1.1 The Defence Materiel Organisation (DMO) exists to equip and sustain Australia's Defence Force (ADF) to enable the ADF to defend Australia and its national interests. In fulfilling its purpose, the DMO manages some of Australia's most complex and expensive projects from both an acquisition and sustainment perspective.
1.2 The DMO is a Prescribed Agency within the Department of Defence (Defence) and, for the purposes of the Financial Management and Accountability Act 1997, has financial autonomy from Defence. As a Prescribed Agency, the DMO is responsible to the Minister for Defence for its performance and also reports to the Minister for Defence Materiel. However, the DMO remains inextricably linked to Defence with a comprehensive range of inter-agency agreements forming the basis of the relationship.
1.3 The DMO is the prime Agency responsible for equipping and sustaining capital equipment assets for the ADF. This service is provided through the acquisition of capital equipment assets and the sustainment of those assets throughout their in-service life. The DMO's business imperatives are driven principally by the Defence policies and objectives set by Government and the operational requirements of the ADF.
1.4 In support of the Defence Mission, the DMO during 2009-10 had 329 acquisition projects (includes both major and minor projects) and 108 sustainment products under management, with its business ranging from relatively simple supplies such as tents and non-combat equipment to highly complex and expensive weapon systems.
1.5 The DMO operates in a diverse and complex business environment, working very closely with Australian and international Defence industry, to deliver some of the largest and most demanding projects (see figure 1.4) in Australia on time (schedule), on budget (cost) and to exacting standards of quality, quantity and safety (capability). The DMO achieves this through contributions of its workforce (comprising over 7,000 military and civilian staff in more than 40 locations around Australia and overseas) and with Defence industry to manage delivery of the materiel element of capability to the ADF.