Terms of Reference

Procurement procedures for Defence capital projects

Terms of Reference

That the Senate Standing Committee on Foreign Affairs, Defence and Trade inquire into and report by 30 November 2011 upon procurement procedures for items identified in the Defence White Paper, Defending Australia in the Asia Pacific Century: Force 2030 and in particular:

  1. assess the procurement procedures utilised for major defence capital projects currently underway or foreshadowed in the Defence White Paper, including the operations of the Capability Development Group and its relevant subcommittees;
  2. assess the timeline proposed for defence modernisation and procurement outlined in the Defence White Paper;
  3. assess proposals arising from the Defence accountability reviews, including, the Mortimer Review, the Pappas Review and the McKinsey Report (2010), in regards to enhancing accountability and disclosure for defence procurement; and
  4. make recommendations for enhancing the availability of public information and parliamentary oversight and scrutiny of defence procurement in the context of guaranteed 3 per cent real growth in the Defence budget until 2017-18.
On 5 July, the terms of reference were amended to include:

  1. assess the effectiveness of the Defence Materiel Organisation including:
    1. its role and functions,
    2. its processes, management structure and staffing, in particular as compared to similar organisations in the United Kingdom, the United States of America, Canada and other comparable jurisdictions and large Australian commercial enterprises,
    3. its full costs, assessed against the timeliness and quality of its output and the service it provides to the Australian Defence Force, and
    4. the extent to which it value-adds to national defence and to the long-term viability of Australian defence industries.

    For further information, contact:

    Foreign Affairs, Defence and Trade Committee
    Department of the Senate
    PO Box 6100
    Parliament House
    Canberra ACT 2600

    Phone:+61 2 6277 3535
    Fax:+61 2 6277 5818


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