Annual Report 2004-05

Overview

The Defence Materiel Organisation (DMO) equips and sustains the ADF through the acquisition of capital equipment assets and the sustainment of these assets. The DMO's vision is to become Australia's premier program management and engineering services organisation, delivering projects and materiel support on time, on budget and to the required quality, capability and safety.

There are eight divisions in the organisation, which are categorised as 'domains' or 'operations', as well as five major programs. Within the DMO, the term 'domain' is used to describe the section of the organisation responsible for the acquisition and sustainment of ADF equipment in a specific environment. The 'domains' are Aerospace Systems, Maritime Systems, Electronic and Weapons Systems and Land Systems. System Program Offices exist within each domain and are the focal point for procurements, delivery and sustainment of equipment.

The 'operations' divisions are responsible for contracting services, information technology, strategic communications, corporate governance, human resource management, financial services and strengthening relations with industry. They are the Chief Finance Officer, Chief Operating Officer, Industry and General Counsel divisions.

'Major programs' is used to describe a grouping of DMO activities associated with the acquisition of high value, high profile capabilities of strategic significance to the nation. The major programs are for the Air Warfare Destroyers, Amphibious Deployment and Sustainment Capability, New Air Combat Capability and Land Vehicle Systems. The Deputy Chief Executive Officer Division manages delivery of the Airborne Early Warning and Control program.

More detail on the structure of the DMO, as revised during 2004-05, is included on p 263 'Materiel Reform'.

Resources

As at 30 June 2005, the DMO managed 210 major projects (including phases), as well as a number of minor projects. The total expenditure for the DMO in 2004-05 was $6,821m, consisting of $2,031m operating expenses (excluding military employee expenses) and $4,790m for DMO Purchases (see Portfolio Budget Statements 2004-05 p. 230).

The DMO has approximately 5,900 personnel, comprising 4,400 civilians and 1,500 military in approximately 50 locations throughout Australia and overseas.¹

1. Further information on Defence Materiel Organisation's people can be found in Chapter Three - People|