1.64 As stated previously, major projects in the DMO are characterised by very high levels of complexity and present highly challenging conditions for successful delivery to Defence. The vast majority of the DMO's major projects are delivering the materiel element of capability to the ADF as planned. However, a small number of DMO projects and sustainment activities require additional senior management attention to address significant risks or issues relating to schedule, cost or capability.
1.65 In consultation with the Government, the DMO has an intense management framework for these troubled projects, known as 'Projects of Concern' (POC). Projects subject to the POC process are remediated through close engagement with industry, Defence and Government to deliver sound value for money outcomes to Defence. In some cases, however, if remediation cannot be achieved, there may be no alternative but for Government to cancel the project or its contract.
1.66 Since the POC framework was introduced in early 2008, the DMO has closely consulted with Government in order to proactively and transparently remediate projects against defined objectives. Remediation objectives are broad ranging, given the diverse nature of projects, and tailored to meet individual project needs. Typical remediation objectives include: resolving complex commercial and technical issues; improving stakeholder engagement; and improving internal project management practice.
1.67 In addition, 'lessons learned' through the POC process are applied to understand, pre-empt and remediate systemic issues in the delivery of all DMO projects.
1.68 On 15 October 2010, the Minister for Defence Materiel announced the following projects as POCs:
• JP 129 Ph2 - Tactical Unmanned Arial Vehicle;
• JP 2070 - Lightweight Torpedo Replacement;
• AIR 5333 - Vigilare;
• JP 2048 Ph1A - LCM 2000 Watercraft for Landing Platform Amphibious Ships;
• AIR 5276 Ph8B - Electronic Support Measures Upgrade for the AP-3C Orion Aircraft;
• CN 10 - Submarine Sustainment;
• AIR 5402 - Air to Air Refuelling (MPR project);
• JP 2043 Ph3A - High Frequency Modification (MPR project);
• AIR 5077 Ph3 - AEW&C Wedgetail (MPR project);
• LAND 121 Ph3 - Overlander (Medium-Heavy Capability only) (MPR project); and
• SEA 1448 Ph2B - ANZAC Ship Missile Defence (MPR project).