Chapter One - Overview > Year in Review by the Secretary and the Chief of the Defence Force > page 2 of 4
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Year in Review by the Secretary and the Chief of the Defence Force

Intelligence Reform

The Government's agreement in July 2004 to all but one of the recommendations of a report by Mr Philip Flood led to significant changes in the management of Defence's intelligence responsibilities, and will continue to drive change in the future. The key issues for Defence were the refocusing of the Defence Intelligence Organisation towards meeting strategic-level Defence requirements, particularly in support of military operations; and the requirement to amend relevant intelligence legislation to include the Defence Imagery and Geospatial Organisation, and to bring all intelligence agencies under the scrutiny of the Parliamentary Joint Committee on ASIO, ASIS and the DSD. Defence has since increased the number of ADF personnel posted to Defence intelligence agencies.

Capability Development, Acquisition and Sustainment

There have been continued improvements in capability development, acquisition and sustainment flowing from progressive implementation of key recommendations of the Defence Procurement Review, headed by Mr Malcolm Kinnaird AO and agreed by the Government in September 2003.

The Capability Development Group, established in 2004 under Lieutenant General David Hurley, was consolidated in this, the first full year of the two-pass capability development process, and is contributing effectively to better pre-approval project definition.

Prescribed agency status was achieved for the Defence Materiel Organisation (DMO) on 1 July 2005. The huge and technically complex undertaking of separating the DMO's accounts from those of the rest of Defence was well managed and a credit to all involved. In future years, the DMO's accounts will be presented separately. This will enable the DMO to operate in a more business like manner, focusing on, and being accountable for, the delivery and sustainment of Defence equipment.

The DMO is also upskilling its staff to improve the management of its business, and has selected project managers to drive the delivery of acquisition projects on time, within budget and to the required specification.

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