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What is the Sovereign Industrial Capability Priority Grant?
The Sovereign Industrial Capability Priority Grant provides funding for projects that build capabilities aligned with Defence’s Sovereign Industrial Capability Priorities.
The objective of the Sovereign Industrial Capability Priority grant is to support Australian SMEs to supply capabilities that are most critical to Defence. The Sovereign Industrial Capability Priority Grants will help Australian SMEs to invest in projects that build capabilities aligned with Defence’s stated Sovereign Industrial Capability Priorities.
The intended outcome of the grant is to grow a robust and resilient Australian SME industrial base capable of providing a significant contribution to Sovereign Industrial Capability Priorities.
The Centre for Defence Industry Capability (CDIC) is a key initiative of the 2016 Defence Industry Policy Statement. The CDIC provides strategic leadership for the Australian defence sector and partners with industry to help build a strong, sustainable, innovative and internationally competitive Australian industry that meets defence capability requirements.
The intended outcomes of the CDIC are to:
- improve the business capability, productivity and global competitiveness of small and medium enterprises (SMEs) in the defence sector
- ensure that industry and Defence are well connected in order to tailor business capabilities to defence industrial priorities
- contribute to a strong, sustainable, and internationally competitive defence industry.
The Sovereign Industrial Capability Priority grant amount will be up to 50 per cent of eligible project costs.
- The minimum grant amount is $50,000
- The maximum grant amount is $1 million.
Sovereign Industrial Capability Priority grant funding is capped at $3 million in a three-year period per recipient as identified by ABN. If you have received the maximum $3 million in a three-year period, you may apply for further funding within the three-year period but cannot start your new project until the three-year term has expired. The three-year period commences on the date on which the first grant agreement is executed.
There is no limit on the number of Sovereign Industrial Capability Priorities grants a business can receive over the life of the grant opportunity.
To be eligible your project must:
- include eligible activities and eligible expenditure
- have at least $100,000 in eligible expenditure
- occur within Australia.
The maximum grant period is 30 months.
To be eligible for the Sovereign Industrial Capability Priority grant, you must
- be an SME with less than 200 employees
- have an Australian Business Number (ABN)
and be one of the following entities:
- a company, incorporated in Australia
- an incorporated trustee on behalf of a trust
In order to be eligible for the Sovereign Industrial Capability Priority grant you must
- provide evidence from your board (or chief executive officer or equivalent if there is no board) that the project is supported, and that you can complete the project and meet the costs of the project not covered by grant funding
- provide an external Accountant Declaration that confirms you can fund your share of the project costs. You must use the Accountant Declaration form available at the bottom of this page.
Sovereign Industrial Capability Priorities applications open on an ongoing basis.
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How to get the Sovereign Industrial Capability Priority grant?
Priorities – 50%
The extent to which your project will help you contribute to Defence’s Sovereign Industrial Capability Priorities
You should demonstrate this by describing the extent that your project will contribute to the development, enhancement and maintenance of one or more of the Sovereign Industrial Capability Priorities, as outlined in the 2018 Defence Industrial Capability Plan.
Capability – 30%
Your capacity, capability and resources to deliver the project.
You should demonstrate this through identifying:
- your plan to manage the project. Include detail on the key risks, timeframes and budget.
- your track record managing similar projects. Include detail on the key personnel with the right skills and experience, including management and technical staff who will manage the delivery of the project.
- how you will measure the success of the project.
- your ability to secure your intellectual property, equipment and technology against physical and cyber threats.
Impact – 20%
The impact of grant funding.
Demonstrate how the grant funding will assist your organisation by:
- describing the likelihood the project would proceed without the grant and explain how the grant will benefit the size and timing of your project. If you have already received a SICP grant explain why you need additional funding.
- justifying the funding amount requested with respect to the scale of the project and intended outcomes.
- how the project will improve the efficiency and competitiveness of your business. Include detail on the commercial viability of the project.
- the broader economic benefits from your project.
Sovereign Industrial Capability Priority
Sovereign Industrial Capability Priorities are industrial capabilities considered critical to Defence and for which Australia must have access to, or control over, the skills, technology, intellectual property, financial resources and infrastructure that underpin those capabilities.
The initial Sovereign Industrial Capability Priorities are:
- Collins class submarine maintenance and technology upgrade
- continuous shipbuilding program (including rolling submarine acquisition)
- land combat vehicle and technology upgrade
- enhanced active and passive phased array radar capability
- combat clothing survivability and signature reduction technologies
- advanced signal processing capability in electronic warfare, cyber and information security, and signature management technologies and operations
- surveillance and intelligence data collection, analysis, dissemination and complex systems integration
- test, evaluation, certification and systems assurance
- munitions and small arms research, design, development and manufacture
- aerospace platform deep maintenance.
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- APS Adelaide Profile Services – $437,760. Grant funding will be used to purchase equipment required for the construction of a storage facility that will expand manufacturing production to meet Defence requirements.
- B.E. Switchcraft – $149,697. Fund manufacturing plant and equipment, improve productivity and enhance employee skills.
- Future Engineering – $421,237. Purchase capital equipment and to undertake building modifications that will increase the cost-effectiveness, scale, and speed of manufacturing.
- Glyde Metal Industries – $207,880. Purchase, install and commission capital equipment and train staff in its operation to increase efficiency in production.
- The Dynamic Engineering Solution – $295,596. Purchase of capital equipment, and the design and construction of test facilities for military grade components in a controlled environment.
- Owen International – $64,216. Establish and commission a test and repair facility.
- XTEK – $835,000. Fund plant, equipment and building modifications to establish state-of-the art production facilities.
- Frontline Manufacturing – $710,000. Grant funding will be used to purchase a specialised brake press for manufacturing metal plate used on armoured fighting vehicles.
- SRC Australia – $311,384. Grant funding will be used to fund the purchase and installation of specialist hardware that will enable the facility to support warfighting functions.
- Infinite Engineering – $1,000,000. Grant funding will be used to purchase capital equipment that will increase scale of manufacturing capacity and capability.
- Cyborg Dynamics Engineering – $426,150. Grant funding will be used to fund project design, materials, equipment and testing.
- Jehbco Manufacturing – $123,654. Grant funding will be used to fund the purchase and installation of new capital equipment. This will expand production capabilities.
- Aero Spec Engineering – $399,077. Grant funding will be used to fund the purchase and installation of manufacturing equipment, building modifications, staff training and accreditation.
- RUAG Australia – $1,000,000. Grant funding will be used to modernise and automate critical equipment.
- The Smart Think Australia – $207,291. Grant funding will be used to purchase and install new capital equipment that will increase productivity, and broaden the range of products available.
- Aquaterro Advanced Product Supplies – $372,317. Grant funding will be used to expand storage requirements for weapons and ammunition, in line with Defence specifications.
- Simbiant – $278,475. Grant funding will be used to design and commission a software-defined radar advanced signal processing facility.
- Rojone – $129,950. Grant funding will be used to purchase capital equipment and undertake technical training. This will enable the production of military grade cable assemblies within Australia.
8 July 2020 – Defence Industry and Innovation Programs Annual Report 2018-19 released
Minister for Defence Industry, the Hon Melissa Price MP, today announced the release of the 2018-19 Defence Industry and Innovation Programs Annual Report.
The Report provides details of the progress and achievements of the Coalition Government’s key Defence industry and innovation programs.
26 May 2020 – RUAG provides details on SICP grant win
RUAG Australia has provided more details of how it will use Defence’s Sovereign Industrial Capability Priority (SICP) grant to grow its operations. The grant funding will be used to enhance RUAG Australia’s capability for the manufacturing and maintenance, repair and overhaul (MRO) of hydraulic components and advance the company’s continuing efforts to improve manufacturing efficiency and cost competitiveness.
15 May 2020 – Minister for Defence Industry – Scaling-up small business to enhance defence capability
The Morrison Government is continuing to invest in Australia’s growing defence industry, awarding $2.4 million to local businesses looking to boost their capability. Minister for Defence Industry, the Hon Melissa Price MP, said the Sovereign Industrial Capability Priority Grants are about scaling-up our defence industry to support Defence’s most critical capabilities.