Inside the Defence Materiel Organisation (DMO)

Overview:

• The Defence Materiel Organisation (DMO) buys and maintains equipment for the Australian Defence Force (ADF).
• The DMO’s first priority is to provide equipment and support for ADF units deployed on operations.
• The DMO will manage over $115 billion of acquisition and sustainment business in the next 10 years.
• On Defence’s behalf, the DMO also manages one of the largest holdings of physical assets and inventory in the country. It signs approximately 2,500 contracts of $100,000 or more a year.
• To meet the demands of the ADF, the DMO must deliver equipment and services on time, on budget, and to the required levels of capability, quality and safety.
• The DMO’s business is complex, with high levels of commercial and technical risk. The DMO manages these risks intensively at all levels to ensure the best possible support to Australia’s warfighters.
• With a cash budget of more than $10 billion this year, the DMO is managing over 180 major capital equipment projects and over 100 minor projects; it also sustains and upgrades over a hundred existing fleets.
• The DMO’s relationships with industry suppliers are critical to performance. Managing contracts is one of the key challenges for the DMO.
• The DMO and industry face significant supply side pressures in terms of capacity, as well as a requirement to improve employee productivity, in order to achieve the levels of growth required over the next 10 years.