This second review of the status of selected Defence acquisition projects continues to build on the work undertaken by the Defence Materiel Organisation (DMO) and the Australian National Audit Office (ANAO) to improve the transparency and public accountability for these major Defence acquisitions.
Managing major Defence equipment acquisitions that successfully deliver front line capability for the Australian Defence Force represents a significant challenge. With Defence equipment often expensive and technically complex, there are generally significant risks in delivering the required capability on schedule and within budget.
In this environment, increased transparency and accountability on progress with major Defence acquisitions has been a focus of Parliamentary interest for some time. The Joint Committee of Public Accounts and Audit (JCPAA) has been active and influential in progressing the issue of an annual report on the status of progress with major Defence capital acquisition projects. This Parliamentary focus has been reinforced by the work of the Joint Standing Committee on Foreign Affairs, Defence and Trade. Following feedback from the JCPAA on the 2007-08 Major Projects Report (MPR), some elements of this year's report have been enhanced.
The 2008-09 MPR includes more data analysis when compared to last year, and provides a basis for longitudinal analysis of project performance for future years. Additional information in the Project Data Summary Sheets has been provided to meet stakeholder requirements, including enhancements proposed by the JCPAA. Further, the 2008-09 MPR covers an additional six projects compared to last year bringing the total number of projects to 15 in this year's MPR.
In looking forward, the program is well placed to incorporate eight new projects in the 2009-10 MPR, and the DMO and the ANAO will be working with the JCPAA to further enhance the value of the report as it continues to evolve.
This year's review built on the effective working relationship established last year between the DMO and the ANAO, and was conducted in a cooperative manner. Defence and industry stakeholders also provided valuable input to assist ANAO with its review of DMO information.
I would like to thank the Chief Executive Officer of the DMO, Dr Stephen Gumley, and his staff at the corporate and project levels for their considerable work on the second report, and the high level of assistance provided to the ANAO staff in conducting the project reviews.
Ian McPhee
Auditor-General
13 November 2009