26. A further dimension in assessing the status of Major Projects is the progress towards delivering the key capabilities specified by the ADF to be delivered by each project.
27. The 2009-10 MPR provides, for the first time, unclassified data on DMO's level of confidence with achieving each project's key capability attributes (Measures of Effectiveness - MOEs). The MOEs predominantly focus on the future achievement of certain technical, functional and safety requirements associated with the platform or system. As the MOE data concerns forecasting future achievements, it has been excluded from the scope of the ANAO's review.16
28. Across the Major Projects in the 2009-10 MPR17, DMO's assessment is that it has a high level of confidence in delivering 89 per cent of the key capabilities associated with the projects, while the delivery of 10 per cent of the key capabilities is considered to be under threat but the risk is still considered manageable and able to be met.18 The DMO's key capability data shows one project, Wedgetail, is assessed by the DMO as unlikely to achieve one of its five key capability requirements, involving the performance of the phased array radar which will not meet the specification at final delivery.19
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16 ANAO analysis of the DMO's MOE framework is set out at paragraphs 2.24 to 2.27.
17 The DMO has advised that all MPR projects, other than the Super Hornets, have endorsed MOEs.
18 Noting the caution that needs to be exercised with year-to-year comparisons of MOE data (see Table 3, Note 1), in the 2008-09 MPR, DMO stated it had a high level of confidence in delivering 86 per cent of key capabilities for the 14 projects with MOEs. In this regard, the 2008-09 and 2007-08 MPRs did not include MOE data in the PDSSs. Instead, DMO provided an aggregate capability section in its section of the MPR (Part 2).
19 A number of projects have included non-capability measures (such as achieving dates or schedules) as MOEs. These non-capability measures have been excluded by the DMO from its MOE data.