Definition of each of the four Acquisition Categories. | ||
Where amounts appropriated at Budget time are required to change, the Parliament may make adjustments to portfolios through the Additional Estimates Act. | ||
Army, Navy, Air Force or Joint Capability. | ||
AUStralian DEFence CONtracting suite of contracting templates. | ||
The power to achieve a desired operational effect in a nominated environment within a specified time and to sustain that effect for a designated period. It is delivered by systems that incorporate people, organisation, doctrine, collective training, platforms, materiel, facilities, in‐service support, and command and management. | ||
The Group Head or Service Chief responsible for a specific area of Australian Defence Force capability. The role of the Capability Manager is to raise, train and sustain in‐service capabilities through the coordination of Fundamental Inputs to Capability and includes the service Chiefs for Army, Navy, Air Force and the Vice Chief of the Defence Force for Joint Projects. | ||
Substantial end items of equipment such as ships, aircraft, armoured vehicles, weapons, communications systems, electronics systems or other armaments that are additional to, or replacements for, items in the Defence inventory. | ||
This is a formal written proposal by the Commonwealth or the contractor, prepared in accordance with the terms and conditions of the contract, to change the contract after the effective date. After agreement by the parties, the contract is amended in accordance with the processes established in the contract | ||
A time and resource based schedule for executing work under the contract. | ||
The process by which agencies are directed and controlled, and encompasses; authority, accountability, stewardship, leadership, direction and control. | ||
Defence Procurement and Sustainment Review (Mortimer Review) | In September 2008, the Defence Procurement and Sustainment Review was published providing an independent review of the DMO and the effectiveness of Australia's defence procurement systems with the review being chaired by Mr David Mortimer AO. This became known as the Mortimer Review. | |
In August 2003 the Defence Procurement Review 2003 published its findings on the problems associated with major Defence acquisition projects with the review being chaired by Mr Malcolm Kinnaird. This became known as the Kinnaird Review. | ||
DEFence PURchasing (101) contracting template used prior to the formation of the DMO. | ||
A milestone that marks the completion and release of DMO Acquisition Project Supplies required to support the achievement of the Final Operational Capability (FOC). | ||
The point in time at which the final subset of a capability system that can be operationally employed is realised. It is a capability state endorsed at project approval at Second Pass, and reported as having been reached by the Capability Manager. | ||
The FMA Act establishes the regulatory framework for financial management within public sector agencies, including the DMO. | ||
A firm price contract is unalterable in all respects for the duration of the contract, except where the parties agree to a contract amendment which alters that contract price. | ||
The process that gives Government the opportunity to narrow the alternatives being examined by Defence to meet an agreed capability gap. First Pass approval allocates funds from the Capital Investment Program to enable the options that Government endorses to be investigated in further detail, with an emphasis on detailed cost and risk analysis. | ||
The level of proposed expenditure for future years (based on relevant demographic, economic and other future forecasting assumptions). The Government requires forward estimates for the following three financial years to be published in each annual Federal Budget paper. | ||
A specification that expresses an operational requirement in function and performance terms. This document forms part of the Capability Definition Document. | ||
The standard list for consideration of what is required to generate capability, comprising organisation, personnel, collective training, major systems, supplies, facilities, support, and command & management. It is to be used by Defence agencies at all levels and is designed to ensure that all agencies manage and report capability, using a common set of management areas. | ||
A milestone that marks the completion and release of DMO Acquisition Project Supplies required to support the achievement of the Initial Operational Release (IOR). | ||
A point in time at which the first subset of a capability system that can be operationally deployed is realised. It is a capability state endorsed at project approval at Second Pass, and reported as having been reached by the Capability Manager. | ||
The milestone at which the Capability Manager is satisfied that the initial operational and material state of the capability system‐including any deficiencies in the fundamental input capability‐are such that it is sufficiently safe, fit for service and environmentally compliant to proceed into a period of operational test and evaluation leading to an endorsed capability state | ||
A Defence project that meets one or more of the following criteria: a. it has an estimated total one‐time cost of bringing the capital equipment concerned into operation of $A 20 million or more; b. the unit cost of an individual item in a multi‐item acquisition is estimated at $A 1 million or more; and/or c. the project is strategically important and/or has significant Defence policy or joint Service implications. | ||
An agreement between Defence and the DMO which states in concise terms what services and products the DMO (as a supplier) will deliver, for how much and when. | ||
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. | ||
Materiel Sustainment Agreements will be between the Capability managers and the Chief executive Officer of the Defence Materiel Organisation. These agreements will cover the sustainment of current capability, including services such as repairs, maintenance, fuel and explosive ordnance. | ||
A memorandum of understanding is a document setting out an agreement, usually between two Government agencies. | ||
A Defence project in which the proposed equipment falls within the definition of capital equipment but does not meet the criteria in the definition of a major project. | ||
A product that is available for purchase, which has been delivered to another military or Government body or commercial enterprise. | ||
The primary reference for determining fitness‐for‐purpose of the desired capability to be developed. This document forms part of the Capability Definition Document. | ||
Test and evaluation conducted under realistic operational conditions with representative users of the system, in the expected operational context, for the purpose of determining its operational effectiveness and suitability to carry out the role and fulfil the requirement that it was intended to satisfy. | ||
The results that the Government, and Defence as the purchaser, seek from the DMO and which are achieved by the successful delivery of its products and services. | ||
The product or service produced by the DMO on behalf of the Government and Defence. | ||
Refers to air, land, or surface or sub‐surface assets that are discrete and taskable elements within the ADF. | ||
A document presented by the Minister to the Parliament to inform Senators and Members of the basis for Defence/DMO budget appropriations in support of the provisions in Appropriation Bills 1 and 2. The statements summarise the Defence/DMO budget and provides detail of outcome performance forecasts and resources in order to justify agency expenditure. | ||
A prescribed agency is an agency established by regulation under the Financial Management and Accountability Act 1997. It provides financial management authority to, and requires accountability by, the Chief Executive of an agency. | ||
The entity that has prime responsibility for delivering the mission and support systems for the project. | ||
A summarisation of the projectʹs status, challenges it faces and its performance. | ||
A group representing the key stakeholders in a project that meets periodically to review the status of the project, advise senior executives of issues and provide guidance to the Project Manager. | ||
A means of measuring the maturity against benchmark measures of a project at defined milestones. | ||
At the highest level, it involves the identification and mitigation of those risks that have the potential to affect adversely the achievement of agreed output performance at the agreed price. | ||
The final milestone in the requirements phase at which point Government endorses a specific capability solution and approves funding for the acquisition phase. | ||
The Defence Group that is the end user of products and services delivered by DMO. | ||
One of the core business units in the DMO. They provide a crucial link between the DMO and its customers. They provide acquisition and sustainment services to the ADF. | ||
The basis for the DMOʹs development of the Test and Evaluation Master Plan for a project, and is the highest level document that considers test and evaluation requirements within the capability systemsʹ life‐cycle. This document forms part of the Capability Definition Document. | ||
The process by which major capital investment proposals are developed for consideration and approval by the Government. | ||
'New' - a capability that has not previously existed in the ADF. 'Replacement' - a current capability that is being replaced by a more up to date technology or to respond to a changing threat. 'Upgrade' - an upgrade to existing capability. | ||
Variable price contracts provide for the contractor to be paid a fixed fee for performance of the contract, subject to certain variations detailed in the contract. Variable price contracts may allow for variations in exchange rates, labour and/or material costs. | ||
Validation is the proof through evaluation of objective evidence that the specified intended end use of a product or system is accomplished in an intended environment. Validation is confirmation by examination and provision of objective evidence that specified requirements to which a product or service, or aggregation of products and services, is built, coded, assembled and provided have been fulfilled. | ||