Mortimer Review Of Defence Procurement And Sustainment

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23rd September 2008, 07:17pm - Views: 835





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THE HON JOEL FITZGIBBON MP

Minister for Defence


THE HON GREG COMBET AM MP

Parliamentary Secretary for Defence Procurement




Tuesday, 23 September 2008

129/2008

MORTIMER REVIEW OF DEFENCE PROCUREMENT AND

SUSTAINMENT


The Minister for Defence, the Hon Joel Fitzgibbon MP, announced today that

he has received the independent report of the Defence Procurement and

Sustainment Review – the Mortimer Review – conducted by Mr David

Mortimer AO. 


“In May of this year the Government fulfilled yet another key election

commitment by commissioning well known businessman David Mortimer to

undertake an independent review of the Defence Materiel Organisation and

the effectiveness of Australia’s defence procurement systems,” Mr Fitzgibbon

said.


“Mr Mortimer’s review of Defence Acquisition and Sustainment, boldly entitled

“Going to the Next Level”, constitutes a far-reaching and in-depth examination

of the often complex and bewildering processes, practices and acronyms that

comprise Defence’s procurement system,” Mr Fitzgibbon said.


A key focus of Mr Mortimer’s review was examining the implementation and

effectiveness of the ongoing reforms to the Defence Materiel Organisation

following the 2003 Kinnaird Review of Defence Procurement.


The Mortimer Review has made a total of 46 recommendations, covering five

principal areas of concern:

The Strategy and Needs Analysis of Capability Planning;

Defining the Requirements of Capability;

The Capability Acquisition Process;

Sustaining and Disposing of Capability; and

Driving Cultural Change in the Defence Materiel Organisation.


One of the more contentious recommendations is that the Defence Materiel

Organisation become an Executive Agency. This was a recommendation of

the Kinnaird Review that the previous Government chose not to implement. 



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“It is a concept which appealed to me when I was the Opposition spokesman

for Defence matters and one which should be further canvassed and

considered.  I said both in Opposition and since the election that I want the

Defence Materiel Organisation to run more like a business and less like a

bureaucracy.  This imperative will apply whichever approach the Government

takes,” Mr Fitzgibbon said.  


“The Government is committed to putting in place a program of reforms prior

to the release of the White Paper in order to ensure we have the best

procurement systems to deliver the capability our future ADF needs,” said Mr

Fitzgibbon. 


“While previous reforms have achieved a lot there is much more that can be

done as highlighted by this Review including the introduction of greater

commercial discipline through the procurement process,” said Mr Combet.  


“The Government is also committed to ensuring greater transparency and

accountability throughout the Defence Procurement Process. We want to see

a procurement system that delivers better results for the ADF and the

Australian taxpayer,” said Mr Combet. 


“Already this year the Government has had to cancel a $1 billion helicopter

project and a contract for the acquisition of tactical unmanned aerial vehicles.

We have also had to order a refresh of a tender to purchase medium to

heavyweight trucks for the Army. All of these projects have been subject to

poor procurement practices and a lack of effective oversight by the previous

Government,” said Mr Fitzgibbon. 


“I would like to take this opportunity to express my sincere gratitude to Mr

Mortimer for the time and effort he has invested in developing this thorough

and comprehensive review. I would also like to particularly thank my

Parliamentary Secretary for Defence Procurement, the Hon Greg Combet, for

his ongoing effort, dedication and commitment to reforming Defence’s

acquisition and sustainment processes,” Mr Fitzgibbon said.


Copies of the report are available at:



Media contacts:

Christian Taubenschlag (Joel Fitzgibbon):

02 6277 7800 or 0438 595 567

Rod Hilton (Greg Combet):

02 6277 4771 or 0458 276 619






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