Model26 launches to reshape Australian Defence delivery

Australia’s next Major Service Provider (MSP) procurement is expected to be one of the most closely contested Defence services procurements in recent years.

With more than $7.3 billion invested through the current MSP framework since its inception, Defence's reliance on specialist industry capability is well established. The question is how that capability is brought together and delivered to maximise value for Defence, Australian taxpayers and Australia's long-term sovereign capability.

Today, Model26 has launched as a new independent, not-for-profit delivery organisation. Established by global engineering and advisory firm BMT following extensive consultation across industry, Model26 has been designed to operate within the existing MSP framework, providing Defence with an additional delivery option that brings together established advisory firms, specialist SMEs and sovereign capability providers under a single accountable delivery structure.

Graeme Nayler, Managing Director, BMT Asia Pacific and a member of Model26's Interim Board, said the organisation had been established to support the Government's objective of achieving greater value from consultancy expenditure while preserving access to Australia's best specialist capability.

"The next MSP competition is likely to bring together many highly capable organisations. Capability is expected. What will increasingly differentiate organisations is the delivery model behind that capability.

"Australia has extraordinary specialist capability, much of it sitting within SMEs that have built deep expertise supporting Defence over many years. Model26 has been designed to make it easier for Defence to access that capability as part of an integrated delivery model.

"BMT's ownership through an Employee Benefit Trust has always encouraged us to take a long-term view and challenge conventional commercial models where we believe there is a better outcome for customers. Becoming a founding organisation of Model26 was a natural extension of that philosophy.

"Model26 is not driven by shareholder returns. The value created through more efficient delivery remains with the customer, and Defence decides how that value is realised. It can be returned through lower delivery costs or reinvested into workforce capability, innovation and sovereign capability. That flexibility is a fundamentally different proposition."

As a not-for-profit organisation, Model26 has no external shareholders. Operational efficiencies generated through delivery remain within the Defence ecosystem, enabling Defence to realise greater value through lower delivery costs or reinvestment in workforce capability, innovation and sovereign capability development.

Designed to complement existing MSP arrangements, Model26 also creates broader pathways for specialist SMEs and sovereign capability providers to contribute to Defence programs, strengthening Australian industry participation while maintaining a single accountable delivery model.

Model26 is now inviting established advisory firms, specialist SMEs and mission-aligned organisations to join its growing partner network ahead of future Defence procurement opportunities.