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Defence updates its Capability Plan

by Staff Writers •
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The Department of Defence has released its scheduled update to the Defence Capability Plan (DCP), revealing that six of the 110 original projects have now been approved, bringing these projects one step closer to implementation.

Five of these six projects involve either a high or very high component of ICT, according to Intermedium analysis.

The six approved projects have an estimated combined value of $750 million, including an estimated $220 million of ICT spending.

The DCP update also sees six projects brought forward for earlier consideration, five will be considered later than originally anticipated and two projects have been deleted.

Among those projects brought forward is Defence Management Systems Improvement – Personnel Systems Modernisation.

This project has a very high ICT component and Intermedium estimates its ICT value could be worth as much as $320 million.

These changes have resulted in a minor revision in Intermedium’s estimates for the total value of the ICT component of projects in the DCP, down $60 million to $10.11 billion.

The estimated total value of projects has also been revised downwards to $45.73 billion.

Intermedium’s initial analysis of the DCP in July 2009 indicated that all 110 projects listed had an ICT component. 

Of these, 62% had either a high or very high ICT component, based on an assessment of their description.

This percentage has remained stable in the February 2010 update.

Over the last four years, Defence ICT purchases have been larger than the next three largest agencies (Centrelink, ATO and DIAC) combined.

With the rapid implementation of Network Centric Warfare, the inherent level of ICT across all elements of Defence will continue to increase.

The update was released on Friday, 26 February 2010, about nine months after the Plan was initially released on 1 July 2009.

Intermedium’s Defence procurements tracking tool, defence IT, has been revised to reflect all these changes. Subscribers to the services have already received their updated reports.

For more information about purchasing a subscription to Defence IT, contact sales on (02) 9955 9896.

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