I am pleased to present the second DMO Major Projects Report (DMO MPR). The first DMO MPR, tabled in Parliament in November 2008, reported on nine of the DMO's major projects. This Report reflects the status of 15 of the DMO's major projects - comprising an update on the first nine projects reported in 2007-08 and a further six new projects.
The DMO has applied the lessons from the 2007-08 DMO MPR pilot to improve the outcomes from this year's report. I will continue to work with the Joint Committee of Public Accounts and Audit (JCPAA) to further enhance the value of the report.
I am committed to ongoing investment in the DMO MPR and in the openness and transparency of the DMO's business. I view the DMO MPR as not only a report to Parliament but an insightful account of how well we are performing in our core business of equipping the ADF.
The format for this year's report is slightly different. We have chosen to present Part 2 of the report in a more informative manner. Having explained the DMO's business last year, this year we have focussed on how DMO's acquisition business is likely to be affected by recent reforms, notably the Government's response to the 2008 Report of the Defence Procurement and Sustainment Review (The Mortimer Review) and the Strategic Reform Program. We have also introduced a substantial Chapter that presents Project Executive Summaries for each of the 15 projects. These summaries present the PDSS data and related, individual project performance and analysis information as a narrative. Performance across time and across the 15 projects is analysed in Chapter 3. Over time the Report will provide a basis for trend analysis in the implementation and management of major projects. The format for the Project Data Summary Sheet (PDSS) in Part 3 of the report remains unchanged.
Preparing a report of this type requires a substantial investment of DMO resources in collecting data and providing evidence to the satisfaction of the ANAO The DMO teams working on the projects in the DMO MPR devote considerable effort each year to the preparation, validation and executive level sign-off of project data. The project data in this report has also been reviewed by the major contractors for each project and we have considered their views in finalising the Report.
The ANAO's role in the DMO MPR is to review the DMO's PDSS project data in accordance with the Australian Standard on Assurance Engagements (ASAE) 3000 Assurance Engagements other than Audits or Reviews of Historical Financial Information and express an independent conclusion based on this review. This engagement is underpinned by an agreement with the Auditor-General, under Section 20(1)(c) of the Auditor-General Act 1997, and detailed guidelines developed by the DMO. Implementing these arrangements and delivering the MPR in a very tight timeframe requires considerable discussion and coordination between the DMO and ANAO teams and I am pleased to say that the professional relationship we have developed with the ANAO team has made this possible.
I would like to thank the Auditor-General and his staff for their contribution to the overall Report. I would also like to recognise the considerable effort and dedication of the DMO's project office staff and our directing team in bringing together the 2008-09 DMO MPR.
Dr Stephen Gumley
Chief Executive Officer
12 November 2009