type 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 operating income a 9 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 . 1 2 the agency was dissolved on 30 june 2015 and its functions transferred to the capability acquisition and sustainment group within the department of defence . contents 1 organisation 2 mortimer review 3 post mortimer reforms 4 leadership 4.1 2004 to 2011 4.2 2012 to 2015 4.3 first principles review 5 references 6 external links 7 further reading organisation edit 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 . 2 mortimer review edit 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 inadequate project management resources in the capability development group inefficiencies in the processes leading to government approvals for new projects personnel and skill shortages in the dmo delays due to industry capacity and capability and difficulties in the introduction of equipment into full service . in all mortimer made 46 recommendations with 42 accepted in full by the government and three accepted in part . one recommendation was not accepted that the dmo should be separated from the department of defence and become an executive agency . this recommendation which was also made in the 2003 kinnaird review was not implemented by the howard government . as an executive agency the dmo would receive its own acquisition funding stream as a government appropriation and would be headed by a chief executive with significant private sector and commercial experience . mortimer also recommended that a general manager commercial 3 position be created to implement a business like focus throughout the organisation . 4 post mortimer reforms edit ministerial statements in 2010 and 2011 suggested that the government believed new procurement reforms were needed . on 26 november 2010 the minister for defence stephen smith in adding project air 5418 joint air to surface stand off missile jassm to the projects of concern list stated that the listing was because of our poor management our failure to keep government properly and fully informed about the project and its difficulties . minister smith also said that he had asked defence to review the effectiveness of its management of major projects . 5 on 6 may 2011 minister smith announced further defence procurement reforms aimed at improving project management minimising risk at project start and identifying problems early 6 and on 29 june 2011 minister smith announced reforms to the management of projects of concern including the development of formal remediation plans for designated projects . 7 leadership edit 2004 to 2011 edit dr stephen gumley was the dmo s chief executive officer from february 2004 until his retirement was announced by the minister for defence stephen smith on 7 july 2011 . 8 gumley had headed an executive team of around 20 senior managers . according to the dmo website the executive team has considerable private and public sector experience as well as extensive military domain knowledge . 9 under gumley the executive team consisted of the ceo and deputy ceo four general managers ses band 3 systems ; programs ; corporate ; commercial . ten division heads ses band 2 or military two star rank systems divisions maritime systems land systems aerospace systems ; electronic and weapon systems ; helicopter systems ; explosive ordnance . programs corporate and commercial divisions future submarine program ; industry ; smart sustainment ; human resources and corporate services . three program managers ses band 2 or military two star rank airborne early warning and control aew & c ; new air combat capability nacc ; air warfare destroyer awd . a cfo and a special counsel . ses band 2 in addition several major capital acquisition programs were led by senior military or civilian managers . in january 2009 the dsto deputy chief defence scientist level position of chief systems integration officer was added to the management team . 10 in march 2009 the corporate general manager of the dmo jane wolfe was dismissed for unsatisfactory performance . the canberra times reported that its senior public service sources believe she is the highest ranking australian commonwealth public servant to ever have been dismissed for underperformance . 11 wolfe was reinstated in april 2010 following a legal challenge against procedural aspects of her dismissal in the federal court of australia . 12 13 the case is said to have significant implications for the senior executive service of the australian public service where legal challenges to performance decisions have been rare . 14 2012 to 2015 edit on 13 february 2012 warren king former deputy ceo was appointed ceo . the executive team consisted of the ceo and deputy ceo also general manager commercial a further three general managers ses band 3 joint systems and air ; land and maritime ; submarines eleven division heads ses band 2 or military two star rank maritime systems land systems aerospace systems ; electronic systems ; helicopter systems ; explosive ordnance dmo reform business operations special counsel ; commercial industry programs ; commercial enabling services . program managers ses band 2 or military two star rank programs collins and wedgetail ; new air combat capability nacc ; future submarines air warfare destroyer awd . a cfo . ses band 2 and a chief audit executive ses band 1 in addition several major capital acquisition programs are led by senior military or civilian managers . 15 first principles review edit on 1 april 2015 the minister for defence released the first principles review . the review recommended that the defence materiel organisation should be disbanded and the transfer of its core responsibilities in relation to capability delivery to a new capability acquisition and sustainment group 16 which took effect from 1 july 2015 . 17 references edit inside dmo . defence materiel organisation . retrieved 10 april 2010 . a b about dmo . defence materiel organisation . retrieved 10 april 2010 . dmo appoints industry supremo to drive reform . australian financial review . 5 march 2010 . retrieved 8 november 2010 . going to the next level the report of the defence procurement and sustainment review . on target . october 2008 . address to the department of defence senior leadership group press release . australian government department of defence . 26 november 2010 . retrieved 10 july 2011 . strategic reform program press release . australian government department of defence . 6 may 2011 . retrieved 10 july 2011 . speech press release . australian government department of defence . 29 june 2011 . retrieved 10 july 2011 . ceo of dmo retires press release 7 july 2011 leaders in dmo . defence materiel organisation . retrieved 10 april 2010 . dmo leadership chart december 2009 . retrieved on 25 january 2010 . archived 29 december 2009 at the wayback machine . mannheim markus 8 april 2009 . top woman in defence sacked . the canberra times . retrieved 9 april 2009 . davis mark 25 february 2010 . defence executive challenges sacking . the sydney morning herald . retrieved 9 april 2010 . towell noel 9 april 2010 . defence exec wins her job back . the canberra times . retrieved 9 april 2010 . davis mark 9 april 2010 . public servant s sacking reversed . the sydney morning herald . retrieved 9 april 2010 . dmo leadership chart retrieved march 2013 peever david april 2015 . first principles review creating one defence pdf . department of defence australian government . retrieved june 2015 . check date values in access date help fact sheet smaller government defence materiel organisation reintegration into the department of defence ms word . department of defence australian government . may 2015 . retrieved june 2015 . check date values in access date help external links edit official website mortimer review into defence procurement and sustainment further reading edit ergas henry . some economic aspects of the weapons systems acquisition process 2003 ; available from cra international retrieved from https en.wikipedia.org w index.php title defence materiel organisation & oldid 728965614 categories defunct government entities of australiamilitary logistics of australia2015 disestablishments in australia2000 establishments in australiahidden categories articles with wayback machine linkscs1 errors datesengvarb from july 2016use dmy dates from july 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