An audit of the Department of Defence’s Defence Industry Security Program (DISP) has found the Program to be only partially effective in supporting businesses engaging in Defence projects, contracts and tenders.
In his report Defence’s Contract Administration — Defence Industry Security Program, Auditor-General, Grant Hehir said the Department’s administration of contractual obligations relating to the Program were only partially effective, while arrangements for administering contracted DISP requirements were only partially fit for purpose.
Mr Hehir said that in addition Defence had not established fit-for-purpose arrangements to monitor compliance, nor had it established effective arrangements to manage identified non-compliance with contracted DISP requirements.
“While Defence has established a framework for the DISP, the administration of the DISP does not enable Defence to gain assurance that the Program is effective,” he said.
“Support for Defence contract managers and industry entities regarding the DISP has been partially effective, with Defence only establishing arrangements to manage the backlog of DISP applications in January.”
Mr Hehir said Defence did not know which of its active contracts should, or did, require the contracted entity to have DISP membership, a situation which limited the effectiveness of the DISP as a security control.
“Defence contract managers are not provided with relevant information to help them monitor and manage contractor compliance,” he said.
The Audit made six recommendations, all of which were agreed by the Department of Defence.
The report can be accessed online at this PS News link and in a 78-page Report can be accessed at this link.
The Audit team was Natalie Whiteley, Kim Murray, Song Khor, Clyde Muthukumaraswamy and Sally Ramsey.
