Strengthening Projects of Concern Process

1.58  The vast majority of the DMO's major projects are delivering the materiel element of capability to the ADF as planned. However, a small number of DMO projects and sustainment products require additional senior management attention to address significant risks relating to schedule, cost, materiel capability and/or commercial factors.

1.59  In consultation with the Government, the DMO has developed a focused management regime for troubled projects and sustainment products identified as 'Projects of Concern' (POC). The POC remediation regime involves close engagement with industry, Defence and Government.

1.60  The POC regime is closely linked to both the EI&W framework and the Gate Review process. Projects triggering one or more EI&W thresholds are usually subject to a diagnostic Gate Review Assurance Board before recommendations are presented to Government on the project's status.

1.61  Significant outcomes for POC during 2010-11 included:

•  Conduct of the inaugural POC summits between the Minister for Defence Materiel, Defence and CEOs from industry with contractual responsibility for projects on the POC list. These summits will continue to be held twice yearly.

•  Successful remediation of the JP2043 Phase 3A - High Frequency Modernisation and AIR5333 Vigilare projects, and their subsequent removal from the POC list.

•  Removal of the JP2048 Phase 1A - LPA Watercraft project from the POC list through the Government's decision to cancel the project.

1.62  The list of POC projects at 30 June 2011 is contained in Table 1.3.

Table 1.3 - List of Projects of Concern at 30 June 2011