Defence used to print annually a booklet listing the minor capital acquisition proposals (those less than $20 million) that were expected to be approved in the coming year/s.
As it had a yellow cover, it became known as ‘The Yellow Book’ (as opposed to ‘The Pink Book’ that listed unapproved major capital projects, or ‘The Green Book’ that covered major facilities projects).
The publication was produced to alert companies to the timing and the opportunities that would be available from the proposed minor capital program. Companies, particularly small to medium sized enterprises, could then have a better basis for planning their business, managing their workloads and investing in resources. It also recognised that not all companies wanted to or were capable of bidding for the major projects.
In recent years however, the increased tempo of operations and the need to fill requirements arising at short notice have highlighted that the minors program needed to be flexible, but also highlighted the lack of common processes for approving minor acquisitions. Despite electronic publication of the Yellow Book on the DMO web site, it has proved difficult to keep up with changes to the program, and rather than provide out of date and wrong information to companies, the publication has been suspended.
It is clear that greater discipline is needed to ensure more rigorous scrutiny of minor capital acquisition proposals and the overall program. An acquisition process similar to, but less complex than the process for developing the major capital acquisition program (the Defence Capability Plan) is being looked at.
Mr Kerry Clarke, Head of Industry Division in the DMO, noted when discussing the Yellow Book recently that: “We recognise that industry wants the information. We are aiming to have the new minors process approved and to return the Yellow Book to the DMO web site later this year.” |