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Annual Report 2014–15

Volume 1, Part 2 : Performance

Programme 1.12
Capability Development

The Chief Capability Development, Lieutenant General John Caligari, AO, DSC, is responsible, as the sponsor, for developing capability proposals consistent with the Government’s strategic priorities, funding guidance, legislation and policy for consideration and approval by the Government.

The Capability Development Group develops and manages the Government’s plans for future defence capability outlined in the Defence Capability Plan. The plan lists the projects for government consideration (first and second pass) that make up the Unapproved Major Capital Investment Programme for future capabilities.

The classified plan is reviewed and updated regularly to take into account factors that emerge as capabilities are developed, including changing strategic priorities and economic circumstances, the maturity of projects, the evolution of technology in the options under consideration, and operational experience.

The Capability Development Group maintains close relationships with a range of stakeholders, including the Defence Materiel Organisation (renamed Capability Acquisition and Sustainment Group on 1 July 2015), capability managers and industry. In conjunction with industry, the Group is also responsible for the operation of the Rapid Prototyping, Development and Evaluation Programme, which encourages innovation in future defence capabilities.

During 2014–15, 35 project approvals worth more than $7 billion were received from government. These approvals comprised six first pass, 20 second pass, and nine other types of approvals. Approved projects are below.

In the maritime environment:

  • second pass approval for replacement of the ANZAC air search radar.

In the aerospace environment:

  • second pass approval for deployable air traffic management and control systems
  • second pass approval for additional aircraft, including two C-17A Globemaster III heavy airlift aircraft and two Multi Role Tanker Transport aircraft.

In the land environment:

  • second pass approval for the acquisition of an integrated battlefield telecommunications network and the upgrade of current radios and facilities
  • second pass approval to acquire the upgraded Austeyr EF88 rifle and ancillaries
  • first pass approval for the mounted combat renaissance capability under the LAND 400 programme.

In the joint enabling environment:

  • second pass approval for the Helicopter Aircrew Training System
  • enhancements to Special Operations capability, including Supacat vehicles.
Table 3.30: Programme 1.12 deliverables

Deliverable

Status

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Key

Met

• • •

Substantially met

• •

Partially met

• •

Not met

• • •

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The provision of timely, accurate and high-quality advice on all aspects of capability development to the Secretary, CDF and government.

Status Substantially Met • •

The Government gave approval for a total of 35 project submissions in 2014–15. In addition, the Group provided a significant number of quality submissions to the Minister for Defence, the Secretary and the CDF. Accurate costings remain an issue.

The provision of independent analysis and contestability of capability proposals.

Status Substantially Met • •

The Group provided contestability of capability proposals. Defence is implementing the First Principles Review recommendation to significantly enhance and strengthen the contestability process.

The development and management of an affordable and executable Defence Capability Plan.

Status Met • • •

The development of Defence capability investment proposals for consideration by the Government.

Status Substantially Met • •

Defence achieved approval of 35 of the 39 Defence Capability Plan projects that were planned for government consideration in 2014–15.

The publication of the public version of the Defence Capability Plan.

• • • •

Not applicable.

The Government announced that the next public Defence Capability Plan will be released in the context of the Defence White Paper process.

The management of the Key Defence Assets Register.

Status Met • • •

Complete a policy framework (Defence Instruction (General)) on the roles and responsibilities of Groups/Services for activities in the capability systems’ lifecycle.

• • • •

Not applicable.

Consistent with the First Principles Review report, released on 1 April 2015, a new single end-to-end capability development function will be established.

Transition the Defence Capability Development Handbook to an authorised manual under the Defence Administrative Policy Framework.

Status Substantially Met • •

This transition is on track.

Develop and approve the improvement initiatives under Tranche 2 of the Capability Development Improvement Programme.

• • • •

Not applicable.

Consistent with the First Principles Review report, the ongoing work associated with the Capability Development Improvement Programme will be subsumed within the First Principles Review implementation.

Under the Rapid Prototyping Development and Evaluation Programme, work collaboratively with Australia’s defence industry to develop innovative solutions to complex issues affecting capability and operations.

Status Met • • •

Deliver independent test and evaluation advice, planning, support, trials and demonstrations to Defence throughout the capability systems’ lifecycle.

Status Met • • •

Table 3.31: Programme 1.12 key performance indicators

Key performance indicator

Status

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Key

Met

• • •

Substantially met

• •

Partially met

• •

Not met

• • •

Click to view the full user guide

Ensure capability investment proposals have realistic schedules and cost projections, comprehensive risk assessments and mitigation.

Status Substantially Met • •

The Government gave approval for a total of 35 project submissions in 2014–15. In addition, the Group provided a significant number of quality submissions to the Minister, the Secretary and the CDF. Accurate costings remain an issue.

Improve the corporate information management systems that support end-to-end visibility, planning, management and reporting of capability development.

Status Met • • •

Progressively implement Tranche 2 Capability Development Improvement Programme initiatives to improve the timeliness and quality of capability submissions and reflect these improvements in extant and future capability development guidance and/or policy.

• • • •

Not applicable.

Consistent with the First Principles Review report, the ongoing work associated with the Capability Development Improvement Programme will be subsumed within the First Principles Review implementation.

Provide objective advice to the Secretary and CDF.

Status Met • • •

Submit timely proposals that are coherent, compelling and consistent with strategic guidance and affordable within the Defence Capability Plan.

Status Met • • •