Defence to reform acquisition and establish a new Defence Delivery Agency

The Australian Department of Defence is establishing a new Defence Delivery Agency designed to strengthen and streamline acquisition and sustainment activities. The new agency , to become operational on 1 July 2026, will deliver the capabilities, skills and workforce needed to meet Australia’s strategic circumstances, says Defence in a media release.

Once fully established, the new Agency will integrate three existing Defence capability delivery groups: Capability Acquisition and Sustainment Group (CASG), Guided Weapons and Explosive Ordnance Group (GWEO) and Naval Shipbuilding and Sustainment Group (NSSG), headed respectively by Mr Chris Deeble, Air Marshal Leon Phillips and Mr David Hanley. The agency will report directly to Ministers and have control over its budget, enabling coordinated and holistic delivery of defence capability and growing our sovereign defence industrial base.

The Government will appoint a National Armaments Director to lead the new agency, who will be responsible for providing advice to the Government on acquisition strategies and the delivery of acquisition and sustainment projects following Government approval. At the time of writing this appointment had not been made and no information was available on when it would happen.

“As the Albanese Government makes the biggest ever peacetime investment in Defence, it is important that we put in place the structures and systems to ensure Australia’s Defence Force can deliver the capabilities we need at speed and within budget,” said Richard Marles, Deputy Prime Minister and Minister for Defence.

“The establishment of the Defence Delivery Agency will elevate the professionalism and strategic focus of Defence capability acquisition and sustainment. It will drive stronger contestability, more accurate cost estimation, and clearer accountability for the delivery of major projects.”

In parallel, Defence will also centralise capability development functions to support clearer prioritisation, streamlined decision-making and accountability for new capability proposals to ensure capabilities support an integrated, focused Australian Defence Force.  This could see the re-creation of the old Capability Development Group within Defence which was disbanded in 2015 with its functions and those of Defence’s previous acquisition organisation, the Defence Materiel Organisation (DMO), combined in CASG.

“The increasing complexity of Defence capabilities, systems and platforms requires a systematic rethink of the capability development and delivery system,” said Pat Conroy Minister for Defence Industry. “The new agency will help ensure our industrial base is resilient, innovative and aligned with our strategic priorities. It will create more opportunities for Australian businesses and workers to contribute to Australia’s national security.”