The Integrated Investment Plan (IIP) has significantly increased visibility of Defence budgets and plans. The key enhancements are that the IIP:
As a result of this move to an IIP, the pricing calculations that Primes will need to perform are expected to be more complex than the calculations under the DCP. Already we are seeing complex scopes requiring Primes to work outside their traditional equipment manufacture or sustainment business lines. This DWP accelerates that trend.
An important consequence is the need for more collaboration. Primes will no longer be able to simply focus on delivering the equipment. The IIP reinforces signals already in the market, that Primes will need to work increasingly with infrastructure, information, communications and technology (ICT), Defence services and SMEs to address the full scope of Defence requirements.
Perhaps the Primes’ most important role will be to expand on the idea of industry as a fundamental input to capability. The consequence of this is not yet explored, but likely will be a key discussion point when leaders of the industry associations meet with their Defence counterparts.