🇦🇺Australia

C/SCSC System Compliance Overhead

2 verified sources

Definition

Major Defence contractors must implement Cost/Schedule Control Systems Criteria (C/SCSC) providing timely, auditable data, applied to contracts exceeding specified price thresholds, incurring significant setup and maintenance costs.

Key Findings

  • Financial Impact: 20-40 hours/month per project at AUD 200/hour (AUD 4,000-8,000/month labour)
  • Frequency: Ongoing for qualifying contracts
  • Root Cause: Manual processes for compliance demonstration and system reviews

Why This Matters

The Pitch: Defense contractors in Australia spend 20-40 hours/month per project on C/SCSC compliance. Automation of cost/schedule reporting eliminates this overhead.

Affected Stakeholders

Project Controllers, Finance Directors, Defence Contract Managers

Deep Analysis (Premium)

Financial Impact

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Current Workarounds

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Methodology & Sources

Data collected via OSINT from regulatory filings, industry audits, and verified case studies.

Evidence Sources:

Related Business Risks

Defence Cost Principles Non-Compliance Penalties

AUD 50,000+ per major contract in unrecoverable costs (based on typical audit disallowances for overhead misallocation)

CAS-like Disclosure and Audit Failures

AUD 100,000+ penalties or contract cancellation per incident

Procurement Delays and Cost Escalations

AUD 16-21B allocated over decade with delays risking 10-20% overruns; individual projects like 155mm munitions paused costing millions in sunk tender efforts

Idle Capacity from Compliance Bottlenecks

AUD 5-10M per year in idle equipment for mid-tier firms; targets 15,000 rounds/year delayed to 2028

Export Control Permit Breaches

AUD 100,000+ per breach in fines; 20-40 hours/month in permit delays per project

Compliance Ambiguities & Red Tape

AUD 50,000-150,000 per large project in extended liability and admin costs

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