1.20 Projects managed by the DMO can be categorised as:
• Military-Off-The-Shelf (MOTS) and Commercial-Off-The-Shelf (COTS) are acquisitions for equipment, hardware or software that already exist, are in-service with one or more international customers for an equivalent purpose and require minimal or no change. For example Project AIR 8000 Ph3 (C-17).
• Australianised MOTS are acquisitions where the product is modified to meet unique Australian requirements such as Bushmaster vehicles.
• Developmental are acquisitions where an Off-the-shelf product or solution does not currently exist. A solution needs to be delivered through: developing a new product; integrating existing Off-The-Shelf components to deliver a new product; or participating in another nation's development program.
1.21 It can be expected that cost, schedule and risk parameters increase as the requirement for Australianisation or development work increases. Notably, the category of a project can evolve; for example the Joint Strike Fighter is currently developmental in nature but should eventually become MOTS when it enters production line delivery.
1.22 The Defence White Paper 2009 identifies that Military-Off-The-Shelf and Commercial-Off-The-Shelf solutions will be the benchmark against which a rigorous cost-benefit analysis of military effects and schedule aspects of all proposals will be undertaken. This is consistent with the Defence Procurement and Sustainment Review (Mortimer Review). The key consideration is balancing the need to meet unique or specific capability requirements against the likely increase in project risk.