Defence tenders in Australia: requirements and opportunities

The Department of Defence is the single largest procurer in the Australian Government. With an annual procurement spend exceeding $15 billion — covering everything from warships and fighter jets to building maintenance and IT systems — defence tenders represent an enormous opportunity. But defence procurement comes with unique requirements that differ significantly from civilian government tendering.

How defence procurement works

Defence procurement in Australia is managed by the Capability Acquisition and Sustainment Group (CASG), which sits within the Department of Defence. CASG manages the acquisition of major defence platforms, weapons systems, and complex capabilities. But the vast majority of defence procurement by volume (not value) is in support services, maintenance, construction, IT, and professional services — categories accessible to businesses of all sizes.

Defence tenders are published on AusTender, the same portal used for all federal government procurement. However, some defence-specific opportunities are published through the Defence Industry Security Program (DISP) portal or through direct engagement with prime contractors.

Security clearances: the gateway requirement

The most distinctive requirement for defence work is security clearance. Depending on the sensitivity of the contract, personnel may need clearances ranging from Baseline to Negative Vetting 1 (NV1), Negative Vetting 2 (NV2), or Positive Vetting (PV).

The Australian Government Security Vetting Agency (AGSVA) processes clearances, and timeframes vary: Baseline clearances typically take one to three months, while NV1 and NV2 can take six months or longer. If you're targeting defence work, begin the clearance process for key staff well in advance.

Your organisation may also need to be assessed under the Defence Industry Security Program (DISP). DISP membership demonstrates that your business can manage classified information appropriately — and is increasingly required for defence contracts above certain sensitivity thresholds.

Types of defence contracts

Defence procurement extends well beyond weapons systems:

Construction and facilities. Defence operates bases, training areas, and facilities across Australia. Construction tenders cover everything from barracks and accommodation to runways, wharves, and ammunition storage. The Defence Estate and Infrastructure Division manages a substantial building and maintenance program.

IT and ICT. Defence is one of the largest IT procurers in the Commonwealth, with needs spanning cybersecurity, communications systems, data analytics, cloud infrastructure, and software development. The Joint Capabilities Group and Chief Information Officer Group manage significant IT procurement.

Logistics and supply chain. Fuel supply, rations, spare parts management, fleet maintenance, and logistics support. These are often multi-year contracts with significant volume.

Professional services. Consulting, project management, engineering advisory, legal services, and training. Defence engages professional services firms extensively for capability planning, program management, and technical advisory.

Maintenance and sustainment. Ongoing maintenance of defence platforms, vehicles, aircraft, and vessels. These contracts can run for decades and represent some of the most valuable procurement in the defence portfolio.

The Defence Industry Development Strategy

Australia's defence industry strategy actively encourages Australian industry participation in defence procurement. The Australian Industry Capability (AIC) program requires tenderers to demonstrate how their contract delivery will develop Australian industry — through local employment, supply chain development, and technology transfer.

For small and medium businesses, the Centre for Defence Industry Capability (CDIC) provides support including capability assessments, introductions to prime contractors, and guidance on navigating defence procurement processes. If you're new to defence tendering, CDIC is an excellent starting point.

Subcontracting: a practical entry point

Most major defence contracts are won by large prime contractors — companies like BAE Systems, Thales, Lockheed Martin, and Raytheon. But each of these primes maintains extensive supply chains of Australian subcontractors and suppliers.

Connecting with prime contractors in your area of expertise is often the most practical pathway into defence work. Defence industry conferences, CDIC introductions, and industry days organised by Defence and the primes are all effective networking channels.

Many primes maintain supplier portals where you can register your capabilities. Getting on a prime's approved supplier list positions you for subcontract opportunities that may not appear on AusTender.

Finding defence tenders

Monitor AusTender for published defence procurement. Set up alerts for defence-related UNSPSC categories and search regularly using terms relevant to your capabilities.

Supplement portal monitoring with AI-powered search tools that can identify defence opportunities described in non-obvious terms. A "facility maintenance" tender from the Department of Defence is a defence tender even if it doesn't contain the word "defence" in the title.

Review the Defence Integrated Investment Program (IIP) for upcoming procurement. The IIP publishes planned acquisitions years in advance, giving you time to build relationships, develop capabilities, and position your business before tenders are released.

For a comprehensive approach to finding government tenders across all sectors, read our guide on how to find government tenders. And for strategies on winning once you've found the right opportunity, see our guide on how to win government tenders.