• A major project report have been tabled on the DMO's 22 defence major acquisitions.
    A major project report have been tabled on the DMO's 22 defence major acquisitions.
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The Joint Committee on Public Accounts and Audit has tabled its report into the 2009-10 Defence Materiel Organisation (DMO) Major Projects Report (MPR) on 22 defence major acquisitions worth $40.8 billion.

The projects represent just over half the budget for the DMO’s approved major capital investment program.

Committee chair, Rob Oakeshott MP, said reviewing and reporting on MPRs is an important part of his Committee’s work.

The JCPAA is charged with overseeing the DMO and the Australian National Audit Office’s (ANAO) examination of the progress of defence purchases individually worth between $377 million and $7.7 billion.

“Each successive committee report on the MPR is intended to improve accountability and transparency in regard to the management of major defence capital acquisition projects,” Oakeshott said.

Specifically, the Committee recommended that ongoing financial comparison of project costs be improved through resolution of the base date dollar issue; which led to qualified audit opinions being given by the ANAO in the MPR.

This issue is related to the methodology by which costs are presented and compared over time.

The committee, however, anticipates resolution of the matter in the 2011-12 MPR.

Other areas of interest highlighted during the review included:

• timing of the preparation of the MPR Guidelines;

• determining the exit criteria for MPR projects;

• the impact of financial control frameworks on the cost, schedule and capability of projects;

• analysis of the Gate Review Assurance Boards process, which requires an assessment of risks (including cost and timeline) at various stages of a project; and

• inclusion of Earned Value Management Systems data in the Project Data Summary Sheets for individual projects.

This system allows progressive payment of contractors based on performance.

The report can be downloaded at http://www.aph.gov.au/house/committee/jcpaa/defenceannual0310/index.htm

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