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| Members of the committee |
(PDF 43KB) |
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| Acronyms and Abbreviations |
(PDF 12KB) |
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| Executive summary |
(PDF 49KB) |
Recommendations
|
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| Chapter 1 - Introduction |
(PDF 742KB) |
Conduct of inquiry
Change in Defence personnel
Developments during inquiry
Reviews and references
Site visits to South Australia and Western Australia
Overseas visit
Scope and structure of the report
Part 1—Major acquisitions—background and context
Part II—Compliance with, and awareness of, policy and guidelines
Part III— Accountability, responsibility and collaboration
Part IV—Contestability and independent advice
Part V—Right people, skills and analysis
Part VI—Industry—workforce and relationship with Defence
Part VII—Conclusion
Acknowledgements
|
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| Part I - Background |
| Chapter 2 - Project performance |
(PDF 129KB) |
Super Seasprite
Landing Watercraft for HMAS Manoora and HMAS Kanimbla (LCM 2000)
Wedgetail
Tiger Armed Reconnaissance Helicopter
Guided Missile Frigate Upgrade Project
KC-30A Multi-Role Tanker Transport
Multi-Role (MRH-90) Helicopter
Air Warfare Destroyer
M113 Upgrade Program
Lightweight Torpedo Replacement Project
The Collins Class Submarine Reliability and Sustainability Project
Common problems—costs, schedule slippage and reduced capability
Schedule slippage
Costs
Capability
Conclusion
|
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| Chapter 3 - Lessons to be learnt |
(PDF 113KB) |
Early research and analysis
New submarines—SEA 1000
Offshore combatant vessel
Industry engagement
Committee view
Funding Force 2030
New Defence White Paper
Committee view
Slippage of approval rate at first and second pass
Reason for delayed approval rates
Committee view
|
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| Chapter 4 - Challenges for defence procurement |
(PDF 77KB) |
Large, complex and costly undertakings
Advances in technology and the importance of integration
Changing geo-strategic environment
Conspiracy of optimism
Long term ventures and extended timeframes
Self-sufficiency for Australia as a medium sized country
Marketplace developments
Managing risk
Self-inflicted complexity
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| Part II - Risk and defence procurement |
| Chapter 5 - Risk management and good governance |
(PDF 50KB) |
Risk management in defence organisations overseas
Risk management—best practice
Committee view
Risk management in Defence
Policy
Guidelines
Conclusion
|
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| Chapter 6 - Compliance and awareness |
(PDF 57KB) |
Problems in defence procurement
Culture of risk management
Adherence to procurement policy and guidelines
Awareness and ownership of risk
Committee view
Learning lessons and recordkeeping
Conclusion
|
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| Part III - Accountability, responsibility and collaboration |
| Chapter 7 - Responsibility and accountability |
(PDF 120KB) |
Background to accountability—committees
Who is responsible?
Capability Development Group
Capability Managers
Defence Materiel Organisation
Distinct and complementary responsibilities
Measures to strengthen accountability
Joint project directive
Materiel Acquisition Agreements
Ministerial Directive to the Defence Materiel Organisation
Project charter
Lessons to be learnt and accountability
Conclusion
|
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| Chapter 8 - Communication, integration and collaboration |
(PDF 146KB) |
Shared understandings
Strategy Executive and its relationship with CDG
Management matrix and linkages between groups
Smooth transitions
Involvement of capability managers
Strengthening relationships
Materiel Acquisition Agreement
Project initiation and review board
Committee view
Defence Science and Technology Organisation
Industry
Conclusion
|
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| Part IV - Contestability and independent advice |
| Chapter 9 - An informed organisation—contestability |
(PDF 51KB) |
Early stages–Defence White Paper
Former Force Development and Analysis Division
1997 Defence Efficiency Review and the abolition of the FDA
Associate Secretary (Capability)
Committee view
|
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| Chapter 10 - Contest of ideas and independent advice |
(PDF 94KB) |
Defence's quality assurance framework
Independent Project Performance Office
Gate reviews
Committee view
Independent advice and contestability
Defence Material Organisation
Defence Science and Technology Organisation
Capability Investment and Resources Division
Central agencies
Effectiveness of internal contestability
One Defence view
Conclusion
|
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| Part V - Training, skills and experience |
| Chapter 11 - Knowledge-based organisation |
(PDF 108KB) |
The right people
Smart customer
Specialist skills in Defence
Capability Development Group and Defence Materiel Organisation
Defence Materiel Organisation
Engineering and high technical skills
The Services
Rebuilding Defence's engineering base
Solutions
Conclusion
|
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| Chapter 12 - Technical analysis and test and evaluation |
(PDF 88KB) |
Off-the-shelf purchase
Possible secondary risks
Analysis—test and evaluation
Early testing
Implementation
Resourcing test and evaluation
Long-standing concern
Conclusion
|
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| Part VI - Defence industry |
| Chapter 13 - Sustaining and building Australia's defence industry |
(PDF 106KB) |
Assisting Australian defence industry
Skills in industry
Shipbuilding projects
Defence Materiel Organisation and government initiatives
Committee view
Access to information
Industry's perspective
Committee view
Off-the-shelf
Workflows
Committee view
|
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| Chapter 14 - Defence's relationship with defence industry |
(PDF 87KB) |
Partnership—Defence and industry
Early engagement
Probity concerns
Capability Development Advisory Forum and environmental
working groups
Committee view
Defence Materiel Organisation's negotiations with industry
Contracting and risk sharing between Defence and industry
Industry perspective
Committee view
|
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| Chapter 15 - Conclusion |
(PDF 151KB) |
Challenges and Defence's responses
Process versus genuine reform
Disenfranchised capability managers
Continuing struggle for skilled people
Underperforming organisation
Need for structural reform
Recommendations—proposed model
Strategic Policy Division
Capability managers
Capability Development Group
Defence Materiel Organisation
Specialist acquisition organisation
Defence Science and Technology Organisation
Other recommendations
Future submarines SEA 1000—applying lessons
Air 8000 Ph 2 (Battlefield Airlift—Caribou replacement)
The 2013 White Paper—clarity on future capability
Improving gate reviews
Test and evaluation—building capability
Industry—planning for investment and early engagement with Defence
|
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| Selected Bibliography |
(PDF 11KB) |
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| Additional Comments by Senator Nick Xenophon - Independent Senator for South Australia |
(PDF 14KB) |
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| Additional Comments by Senator David Fawcett - Liberal Party Senator for South Australia |
(PDF 318KB) |
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| Additional Comments by Senator Scott Ludlam - Australian Greens Senator for Western Australia |
(PDF 6KB) |
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| Appendix 1 - Public submissions |
(PDF 7KB) |
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| Appendix 2 - Public hearings and witnesses |
(PDF 13KB) |
Thursday 11 August 2011—Canberra
Friday 12 August 2011—Canberra
Wednesday 5 October 2011—Canberra
Friday 7 October 2011—Canberra
Wednesday 12 June 2012—Canberra
Thursday 13 June 2012—Canberra
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| Appendix 3 - Tabled documents, answers to questions on notice and additional information |
(PDF 8KB) |
Additional Information Received
Answers to Questions on Notice
|
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| Appendix 4 - Independent Members of the Defence Gate Review Board – Background and Experience |
(PDF 13KB) |