1.12 In agreements with Defence's Capability Development Group (CDG), DMO agrees to deliver platforms and systems to the ADF that satisfy capability attributes referred to as measures of effectiveness (MOEs). MOEs specify, in high-level operational terms, the capabilities of platforms or systems. Hence, and in conjunction with cost and schedule performance measures, they provide an overall picture of the status and current performance of a project.
1.13 The JCPAA has indicated a continuing interest in data that clearly shows each project's progress towards delivering on the key measures of equipment capability. However the 2008-09 MPR, as in last year's report, only provides a single aggregated presentation of MOE achievement by all projects. DMO reports that as at end September 2009, the consolidated MOE traffic light status of all 15 projects' was:
• one per cent of MOEs were at this stage unlikely to be met;
• 13 per cent of MOEs were under threat but still considered by DMO as manageable; and
• 86 per cent of MOEs were assessed as having a high level of confidence that they would be met.
1.14 As the MOE data has only been included in the DMO analysis (Part 2 of this report), and not the PDSSs, it has not been subject to ANAO review in 2008-09.
1.15 However, narratives on the 30 June status of capability performance contained in the PDSSs, and recent DMO evidence before Parliamentary committees, assist in providing an insight into major projects that are experiencing significant challenges in delivering their planned equipment capability. The projects of note in this regard include:
• Wedgetail - the phased array radar, which is central to the surveillance capability, remains under development and DMO expects the radar's full contracted capability will not be met by the scheduled date. DMO has indicated the need to put in place a plan to incrementally improve the radar's performance when the technology to solve the shortfalls becomes available. The second main area of current capability concern which has been identified is whether the electronic surveillance system will provide sufficient protection for the aircraft in a hostile environment.16
• FFG Upgrade - current issues preventing operational release of the upgraded ships include: the torpedo defence systems integration, hull mounted sonar and electronic support system not meeting the performance requirements.17
• HF Modernisation - currently, there is a risk to achieving the full complement of performance requirements for the project's final system. Considerable slippage in the project's schedule has occurred and some original capability requirements have been waived with the contractor, following agreement from Defence stakeholders.18
______________________________________________________________________________
16 2008-09 MPR and Joint Standing Committee on Foreign Affairs, Defence and Trade, Defence Subcommittee, Committee Hansard, 21 August 2009, pp. 3-9.
17 2008-09 MPR.
18 2008-09 MPR and Joint Standing Committee on Foreign Affairs, Defence and Trade, Defence Subcommittee, Committee Hansard, 16 April 2009, pp. 41-42.