1. Major Defence equipment acquisition projects (Major Projects) are the subject of considerable Parliamentary and public interest, in view of their high cost, planned contribution to national security and the challenges involved in completing Major Projects within budget, on time and to the required level of capability.
2. The Defence Materiel Organisation (DMO) contributes to the development and sustainment of capability for the Australian Defence Force (ADF) and expended some $5.6 billion on major and minor capital acquisition projects in 2010-11.1
3. Over the next 15 years, the Government intends to replace or upgrade up to 55 per cent of the ADF's equipment.2 This will include the purchase of equipment in all of the major elements of ADF capability, including Land, Air, Sea and Joint capabilities, as publicised in the Defence White Paper. These procurements by the DMO do not generate new capability for the Defence Organisation until they have been successfully introduced into service with the ADF. Thus, while the DMO's role is only part of the introduction into service of new capability, it is a significant one.
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1 Department of Defence, Defence Annual Report 2010-11, Volume 2 Defence Materiel Organisation, p. 25.
2 Minister for Defence Materiel, the Hon. Jason Clare MP, Defence Skills Plan to Meet the Challenges Ahead, Brisbane 2011.