Materiel Capability Performance

2.43  Chapter 1 detailed the roll-out of the IMR and FMR milestones under the strengthened MAA framework. A key component of this roll-out involves formal acknowledgement by the relevant Capability Manager of the DMO's responsibilities for delivery of the materiel elements of capability and their associated dates relative to the Government agreed FOC.

2.44  The revised MAA also removed the previously reported Measures of Effectiveness (MOEs) and now details the materiel deliveries under Materiel Capability Performance Measures that are required to satisfy IMR and FMR. IMR and FMR mark the DMO milestones for delivery and release to the Capability Managers of materiel supplies to support the Capability Managers achievement of IOC and FOC respectively. As such, there can be no direct comparison of the MOEs reported in previous MPRs to the new Materiel Capability Performance measures.

2.45  As with MOEs, Materiel Capability Performance measures represent the key materiel capability performance attributes of a project, which if not satisfied could have a significant detrimental effect on the eventual suitability of equipment for operational service. The Materiel Capability Performance measures for each project, as defined in the MAA, are identified from the project approval documentation that details the capital equipment assets to be delivered, including the Operational Concept Document and the Function and Performance Specification.

2.46  For security classification reasons the MPR does not identify the individual Materiel Capability Performance measures for each of the projects; however, each PDSS has a percentage breakdown on how the project is tracking against its particular suite of Materiel Capability Performance measures.

2.47  The traffic lights, based on a subjective assessment, indicate:

•  Green: Materiel Capability Performance measures for which there is a high level of confidence that they will be met;

•  Amber: Materiel Capability Performance measures that are under threat but still considered as manageable and able to be met; and

•  Red: Materiel Capability Performance measures that at this stage are unlikely to be met.

2.48  Re-introduction of Materiel Capability Performance reporting for the 2010-11 MPR precludes a direct comparison or trend analysis with previous MPRs. As the construct and application of the Materiel Capability Performance measures continue to be refined by DMO, Capability Managers and Capability Development Group, the number of Materiel Capability Performance measures reported as at 30 June each year may alter depending upon the number of Materiel Capability Performance measures agreed in MAAs.

2.49  For the 2010-11 DMO MPR, there are 207 individual Materiel Capability Performance measures across 27 projects (Hornet Refurb does not have Materiel Capability Performance measures as it is due to be completed by December 2011) with 194 green, ten amber and three red. Materiel Capability Performance measures indicate the status of the materiel element of capability against scheduled milestones as at 30 June 2011 and is not indicative of each project's ability to deliver the intended scope at the end of the project.

Figure 2.9 - Materiel Capability Performance measures for the 2010-11 Report

2.50  From the analysis of Materiel Capability Performance Measures, as at 30 June 2011 and as noted in Figure 2.9, the following explanation is provided:

•  Green  - A high  percentage  (94%)  of green Materiel  Capability Performance measures reported;

•  Amber - The amber Materiel Capability Performance measures (5%) are reported across six projects. Details include:

-  Wedgetail - performance shortfalls and technical difficulties are adversely affecting the transition into operational service and sustainment;

-  MRH90 Helicopters - timely resolution of engineering and reliability issues may affect achievement of planned IMR and FMR;

-  Super Hornet (Phase 2 Weapons)- prioritisation of scheduled activities may affect planned FMR;

-  ARH Tiger Helicopters - delays in the delivery of some spares, and support and test equipment; and

-  Air to Air Refuel - aircraft have been accepted in an initial configuration providing a level of air to air refuelling capability. Further testing and acceptance of the Aerial Refuelling Boom System is required along with the successful remediation of all non-conformances.

•  Red - The red Materiel Capability Performance measures (1%) relate to:

-  Wedgetail project - performance deficiencies in critical elements of the mission system currently pose a risk to the achievement of FMR with most deficiencies expected to be remediated before final delivery, but some radar deficiencies will remain at final delivery.

-  MRH 90 Helicopters - it is highly likely that the first maritime and land operational capabilities will not be achieved by the scheduled date due to the non delivery of conforming supplies.

-  155mm Howitzer - Course Correcting Fuse (CCF) capability is subject to a further program of testing to resolve reliability issues prior to the US Government agreeing to a production milestone. A decision on how best to progress the acquisition of the CCF capability under this phase of Land 17 is expected in December 2011.