The new dress uniform recently adopted by the Australian Army made by a Chinese firm in China is drawing heavy flak from critics in government and from the public.

The dress uniform worn only in ceremonial occasions such as parades or official ceremonies is being made by the unnamed Chinese company over the next two years. The deal between Australia's Ministry of Defense and Australian Defense Apparel (ADA) based in Melbourne is worth A$9 million.

Like Us on Facebook

ADA hired a Chinese sub-contractor to make the darker brown khaki non-combat clothing.

The ministry said they selected ADA as the preferred tenderer because the firm offered the "best value for money" following an open competitive process.

Defense Minister Marise Payne said ADA estimated that making the uniforms in Australia will triple the cost of the contract.

"Australian Defense Apparel's tender was assessed as the best value for money with the tendered price representing an estimated saving of over 18 percent over the prices at that time," said Payne.

She was reacting to strident criticism from Federal Opposition and South Australian Senator Nick Xenophon, who said the contract is a "nothing short of a disgrace."

Xenophon said the decision to make in China was also a "failure to support Australian jobs." He said he's working on a bill to change the way Government buys equipment so Australian products and all their multiplier effects are taken into account.

He also said the government failed to see the economic and jobs benefit of buying local.

"If something is a little more expensive on the surface here in Australia but it means we're going to get all sorts of flow on benefits in terms of jobs, in terms of economic activity and tax and other benefits then it's a no-brainer," he said.

"Surely something as iconic as the uniforms our serving men and women of the Defense Force wear ought to be made in Australia. The fact that it's not is nothing short of a disgrace," he added.

Tagsdress uniform, Australian Army, Australian Defense Apparel, Defense Minister Marise Payne, Nick Xenophon