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Defence Procurement Reform Announced

by Staff Writers •
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Prompted by a number of high profile problems with its procurement processes on major projects, the Defence Materiel Organisation (DMO) has issued a procurement reform package, and called for public comment. The objectives of this new program of interest to ICT vendors include:

Implement a more commercial procurement model

  • Try to align Defence and industry interests
  • Use standard commercial practises to present a more usual risk profile for industry
  • Provide multiple pricing models rather than mainly fixed priceTry to align Defence and industry interests

Implement global sourcing practises

  • Implement global best sourcing practises to protect both parties
  • With global consolidation of the defence industry, contracts must be understood globally

The key tasks of this reform are aimed at controlling delay, controlling risk associated with change of scope, performance-based contracting, governance, new emphasis on commerciality, unique Commonwealth requirements, limitation of liability, and probity.

Tendering and contracting templates exposure drafts have been issued for the industry and other stakeholder consultation and comment until 12 February 2007. Click to download the templates and associated information.

DMO held a series of introductory meetings around Australia in November 2006. Click to download a copy of the National PIP Presentation.

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  • Federal
  • Defence
  • Defence
  • DMO
  • Procurement
  • Procurement Reform