Defence Industry Minister Pat Conroy has assured defence industry that broad ranging defence procurement reforms starting on 1 July 2026 would deliver a smarter and more efficient customer who is more up for taking risks.
“Because that is what we need,” he told industry representatives and defence officials at the annual Defence and Industry Conference in Canberra.
Minister Conroy said this was a landmark day, the first day of the first phase of major reforms which would deliver his proudest legacy as a minister.
“What we are doing with this reform journey is about fixing a system,” he said.
“It is the system that has let you down.
“It is the system that requires red tape that is unnecessary. It is a system that is failing and that is what we are changing today.”
Defence’s procurement processes have been routinely but not always justly criticised for slow delivery of equipment, cost overruns and poor ability to respond to the changing strategic environment.
The new Defence Delivery Agency (DDA) begun phase one of its rollout on 1 July, with the merger of the Capability Acquisition and Sustainment Group (CASG), the Guided Weapons and Explosive Ordnance Group (GWEO) and the Naval Shipbuilding and Sustainment Group (NSSG).
Minister Conroy said capability development and contestability would be centralised from the five warfighting domains to the Vice Chief of the Defence Force (VCDF) group to support clearer prioritisation, streamlined decision making and accountability for new capability proposals.
“VCDF group will prioritise what capability is needed,” Minister Conroy stated.
“The National Armaments Director (NAD) through what will become in 12-months’ time the independent Defence Delivery Agency will deliver that capability.”
The Minister said the over-arching effect would be clearer and stronger lines of accountability and quicker acquisition of capability.
The government announced these significant reforms back in December 2025.
Minister Conroy said clearer accountability and streamlined decision making was needed so industry “can get on and do the jobs we need you to do.”
He said one indication of where the One Defence reforms, launched back in 2014 had gone astray, was illustrated by a story from a former NSSG head.
When he started in the Defence Department, one particular process required two signatures for sign off. By the time he ended his tenure, it required 70 signatures.
“That is just not fair for anyone,” he said. "The strategic environment has changed. We just can’t have that fragmented system anymore.”
Minister Conroy said the new 2026 Defence Industry Development Strategy, launched on 2 July, would feature new fora where industry will be brought into the capabilities development process much earlier.
“Early engagement with defence industry is a good thing. We have to do it in a smart way which is conscious of probity. If you look around the world there are systems that engage industry a lot earlier in the process to help shape capability decisions so we get the best possible platforms as fast as possible,” he commented.
“We do that by knowing what industry can offer. We know that by having realistic commercial and industrial acquisition strategies.”
Acting NAD director, Nadine Williams, told the conference if these reforms were to work as intended, industry would also need to engage differently.
“Earlier engagement requires earlier candour, clear advice on cost, on schedule and on capacity at the point where decisions are being shaped,” she highlighted.
“It requires realism in commitments and alignment between what is proposed and what can be delivered. And it requires a continued focus on delivery performance, meeting commitments, managing risk activity, working through issues directly. The next 12 months will be critical.”
VCDF Air Marshal Robert Chipman said this was an opportunity to cut the jungle back.
“When we made the reforms to the defence capability system in 2014, they were with the best intent. They were intended to cut bureaucracy, streamline decision making and accelerate capability delivery. But the jungle grew back,” he affirmed.
Air Marshal Chipman said the service chiefs would be deeply integrated into the capability development process from gate zero to gate two, with responsibility to ensure their organisations were ready to accept capabilities into service and developing transition plans.
“It’s just that accountability has moved to me,” he explained.
AIRMSHL Chipman said industry would also benefit from greater discipline around the setting of requirements.
“I will be more disciplined about minimum viable capability. I will be more disciplined about ensuring about keeping our requirements set so that we deliver capability on time,” he clarified.