Accelerating capability delivery

Defence is undertaking the most significant reforms to capability development and delivery in more than 50 years.

The first phase will begin on July 1, with the merger of the Naval Shipbuilding and Sustainment Group, Capability Acquisition and Sustainment Group and Guided Weapons and Explosive Ordnance Group under the Defence Delivery Group.

Capability development functions across the five domains – maritime, land, air, space and cyber – as well as the Contestability Division will also transfer into the VCDF Group.

VCDF AIRMSHL Robert Chipman said these changes will improve capability development and delivery through greater project and budget management, cost estimation and assurance over all stages of a project.

“This is an opportunity to do things differently and get equipment in the hands of the warfighter as quickly as possible,” AIRMSHL Chipman said.

“To meet emerging threats outlined in the National Defence Strategy, Government has directed us to accelerate the delivery of major and complex Defence capability programs. This requires the right structures, priorities and governance.

“We will also put our people through professional capability uplift, ensuring they have the right skills and expertise to deliver complex projects.”

These are important reforms to the Secretary, CDF, Associate Secretary and VCDF – who are all leading on this enterprise reform activity over the next 12 months.

The reform’s second phase includes establishment of the Defence Delivery Agency from July 1, 2027.

The new agency will be headed up by a National Armaments Director and will report directly to ministers, with a sole focus on delivering capability acquisition and sustainment.

The separation from Defence will increase the new agency’s autonomy and clearly assign overall accountability for capability delivery.

The reforms are being implemented in stages and will be communicated to the workforce in advance. Any consultation required with ADF and APS personnel will be conducted in accordance with the 2024 Defence Enterprise Collective Agreement.

“The 12-month transition phase of the reform to establish the Defence Delivery Agency will enable systems, processes, shared services arrangements and the operating model to be established,” AIRMSHL Chipman said.

“The length of time of this transition phase acknowledges the breadth of work required in order to set the new agency up for success, while not impacting current work and capability delivery.”

The 2026 National Defence Strategy affirmed Australia’s strategic environment continued to deteriorate and that Defence must be able to deliver the capabilities, skills and workforce needed for an integrated, focused force.

The ADF will remain engaged throughout capability life cycles, while focusing on responsibilities to raise, train and sustain the force.

“Defence’s most important capability is its people. I want to thank everyone who has engaged with these reforms to date and for your continued commitment,” AIRMSHL Chipman said.

Raise any questions about this change with your commander or manager, otherwise reach out to the Transition Support Team: transitionsupport.changeandworkforce@defence.gov.au