The Federal Government wants a more "business-like" approach to procurement and sustainment in the Australian Defence Force as part of
The Federal Government wants a more “business-like” approach to procurement and sustainment in the Australian Defence Force as part of a review of supply chain operations.
David Mortimer, the current Chairman of Leighton Holdings and Australia Post and a former chair of the Defence Procurement Advisory Board, will conduct the new review, a Labor promise from last year’s election campaign.
Greg Combet, the Parliamentary Secretary for Defence Procurement, says the review will evaluate the effectiveness of ongoing reforms the Defence Material Organisation (DMO), which were brought in following a 2003 review of procurement led by Malcolm Kinnaird.
“There have been some high-profile problem projects in the area of Defence procurement and the Government is committed to avoiding a repeat of past problems through an ongoing reform program,” Combet says.
Combet has been tasked with developing a future program of reform for the DMO by the Minister for Defence, Joel Fitzgibbon.
“The review will consider further potential reforms to the acquisition and through-life support of defence equipment. It will also make recommendations on initiatives to further enhance delivery of capability to the Australian Defence Force in the most efficient and cost-effective manner,” Combet says.
“The Government is fully committed to ensuring that the DMO is subject to continual reforms to improve its efficiency and effectiveness. The reforms underway in the DMO have been working, but this review will highlight areas where more can be done.
Combet wants the review to examine how DMO can continue to develop its commercial orientation and become more “business-like” in its operations.
“The recent reappointment of Dr Stephen Gumley as the Chief Executive Officer of the DMO was critical to the success of the reform program given his background, experience and performance in this area,” Combet says.
Dr Gumley will be responsible to the Government for the implementation of the future program of reforms within DMO, including any reforms that emanate from this review.
Mortimer will be supported by a review team headed by Major General A.P. (Tony) Fraser. Major General Fraser is currently Head of Helicopter Systems Division in the DMO.
The review is expected to report back within 12 to 14 weeks, with Combet to consider the recommendations to take to the Minister.