1.1 The Defence Materiel Organisation (DMO) exists to equip and sustain the Australian Defence Force (ADF) to enable the ADF to defend Australia and its national interests.
1.2 The DMO is a Prescribed Agency within the Department of Defence (Defence) and, for the purposes of the Financial Management and Accountability Act 1997, has financial autonomy from Defence. As a Prescribed Agency, the DMO is responsible to the Minister for Defence for its performance and also reports to the Minister for Defence Materiel. However, the DMO remains inextricably linked to Defence with a comprehensive range of inter-agency agreements.
1.3 The DMO is responsible for equipping and sustaining capital equipment assets for the ADF. This service extends from the acquisition of capital equipment assets to sustainment of those assets throughout their in- service life and then disposal. The DMO's business outcomes are driven principally by the Defence policies, objectives and plans that are directed by Government and enacted through the operational tasks of the ADF.
1.4 In support of the Defence Mission, the DMO during 2010-11 had 281 acquisition projects (including both major and minor projects) and 106 sustainment products under management. Its business ranges from relatively simple supplies such as tents and non-combat equipment to highly complex and expensive weapons systems.
1.5 The DMO operates in a diverse and challenging business environment, working very closely with Australian and international defence industry, to deliver some of the largest and most complex projects (see figure 1.4) in Australia on time (schedule), on budget (cost) and to exacting standards of quality, quantity and safety (materiel element of capability). The DMO achieves this, along with its extensive sustainment role, by working with defence industry and through the collective efforts of its professional and skilled workforce located in more than 70 locations around Australia and overseas. The DMO's integrated workforce of more than 7,200 people comprises around 5,800 civilian and 1,400 military personnel as at the end of 2010-11.