Appendix 2: Types of Acquisition Undertaken by the DMO

There are three main types of acquisition undertaken by the DMO:

•  Military-Off-The-Shelf (MOTS)

Military products that are available for purchase Off-The-Shelf (OTS) and will typically have been delivered to another military or Government body, or commercial enterprise in a similar form to that being purchased at the time of approval. The definition of OTS needs to strike a balance between sensible variations to a design with low cost and risk impact; such as small modifications to meet Australian environmental laws; and those that add to complexity, cost and risk such as overseas systems that require integration with existing platforms.

•  Australianised MOTS

A modified MOTS product where modifications are made to meet particular ADF operational requirements. The modification involved may include an increased level of technical complexity and risk with a general increase in cost and schedule.

•  Developmental

A product that is not available off-the-shelf and has to be developed specifically to meet the ADF's particular operational requirements. These products generally involve a high degree of technical development and associated risk which in turn is reflected in cost and schedule.

As indicated in Chapter 1, the cost-schedule-risk parameters increase as the level of Australianisation of Off-the-Shelf equipment or the level of development required increases.