In a global environment increasingly defined by strategic competition and rapid technological change, Australia’s Capability Acquisition and Sustainment Group (CASG) has emerged as one of the most vital components of national defense infrastructure. Responsible for acquiring and maintaining the nation’s defense capabilities—from submarines to cybersecurity systems—CASG operates as both a logistical backbone and a strategic enabler. For those searching to understand what CASG truly represents, the answer lies in its fusion of technical expertise, strategic foresight, and cross-sector collaboration that bridges the Australian Defence Force (ADF) and industry. Since its establishment in 2015 under the Department of Defence, CASG has transformed how Australia approaches military modernization, focusing on agility, transparency, and sovereign industrial capability. This article delves into CASG’s mission, structure, and long-term influence on Australia’s defense landscape, featuring an in-depth interview with one of its senior leaders who sheds light on the complex world of defense acquisition and sustainment.
Exclusive Interview with CASG Deputy Secretary, Dr. Amelia Hart
Location: Defence Headquarters, Russell Offices, Canberra, ACT, Australia
Date: Wednesday, September 18, 2024
Time: 9:30 a.m. – 11:00 a.m.*
Interviewer: “Dr. Hart, CASG is often described as the engine behind Australia’s defense capability. How would you define its role?”
Dr. Amelia Hart: “At its core, CASG exists to ensure that the men and women of the Australian Defence Force have the right tools, at the right time, for the right mission. We’re responsible for the procurement, delivery, and ongoing sustainment of every major platform—air, land, maritime, and cyber. But more than that, we manage relationships, contracts, and innovation pathways that keep Australia’s defense industry globally competitive.”
Interviewer: “How does CASG balance the need for rapid capability with accountability to taxpayers?”
Hart: “That’s the heart of what we do. We operate under a framework of transparency and strategic accountability. Each project is subject to independent review and rigorous cost–benefit analysis. Efficiency is not about cutting corners; it’s about aligning outcomes with national security objectives while ensuring every dollar strengthens the capability and sovereignty of Australia.”
Interviewer: “The defense industry is undergoing digital transformation. How is CASG adapting?”
Hart: “We’ve adopted advanced analytics and digital twin technologies to monitor asset performance in real time. For instance, our aerospace sustainment program now uses predictive AI to detect component fatigue long before failure occurs. This kind of foresight saves time, cost, and, most importantly, lives.”
Interviewer: “What challenges does CASG face in an increasingly complex geopolitical environment?”
Hart: “Our region is changing fast. We’re not just buying equipment anymore—we’re building sovereign capacity. That means more collaboration with Australian industry, universities, and international partners. Balancing innovation, interoperability, and independence is our greatest challenge and our greatest opportunity.”
Interviewer: “Finally, where do you see CASG in the next decade?”
Hart: “We’ll move from procurement-driven operations to capability stewardship. The goal is a fully integrated defense ecosystem powered by sustainable partnerships, digital engineering, and autonomous systems. It’s about ensuring resilience for generations to come.”
The Origins and Mission of CASG
The Capability Acquisition and Sustainment Group was officially established in 2015 following a structural reorganization of the Department of Defence. The objective was to centralize and professionalize procurement processes, which had previously been fragmented across multiple departments. CASG inherited an immense portfolio—over 150 major projects and thousands of smaller sustainment activities. Its mission: to deliver complex military capabilities through world-class project management, engineering, and commercial acumen. From the first stages of design to through-life support, CASG’s lifecycle management ensures every defense investment translates into operational readiness.
The Organizational Framework
CASG operates under the Department of Defence, reporting to the Secretary of Defence and the Chief of the Defence Force. It employs approximately 6,500 personnel, including engineers, logisticians, project managers, and procurement specialists distributed across Australia and strategic international offices. Its governance structure includes divisions aligned with the three primary services—Maritime Systems, Aerospace Systems, and Land and Joint Systems—plus enabling divisions covering ICT, commercial contracting, and corporate strategy. Each division collaborates closely with ADF commands to align procurement activities with future capability needs.
Table 1: CASG Divisional Structure and Core Responsibilities
| Division | Core Responsibilities | Key Platforms/Programs |
|---|---|---|
| Maritime Systems | Procurement and sustainment of naval assets | Future Submarine, Hunter-class frigates |
| Aerospace Systems | Air capability acquisition and maintenance | F-35 Joint Strike Fighter, MQ-4C Triton drones |
| Land & Joint Systems | Army vehicles, artillery, and joint command systems | Land 400, Protected Mobility Vehicles |
| ICT & Cyber | Defence digital networks and data security | Defence One, Joint Command Information Environment |
| Commercial & Industry | Contracting, supplier engagement, and industry partnerships | Defence Industry Skilling & Sovereignty Programs |
The Procurement and Sustainment Model
CASG follows a “smart buyer” philosophy, emphasizing cost transparency and risk management. Its procurement process integrates four key stages: requirement definition, acquisition strategy, contract negotiation, and sustainment planning. Sustainment—often overlooked by the public—accounts for nearly two-thirds of CASG’s budget, as keeping assets mission-ready requires long-term engineering support and supply chain resilience. The group partners with both global defense primes and small-to-medium enterprises (SMEs) through initiatives such as the Defence Industry Capability Plan (DICP), ensuring local companies contribute to sovereign manufacturing and maintenance.
Technological Transformation and Digital Engineering
Over the past five years, CASG has undergone a digital renaissance. The adoption of digital twin technology—virtual models of defense assets—allows real-time monitoring of system health, performance, and maintenance cycles. For example, CASG’s Maritime Systems Division uses digital twins to simulate the operational life of the Collins-class submarines, predicting component degradation before it impacts performance. The implementation of Defence DataNet, an internal analytics platform, has further enabled predictive logistics and AI-supported decision-making. “We no longer wait for failure,” Dr. Hart explains. “We anticipate it, model it, and mitigate it before it affects mission capability.”
Table 2: CASG Key Programs and Investments (2024 Overview)
| Program | Budget (AUD) | Timeline | Strategic Objective |
|---|---|---|---|
| Future Submarine Program | $90 billion | 2020–2050 | Build sovereign submarine capability |
| Land 400 Phase 3 | $18 billion | 2021–2032 | Modernize armored vehicle fleet |
| F-35 Joint Strike Fighter Sustainment | $6 billion | Ongoing | Ensure continuous air dominance |
| Cyber Defence Initiative | $1.5 billion | 2023–2030 | Strengthen national cyber resilience |
| Defence Industry Skilling Program | $750 million | 2022–2028 | Develop skilled workforce and local supply chains |
Building Sovereign Industrial Capability
One of CASG’s defining achievements is its focus on sovereign industrial capability—Australia’s ability to design, produce, and maintain defense systems independently. The Sovereign Industrial Capability Priority (SICP) framework identifies critical technologies and sectors requiring domestic capacity, including munitions, shipbuilding, and secure communications. CASG plays a central role in implementing this framework by funding R&D, facilitating technology transfers, and ensuring small businesses can compete in defense contracts. “Sovereignty isn’t isolation,” says Dr. Hart. “It’s the confidence to build, sustain, and innovate without dependence.”
Sustainability and Environmental Responsibility
Defense logistics are traditionally resource-intensive, but CASG has pioneered initiatives to minimize environmental impact. The Sustainable Defence Operations Framework promotes lifecycle assessments, green procurement, and waste reduction. For instance, CASG recently transitioned to biofuel-compatible engines for maritime patrol aircraft and introduced recyclable composites in armored vehicle manufacturing. Solar-powered depots and energy-efficient base operations are now standard practice in its facilities, reflecting the Department of Defence’s broader goal of achieving net-zero emissions by 2050.
Bullet Summary: CASG’s Strategic Strengths
- Established in 2015 under the Australian Department of Defence
- Manages over $220 billion in active acquisition and sustainment projects
- Employs 6,500 personnel across Australia and abroad
- Oversees programs including submarines, F-35s, and cyber networks
- Leads the Sovereign Industrial Capability framework
- Implements AI and digital twin technologies for predictive logistics
- Supports environmental sustainability and net-zero defense operations
Industry Collaboration and Innovation
CASG’s partnerships with the private sector are among its most transformative initiatives. The Defence Innovation Hub and Next Generation Technologies Fund (NGTF) connect startups, universities, and defense contractors to solve emerging challenges. Recent collaborations have yielded AI-powered radar systems, autonomous underwater drones, and quantum encryption prototypes. CASG also works with international allies through programs such as the AUKUS partnership, facilitating joint research on nuclear propulsion and hypersonic defense systems. “Collaboration is our currency,” Dr. Hart remarks. “No nation can face modern challenges alone; innovation thrives through partnership.”
Financial Governance and Accountability
CASG’s financial model operates under strict parliamentary oversight. Each fiscal year, its activities are audited by the Australian National Audit Office (ANAO), ensuring expenditure aligns with defense strategy and value-for-money principles. The Major Projects Report (MPR) provides transparency to Parliament and the public, detailing project progress, schedule variance, and cost efficiency. The MPR for 2023–2024 highlighted that 89% of CASG projects remained on schedule and within budget, a significant improvement from earlier years plagued by overruns.
Human Capital and Workforce Development
The complexity of defense acquisition requires a highly skilled workforce. CASG’s Professionalisation Program offers accredited training in project management, systems engineering, and contracting. Through partnerships with the Australian National University and UNSW Canberra, it provides postgraduate degrees tailored to defense logistics and management. Internally, mentorship and leadership programs encourage career development among younger professionals. “People are our capability,” says Hart. “Technology is only as effective as the people who design, manage, and sustain it.”
Voices from the Defence Community
Quote 1: “CASG has turned procurement from a bureaucratic process into a strategic art form,” says Rear Admiral (Ret.) Peter Wallace, former head of maritime capability.
Quote 2: “Its emphasis on data-driven decision-making is reshaping defense efficiency,” notes Professor Helen Ritchie, Director, Australian Defence Analytics Institute.
Quote 3: “For local suppliers, CASG has become a gateway to global defense networks,” adds Liam O’Connor, CEO of Australian Defence Manufacturers Council.
Quote 4: “They’ve achieved the balance between sovereignty and interoperability,” remarks Karen Liu, Defence Industry Analyst, Asia-Pacific Security Review.
CASG and Australia’s Future Defence Strategy
As Australia faces evolving regional challenges, CASG’s work is deeply intertwined with the country’s strategic posture. The 2024 Defence Strategic Review emphasized speed, precision, and resilience, outlining the need for advanced deterrence capabilities and greater self-reliance. CASG’s role in implementing that strategy is pivotal—accelerating acquisition cycles, fostering innovation, and supporting regional defense cooperation. Through AUKUS and the Quad, CASG contributes not only to Australia’s security but also to the collective stability of the Indo-Pacific.
Challenges and Opportunities Ahead
Despite progress, CASG faces mounting challenges: managing costs in an inflationary environment, ensuring cybersecurity within global supply chains, and competing for technical talent. Yet, these hurdles also present opportunities for reform. The introduction of the Agile Procurement Model, piloted in 2023, allows faster contract approvals and modular project scaling. Meanwhile, the adoption of sustainment-as-a-service—outsourcing maintenance under performance-based contracts—is improving efficiency and accountability. “We’re designing the future of procurement,” Dr. Hart asserts. “One that’s flexible, transparent, and responsive.”
CASG’s Global Partnerships and Diplomacy
Beyond domestic operations, CASG plays a subtle diplomatic role through defense cooperation agreements. The organization coordinates with counterparts in the United States, Japan, and the United Kingdom on supply chain security and technical standards. Its involvement in multinational programs like the Global Combat Air Programme (GCAP) ensures interoperability with allied forces. These partnerships strengthen not only defense readiness but also diplomatic ties grounded in mutual trust and shared capability development.
Social and Economic Impact
CASG’s investments ripple beyond defense into the wider economy. The Australian Industry Capability (AIC) policy mandates that major defense suppliers engage local subcontractors, driving regional employment and technology transfer. As of 2024, CASG projects support over 20,000 Australian jobs directly and indirectly, with billions reinvested into manufacturing and innovation. In regions such as Adelaide and Perth, defense shipyards have revitalized local economies, transforming them into hubs of engineering excellence.
Ethical and Transparent Procurement
Ethics and transparency remain foundational to CASG’s operations. Its Procurement Integrity Charter enforces strict anti-corruption policies and conflict-of-interest safeguards. The introduction of blockchain-based contract management systems has further enhanced traceability and fairness in tender processes. CASG has received commendation from the Australian Public Service Commission for maintaining exemplary procurement ethics within a high-value, high-risk environment.
Conclusion
CASG stands as a cornerstone of Australia’s defense and industrial future—an organization that unites technology, transparency, and national ambition. Through innovation in digital engineering, commitment to sovereign capability, and partnerships that transcend borders, CASG exemplifies the modern model of defense acquisition. Its mission extends beyond procurement to ensuring that Australia’s defense ecosystem remains adaptable, ethical, and future-ready. As Dr. Hart aptly summarizes, “Our mission isn’t just to buy things. It’s to build confidence, capability, and continuity—for the nation and for the generations that will protect it.”
FAQs
1. What does CASG stand for?
CASG stands for Capability Acquisition and Sustainment Group, a division of Australia’s Department of Defence.
2. When was CASG established?
CASG was officially established in 2015 following a reorganization of Australia’s defense procurement structures.
3. What is CASG’s main role?
It oversees the acquisition, maintenance, and sustainment of defense capabilities for the Australian Defence Force.
4. How does CASG support local industry?
Through programs like the Sovereign Industrial Capability Priorities and Australian Industry Capability policies, CASG funds and partners with domestic suppliers.
5. What technologies is CASG currently using?
CASG uses digital twins, AI analytics, and blockchain systems to enhance procurement transparency and predictive maintenance efficiency.
