Overview
The Department of Defence has recently implemented significant structural and policy reforms, including a thorough overhaul of its approach to the acquisition of major capital equipment. The Regulatory and Government Affairs group have an extensive depth of direct experience in major capital procurement and outsourcing to offer clients.
The Department of Defence uses a standard contract for major capital equipment. The first contract was known as DEFPUR 101 and this has been recently superseded by SMART 2000. We have advised in relation to DEFPUR since its inception (a member of our group participated in drafting many of the clauses) and we have more recently reviewed SMART 2000, and advised clients on its terms and departures from the earlier contract. We are very familiar with the underlying policy approaches adopted by Defence, such as allocation of risk, use of financial guarantees, ownership and licensing of intellectual property, and the obligations of 'fitness for purpose'.
Other legal considerations we advise clients on include indemnities, warranties, insurance, staged liquidated damages, limitation of liability and consequential loss, escrow arrangements, rights of termination for convenience and default, jurisdiction, dispute resolution, novation and options for additional equipment.
We have advised extensively in relation to both acquisition and on-going maintenance and support of the equipment. We have also kept abreast of the performance-based policy to require the contractor to meet a capability requirement over time rather than specifying the number of platforms that the tenderer is to provide or build, and to maintain and support the platforms after delivery.
At Freehills, we understand the risks, benefits and advantages associated with implementing alliance arrangements in your major projects and our solicitors have advised on partnering arrangements with Defence contracts. We are fully conversant with the legal implications of having a partnering charter. We understand the key elements of an alliance approach and can ensure that these elements are incorporated into your corporate culture and take advantage of your existing skills. We can advise you on selecting your alliance partner, including undertaking appropriate risk management analysis, develop and manage your alliance partner selection process, and provide you with cutting edge alliance documentation.