The objective for Program 1.3 is to meet government, ministerial, Defence and DMO expectations and time frames for the provision of policy advice and support, including the delivery of programs to support the Australian defence industry. The key performance indicator involves meeting these expectations and time frames. The deliverables include specialist legal, procurement and contracting policy and services, industry programs and engagement, and acquisition and sustainment advice.
Program 1.3 accounted for about 1 per cent of the DMO’s expenditure in 2013–14. Expenses under this program included:
Deliverable |
Performance information |
---|---|
Specialist legal, procurement and contracting policy and services |
High-quality and timely commercial law and contracting support was provided to DMO projects, system program offices and other business areas. Significant work was done to maintain the currency of and continue to improve Defence procurement and contracting policy and practice outcomes. The DMO continued to provide direct legal and contracting support to DMO project and system project offices. Significant work was also done to simplify and streamline procurement policy and practice, with an emphasis on improving the commerciality of procurement outcomes and reducing the costs of doing business with Defence. |
Acquisition and sustainment advice |
High-quality and timely advice was provided through regular reports, ministerial correspondence and briefings on acquisition and sustainment issues. |
Defence industry, programs, engagement and advice to both the Defence portfolio and the Government |
The DMO provided advice to Defence and the Government on industry capacity and capability. Defence’s industry programs continued to be delivered, providing practical and targeted assistance in a range of areas, including skilling, export support and innovation. |
A key function of the DMO is to provide policy advice and support to the Minister for Defence, the Assistant Minister for Defence and the Parliamentary Secretary for Defence. The DMO continues to provide accurate responses to ministerial representations, other parliamentary questions and ministerial submissions. In 2013–14, the DMO met ministerial, government, Defence and DMO expectations and time frames for the provision of policy advice and support.
The current Ministerial Directive was issued on 28 July 2008 to the then CEO of the DMO. The DMO continues to operate within the principles established by the directive. The directive establishes the accountability of the CEO to the minister to achieve the following outcomes:
Three senior committees provide advice and direction and oversee performance within the DMO (Figure 6.2). These are:
The Executive Committee advises the CEO on directing the DMO. The committee is chaired by the CEO and meets monthly to review strategic direction and performance. As required, the committee meets as the Strategic Budget Committee to focus on strategic investment and budget management.
The Council Chairs’ Forum addresses DMO enterprise business performance risks and issues against the DMO’s functions of procurement, finance management, project management, materiel engineering, sustainment management and materiel logistics, work health and safety, human resources, industry engagement and administration. The Deputy CEO chairs the forum, which meets quarterly.
The independent Materiel Audit and Risk Committee allows the CEO to meet his obligations under the Financial Management and Accountability Act 1997. The committee monitors and recommends improvements to the DMO’s governance, risk management, internal controls and financial reporting.
The projects of concern regime is a proven process for the senior management of seriously underperforming projects. Once troubled projects have been identified through triggering one or more of the early indicators and warnings thresholds and have undergone a diagnostic gate review to identify specific and measurable remediation objectives, a recommendation may be made to the Government to add a project to the formal list of projects of concern. Once listed, the primary objective of the regime is to remediate these projects through implementing an agreed plan to resolve any significant commercial, technical, cost and/or schedule difficulties. Projects of concern receive targeted senior management attention and are required to report more regularly to the Government.
Since its introduction in early 2008, the DMO has been working closely with industry, Defence and the Government to successfully remediate these projects with the goal of returning them to a standard management regime.
Significant movements in 2013–14 included:
Project name |
Project number/phase |
Date added |
---|---|---|
Collins class submarines sustainable and projects |
CN 10 |
November 2008 |
Multi-role tanker transport aircraft air-to-air refuelling capability |
AIR 5402 |
October 2010 |
Multi-role helicopter (MHR-90) |
November 2011 |
|
Direct fire support weapons |
LAND 40 Phase 2 |
December 2012 |
Mulwala redevelopment project |
JP 2086 Phase 1 |
December 2012 |
Air Warfare Destroyer Build |
SEA 4000 Phase 3 |
June 2014 |