First AUKUS qualification contracts awarded to Australian manufacturers

The Australian Government has awarded several contracts under the Defence Industry Vendor Qualification (DIVQ) Program to Australian manufacturers so that they can enter UK and US submarine supply chains under the AUKUS agreement.

The DIVQ Program aims to enable Australian businesses to supply their products and services into the AUKUS trilateral submarine industrial base. Through the program, the Australian Submarine Agency (ASA) is working with AUKUS partners to streamline processes and support the qualification of Australian businesses and their products and services.

The contracts to HIFraser, Mack Valves, Bale Defence and STAUFF Corporation, announced last week, will enable these businesses to commence manufacture of a sample of standard US Navy valves and pipe fittings as part of their qualification process — a critical step to becoming approved vendors within the US submarine industrial base. Once qualified, these businesses will have the opportunity to manufacture and supply valves or pipe fittings for use in the construction and sustainment of a range of navy platforms, including Virginia-class submarines.

HIFraser, Mack Valves, Bale Defence and STAUFF Corporation are Australian businesses with strong histories supporting defence projects, including the Collins-class submarine capability. Their contracts cover the following:

• HIFraser has signed an initial contract with the Australian Government to produce 15 valves (five lots of three valve types). The company will also be producing pipe fittings for qualification. HIFraser employs 135 Australians, with locations in Sydney, Melbourne, Gold Coast, Brisbane and O’Connor (WA).
• Mack Valves has signed an initial contract with the Australian Government to produce 15 valves (five lots of three valve types). The company employs 33 Australians, with locations in Townsville, Wollongong, Melbourne and Adelaide.
• Bale Defence has signed an initial contract to manufacture pipe fittings. The company employs 44 Australians in Port Macquarie (NSW).
• STAUFF Corporation has signed an initial contract to manufacture pipe fittings. The company employs 92 Australians, with locations in Wollongong, Adelaide, Brisbane, Melbourne and Sydney.
   

Once qualified, these businesses will become part of the US supply chains, giving them the opportunity to receive orders to meet demand. The government funding gives them that opportunity to prove their manufacturing capability and in partnership with the AUKUS partners supports the approval process. Qualification takes time, but the DIVQ Program gets Australian business ready to meet demand.

The government said this is a major milestone in its efforts to expand Australia’s submarine industrial base, promote opportunities for Australian businesses in the US and UK supply chains, and strengthen the resilience of our collective industrial capacity through AUKUS. It is a practical step in Australia’s acquisition of conventionally armed, nuclear‑powered submarines and an investment in Australian manufacturing, the statement said.

“This qualification program is critical to delivering on AUKUS but also demonstrates how AUKUS can deliver for Australians and local businesses by providing opportunities for growth and jobs,” said Minister for Defence Industry and Capability Delivery Pat Conroy. “It helps to fill the gaps within the supply chains of our AUKUS partners, giving greater strength and resilience to these supply chains.

“It also contributes to the development of Australian businesses ahead of the build and sustainment of our own conventionally armed, nuclear-powered submarines.”

For further information on becoming involved in the build and sustainment supply chains, the Defence Industry Vendor Qualification Program and industry engagement activities, companies can register their interest through the ICN Gateway.

Image credit: iStock.com/metamorworks