Supply chain and workforce

The Australian Government will communicate clear strategic priorities to industry. In particular, this will articulate which products and categories are priorities for Australian supply.

Australia’s Sovereign Submarine Partners (or other primes in relation to their contracted area of responsibility) will forecast product/service-level requirements. The Government intends these forecasts to encourage suppliers to prepare and invest in their own uplift. Given the program will mature over time, demand forecasts will need to be updated regularly. Demand forecasts will likely comprise:

• Industrial capability requirements – Demand forecasts may reference the need for common underlying manufacturing techniques required across multiple priority product and service categories for Australian supply.
• System or product requirements – Translation of strategic priorities into specific requirements to support suppliers’ assessment of the likely uplift required to deliver against requirements.
• Volume forecasts over time – Australia’s Sovereign Submarine Partners will forecast demand volumes and timing from individual programs, focussing on product categories prioritised for Australian production. The ASA may aggregate program-level forecasts for industry to provide a holistic forecast. Having clarity on demand volumes is particularly important for suppliers whose products have long lead times and for those who have less mature Australian manufacturing capability.

The strongest form of demand clarity is through early and long-term legal and commercial arrangements that formalise the supplier's engagement. As set out in the Defence Industry Development Strategy, Defence procurement must change to meet the strategic circumstances outlined in the Defence Strategic Review; delivering capability faster and making it easier for industry to do business with Defence. These procurement reforms will be critical to the success of the NPS program. Depending on supplier characteristics and the level of demand certainty within each product category, SSPs may tailor sourcing approaches. For example:

• Standard procurement and sourcing processes and contracts – For suppliers with sufficient capability and capacity, with minimal to no investment required, an early and regularly updated view of requirements and demand may be sufficient to enable them to respond to standard procurement and sourcing processes (for example, requests for information, quotations or proposals). This may be relevant, for example, to existing Collins class submarine sustainment suppliers.
• Varied contract scopes – Where longer-term demands are unclear or evolving, the scope of contracts may vary; ranging from covering only the procurement of product design data to investment in supplier capability uplift or production capacity.
• Tailored contracting mechanisms – Where suppliers are required to make large capital investments to meet demand requirements, tailored contracting mechanisms may be used to assist in reducing supplier uncertainty, for example through sunk cost break clauses or contingent purchase orders. For suppliers, these mechanisms de-risk investment in uplift, while maintaining competitive tension

This four-year program commences in 2025 and supports South Australian apprenticeships for high demand roles including fabrication, mechanical, and electrical qualifications. This program is available in South Australia and placement of apprentices will prioritise providers of critical technologies for the future NPS supply chain. For more information Shipbuilding and Employment Pathways Program(Opens in a new tab/window).

The expansion of the program now includes NPS-related skill modules, supporting an additional 150 participants over three years in engineering, production, and project management. This program is available in South Australia and Western Australia. For more information see Defence Industry Pathways Program in SA(Opens in a new tab/window)  or Defence Industry Pathways Program in WA(Opens in a new tab/window).

The DIIP sponsors internships for engineering and technology students with defence industry SMEs, particularly focusing on engineering streams in critical supply, including nuclear engineering and related-fields. This program enhances future NPS workforce capability, whilst financially supporting existing industry through reimbursement of intern wages and connecting SMEs with motivated university students nearing degree completion. For more information on Defence Industry Internship Program(Opens in a new tab/window).

This ASA-led initiative is an 18-month program for graduates to undertake rotations with the ASA, Australian Nuclear Science and Technology Organisation, and Australian Radiation Protection and Nuclear Safety Agency, supporting university graduates develop their skills across multidisciplinary teams. Fifty nuclear engineering and nuclear science students have already been qualified for the program. For more information see ASA Nuclear Graduate Program.

This Government-funded initiative supports a recruitment and upskilling program for around 200 graduates, apprentices, and trainees within ASC over the next two years. This program provides learning opportunities across core NPS roles such as fabrication and machining, engineering and project management, and supply chain and operations. For more information see Jobs for Subs Program(Opens in a new tab/window).

This ANSTO-led program includes a two-year rotation for graduates leading to permanent ongoing employment, as well as an emerging engineers initiative which is a fixed two-year term for entry level engineers focused on developing technical expertise, including decommissioning and waste management. For more information see Early Career Program(Opens in a new tab/window).

This ASC-led program supports apprentices, undergrads and graduates to access hands-on training in designing, building and maintaining submarines. For more information Early-Careers Programs(Opens in a new tab/window).

The Academy will deliver tailored training and skilling needed to develop the NPS workforce. Co-designed by the Commonwealth and South Australian Governments, the Adelaide-based campus will support 800-1,000 people each year.

The Australian Government has committed more than $128 million to support over 4,000 Commonwealth-supported places at higher-education institutions over the next four years to develop a pipeline of highly-skilled STEM graduates that can strengthen Australia’s NPS capability.

The Australian Government has committed $15 million towards scholarships for 3,000 students undertaking undergraduate STEM degrees at eligible Australian universities.

The Government is supporting industry personnel from Australia’s SSPs to participate in UK and US placements. International placements are integral to developing a suitably qualified and experienced workforce and are essential until Australia has the required domestic training capability for the NPS program.

Providing short-term placements for Australia’s VET teacher workforce to enable them to build an understanding of AUKUS trilateral training requirements and methods, and support students with understanding NPS career pathways.