ISSUE 4 : May/Jun - 1977 - Australian Defence Force Journal

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ISSUE 4 : May/Jun - 1977 - Australian Defence Force Journal

DEFENCE PROCUREMENT IN AUSTRALIA 3370/71CAPITAL EQUIPMENTTotal 144(Local) (67)REPLACEMENT EQUIP­MENT AND STORESTotal 162(Local) (106)REPAIR AND OVERHAULTotal 31(Local) (31)71,72140(81)170(123)39(38)72/73152(66)144(115)44(43)(SM)73/74102(50)126(96)44(43)74/75102(44)140(111)58(52)75/76162(57)171(129)67(66)76 77318 *(101))*186*(145)*72 *(65)*TOTAL(LOCAL)337 349 340 272 300 400 576 *(204) (242) (224) (189) (207) (252) (310)** Estimated ExpenditureFigure 2: Industry related expenditure on Defence Function —ture in Australian Industry is indicated in brackets1970/71-1976/77. Expendi-Locol) .three Services which originate equipmentrequirements, there are a number of departmentalDivisions involved in equipment matters.Those Divisions of particular importance inthe shaping and development of major equipmentprojects are the Force Development andAnalysis Division, the branches headed by theChiefs of Materiel for the Services and theDefence Industry and Materiel Policy Division.FDA and DIMP are responsible to the Secretaryof the Department; the Chiefs of Materielare 'two hatted' in that they have dual responsibilitiesto their individual Service Chief and tothe Secretary. At Figure 3 are brief summariesof the functions of these Divisions.FORCE DEVELOPMENT AND ANALYSISDIVISIONPolicy advice for Service DepartmentalCommittees on the force structure as a wholeand on the capabilities required, includingthe nature of the forces, their support andactivities: the initiation of objective analysisof proposals for these capabilities, particularlyfor major weapon systems: advice on thebases for proposals to be brought forwardrelating to force structure and equipment:drafting of capabilities papers.DEFENCE INDUSTRY AND MATERIELPOLICY DIVISIONThe formulation and implementation ofpolicies for the development of defence capabilitiesin industry: general oversight, in consultationwith the Chiefs of Materiel, of theequipment acquisition process includingformulation of procurement strategics andmanagement arrangements, standard proceduresand guidelines; participation in theevaluation of proposals, and contractual negotiations,including responsibility for DefenceSource Definition Committee considerations,and development and implementation ofindustry involvement proposals: developmentof procurement policies including negotiationswith other Government authorities on purchasingmatters; development of stockholdingpolicies for materiel, strategic materals andequipment.CHIEFS OF MATERIELResponsible both to the Secretary (throughthe Deputy Secretary) and to the respectiveChiefs of Staff for ensuring the timely submissionof projects for Service equipment tothe various processes of analysis and presentationup to point of Government decision,working in concert with relevant divisions ofthe Department. Responsible to respectiveChiefs of Staff for management of all capitalequipment projects.Figure 3: Functions of Force Development and AnalysisDivision, Defence Industry and MaterielPolicy Division and Chiefs of Materiel.Committee StructureA number of committees figure prominentlyat key points in the progress of a projectthrough the system from initial operationalrequirements to purchase.DORCThe Defence Operational RequirementsCommittee has only recently been established.This Committee, chaired by the Assistant Chief

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