Appendix 2:  Types of Acquisition Undertaken by the DMO

There are three main types of acquisition undertaken by the DMO:

•  MilitaryOffTheShelf (MOTS) - Military products that are available for purchase OffTheShelf (OTS) and will typically have been delivered to another military or Government body, or commercial enterprise in a similar form to that being purchased at the time of approval. The definition of OTS needs to strike a balance between sensible variations to a design with low cost and risk impact; such as small modifications to meet Australian environmental laws; and those that add to complexity, cost and risk such as overseas systems that require integration with existing platforms.

•  Australianised MOTS - A modified MOTS product where modifications are made to meet particular ADF operational requirements. The modification involved may include an increased level of technical complexity and risk with a general increase in cost and schedule.

•  Developmental - A product that is not available offtheshelf and has to be developed specifically to meet the ADF's particular operational requirements. These products generally involve a high degree of technical development and associated risk which in turn is reflected in cost and schedule.

As indicated in Chapter 1, the costschedulerisk parameters increase as the level of Australianisation of OfftheShelf equipment or the level of development required increases.