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| Type | Australian Government Prescribed Agency |
|---|---|
| Founded | 2000 Prescribed Agency in 2005 |
| Headquarters | Canberra, Australia |
| Key people | Stephen Gumley, CEO Kim Gillis, GM Systems Warren King, GM Programs Vacant, GM Corporate Steve Wearn, CFO |
| Industry | Government, Defence |
| Products | Military Equipment Acquisition and Sustainment |
| Revenue | > 9 billion Australian Dollars |
| Employees | > 7,000 |
| Website | http://www.defence.gov.au/dmo |
The Defence Materiel Organisation ('DMO') is the Australian Government agency responsible for the acquisition, through-life support and disposal of equipment for the Australian Defence Force. The DMO is part of the Australian Department of Defence, and manages the acquisition and support of a diverse range of materiel (equipment), including aircraft, ships, vehicles, electronic systems, uniforms and rations. The DMO has an annual budget of around $A8.7 billion, which accounts for approximately 40% of annual Australian Defence spending. It employs more than 6,800 military and civilian people working in more than 50 locations nationally and internationally.
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Organisation
DMO was formed in 2000 when the then Defence Acquisition Organisation merged with Support Command Australia, bringing together the Department of Defence's capital acquisition and logistics organisations into a single entity. The DMO was given responsibility for "cradle to grave" management of all military assets, other than facilities and administrative assets. In July 2005, DMO became a Prescribed Agency under Australian Financial Management and Accountability legislation, meaning that although it remains a part of the Department of Defence, it is separately accountable to the Minister of Defence for its budget and performance.
DMO's stated vision is to become the leading program management and engineering services organisation in Australia. Its goal is to deliver projects and sustainment on time, on budget and to the required capability, safety and quality.
Mortimer review
In May 2008, the Australian government commissioned a review of the Defence procurement, which included in its terms of reference a report on the progress of implementing reforms from the last such review - the 2003 Kinnaird Review.
The review was conducted by David Mortimer, who presented his findings in September 2008.[1] Mortimer identified five principal areas of concern. These were inadequate project management resources in the Capability Development Group, the inefficiency of the process leading to government approvals for new projects, personnel and skill shortages in the DMO, delays due to industry capacity and capability and difficulties in the introduction of equipment into full service.
In all, Mortimer made 46 recommendations, including that the DMO should be separated from the Department of Defence and become an executive agency. This recommendation that was also made in the 2003 Kinnaird Review but was not implemented by the Howard government. As an executive agency the DMO would receive its own acquisition funding stream as a government appropriation and would be headed by a chief executive with "significant private sector and commercial experience". Mortimer also recommended that General Manager Commercial position be created to implement a business-like focus throughout the organisation.[2]
Leadership
Dr Stephen Gumley is the DMO's Chief Executive Officer. He heads an executive team of around 20 senior managers. According to the DMO, the executive team has considerable private and public sector experience, as well as extensive military domain knowledge.[3]
The executive team consists of the CEO, four general managers,[4] ten division heads,[5] three program managers,[6] a CFO, and a Special Counsel. In addition, several major capital acquisition programs are led by senior military or civilian managers. In January 2009 the DSTO (Deputy Chief Defence Scientist level) position of Chief Systems Integration Officer was added to the management team.[7]
In March 2009, the Corporate General Manager of the DMO, Ms Jane Wolfe, was dismissed for unsatisfactory performance. The Canberra Times reported that its 'senior public service sources' believe she is the highest-ranking Australian Commonwealth public servant to ever have been dismissed for underperformance.[8]
References and notes
- ^ Mortimer Review into Defence Procurement and Sustainment
- ^ On Target, 28 October 2008
- ^ Leaders in DMO
- ^ General Managers: Systems; Programs; Corporate; Commercial. (SES band 3)
- ^ Systems Divisions: Maritime Systems, Land Systems, Aerospace Systems; Electronic and Weapon Systems; Helicopter Systems; Explosive Ordnance.
Programs, Corporate and Commercial Divisions: Future Submarine Program; Industry; Smart Sustainment; Human Resources and Corporate Services.
(SES Band 2 or Military 2 star rank). - ^ Programs: Airborne Early Warning and Control (AEW&C); New Air Combat Capability (NACC); Air Warfare Destroyer (AWD). (SES Band 2 or Military 2 star rank).
- ^ DMO Leadership Team, March 2009. Retrieved on 2009-04-10.
- ^ Top Woman in Defence Sacked, The Canberra Times, 8 April 2009. Retrieved on 2009-04-09.
External links
Further reading
- Ergas, Henry. 'Some Economic Aspects of the Weapons Systems Acquisition Process' (2003); available from CRA International
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