Defence Materiel Organisation - Mortimer Review

Mortimer Review

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 position be created to implement a business-like focus throughout the organisation.