Chapter Six - Defence Materiel Organisation > Overview > Special Feature
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Defence Materiel Organisation | Special Feature

New era for
DMO and Defence

A new era in Defence procurement began on 1 July 2005 with the achievement of prescribed agency status by the Defence Materiel Organisation (DMO).

Prescription was one of a series of recommendations resulting from the Defence Procurement Review 2003 or 'Kinnaird review', which aimed to improve the Defence procurement process and to make the DMO a more business-like entity.

Prescription celebrations to mark the occasion were held across DMO sites throughout Australia with guests, including Mr Malcolm Kinnaird, Defence Procurement Advisory Board Chair Mr David Mortimer, and Secretary of Defence Mr Ric Smith, delivering addresses to DMO personnel.

The CEO DMO Dr Stephen Gumley, Chief Defence Force General Peter Cosgrove and Defence Secretary Ric Smith officially signed the Memorandum of Arrangements between the DMO and Defence.

(The then) Chief of Defence Force General Peter Cosgrove, CEO DMO Dr Stephen Gumley and the Defence Secretary Mr Ric Smith sign the Memorandum of Arrangements.
(The then) Chief of Defence Force General Peter Cosgrove, CEO DMO Dr Stephen Gumley and the Defence Secretary Mr Ric Smith sign the Memorandum of Arrangements.

The CEO DMO is now directly accountable to the Minister under the Financial Management and Accountability Act 1997 for the efficient, effective and ethical use of Commonwealth resources within the DMO.

Dr Gumley has the necessary independence to manage his organisation and control resources and staffing to deliver outputs. This includes setting the DMO's own financial management policy; preparing separate and auditable financial statements; and significant powers, delegated from the Secretary, to manage and allocate staff resources under the Public Service Act 1999.

The DMO remains an integral part of the Defence Portfolio, with a close partnership between DMO and the rest of Defence.

The DMO and Defence de-merger is one of the largest in Australia's history.

On achieving Prescription, Dr Gumley and Mr Smith expressed great appreciation to all staff involved in the work, and congratulated them on their achievement, with Mr Smith wishing Dr Gumley and his DMO colleagues well as their organisation entered this exciting new era.

CEO DMO Dr Stephen Gumley and Chief of Capability Development Group Lieutenant General David Hurley sign an Agency Agreement for prescription.
CEO DMO Dr Stephen Gumley and Chief of Capability Development Group Lieutenant General David Hurley sign an Agency Agreement for prescription.

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