operations that the Covid-19 pandemic presents.”
The spokesperson added that it is the DoD’s “expectation” that contractors and their suppliers will “act reasonably with each other” in considering and addressing the impact of the pandemic on supply chains.
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