SOVEREIGN INDUSTRIAL CAPABILITY PRIORITY IMPLEMENTATION PLAN

Munitions and Small Arms Research, Design, Development and Manufacture

December 2019

Australian GovernmentDepartment of Defence

MUNITIONS AND SMALL ARMS RESEARCH, DESIGN, DEVELOPMENT AND MANUFACTUREMinister’s foreword

The opportunity for Australian industry to participate in Defence projects right now is unprecedented. The Sovereign Industrial Capability Priority Implementation Plans provide a key reference point to industry on the critical areas where Defence is seeking to partner with Australian industry.

This Implementation Plan – the first of ten – is a key part of the Government’s $200 billion investment to build the sovereign capability of our military and defence industry. We are committed to developing a robust, resilient and internationally competitive Australian defence industry base that is better able to help meet Defence’s capability requirements.

The release of this Implementation Plan reaffirms the Government’s commitment to Australia’s manufacturing sector. I encourage Australian industry, especially small businesses, to read this

Implementation Plan so Defence and industry can continue partnering to maximise the involvement of Australian industry in delivering critical ADF capabilities.

A plan for a strong, sustainable and secure industrial capabilityThis Implementation Plan details the critical industrial capabilities that underpin the Munitions and small arms priority. It is supported by the companion Department of Defence (Defence) Industry Plan, which provides more detail on the industrial base and Government actions listed in this Implementation Plan. The Industry Plan can be found at https://www.defence.gov.au/SPI/Industry/CapabilityPlan/implementationplans.asp

The scope of the Munitions and small arms priority includes the following:

• Small Arms – the weapons and corresponding ancillaries carried by the dismounted combatant up to and including Direct Fire Support Weapons; and

• Munitions – the ammunition and munitions1; including their component parts, used in weapons carried by the dismounted combatant, as well as grenades, demolition charges, artillery, mortars and aircraft bombs2; and the supporting ecosystem elements that enable these capabilities to be integrated, tested and operated.

It is only by successfully leveraging Australian industry’s know-how will the ADF be able to fight and win in all domains.

The Hon Melissa Price MPMinister for Defence Industry

1 While these terms are often used interchangeably, ammunition is a term that includes; shells, bullets, fuses, and powder, and munition involves everything from guns, small revolvers, medium rifles, automatic rifles, special arms, artillery guns, missiles, and bombs.

2 This priority only applies to the bomb body – typically the explosive components of the munitions, not the guidance and control kits that can be attached to the bomb bodies for precision guidance.

3

2

1

3

4

5

6

Critical Industrial Capabilities

Within this environment six industrial capabilities will be critical. Government seeks to have access to or control over certain elements of each, and to support or influence defence industry investment. Each of these critical industrial capabilities ensure the most critical elements are available when and where they are needed by the Australian Defence Force (ADF).

WEAPON SYSTEM INTEGRATIONIntegrated weapon system research and design and the ability to upgrade / reconfigure systems, utilising advanced ancillaries and lighter-weight components.

PRECISION SPECIALIST MACHININGPrecision specialist machining, treatments and coatings of components utilising advanced lightweight materials to support the assembly and sustainment of small arms and ancillaries.

PRODUCTION OF ENERGETIC MATERIELDevelopment and manufacture of Energetic Materiel, including high explosives, propellants and primers, using current technologies and future alternatives.

LOAD, ASSEMBLE AND PACK CAPABILITYThe ability to fill and Load, Assemble and Pack designated Explosive Ordnance products inclusive of handling high explosive fill and use of advanced / lightweight components and parts.

TEST AND EVALUATIONTest, evaluation and experimentation capabilities to facilitate weapon system research, design, development and modification, including experimentation of munitions.

COMBAT TRAINING TECHNOLOGIESDesign and development of training technologies and environments, incorporating digital and autonomous capabilities and synthetic immersive systems, to enhance combatant performance.

Enabling the Critical Industrial CapabilitiesTo ensure Australia retains the identified critical industrial capabilities, by 2025, the Government seeks to build the following enabling capabilities in partnership with industry, starting with the Government actions on page 6:

• Munitions Production Facilities: Continued Commonwealth control of the Government Owned Contractor Operated explosives and munitions factories, as key enablers of sovereignty.

• Weapon System Performance: Access to the Intellectual Property (IP) and skilled resources required to design, integrate, test and evaluate weapon system performance. This focus on ancillaries and platform integration is linked to warfighting advantage.

• Software Systems and Data: The ADF’s increasing focus on digital capabilities and networking requires a level of access to Intellectual Property and other input data needed to operate and integrate weapons-centric software systems, and control over the data generated when operating these systems. This extends to replicating the physical attributes and performance metrics of ADF small arms and munitions technologies for use in combat training simulations and enabling the collection and dissemination of data collected during training activities and exercises.

4

Defence engaged a cross-section of the Australian industrial base when developing this Plan. Industry, academia and research organisations representing all critical industrial capabilities and all parts of the value chain were engaged.

* 4 organisations are out of scope for this Priority

50

26 3 7 6 4

ORGANISATIONSENGAGED

ORGANISATION FOCUS

MANUFACTURE / ASSEMBLY / INTEGRATOR

R&D / ACADEMIA

IMPORTER /AGENT /

RESELLER

DESIGN /PROTOTYPING

SUPPORT: TRAINING /

DISPOSAL / T&E

NUMBER OF EMPLOYEES, AU

<5

5-20

20-200 200+

The segment at a glanceThe industrial base supporting the development and production of small arms and munitions technologies in Australia is mature and stable, driven in part by limited technological change and steady ADF buying patterns over recent decades. The market is dominated by a small number of major manufacturers and assemblers. The market also consists of a small number of second and third tier providers and a large number of companies acting as agents, resellers and importers. The ADF is the key customer to many of the companies in this market.

Government actionsThis Implementation Plan includes the following actions to be taken by Defence to support this priority. Although responsibility has been attributed to a particular branch, group or agency, it is expected that a broader group of Government stakeholders will participate in, or contribute to, an action. Funding of the Government actions will be taken from existing departmental funding.

5

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6

Top

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esp

ons

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Tim

efra

me

Key

Per

form

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Ind

icat

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Iden

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ork

subm

itted

to In

vest

men

t Com

mitt

ee fo

r si

gn o

ff –

July

202

0.

Dom

estic

Man

ufac

turin

g su

b-co

mm

ittee

in M

arch

202

0.

An

enha

nced

dec

isio

n m

akin

g fra

mew

ork,

for

Pro

ject

and

C

apab

ility

Man

ager

s to

use

, tha

t sup

port

s an

incr

ease

d un

ders

tand

ing

of th

e pa

thw

ay to

, and

opt

ions

for,

loca

l m

anuf

actu

re a

nd a

ssem

bly

of m

uniti

ons

via

Com

mitt

ee

led

appr

oach

with

sub

-com

mitt

ees

to d

iscu

ss s

peci

fic

agen

das

such

as

dom

estic

man

ufac

turin

g.

The

esta

blis

hmen

t of p

rom

pts

in th

e ac

quis

ition

pro

cess

fo

r E

O a

nd c

apab

ilitie

s th

at u

se E

O.

The

esta

blis

hmen

t of D

omes

tic M

anuf

actu

ring

and

RD

TE

sub-

com

mitt

ees

for i

ndus

try

and

Def

ence

, foc

used

on

EO

repo

rtin

g to

the

Def

ence

EO

Com

mitt

ee.

Eng

inee

ring

Dev

elop

men

t P

rogr

am

Def

ence

will

expl

ore

optio

ns fo

r th

e de

velo

pmen

t of a

n en

gine

erin

g de

velo

pmen

t str

eam

or

prog

ram

. Thi

s w

ill fo

cus

on s

tude

nts

and

grad

uate

s w

ith a

n in

tere

st a

nd a

ppro

pria

te q

ualifi

catio

ns to

sup

port

a c

aree

r in

the

Def

ence

sec

tor f

ocus

ed s

peci

fical

ly o

n ex

plos

ive

tech

nolo

gies

. Thi

s pr

ogra

m

will

leve

rage

the

Def

ence

Indu

stry

Inte

rnsh

ip P

rogr

am.

Indu

stry

Par

tner

s

Coo

rdin

ated

by

Def

ence

Indu

stry

P

olic

y D

ivis

ion

Ong

oing

.In

crea

se in

the

num

ber

of D

efen

ce In

dust

ry In

tern

ship

P

rogr

am p

artic

ipan

ts in

the

expl

osiv

e te

chno

logi

es s

ecto

r.

Opp

ortu

nitie

s fo

r in

dust

ry p

artic

ipat

ion

in th

e fu

ture

of

trai

ning

Def

ence

will

ensu

re re

gula

r co

mm

unic

atio

n w

ith in

dust

ry, w

orki

ng

colla

bora

tivel

y to

und

erst

and

the

risks

and

opp

ortu

nitie

s pr

esen

ted

by

futu

re J

oint

For

ce tr

aini

ng o

bjec

tives

to le

vera

ge th

e un

ique

kno

wle

dge

base

an

d ex

perie

nce

of th

e A

ustr

alia

n in

dust

rial b

ase

in re

finin

g th

e vi

sion

and

po

tent

ial c

apab

ility

solu

tions

.

Join

t Cap

abilit

ies

Gro

upD

efen

ce E

O C

omm

ittee

est

ablis

hed

with

qua

rter

ly m

eetin

gs.

Wor

kfor

ce a

nd T

rain

ing

sub-

com

mitt

ee

to lo

ok s

peci

fical

ly a

t age

nda

item

.

Sec

tor

Stu

dy –

202

0.

Indu

stry

ski

lls p

lan

deve

lopm

ent –

20

21.

Lite

ratu

re re

view

and

sec

tor

stud

y co

mpl

eted

.

Dev

elop

men

t of N

atio

nal E

xplo

sive

Ord

nanc

e In

dust

ry

Ski

lls S

trat

egy

com

plet

ed.

Ski

lls s

trat

egy

impl

emen

ted.

Def

ence

EO

Com

mitt

ee a

nd s

ub-c

omm

ittee

age

nda

to

revi

ew a

ctiv

ities

.

Inte

llect

ual P

rope

rty

Def

ence

will

deve

lop

guid

ance

for

indu

stry

on

best

pra

ctic

e re

gard

ing

IP,

incl

udin

g hi

nts

and

tips

for

wor

king

with

Def

ence

and

the

rang

e of

exi

stin

g IP

str

ateg

ies

and

requ

irem

ents

.

Str

ateg

ic P

olic

y an

d In

tellig

ence

Gro

upQ

4 20

20.

Del

iver

y of

the

guid

ance

mat

eria

l.

7

Please direct any questions on the Sovereign Industrial Capability Priority policy or the information contained in this Implementation Plan to:

defence.icp@defence.gov.au

DPS NOV026-19