Approved Major Capital Equipment Projects

In its role of acquiring and sustaining equipment for the ADF, the DMO manages the Approved Major Capital Investment Program (AMCIP). The AMCIP consists of projects that are funded from the Defence Capability Plan and transferred to the DMO following Government's approval. While overall the DMO exceeded its revised AMCIP budget, the cash flow of some projects has been reprogrammed into future years. Reprogramming of projects is due to a number of factors that arose in both the pre-contract and contract performance stages.

The total spend against AMCIP in 2007-08 was $3,515m. This was $258m below 2006-07 ($3,773m), a decrease of seven per cent. The DMO's 2007-08 AMCIP budget included an estimated cash flow requirement of $1,132m for activity expected to be approved by Government during the year, and passed to the DMO for management. This included $572m for acquisition of Super Hornets, $123m for Enhanced Land Force (ELF) acquisitions and $437m for other anticipated projects. A total of $856m was spent against these activities in the year; $286m for Super Hornets, $78m for ELF and $492m for other new projects reflecting the re-alignment of cashflow estimates to future years in support of activity delivery.