Australian firms will be considered for the multibillion-dollar project to build new submarines provided they can meet tough selection criteria.
Defence Minister Kevin Andrews said at this stage no decisions have been made on design, construction or sustainment of the future submarine.
He said key decisions on a design partner and constructor of the submarines would be based on a competitive evaluation process.
That process will be managed by the Department of Defence, taking into account capability requirements, cost, schedule, technical risk and value for money considerations.
"Any Australian company that can credibly meet these criteria will be considered on merit, as will potential international partners," he said in a statement.
Many Australian firms could play a part in building new submarines but only a few could be prime contractors, including government-owned shipbuilder ASC in Adelaide, which built Collins, and BAE Systems in Melbourne.
The navy's six Collins submarines start retiring from around the middle of the next decade, with the government now considering how they will be replaced.
Labor promised there would be 12, with the type and builder chosen through competitive tender. They would be constructed in Adelaide, as were the Collins boats.
The government says the type and builder will be chosen through a competitive evaluation process, not a tender. It's hedged on earlier promises to build in Adelaide.
Mr Andrews said the government was determined to get the best value for money and the best capability available.
"You would expect the Australian government to give Australian suppliers a fair go. A competitive evaluation process is part of that approach," he said.
The capability required of the future submarines and how many is being assessed as part of the ongoing Force Structure Review. That review will underpin the new Defence White Paper, set to be released around mid-year.
This includes their required range, endurance and combat system.
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