1301.0 - Year Book Australia, 2012
ARCHIVED ISSUE Released at 11:30 AM (CANBERRA TIME) 24/05/2012
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Statistics contained in the Year Book are the most recent available at the time of preparation. In many cases, the ABS website and the websites of other organisations provide access to more recent data. Each Year Book table or graph and the bibliography at the end of each chapter provides hyperlinks to the most up to date data release where available.
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CAPABILITIES
In a changing strategic environment, the ADF needs to be a flexible and adaptable defence force, ready to be deployed at short notice and able to be sustained on operations for as long as required.
Capability is defined as the power to achieve a desired effect in a nominated environment in a specified period of time, and to sustain it for a designated period.
Defence maintains a force structure with the following elements:
THE ROYAL AUSTRALIAN NAVY (RAN)
THE ROYAL AUSTRALIAN AIR FORCE (RAAF)
DEFENCE MATERIEL ORGANISATION
The Defence Materiel Organisation (DMO) equips and sustains the ADF through the acquisition and sustainment of capital equipment. The operational success of the ADF depends on the DMO providing equipment on time, on budget, and to the required levels of capability, quality and safety. The DMO, as a prescribed agency under the Financial Management and Accountability Act 1997 (Cwlth), is a professional service delivery organisation, principally driven by the defence policies and objectives set by the Australian Government and the requirements of the ADF. It aims to be a business-like, accountable and outcome-driven organisation with a strong and close relationship with the Government, its Defence customers and industry.
The DMO is currently managing over 190 major acquisition projects (those with a contract value of more than $20 million) and more than 90 minor projects. It also provides sustainment management services for over 100 ‘fleets’ of military equipment. To meet these demands, the DMO has many of its own staff, together with contracted industry suppliers, across Australia and overseas including the United States of America, United Kingdom, France, Spain and New Zealand.
The DMO and the Australian defence industry have a significant and ongoing role to play in delivering new equipment on time, on budget and to specifications underlined by capability effect, quality and safety. In 2011–12, the DMO is budgeted to spend in excess of $11 billion, which equates to about 40% of the Defence budget.
The DMO will manage acquisition and sustainment worth over $115 billion during the next decade, with around 50 to 55% to be spent in Australia. The latest Defence Capability Plan includes about $147 billion worth of projects in Budget 2011–12 prices, which is equivalent to around $214 billion out-turned (i.e. taking into account projected inflation rates).