Within the last year, performance on the key measures of cost and capability has remained steady with delivery of some key capabilities. Schedule performance has improved in some projects but overall requires further effort to reduce slippage. By example, an overview of cost and schedule performance is shown in Table 1. Examples of some significant achievements include:
● C-17 Globemaster Heavy Airlift capability (including Aircrew Training System) delivered ahead of schedule and under budget. These aircraft are providing crucial and previously unavailable operational effect to the war fighter engaged in operations;
● Delivery of the prototype Mercedes Benz G-Wagon vehicles was achieved one year after the initial contract signing. ADF trial participants have provided extremely positive feedback on the vehicles capability;
● In March 2010, the first five of Australia's fleet of F/A-18F Super Hornets flew to their new home base at RAAF Amberley. These aircraft provide an important air strike capability; and
● Following resolution of a range of contractual issues, three Wedgetail Airborne Early Warning and Control (AEW&C) aircraft have been accepted in an 'initial' configuration capable of supporting training and peacetime national tasking.
The DMO has also instituted a number of organisation wide business improvements which are directly aimed at enhancing its core business of equipping and sustaining the ADF. Some examples of these include:
● Gate Review Assurance Boards: The Gate Review Assurance Board initiative is an assurance process that is able to provide high quality and reliable advice to Government and Defence as to the health and outlook of major projects. The reviews provide an internal mechanism for the early identification and resolution of problems across the various project lifecycle stages.
● Introduction of Initial Materiel Release (IMR) and Final Materiel Release (FMR): The Materiel Acquisition Agreement (MAA) (the principal agreement between the DMO, Capability Managers and Capability Development Group) has been strengthened with the introduction of IMR and FMR. These represent the milestones against which the materiel elements of the Fundamental Inputs to Capability (FIC) are delivered to the Capability Managers.
● The introduction of IMR and FMR milestones provides greater clarity of responsibilities between the DMO and Capability Managers. It marks the delivery and release to the Capability Managers of materiel supplies, which are just one element of a number of inputs necessary to realise a capability that can be operationally employed by the Capability Manager.
● Strengthening the Projects of Concern Process: Recognising that projects managed by the DMO are characterised by very high levels of complexity and present challenging conditions for successful delivery to Defence, there is, as a consequence, a small number of projects that requires more attention. In consultation with Government, the DMO has strengthened its Projects of Concern arrangements that provide for more intense management of identified projects.
● Strengthening the DMO Risk Management Framework (RMF): During 2009-10, the DMO undertook an identification of the systemic lessons revealed by external and internal audits over the previous five year period. Results of this process have informed the development of a revised Risk Management Framework. This has been designed to enable the linking of strategic, business, divisional and project level risks.