3.36 A key challenge for both DMO and the Australian Defence industry is to improve the project management, scheduling, logistics, procurement and engineering services provided to the Australian Government, within current and future workforce constraints. For the past several years, it has been one of the DMO's goals to professionalise and up-skill their workforce113, as well as to increase the quality and quantity of skilled personnel available to the Defence industry.
3.37 To assist with professionalising DMO staff, the DMO's Directorate of Professionalisation and Staff Development is responsible for the development of certification programs that focus on developing specific competencies and gaining professional qualifications across the Leadership and Executive Management, Logistics, Project Management, Engineering, Commercial and Procurement streams.
3.38 Currently, over 1 400 DMO staff114 have either been certified or are enrolled in a certification program with a professional body compared with 1 200 staff in 2009-10. In contrast, prior to the start of the initiative in 2005, the DMO had only 153 staff certified in areas of project management, engineering, and accounting.115
3.39 To assist with the development of participants within the Defence industry, the Skilling Australia's Defence Industry (SADI) program was established by the Australian Government in 2005. The aim of the SADI program is to up-skill existing employees, improve the quality and quantity of skills training in the Defence industry; and generate additional skilled positions.116
3.40 The SADI program provides funding support to companies and industry associations for training and skilling activities where that training is linked to a Defence capability. Since 2005, the program has funded more than 24 000 training places, including more than 2 200 apprentices.117 Also, over 100 industry participants have been provided with funding support in trade, technical and some professional skill sets.118 SADI workshops are being held to provide an opportunity for the Defence industry to offer ideas to improve the design, implementation and effectiveness of the program in addressing the skills gap.
3.41 To meet the needs of the Australian Defence Force (ADF), SADI will invest $138 million in the next decade with an allocation of over $14 million announced for 2011-12.119
3.42 The DMO advised that currently all grant applications and acquittals are being processed manually, and is currently looking into obtaining a grants management system to automate and streamline the process that will allow it to measure the effectiveness of the program against its aims.
3.43 Other government approved programs aimed at up-skilling participants within the Defence industry include the Industry Skilling Program Enhancement package (ISPE) and the Priority Industry Capability Innovation Program (PIC IP). ISPE, which was announced in 2008, is worth $60.8 million over five years.120 This program incorporates a number of initiatives aimed at enhancing work and future career pathways in the sector by implementing programs at schools and offering Defence technical and engineering scholarships. PIC IP, which was implemented this year and worth $45 million over eight years, is aimed at providing Australian Defence companies direct support in the form of repayable, and matched grants.121 The program particularly focuses on assisting small to medium sized enterprises to pursue innovative Defence industry projects.
3.44 As the Minister has underlined the need for the replacement or upgrade of up to 85 per cent of its military equipment over the next 15 years, he has asked Skills Australia to work with Defence and the Defence industry to develop a plan to ensure Australian industry has the skills to meet this challenge.122
3.45 In 2011-12, the ANAO will continue to focus on the effectiveness of the SADI and other programs to address the current and future skills gaps and shortages
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113 Source: http://www.defence.gov.au/dmo/about/index.cfm [accessed 23 September 2011].
114 Source: http://www.defence.gov.au/dmo/id/publications/Inside_the_DMO_11.pdf [July 2011].
115 Department of Defence, Defence Annual Report 2005-06, Volume 2, Table 1.1, p. 13.
116 Source: http://www.defence.gov.au/dmo/id/sadi/index.cfm [accessed 12 October 2011].
117 Minister for Defence Materiel, the Hon. Jason Clare MP, Industry Feedback on Defence Skills Program, 20 September 2011.
118 Source: http://www.defence.gov.au/dmo/id/sadi/index.cfm [accessed 12 October 2011].
119 Minister for Defence Materiel, the Hon. Jason Clare MP, Defence Skills Plan to Meet the Challenges Ahead, 5 September 2011.
120 Source: http://www.defence.gov.au/dmo/id/industry_skilling/ [accessed 29 September 2011].
121 Source: http://www.defence.gov.au/dmo/id/picip/#program [accessed 29 September 2011].
122 Minister for Defence Materiel, the Hon. Jason Clare MP, Defence Skills Plan to Meet the Challenges Ahead, 5 September 2011.