I am pleased to present the 2010-11 DMO Major Projects Report (DMO MPR). The first DMO MPR, tabled in Parliament in November 2008, reported on nine of the DMO's major projects. The second DMO MPR was tabled in November 2009 and incorporated an additional six projects, reporting on a total of 15 projects. The third report, tabled in November 2010 was again expanded to cover 22 of the DMO's major projects. In this report a further six projects have been included, bringing the number of projects covered to 28.
I am confident that the maturity of the reporting on the previously reported projects along with the addition of six new projects represents continuing advances in terms of transparency.
I view the DMO MPR as an important report to Parliament because it gives an open and insightful account of how well we are performing in our core business of equipping the Australian Defence Force (ADF). One of the valuable elements of the MPR is the organisational perspective that it provides on major DMO project work and performance. This broad view is important in setting the context for our performance on individual projects. Over time, I expect that one of the most valuable elements of this report will be the increasing quality of trend analysis it can provide on key project performance measures of cost, schedule and materiel capability.
The format of this year's report is largely similar to that of last year's report. Chapter One provides an increased level of strategic overview of the DMO's performance and discusses key elements and drivers of performance. Significantly, it discusses our approach to the management of risk across our business. Chapter Two provides a detailed analysis on the schedule, cost and materiel capability performance and status of the 28 major projects included in the report.
Part 3 of this report contains the individual Project Data Summary Sheets (PDSS) for each project. For this year's report, the PDSS format and structure has been refined to allow for a better flow and presentation of the data set, with a strong focus on each project's performance on cost, schedule, materiel capability and risks/issues.
The project data in this report has also been reviewed by Capability Managers and the major contractors for each project; their views have been considered in finalising this report.
Delivering the MPR in a tight reporting timeframe requires considerable collaboration between the DMO and ANAO MPR teams. The two teams have a strong professional working relationship, which has delivered ongoing improvements in the MPR process and ensured the completion of this important report in Parliament. As the MPR continues to evolve to accommodate increased reporting requirements, and because of the highly complex nature of DMO project management, it will be important that the report continues to focus on increasing the understanding of project management, including; the important elements of risk management, contract management, engineering, logistics and scheduling. I would like to thank the Auditor-General and his staff for their contribution to the overall report. I would also like to recognise the considerable effort and dedication of the DMO project office staff in the 28 projects, MPR Management team, and the numerous other DMO business areas involved in bringing together this DMO 2010-11 MPR.
Warren King
Acting Chief Executive Officer
14 December 2011