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The First Principles Review – The Government’s reform program 171
7.25 Proper planning for the acquisition of complex equipment and systems
takes years of analysis and careful decision-making before acquisitions
can commence. This is only proper for the expenditure of billions of
dollars involving decades of effort. New submarines and frigates, for
example, will be brought into service from the 2020s until well into the
2040s and will operate into the second half of this century. It is therefore
essential that Defence planning for the future force is consistent and
predictable and is supported by consistent and adequate budgets.
7.26 The Defence Materiel Organisation has been disbanded and its core
responsibilities in relation to capability delivery have been transferred
to the new Capability Acquisition and Sustainment Group. The new
Group is led by a Deputy Secretary reporting to the Secretary of the
Department of Defence. The number one priority for the new Group is to
work cooperatively with other parts of Defence to ensure the ADF has the
necessary capabilities to fulfil its missions and operations.
7.27 The establishment of the 10-year Integrated Investment Program
provides the framework for capability development and delivery
functions in Defence. This will be reinforced by the strategic direction,
force design, and contestability functions addressed earlier in this
chapter to ensure an integrated capability development life cycle. This
approach will enable Defence to better manage investment, set priorities
and allocate resources in accordance with this White Paper.
7.28 Defence’s acquisition processes will be improved to introduce
more rigour and agility. Defence will introduce greater rigour to the
development of projects before they enter the approval process to
make sure they are aligned with the Strategic Defence Objectives.
Defence will capitalise on the work done to cost assure this White
Paper by introducing more fidelity of cost estimation into the capability
development process, including ongoing independent external
assurance of Defence project costs.
SECTION THREE REFORM, RESOURCING & IMPLEMENTATION
2016 DEFENCE WHITE PAPER