🇦🇺Australia

Subcontractor Qualification & Performance Visibility Gaps

Updated: Feb 20262 verified sources

Definition

Defence Primes must ensure subcontractors hold accredited quality certifications (ISO 9001, ISO 14001, ISO 27001, IATF 16949, AS 9100D) before engagement. The Capability Assessment Support Group (CASG) Performance Scorecard tracks supplier performance; poor ratings impact future contract eligibility. Manual spreadsheet tracking, decentralized assessment files, and lack of real-time visibility create: (1) duplicate qualification audits (wasted effort); (2) engagement of non-compliant subcontractors (rework); (3) missed performance trends leading to repeat failures.

Key Findings

Financial Impact: AUD 150,000–400,000 annually: duplicate qualification audits (20–40 hours @ AUD 200/hr × multiple assessors = AUD 8,000–20,000); rework due to unqualified subcontractor work (AUD 50,000–150,000); CASG scorecard downgrade penalties (lower tier = lost prime contract margins = AUD 30,000–100,000); quality failures (defects, scrap, customer complaints = AUD 20,000–80,000); lost subcontractor relationships due to poor data (AUD 10,000–50,000).
Frequency: Annual CASG performance reviews; quarterly subcontractor audits; ongoing certification verification.
Root Cause: Decentralized subcontractor qualification records; manual spreadsheet tracking without central repository; lack of automated certification verification; no real-time CASG scorecard integration; poor subcontractor performance trending.

Why This Matters

The Pitch: Australian defence primes waste AUD 150,000–400,000+ annually managing fragmented subcontractor qualification and performance data. Automated supplier qualification tracking and CASG scorecard integration eliminates duplicate assessments, prevents unqualified vendor engagement, and reduces quality failures.

Affected Stakeholders

Procurement Manager, Quality Assurance Manager, Supply Chain Manager, Subcontractor Manager, Business Development

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Financial Impact

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Methodology & Sources

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

Evidence Sources:

Related Business Risks

Subcontractor Technical Data & Intellectual Property Flow-Down Gaps

AUD 200,000–500,000 annually: IP theft/misuse (lost licensing revenue = AUD 50,000–200,000); export control violations on technical data (ASIC penalties + remediation = AUD 20,000–100,000); contract disputes over IP ownership (legal fees + lost claims = AUD 30,000–100,000); rework due to unauthorized use of contractor materials (labour = 40–80 hours @ AUD 200/hr = AUD 8,000–16,000); lost repeat business due to IP disputes (AUD 50,000–100,000).

Subcontractor Replacement & Change Control Non-Compliance

AUD 30,000–100,000 annually: unauthorized replacement remediation (legal review + customer negotiation = AUD 5,000–20,000); contract amendment/re-negotiation costs (AUD 5,000–15,000); audit findings requiring corrective action (AUD 5,000–30,000); customer friction leading to lost follow-on work (AUD 10,000–50,000); contract suspension/termination risk (AUD 50,000+ lost revenue).

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