DMO Re-Baselines Projects

DMO has been assigning acquisition categories to all Major Capital Equipment Projects since September 2004. However, like other international frameworks, DMO’s original Framework’s Decision Support Matrix overemphasised the importance of acquisition cost and did not adequately consider project complexity and schedule issues.

DMO Project Management Coach, Arthur Lazarou said project complexity has been identified internationally as a key determinant for the likely success or failure of projects. DMO is re-baselining to reflect this.

The reworked ACAT Framework will provide a consistent methodology for categorising projects. It includes complexity and schedule with in a comprehensive Decision Support Matrix.

Using the new ACAT Framework, each division within DMO recently reviewed their projects in consultation with the Deputy Chief Executive Officer Division.

The results are being examined by DMO Chief Executive Officer Dr Stephen Gumley and Deputy Chief Executive Officer (DCEO) Kim Gillis, with particular emphasis on the ACAT I and II projects.

DMO uses ACAT to ensure that an appropriately experienced and qualified person is allocated to each project and to quantify the training a project manager needs for future career development.

Through its links to the Project Management Certification Framework (PMCF), it drives selection, training and the certification requirements for all of DMO’s ACAT Project Managers.

The framework is based on four Acquisition Categories that provide a graduated scale from the most demanding and complex projects, categorised as ACAT I and ACAT II, to least demanding or more traditional projects, categorised ACAT III and ACAT IV.

Mr Lazarou used the Air Warfare Destroyer (AWD) project and C-17 Globemaster (C-17) project as an example to highlight the important distinction between cost and complexity.

He said the inherently complex AWD was undeniably an ACAT1 project and the $2 billion dollar C-17 project, while possessing its own unique challenges was not.

‘The C-17 does not involve development of a new system; it does not involve complex modification of an existing system; and there is no use of a unique contracting model,’ he said.

‘It is an ‘off the shelf’ purchase using the exiting Foreign Military Sales contracting arrangements.

‘Whilst the C-17 project is no doubt difficult and has significant schedule pressures, when compared to the AWD, an ACAT I, we would argue that it does not possess the same degree of complexity and perhaps is an ACAT II project.

‘The latest revision of the ACAT Framework will result in informed resource allocation and redistribution decisions for Major Capital Equipment Projects and will now extend to Minor Capital Projects.

‘Assigned ACAT levels will be reviewed at certain project milestones in the materiel lifecycle to ensure the ranking accurately reflects the project complexity and status at each stage.

‘A recognised, consistent and repeatable methodology for categorising projects is a key element to aligning the certified experience and competencies of project managers to the complexity and scale of projects.

‘All project managers will be assigned to acquisition projects on the basis of their Certified Professional Project Manager status, consistent with the ACAT level of projects.

‘DCEO Kim Gillis has placed industry on notice that DMO will require a comparative level of professionalism and certification of industry project managers assigned to deliver DMO projects. This is particularly relevant to ACAT I and II projects.

‘DMO is working with industry to ensure this happens, via the Defence and Industry Project Management Council and the development of a new competency standard for the management of complex projects,’ Mr Lazarou said.

Further information on both the ACAT framework and the new standard for the management of complex projects is available on the DMO web site or can be requested by sending an email to: dmo.coaching@defence.gov.au.