# Australian Government Establishes Defence Delivery Agency

The Australian Government is creating a new Defence Delivery Agency to consolidate domestic defence firms and develop sovereign tier-one prime contractors similar to Lockheed Martin in the U.S. and BAE Systems in the U.K. This agency will bring procurement capabilities back in-house and promote a culture that embraces risk, aiming to strengthen Australia's defence industrial base and enhance self-reliance.

- This initiative signals a strategic shift toward domestic procurement and sovereign capability development in Australia's defence sector.
- Defence contractors and suppliers should anticipate increased opportunities to engage as prime contractors under this new agency's framework.
- Procurement professionals should prepare for changes in acquisition processes as responsibilities transition in-house, potentially affecting contract structures and risk management approaches.
- Industry stakeholders may benefit from aligning capabilities with sovereign requirements and the agency's emphasis on risk-taking to support innovation and self-reliance.

**Jurisdictions:** international
**Industries:** Defense & Military
**Topics:** Contracting Vehicles
**Published:** September 16, 2026

### Government Entities
- Defence Delivery Agency
- Australian Government

### Key Quotes
> He wants to change that and will task the Albanese governments new Defence Delivery Agency with making it happen.
> — Pat Conroy, Defence Industry Minister

### Sources
- [Defence Delivery Agency to create local ‘prime’ contractor, bring procurement back in house](https://www.afr.com/politics/federal/labor-s-new-agency-to-build-australia-s-own-lockheed-martin-20260910-p60w84) - afr.com