Mortimer Review of Defence Procurement and Sustainment

The Minister for Defence, the Hon Joel Fitzgibbon MP, announced today that he has received the independent report of the Defence Procurement and Sustainment Review – the Mortimer Review – conducted by Mr David Mortimer AO.

“In May of this year the Government fulfilled yet another key election commitment by commissioning well known businessman David Mortimer to undertake an independent review of the Defence Materiel Organisation and the effectiveness of Australia’s defence procurement systems,” Mr Fitzgibbon said.

“Mr Mortimer’s review of Defence Acquisition and Sustainment, boldly entitled “Going to the Next Level”, constitutes a far-reaching and in-depth examination of the often complex and bewildering processes, practices and acronyms that comprise Defence’s procurement system,” Mr Fitzgibbon said.

A key focus of Mr Mortimer’s review was examining the implementation and effectiveness of the ongoing reforms to the Defence Materiel Organisation following the 2003 Kinnaird Review of Defence Procurement.

The Mortimer Review has made a total of 46 recommendations, covering five principal areas of concern:

·                                            The Strategy and Needs Analysis of Capability Planning;

·                                            Defining the Requirements of Capability;

·                                            The Capability Acquisition Process;

·                                            Sustaining and Disposing of Capability; and

·                                            Driving Cultural Change in the Defence Materiel Organisation.

One of the more contentious recommendations is that the Defence Materiel Organisation become an Executive Agency. This was a recommendation of the Kinnaird Review that the previous Government chose not to implement.

“It is a concept which appealed to me when I was the Opposition spokesman for Defence matters and one which should be further canvassed and considered.  I said both in Opposition and since the election that I want the Defence Materiel Organisation to run more like a business and less like a bureaucracy.  This imperative will apply whichever approach the Government takes,” Mr Fitzgibbon said. 

“The Government is committed to putting in place a program of reforms prior to the release of the White Paper in order to ensure we have the best procurement systems to deliver the capability our future ADF needs,” said Mr Fitzgibbon.

“While previous reforms have achieved a lot there is much more that can be done as highlighted by this Review including the introduction of greater commercial discipline through the procurement process,” said Mr Combet. 

“The Government is also committed to ensuring greater transparency and accountability throughout the Defence Procurement Process. We want to see a procurement system that delivers better results for the ADF and the Australian taxpayer,” said Mr Combet.

“Already this year the Government has had to cancel a $1 billion helicopter project and a contract for the acquisition of tactical unmanned aerial vehicles. We have also had to order a refresh of a tender to purchase medium to heavyweight trucks for the Army. All of these projects have been subject to poor procurement practices and a lack of effective oversight by the previous Government,” said Mr Fitzgibbon.

“I would like to take this opportunity to express my sincere gratitude to Mr Mortimer for the time and effort he has invested in developing this thorough and comprehensive review. I would also like to particularly thank my Parliamentary Secretary for Defence Procurement, the Hon Greg Combet, for his ongoing effort, dedication and commitment to reforming Defence’s acquisition and sustainment processes,” Mr Fitzgibbon said.

Copies of the report are available at: http://www.defence.gov.au/publications/mortimerReview.pdf

Media contacts:

Christian Taubenschlag (Joel Fitzgibbon):         02 6277 7800 or 0438 595 567

Rod Hilton (Greg Combet):                                  02 6277 4771 or 0458 276 619