3.3 A recent governance initiative, GRAB reviews, was introduced from 1 July 2009 in response to recommendations from the 2008 Mortimer Review.54 GRAB reviews are undertaken at specified points in a project's life cycle. The purpose of GRAB reviews is to provide a mechanism whereby, particularly in respect of critical gates, the Chief Executive Officer of the DMO (CEO DMO) is provided with assurance that all the identified risks for a project (cost, schedule, technical/capability) are manageable.
3.4 GRAB reviews normally comprise senior line management, relevant people with key skill sets from other parts of the DMO, and an external independent member. GRAB clearance, which results in the provision to the CEO DMO of a Letter of Certification, providing the assurance referred to in paragraph 3.3, is mandatory for Major Projects at three specified gates and optional at other gates, depending on the outcomes of the risk assessment. A project is not permitted to proceed to the next stage of its life cycle until it is cleared by the GRAB. The three mandatory reviews for which GRAB clearance is required to occur prior to: First Pass Approval; Second Pass Approval; and contract signature. The DMO has advised that some twenty projects have been subjected to GRAB reviews, including five in the 2009-10 MPR.55
3.5 The ANAO assessed the material considered in the GRAB reviews and the outcomes of each of the GRAB processes conducted in respect of the five MPR projects to gain assurance that the information presented was consistent, in all material respects, with the information in the 2009-10 MPR. In 2010-11 the ANAO will further assess the GRAB process for potential efficiencies in our review processes.
3.6 The ANAO has also requested information from the DMO on the measures that it is using to assess the success of this initiative, in particular the potential of the GRAB process to assist in the successful delivery of projects, within the agreed milestones.
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54 Defence Procurement and Sustainment Review 2008, p.35.
55 Overlander, ANZAC Anti-Ship Missile Defence Phases 2A and 2B, High Frequency Modernisation and C-17 Heavy Airlift.