2.1 This section of the DMO MPR contains a project Executive Summary for each of the 15 projects reported. This new section provides an interpretation of the detailed PDSS data, as reviewed by the ANAO, and places the information in a DMO performance context. The data in these outlines are drawn from the individual PDSS in Part 3 of this Report, supplemented by information in the DMO Annual Report and includes other significant events of interest that have occurred since 30 June 2009.
2.2 These executive summaries cover:
● Key characteristics:
- Project identification by name and project number.
- The recipient of the capability.
- Whether the project is developmental or off-the-shelf.
- The main contractor.
- The current DMO approved budget, project maturity score (out of a maximum score of 70); the DMO Acquisition Category complexity rating of the project (refer to Appendix 1); when the project received Second Pass approval by Government; and when it is currently forecast to achieve Final Operational Capability (FOC).
● Description: A short description of what the project is acquiring and its capability objective.
● Project Status: A contextual setting for the project and a brief account of its current status.
● Challenges Ahead: The key challenges that the project is facing as it goes forward.
● Schedule Performance: The schedule performance chart depicts the original plan at project approval versus its actual performance to date for key milestones of when the project was approved, when an acquisition contract was executed, its Initial Operational Capability29 (IOC) & FOC30 forecasts; and a marker that shows the timing of the DMO MPR review in the project's overall timeline. Explanatory comments for major variations in IOC and/or FOC are also included.
● Budget History: The budget history chart shows the project's cumulative DMO budget variations31 history32 since Second Pass Approval and a narrative that explains the major 'Real' variations that have occurred.
● Financial Performance: The financial performance chart shows the project's planned versus actual expenditure achievement for financial year 2008-09 and a brief explanation for the variance.
● Capitalisation Performance: The capitalisation performance chart shows the project's life-to-date capital expenditure, its value realised as assets accepted into service, and the remaining balance of expenditure as well as a brief explanation of what equipment has been accepted into service. In essence it provides information on what value has been realised for expenses incurred and capitalised.
- Readers should note that this information element is not included in the PDSS but is derived from Asset Under Construction (AUC) Reconciliations conducted each year in the DMO in support of its Financial Statements. As this information is not included within the PDSS, the ANAO has not provided assurance over the AUC element.
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29 A point in time at which the first subset of a capability system that can be operationally deployed is realised.
30 The point in time at which the final subset of a capability system that can be operationally employed is realised.
31 detailed explanations for the different types of budget variations shown are provided in Appendix 3.
32 The individual project's budget variations recorded are explained in more detail in Section 2 of each PDSS.