Appendix 3:  Categorising Acquisitions

The DMO categorises its acquisition projects to enable it to differentiate between the complexity of business undertakings, focus management attention, provide a basis for professionalising its workforce and facilitate strategic workforce planning. Projects are graded into one of four Acquisition Categories (ACATs) which are as follows:

•  ACAT I - These are major capital equipment acquisitions that are normally the ADF's most strategically significant. They are characterised by extensive project and schedule management complexity and very high levels of technical difficulty, operating, support and commercial arrangements;

•  ACAT II - These are major capital equipment acquisitions that are strategically significant. They are characterised by significant project and schedule management and high levels of technical difficulty, operating, support arrangements and commercial arrangements;

•  ACAT III - These are major or minor capital equipment acquisitions that have a moderate strategic significance to the ADF. They are characterised by the application of traditional project and schedule management techniques and moderate levels of technical difficulty operating, support arrangements and commercial arrangements; and

•  ACAT IV - These are major or minor capital equipment acquisitions that have a lower level of strategic significance to the ADF. They are characterised by traditional project and schedule management requirements and lower levels of technical difficulty, operating, support and commercial arrangements.