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Defence Materiel Organisation

Defence Materiel Organisation
Australian Government Prescribed Agency
Industry Defence
Fate Disbanded and absorbed into Department of Defence as Capability Acquisition and Sustainment Group on 1 July 2015
Successor Department of Defence, Capability Acquisition and Sustainment Group
Founded 2000
Prescribed Agency in 2005
Defunct 30 June 2015 (2015-06-30)
Headquarters Canberra, Australia
Key people
Harry Dunstall, Acting CEO & GM Commercial
Shireane McKinnie, GM Joint Systems & Air, David Gould, GM Submarines, (acting) GM Land &Maritime
Products Military Equipment Acquisition and Sustainment
A$billion(2012–13)
Number of employees
7,000+
Parent Australian Department of Defence
Website defence.gov.au/dmo

The Defence Materiel Organisation ('DMO') was the Australian Government agency responsible for the acquisition, through-life support and disposal of equipment for the Australian Defence Organisation. The DMO was part of the Australian Department of Defence, and managed the acquisition and support of a diverse range of materiel (equipment), including aircraft, ships, vehicles, electronic systems, uniforms and rations. The DMO budget (2012–13) was A$9 billion, shared between purchasing new equipment and sustainment and through-life support (maintenance, upgrades, fuels, explosive ordnance and spares). The DMO managed some 180 major projects (each with a budget over $20m) and more than 75 minor projects. It employed more than 7,000 military, civilian and contracted staff in more than 70 locations around Australia and internationally.

The agency was dissolved on 30 June 2015 and its functions transferred to the Capability Acquisition and Sustainment Group within the Department of Defence.

DMO was formed in 2000 when the then Defence Acquisition Organisation merged with Support Command Australia, bringing together the Department of Defence's capital acquisition and logistics organisations into a single entity. The DMO was given responsibility for purchasing, through-life support and disposal of military equipment assets, other than facilities and administrative assets.

In July 2005, DMO became a Prescribed Agency under Australian Financial Management and Accountability legislation, meaning that although it remains a part of the Department of Defence, it was separately accountable to the Minister of Defence for its budget and performance.

DMO's stated vision was to become the leading program management and engineering services organisation in Australia. Its goal was to deliver projects and sustainment on time, on budget and to the required capability, safety and quality.

In May 2008, the Australian Government commissioned a review of Defence procurement, which included in its terms of reference a report on the progress of implementing reforms from the last such review – the 2003 Kinnaird Review.

The review was conducted by David Mortimer, who presented his findings in September 2008. Mortimer identified five principal areas of concern. There was/were:


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