Bulletin
JULY 2011
Creating a culture
of reform
C-17A flock to expand
A fifth Globemaster III secured
The big picture
Understanding the Tiered Body Armour System
DMO PURPOSE | Equip and Sustain the Australian Defence Force
DMO NEWS
Thank you to the following who
provided information for the articles
in this issue of the
DMO Bulletin:
Will Ashcroft, Harry Baxter,
Warren Bishop, Mic Bowbrick,
Stacey Brandon, Michael Bruce,
Robert Cantrell, Squadron Leader
Darren Dunk, Grace Franco, Lynn
Gill, Sarah Gillis, Squadron Leader
Jules Greening, Genevieve Hassall,
Jeannette Hector, Group Captain
James Hood, Lynn Hutteball,
Amanda Kerr-Thomson, Ruth
Kirchner, Wendy Messer, Michele
Miller, Zuzana Milne, Judy Paule,
Michelle Perks, Squadron Leader
Amool Prasad, Peter Purcell,
Douglas Ridd, Peter Ridley, Polly
Ringoen, Maggie Robinson,
Adrian Rodrigues, Erin Russell,
Flight Lieutenant Rebecca Sharp,
Matt Sprakel, and Abdella Umar.
Artwork styled and produced by the
Strategic Communication team.
No part of this publication can be
reproduced without the permission of
the Editor.
All articles reprinted must be attributed
to the DMO Bulletin.
Contact the
DMO Bulletin Editor,
Michelle Perks, with your story ideas:
michelle.perks@defence.gov.au
or telephone 02 6265 1636.
For general enquiries or support
please email the DMO Strategic
Communication team:
DMO.Communication@
defence.gov.au.
Editorial staff reserve the right to
edit and rearrange all items in the
DMO Bulletin for the reasons of clarity
and space. While editorial staff are
not responsible for the accuracy of
the information submitted, every
reasonable effort will be made to
verify content.
In the news
MAY
The Australian Defence Force (ADF) will have access
to interim Basic Flying Training while AIR 5428 is being
completed, following an $86.6 million agreement with
BAE Systems Australia. Under the six year contract, BAE
Systems will continue to provide basic training at Tamworth
using the CT-4B Airliner aircraft.
Defence will save $100 million over the next decade after
the DMO revised the contracts for operating the radar
network protecting Northern Australia, said the Minister for
Defence Materiel, Jason Clare. The savings will be achieved
by Defence working in partnership with BAE Systems and
Lockheed Martin to deliver more efficient support services
to the Jindalee Operational Radar Network (JORN).
JUNE
RAAF Base Amberley staff operating the new KC-30A air
to air refuelling tanker will have access to on the ground
training services after the DMO secured a $20 million
contract with CAE Australia. CAE will provide maintenance
and support to the simulator on which aircrews of the
KC-30As will be trained. Issues with the simulator will
be addressed quickly as experts will be based at the
training centre.
The ADF will have new naval combat helicopters after
the Government approved the acquisition of 24 MH-60R
Seahawks for over $3 billion. The helicopters are largely
military off-the-shelf built Sikorsky and Lockheed Martin
and will be purchased through the Foreign Military Sales
process from the United States (US) Navy.
Force protection measures will be enhanced after the
Minister for Defence Materiel, Jason Clare, announced a
$9 million contribution towards research for protection of
soldiers of the ADF. The funding is part of a partnership
with Industry who will provide around $11 million in funding
and in-kind contributions to improve protective equipment
that soldiers wear to combat a range of existing and
evolving threats.
101 additional Bushmaster vehicles will be supplied by
Thales Australia, as announced by the Minister for Defence,
Stephen Smith, and the Minister for Defence Materiel,
Jason Clare. The vehicles, together with associated
support, are being purchased at a total cost of $133
million. The Ministers also announced finalisation of the
acquisition process for the United Kingdom Bay Class
amphibious ship Largs Bay.
The DMO: www.defence.gov.au/dmo
Skilling Australia's Defence Industry: www.defence.gov.au/sadi
The Defence and Industry ePortal: www.dplusi.defence.gov.au
2 | DMO Bulletin July 2011
from the CEO
High praise for ops support
ood news is often
overlooked in our business.
Our customers are rightly
very demanding of the DMO, and it
is inevitable that attention centres
on those times when we can’t, or
don’t, meet their high expectations.
Over the last 18 months, a great
deal of effort has been placed into
strengthening and reinforcing the
collaborative working relationships
between Army, DMO, Defence Science
Technology Organisation (DSTO) and
Capability Development Group (CDG).
An area of immediate attention has been
a stronger focus on the requirements of
soldiers on operations, now and into the
future and to expedite delivery of kit for
our troops.
In that context it was very pleasing
to hear of a letter that the Head of
Modernisation and Strategic PlanningArmy, Major General John Caligari,
received from the commanding officer
of the next rotation of Mentoring
Task Force (MTF) troops heading for
Afghanistan. The Chief of Army was
good enough to bring it to the attention
of Senators, and tabled the letter at the
recent Estimates hearings in Canberra.
In part the letter read:
The Defence Materiel Organisation
and, more recently, Diggerworks have
provided exemplary support to the
equipping of both the 2nd Battalion
and the MTF3 with leading equipment.
Major Nathan Juchniewicz [in Army
headquarters] is an outstanding officer
and has worked closely with my staff to
ensure that 2 Royal Australian Regiment
(RAR) and MTF3 have been equipped
with leading body armour, webbing and
weaponry. Not only has the equipment
been delivered in a timely manner but
the design of the equipment has been
world-class. The overwhelmingly positive
response to the issue of this equipment
by 2RAR and MTF3 personnel
underscores the superb professionalism,
responsiveness, foresight and agility
of Nathan and his team. In a similar
fashion, Lieutenant Colonel Alan Mellier
and his team from the Defence Materiel
Organisation have provided both
sage advice and exceptional support
to 2RAR and MTF3 in facilitating the
delivery of the key tiered body armour
system and associated soldier combat
equipment. The professionalism,
responsiveness and agility evidenced
by Lieutenant Colonel Mellier and his
team is commendable. Colonel Blain
and his team from Diggerworks have
been intimately involved in gauging the
response from 2RAR and MTF3 soldiers
to the equipment suites delivered by
Major Juchniewicz and Lieutenant
Colonel Mellier. They have also actively
sought to facilitate the validation of
other equipment not linked to existing
Army minors or majors projects that
would enhance the capacity in close
combat to operate and fight in both
war and, more broadly, a war - the war
that we have and a war into the future.
I request that you forward a copy of
this letter to Nathan, Alan and Colonel
Blain as a token of my appreciation
for the exceptional support that they
have provided to 2RAR and MTF3 over
the last 12 months. The superlatives
accorded in describing the efforts of
these officers and their staff are well due.
This is a very welcome
acknowledgement of DMO’s efforts,
including our establishment of the
Integrated Soldier Systems Branch
and also our response to the 2010
Lewincamp and Whalan reviews.
It shows that our focus remains on
tangible actions to improve our support
to the ADF.
The improved liaison and feedback
channels from the soldier back to the
headquarters are complemented by
a new spiral development approach
and a more efficient supply chain.
Together, initiatives like MyDefenceGear
and Diggerworks will ensure that
successive rotations of operational
forces are getting the best kit and
taking advantage of new developments,
but also that these new items of our
inventory are properly tested and
accepted by the customer.
INSIDE THIS ISSUE
04 | People power
09 | Staying
connected
12 |The big picture
14 |C-17A flock
to expand
16 |JSF checkup
To the three gentlemen named here, and
to your teams and to the leaders of Land
Systems Division, I pass on my thanks
and congratulations for your efforts.
Your strong focus on the needs of
our deploying forces is true to DMO’s
mission and a great example for others
to follow.
Dr Stephen Gumley AO
CEO DMO
DMO Bulletin July 2011 | 3
DMO REFORM
People power
ave you ever watched a flock
of birds fly in a ‘V’ formation?
Determined to get to their
destination these birds soar through
the sky together to maximise the
efficiency and speed of the team.
As each one flaps its wings it
becomes easier for the birds behind
to follow, and when the leading bird
gets tired another takes its place.
Although the team had been preparing
for months, a problem at the eleventh
hour looked set to cripple the entire
mission. The day before 42WG was
due to depart, the team realised that
the brackets to attach the fly-away-kit
weren’t compatible with the Wedgetail
aircraft. As this kit was essential to the
team's mission, the pressure was on
to find a solution.
The DMO team looking after Australia’s
Wedgetail – the 737 Airborne Early
Warning and Control (AEWC) aircraft –
has taken a leaf out of this book.
Although AEWCSPO managed to
locate a supplier for this bracket,
engineers from all areas – the
DMO, Boeing and RAAF’s 42WG –
discovered that by working together
they could address the problem more
efficiently.
Over the last 18 months, the AEWC
Systems Program Office (SPO) has
welcomed everyone involved in keeping
this aircraft in the air to its flock. This
means the DMO’s AEWCSPO, the
prime contractor - Boeing, and the
aircraft’s capability managers - RAAF
personnel at 42 Wing (WG), are now
supporting one another in an effort to
meet a common goal.
Last year, the Chief of Air Force, Air
Marshal Mark Binskin, organised for
an Australian Wedgetail aircraft to fly
to South Korea for a flag ceremony.
The change
has to come
from the top
down through
visionary
leadership.
But it’s the
people on
the ground
who know
where reform
can be made
and without
their support,
change just
can’t happen.
4 | DMO Bulletin July 2011
In the space of 24 hours, these
engineers worked around the clock to
design, build, test, verify and certify
replacement brackets, which ultimately
meant the aircraft could complete its
scheduled task.
After hearing this story, the DMO
Bulletin visited AEWCSPO at RAAF
Base Williamtown, New South Wales,
to learn how this remarkable outcome
was achieved.
One Team
AEWCSPO is buzzing with a sense of
community. DMO, RAAF and Boeing
staff are all working together under
the same roof with their desks side
by side. There are joint lolly jars and
biscuit tins between pods of staff and
as you walk through the hallways,
posters detailing the organisational
structure and goals show all three
areas under a single name and
vision; ‘Wedgetail One Team' - Swift,
Resilient, Decisive, Respected.
This relationship has evolved into a
three way partnership - it hasn’t
always been like this.
When the Wedgetail aircraft first
came into operation in early 2010, the
SPO experienced the usual teething
problems associated with managing
a new capability. It had to learn all of
the idiosyncrasies of its new weapon
system and cement its relationship
with industry and 42WG.
At this stage, Defence – being the
DMO and the RAAF – and Boeing staff
worked separately. Lawyers facilitated
meetings between the three parties
dmo reform
and security doors actually prevented
access between physical areas of
the building.
In an effort to facilitate a relationship
change, DMO and Boeing staff decided
to collocate in the same building.
The DMO’s Flight Lieutenant (FLTLT)
Rebecca Sharp, said it was as if the
three parties were working against
each other.
This meant that people were
now sitting and working with
their equivalents in each of the
organisations. The security doors were
removed so that staff from all three
organisations could float between
areas, the managers moved next door
to one another and the corporate,
operational, contracting, training and
maintenance teams were all grouped
together. ‘Wedgetail One Team’
became a reality.
“It was a real case of us verses
them and these attitudes were deep
seated,” she said.
“The DMO staff felt as if the contractor
was just in it for the money while the
Boeing staff felt as though they were
being used.”
Polly Ringoen, from Boeing’s Program
and Operations team, said this division
had even crept into the more social
parts of office culture.
“We couldn’t even share kitchen
facilities. We had Commonwealth
coffee and Boeing coffee and
there was absolutely no cross
over,” she said.
Something had to give.
With nothing to lose, the three
organisations tried to find some
shared ground, and in doing so, they
discovered they had a common goal
– support the Wedgetail aircraft, which
assists the ADF in protecting the
Australian Public.
The SPO now works in a collaborative
manner with its partners and the three
organisations refer to themselves as a
tripartite team. This doesn’t mean they
always agree or that support services
for the new AEWC aircraft are perfect,
but they’ve got systems in place
across all levels of the organisation to
ensure their joint goal can be satisfied.
The integrated Wedgetail team is
a great example of what the DMO
CEO, Dr Stephen Gumley, was
discussing in our last edition of the
DMO Bulletin. He explained the need
to engage genuinely with our capability
managers and industry suppliers to
meet our future savings targets under
the Strategic Reform Program (SRP).
“We need to be smarter with our
spending. We need to look for new
and better ways of doing business,”
he said.
The tripartite team has mapped out its
joint business processes in an effort
to understand where improvement
can be made. By applying what the
business world calls LEAN principles,
AEWCSPO has identified the five areas
of the program that are essential in
meeting its goal. See 'page 7' for LEAN
explanation.
These are known as value streams
and are actually common to all DMO
SPO projects:
• Engineering takes an idea and
turns it into a physical artefact.
• Operations takes the physical
artefact and produces a military
effect.
• Maintenance takes a broken
artefact and returns it to a
serviceable state.
• Supply Chain acquires and moves
bits from one location to another
location.
• HR/Training takes inexperienced
people and makes them smarter.
The SPO measures value in each
of these streams by balancing the
1
The tripartite Wegetail
Team outside its
Williamtown office.
5 | DMO Bulletin July 2011
DMO REFORM
2
FLTLT Derek
Aranha, explaining
the AEWCSPO
Storyboard. This
storyboard is
centrally located
and the metrics are
regularly updated
so that everyone
can see how the
organisation is
performing in terms
of minimising the
Wedgetail’s cost
and downtime and
maximising its utility.
competing needs to minimise the Wedgetail
aircraft’s downtime and cost while maximising
its utility.
The Officer Commanding (OC) AEWCSPO,
Group Captain (GPCAPT) James Hood
(Hoody), said all members of the Wedgetail
team – no matter what rank or level – are
encouraged to focus on these three key
measures to differentiate between value
adding and non-value adding tasks.
There are no
secrets, no
disputes and
no surprises.
We work
together
to review
the budget,
identify
pressures
and risks and
how we work
the finances
to achieve
the one goal.
“I’ve had instances where junior staff
members tell me that some of their duties
don’t reduce cost and downtime or maximise
utility,” he said.
“They say they only do these tasks because
they’re policy requirements.”
“If this is the case, then we need to challenge
these policy requirements.”
AEWCSPO’s Contracting Officer, Amanda
Kerr-Thomson, said this way of thinking has
shaped the SPO’s contract arrangements
with Boeing.
“Our contract is seen as an enabler that
allows us to come up with innovative ideas
that prevent us being bound to unnecessary
tasks, review and rework,” she said.
Boeing has welcomed this fresh approach.
Polly Ringoen is actually a third generation
Boeing employee and said this value adding
principle has transformed the way business
is done.
6 | DMO Bulletin July 2011
“When the Commonwealth engages with
a contractor, the contractor has to supply
pages of documentation showing how it will
fulfil its duties,” she said.
“While some of this paperwork is necessary,
we’re usually required to produce dozens of
these unnecessary documents which means
our team is tied up completing a task that
doesn’t minimise downtime and cost or
improve utility.”
“The key is working out which of these
necessary non-value adding tasks can
be eliminated or at least reduced – which
is what the integrated Wedgetail team
has done.”
But it’s not just the management of these
three areas that is pushing reform and
collaboration.
As FLTLT Sharp said, strong leadership is
essential but the lower ranks have to be on
board as well.
“The change has to come from the top
down through visionary leadership. But it’s
the people on the ground who know where
reform can be made, and without their
support, change just can’t happen,” she said.
Squadron Leader (SQNLDR) Jules Greening
from 42WG, the SPO’s Technical Lead,
SQNLDR Amool Prasad, and Boeing’s Chief
Engineer, Matt Sprakel, are all key members
of what’s called the Joint Integration Group
(JIG). This body is made up of representatives
from all three organisations, who are at the
dmo reform
SQNLDR level – those who are on the front
line in keeping the Wedgetail flying.
management teams can focus on strategy
and future planning.
SQNLDR Prasad, says the JIG meets on a
weekly basis to share problems, ideas and all
issues relating to the capability.
With an integrated, focussed team and an
acute awareness of its primary goal, the
AEWCSPO has transformed the way
it operates.
“The idea is to devolve as much of the
responsibility and decision-making as
far down the organisation as possible,”
he said.
SQNLDR Greening said this enables the front
line to identify and eliminate constraints in
keeping the Wedgetail aircraft operational.
“It’s all about empowering the worker level
managers who have the knowledge and the
resources to create change and get the job
done,” he said.
“Rather than directing everything up to the
management level and waiting a month for a
decision to be made, we have the ability to
take action.”
The same groups exist higher up the food
chain, but with the working level taking care
of the aircraft’s daily operations, senior joint
FAST FACT
For the first time in the DMO’s history, the
Commonwealth and contractor share a
common financial process because their
finance teams – like the rest of the SPO –
are collocated.
AEWCSPO’s Cost-Plus Manager, Michael
Bruce, said this has made both sides more
transparent in their dealings.
“We’re a joint finance team. We share the one
set of numbers and manage Commonwealth
funds together,” he said.
“There are no secrets, no disputes and no
surprises. We work together to review the
budget, identify pressures and risks and how
we work the finances to achieve the one goal.”
This arrangement works so well because of
the novel contracting approach used by the
It’s all about
empowering
the worker
level
managers
who have the
knowledge
and the
resources
to create
change and
get the job
done.
AEWCSPO InteGRATED BUSINESS MODEL
ACQUISItiON
IN-SERVICE
Engineering Value Stream
Operations Value Stream
Maintenance Value Stream
Supply Chain Value Stream
HR/Training Value Stream
Project Mangement
Sustainment Management
Cost
Cost
3
This diagram shows how 42WG,
AEWCSPO and Boeing undertakes
acquisition and sustainment activities
in an integrated way to satisfy their
common goal; protecting the Australian
public with the Wedgetail aircraft.
7 | DMO Bulletin July 2011
Schedule
Capability
Downtime
Utility
dmo reform
4
The tripartite team
during the Boeing
LEAN training.
L-R:
FLTLT Scott
Harvey (AEWCSPO
Engineering
Management Unit),
Verne Sheather
(AEWCSPO Logistics
Management
Unit), Jim Cole
(Boeing Engineering
Management Unit),
Amanda Atkins
(AEWCSPO Business
Support Unit).
AEWCSPO to engage Boeing’s
services.
Traditionally, companies are
contracted for a defined scope of
work and the DMO is responsible
for providing the remaining support
services. Under the Wedgetail
arrangement, the DMO has
outsourced all SPO functions to
Boeing – rather than just parts of it –
which means Boeing does everything,
unless it is explicitly excluded in the
contract as a DMO responsibility.
This reverse contracting approach
means that the DMO and Boeing are
never in dispute over the scope of
work to be done by the contractor. It
also makes the process more efficient
as there are fewer contract change
proposals going through the DMO.
Unlike a traditional cost-plus contract,
Boeing’s profit is not based on the
cost of the services it provides. Rather,
the DMO pays Boeing a fixed-fee to
manage the contract.
Boeing managers are then rewarded
internally if they make efficiencies
and reduce costs, meaning there’s
incentive for Boeing to get more value
for the Commonwealth's dollar.
8 | DMO Bulletin July 2011
While Boeing has more responsibility,
it now has the flexibility to be
innovative in how it gets the job done.
This is creating real savings that can
be channelled into other activities
that help the entire Wedgetail Team
achieve its goal.
Although AEWCSPO doesn’t have any
SRP savings targets – because the
aircraft is a new capability – last year’s
savings reached $1.78 million and
around $10 million worth of savings
look set to be achieved this year.
This contracting approach is
underpinned by the AEWCSPO’s
tripartite culture. Boeing is really seen
as a member of AEWCSPO rather
than a contracted supplier and is
working with AEWCSPO to protect
the Australian people and spend
Commonwealth funds wisely.
Lessons Learnt
SRP is all about creating a cultural
shift to change the way the Defence
environment operates.
By establishing a clear goal,
understanding value in the eyes of
the ultimate customer, removing
constraints at all levels of the
organisation, benchmarking itself
against best business practices and
improving its relationship with its
industry partner, the AEWCSPO has
become a living example of smart
sustainment.
For more information about
AEWCSPO’s transformation
and operations, contact
the Executive Officer, Maggie
Robinson, on 02 4034 8275.
FAST FACT
DMO CAPABILITY
Staying
Connected
f you’ve ever spent time living overseas,
you know how important it is to keep in
touch with family, friends and of course
what’s making news back in Australia.
ADF personnel are no different. While they’re
away on operations or exercises, it’s essential
they can experience some parts of their
normal lives.
More importantly, ADF personnel, whether
they’re on the ground, at sea or in the sky,
need reliable and secure communication
tools to stay connected to one another, their
commanders, and their headquarters.
Satellite Terminal (SAT-T) SPO, and Joint
Project (JP) 2008 Phase 3E, is supporting this
requirement by bringing a cutting edge voice,
data and video communication network for the
ADF to reality.
The JP 2008 3E project has been
delivering a part of this advanced satellite
communications (SATCOM) capability to the
Royal Australian Navy (RAN) since 2004. The
SATCOM system, known as MASTIS, has
been installed on the RAN’s Landing Platform
Amphibious, Fast Frigate Guided, and Fast
Frigate Helicopter ships.
Back in November 2008, the SPO extended
this contract with BAE Systems Australia to
supply five maritime satellite communications
terminals for Australia’s future Landing
Helicopter Docks (LHD) and Air Warfare
Destroyers (AWD). But these additional
terminals are different.
The DMO Bulletin recently caught up with
SAT-T-SPO’s Major Projects Director, Peter
Ridley, who explained what makes these
terminals so special.
“Ships typically have only one antenna system
designed to work within a single SATCOM
frequency band. Some European vessels have
two antennas but they still only operate using
a single frequency band,” he said.
“The SATCOM terminals for the LHD and AWD
are equipped with two antennas, but both
antennas will be capable of transmitting and
receiving on multiple bands simultaneously.”
We realised
early in the
piece that
we had a
common goal
- to provide
the LHD and
AWD ships
with the best
SATCOM
capability
available.
“It will also be possible to be connected
to two different satellites at the same time a significant capability improvement for
the RAN.”
This dual-band, dual-antenna approach will
provide the LHD and AWD with advanced
SATCOM availability and will allow a substantial
increase in the ship's data capabilities, even
under heavy interference conditions.
5
Dual MASTIS
Antenna under
test.
9 | DMO Bulletin July 2011
DMO CAPABILITY
6
Installing the MASTIS
antenna.
DID YOU
KNOW?
The high speed network access will improve
the professional duties and personal lives of
those on board the ships, and it’s not too
far away with the team progressing in leaps
and bounds.
television programs at their fingertips,
they’ll be able to stay in touch with what’s
happening at home.”
Factory Acceptance Testing of the second
LHD terminal has just been completed and
senior representatives from the DMO and the
ADF will be able to see the third terminal in
action later this month when BAE Systems
hosts a demonstration of this new technology.
According to Mr Ridley, JP 2008 3E is giving
Australian Industry companies that are
contracted by BAE Systems, an opportunity
to display their technology and capability.
But it’s not just the personnel on board the
ships who will be benefitting from this project.
What will this new technology
actually do?
“The products developed by the locally based
Small and Medium Enterprises (SMEs) are
state of the art and world first technologies in
their respective fields,” he said.
Situational awareness and command
and control will be enhanced with greatly
increased data rates and access to Defence
specific information networks in real time.
“EM Solutions, VIPAC, EMC Technologies,
and SKM have all contributed to the
development and delivery of this capability
and are receiving great exposure.”
On a more personal note, the terminals will
also allow sailors, soldiers and airmen serving
aboard these ships, access to Australian
television content, the Internet, Voice over
Internet Protocol (VOIP) telephone services
and Video VOIP.
Good relationships foster
good outcomes
Mr Ridley said this will give the personnel a
sense of normality while at sea.
SAT-T SPO and BAE Systems attribute the
success of this project to their strong
working relationship.
“They’ll be able to contact friends and family
easily, and with news, sport and selected
10 | DMO Bulletin July 2011
You may recall that the Project Office and
BAE Systems won the Major Project Prize
at the Australian Defence Magazine's 2011
Defence and Industry Awards.
“We realised early in the piece that we had
DMO CAPABILITY
a common goal - to provide the LHD
and AWD ships with the best SATCOM
capability available,” said Mr Ridley.
“We have been able to work together
to achieve this outcome on time,
budget and to the required quality.”
BAE Systems' Program Manager
Terminals - Business Stream,
Mark Greenwood, echoed similar
comments.
“The BAE Systems and Project Office
relationship has matured over a
significant period. We have reached
a point where there is always honest
and robust communication, and a
genuine commitment to work together
to achieve the best outcomes,” said
Mr Greenwood.
“Whilst people come and go on the
project, the fundamental culture of
open and collaborative communication
between our organisations remains.”
Stay tuned for more updates on the
progress of this project.
TELL US YouR SRP STORIES
“We’ve also engaged in open
and honest discussions to ensure
emerging issues are dealt with, or
clearly understood, before they
become serious.”
Your initiatives could help others
determine where savings and
improvements could be made.
Keep us in the loop
by emailing the Bulletin Editor:
michelle.perks@defence.gov.au
7
MASTIS racks
installed.
11 | DMO Bulletin July 2011
DMO CAPABILITY
The big picture
8
Australian Regular
Army; Operation
Slipper.
The weight
savings
combined
with a more
appropriate
vest design for
dismounted
operations will
enhance the
performance
of the Diggers
mentoring and
partnering
the Afghan
National Army.
he DMO is a cog in the Defence
machine. If we focus on this cog,
we see DMO staff and industry
companies working together to better
understand the needs of the ADF, develop
equipment to satisfy these needs and then
provide and sustain the necessary
requirements.
to be tailored to the threat and mission
requirements, as determined by the mission
commander on the ground.
When you’re involved in the day-to-day
workings of a large organisation like
the DMO, it can be difficult to see how
your work fits into the bigger picture.
With this in mind, the DMO Bulletin
caught up with two parts of the DMO, the
Soldier Modernisation (SM) SPO and the
Diggerworks directorate, to see how these
teams directly assist troops on the ground
in Afghanistan.
Colonel (COL) Jason Blain, who commanded
MTF-1 in Afghanistan in 2010 and is now
Head of Diggerworks, said the new ensemble
will significantly improve the agility and
flexibility of the dismounted soldier.
Soldiers deployed to Afghanistan are now
issued with a new Tiered Body Armour
System (TBAS), called the Soldier Combat
Ensemble. This ensemble is designed to
provide a more effective body armour and
load carriage system for soldiers involved
in close combat and has been rolled out
to members of MTF-3 and the Special
Operations Task Group.
The ensemble, jointly developed by the
DMO, the Army and industry, includes an
enhanced combat uniform, vest and plate
carrier, protection (ballistic plates), packs and
pouches, and has recently received extensive
praise during mission rehearsal exercises.
It is designed to efficiently integrate
components worn by individual soldiers
to protect them from the enemy and the
environment as well as help them carry
mission loads. Additionally, the different tiers of
the ensemble enable protection and mobility
12 | DMO Bulletin July 2011
The new equipment is, on average,
three kilograms lighter and is designed
for troops patrolling on foot rather than
in vehicles.
“The weight savings combined with a more
appropriate vest design for dismounted
operations will enhance the performance of
the Diggers mentoring and partnering the
Afghan National Army.”
Feedback from personnel who are currently
undertaking mission rehearsal exercises prior
to deployment has also been positive.
Corporal Daniel Treveton, a member
of Combat Team Charlie from the 2nd
Battalion, Royal Australian Regiment,
said the equipment felt much better than
previous models.
“Once you put it on you hardly notice it
because it hugs the body so well,” he said.
“This means our fighting endurance is
much better.”
The ensemble body armour vest is currently
made by Australian Defence Apparel in
Victoria and the design is based on extensive
feedback from operations and trials.
Planning has commenced to release an open
tender later this year for the entire Soldier
Combat Ensemble.
DMO CAPABILITY
THE ARMY CLOSE
COMBATANT
Combat Helmet
Goggles with ballistic
and laser protective
lenses
Hydration System
Quick release Tourniquet
Austeyr Assault Rifle
fitted with 4 Power Day
Optic, White Light Torch
and Night Aiming Laser
Soldier Personal Radio
Combat uniform with
advanced technologies
in fire resistance and rip
stop materials
Removable knee and
elbow pads built into
combat uniform
13 | DMO Bulletin July 2011
TBAS Belt and chest
webbing to carry
equipment pouches and
body armour inserts
Multicam™ pattern for
visual and non-visual
camouflage
DMO CAPABILITY
C-17A flock
to expand
9
DMO and Boeing
staff stand alongside
our C-17A aircraft
at the Boeing Plant,
California, USA.
t’s over 50 metres long, can house more
than 100 troops while carrying over
76,000 kilograms of cargo and it’s only
a matter of months until this aircraft joins
the Australian fleet.
The C-17A
aircraft can
lift very large
and heavy
cargoes
over long
distances
providing a
significant
contribution
to Australia’s
ability to
reach and
respond to
events.
It’s official; the DMO has secured a fifth
C-17A Globemaster III that will be flying
alongside its siblings within a month of
arriving down under.
Since we acquired our first C-17A aircraft back
in 2006, this heavy lifter has proven itself as a
reliable aircraft in countless operations. It has
completed fortnightly missions to the Middle
East to support Australian forces in Iraq and
Afghanistan as well as delivering humanitarian
assistance to helpless survivors of natural
disasters here in Australia and abroad, in
places like Indonesia, Papua New Guinea,
Burma and Japan.
the distance in three-quarters of the time,”
he said.
“The C-17A aircraft can lift very large and
heavy cargoes over long distances providing
a significant contribution to Australia’s ability
to reach and respond to events.”
Three months on, this fifth C-17A aircraft has
become a reality.
Speaking to the DMO Bulletin, Wing
Commander (WGCDR) Warren Bishop said
this smooth and incredibly fast acquisition is
a testament to the hard work of the C-17A
project team and the DMO as a whole.
“Everyone has pitched in to secure this
aircraft,” he said.
Although we had planned to acquire two
additional C-130 Hercules aircraft to meet
our future force's' needs, it appears another
C-17A aircraft would be more useful.
“The DMO's Chief Finance Officer (CFO),
CDG, and Defence Materiel Washington
(DEFMAT-W) have been assisting the C-17A
project team with this acquisition, while
Heavy Airlift (HAL) SPO, Air Lift (AL) SPO and
the RAAF are preparing to bring the aircraft
home,” he said.
At this year’s Avalon International Airshow,
the Minister for Defence, Stephen Smith,
explained why an additional Globemaster III
would be beneficial.
This is a great example of the DMO and the
wider Defence organisation working together
to re-prioritise work to achieve better
outcomes for our current and future forces.
“One C-17A can carry up to four C-130
Hercules loads in a single lift and cover twice
WGCDR Bishop said while there’s still work to
be done, an exciting outcome is on the horizon.
14 | DMO Bulletin July 2011
DMO CAPABILITY
“We still have to get the C-17A registered
under the ADF, source and engage
engineering resources from HALSPO and
ALSPO and organise support from the RAAF
Air Lift Group to ensure air and ground crews
are available when the C-17A Globemaster III
arrives down under.”
“All of these activities take time – but by the
year’s end, an additional Heavy Airlift aircraft
will be supporting the ADF.”
The DMO Bulletin will keep you posted on
this aircraft’s arrival.
Everyone
has
pitched
in to
secure
this
aircraft.
Securing the C-17A
aircraft
January 2011:
The DMO joins CDG, and CFO Group
to begin planning the C-17A Acquisition
project.
10 February 2011:
The Prime Minister approves
the release of a Letter of Request to
the US Government seeking price and
availability for the aircraft.
March 2011:
Members from the C-17A Project team,
CFO DMO, and the DEFMAT-W, meet in
the US to finalise the Materiel Acquisition
Agreement and the payment schedule
with the US Government.
1 April 2011:
The US Government responds with
a Letter of Offer and Acceptance in
record time.
6 April 2011:
10
A United States
Air Force (USAF)
C-17A Globemaster
III makes a
dusty landing in
Afghanistan.
DMO staff in the Australian Embassy in
Washington DC sign a Letter of Offer and
Acceptance in the presence of the US
Government and USAF.
11
Representatives from
the DMO and US
DoD after signing the
C-17A LOA.
L–R: Defense Security
Cooperation Agency’s
Country Program
Director, Bill Ellis;
Minister Counsellor,
Defence Materiel,
David Marshall;
Director, Regional
Affairs, Secretary of
the USAF, International
Affairs, Brigadier
General Lyn Sherlock;
Air Attaché member,
Air Commodore
Leo Davies; Vice
President, International
Operations & Policy,
The Boeing Company,
Jefferson Hofgard.
15 | DMO Bulletin July 2011
DMO international relations
JSF Check up
12
L-R:
Group Captain Ian
Farnsworth; Minister
Counsellor, Defence
Materiel, David
Marshall; DMO CEO,
Dr Stephen Gumley;
AVM Kym Osley;
Lieutenant COL Hank
Griffiths, with the JSF.
ast month’s Defence budget cuts
have put more pressure on DMO
projects to be on time and
accurate in terms of cost.
The American made Joint Strike Fighter (JSF)
is one of our most anticipated acquisitions
and therefore needs to be closely monitored
to ensure cost and schedule remain
on track.
The critical
development
is the JSF
Program
Office's
commitment
to taking
a far more
active role in
sustainment
planning
than
previously.
But Australia isn’t the only nation with a
vested interest in the development of this
aircraft. The JSF Program is the world's
largest collaborative defence initiative
ever undertaken. As a result, it’s crucial
that everyone involved can share their
thoughts, aspirations and concerns about
the project.
Every 12 months, senior acquisition officials
from the nine partner nations purchasing
the JSF meet in Fort Worth, Texas, to
discuss the program’s progress.
During April, DMO CEO, Dr Stephen Gumley,
and the DMO’s Program Manager New Air
Combat Capability, Air Vice-Marshal (AVM)
Kym Osley, travelled to the US for this
meeting, which continued its focus on the
JSF’s cost, schedule and capability.
Cost
Following the talks, Dr Gumley said
16 | DMO Bulletin July 2011
he is confident Defence has budgeted
appropriately for the JSF aircraft.
“Based on available information, Defence is
not asking for additional money over what
has been allocated. Our staged acquisition
strategy for the JSF, commencing with 14
aircraft, allows time for refinement of costs,”
said Dr Gumley.
He also said he was confident that the
long term support costs of the aircraft
would be reduced, after a number of
partnering countries expressed concern
about this expense.
AVM Osley echoed similar comments saying
the US is committed to refining and reducing
support cost estimates.
“The critical development is the US JSF
Program Office's commitment to taking a
far more active role in sustainment planning
than previously. 2011/12 has been variously
described as the ‘year of sustainment’,”
he said.
Schedule
With the aircraft meeting a number of
important milestones over the last few
months, Australia’s first JSF aircraft will be
ready for training in the US in 2014.
JSF aircraft production has stabilised, with
the time (in man hours) to build a JSF on the
DMO international relations
production line being halved since the first aircraft
was produced.
Dr Gumley said some tasks have even been met ahead
of time.
“The flight test program for the Conventional Take-Off
& Landing (CTOL) variant being bought by Australia is
exceeding its planned test rate and has been doing so
since late last year.”
With the USAF agreeing to share any information gained
through this CTOL variant testing, Australia will be in a
better position to meet our Initial Operational Capability
date in late 2018.
AVM Osley added that the JSF aircraft is ahead of its flight
test milestones for 2011.
“It has flown a total of about 800 flights and over 1200 flight
hours,” he said.
“Some of the best accolades for the JSF have come
from the USAF test pilots. They believe USAF squadron
pilots will find the JSF much superior to the current
generation fighters.”
Capability
Dr Gumley also reported that the JSF appears to be
making ground in terms of its specialist mission software.
“Briefings confirmed that flight testing and stability of JSF
mission software is progressing well and that effective fixes
for some of the widely reported technical issues, such as
Helmet Mounted Display, are in train,” said Dr Gumley.
“While there are still several areas that need close
watching in the program; the Conference has given me the
opportunity to discuss the JSF with very senior US and
international acquisition chiefs; and I am confident that
the level of commitment I saw will translate into even more
positive outcomes for the JSF in 2011 and beyond.”
Sharing is Caring
n today’s globalised environment,
it makes sense for the DMO to
collaborate with our sibling
sustainment bodies abroad.
The DMO and the US Department
of Defense (DoD) have a common
purpose; to equip and sustain our
national defence forces. With this in
mind, our CEO, Dr Stephen Gumley,
has recently made an agreement
with his US counterpart, the Under
Secretary of Defense for Acquisition,
Technology and Logistics, Dr Ashton
Carter, to better meet this joint goal.
On 14 April 2011, Dr Gumley and
Dr Carter signed a Security of Supply
Arrangement (SOSA) which allows
Australia and the US to assist one
another in obtaining urgent goods
and services.
Under the SOSA, Australia now has
access to the US system that allocates
and contracts goods and services to
meet urgent operational requirements.
This means that Australia can now
place urgent orders on the American
system and these orders have the same
status as those placed by the US.
The Director of the DMO’s International
Material Cooperation team, Michele
Miller, said this will expedite the DMO’s
acquisition procedures for certain goods.
“With access to this US system, the
DMO will be able to deliver spares
17 | DMO Bulletin July 2011
and equipment identified for urgent
operational needs much faster,”
she said.
As the agreement works both ways,
the DMO will provide the US with a
list of accredited Australian companies
that have signed the voluntary Code
of Conduct and agreed to make US
Defense Materiel needs a priority
if requested.
What goods and services are
included in the SOSA?
This agreement covers what’s called
Industrial Resources. This refers to
materials, services and facilities and
includes the construction materials
needed to meet approved defence
requirements.
All raw, in process, or manufactured
material is included as well as any
article, commodity, supply, equipment,
component, accessory, part, assembly,
product technical information, process,
or service.
How will the SOSA work?
The SOSA is built on reciprocal
assistance between the DMO and
the US DoD.
If either party requests assistance
from the other, each participant must
do everything possible to uphold its
international commitment and help
its partner country to supply Defence
products, materials, and services to
complete its military duties.
Requests to use the SOSA to expedite
US Industrial Resources should be
directed to the Director International
Materiel Cooperation in Commercial
Group, DMO.
What does the SOSA mean for
industry companies?
Under this new agreement, Australian
industry companies have the opportunity
to shift into a transnational sphere and
support both the Australian and US
Defence organisations when required.
The DMO will invite companies to
participate by signing the voluntary
Code of Conduct, which is currently
being negotiated as part of the
implementation process. When the
US DoD requires Australian goods
and services, the DMO will liaise with
these accredited companies, their
subcontractors and suppliers, to ensure
US DoD receives priority service.
Michele Miller said the agreement
may also assist Australian Defence
companies meet their contractual
requirements with the DMO.
“The Australian defence industry may
benefit through quicker delivery of
components sourced from the US,
which are required for items identified
as urgent operational needs,” she said.
For more information about the SOSA,
contact the Director of International
Materiel, Michele Miller on 02 6144 2761.
DMO AND INDUSTRY
In the Spotlight
Defence + Industry
Conference 2011
13
The DMO stand at
the D+I 2011 trade
exhibition.
epresentatives of Defence and the
Defence Industry met in Adelaide
during the last week of June for
the 17th Defence and Industry (D+I)
Conference.
Like its predecessor events, this year’s
D+I provided delegates with access to
everything from keynote presentations
to information sessions, networking
opportunities and more than 200 trade
exhibition stands.
A successful conference program was
capped off by a sparkling event dinner that
included special tributes for retiring Industry
executive Paul Johnson and retiring DMO
executive Major General Tony Fraser.
Transcripts of the speeches delivered by
the Minister for Defence, Stephen Smith,
and the Minister for Defence Materiel
(MINDM), Jason Clare, are available at
http://www.minister.defence.gov.au/
Transcripts of speeches delivered by the
CEO DMO and other DMO speakers will be
progressively available on the DMO internet
site: http://www.defence.gov.au/dmo/dmo/
function.cfm?function_id=15
More information on major policy
and reform announcements are
also available.
Release of Defence Capability Plan
Supplement:
• Joint Ministerial Release - http://
www.defence.gov.au/minister/105tpl.
cfm?CurrentId=12045
18 | DMO Bulletin July 2011
• Public DCP June 2011 Supplement http://www.defence.gov.au/dmo/id/dcp/
dcp.cfm
Independent Project Performance Office:
• Joint Ministerial Release - http://
www.defence.gov.au/minister/112tpl.
cfm?CurrentId=12044
Disposal Strategy for ADF Assets:
• MINDM Media Release - http://www.
defence.gov.au/minister/112tpl.
cfm?CurrentId=12048
• DMO Internet site - http://www.defence.
gov.au/dmo/disposals/index.cfm
Reforms to Projects of Concern:
• Joint Ministerial Release - http://
www.defence.gov.au/minister/105tpl.
cfm?CurrentId=12046
Australian Industry Capability (AIC)
Program Changes:
• MINDM Media Release - http://www.
defence.gov.au/minister/112tpl.
cfm?CurrentId=12049
• AIC Program Factsheet – http://www.
defence.gov.au/dmo/news/dmobulletin/
July11/AIC_Flyer.pdf
Commercial Group (Initiatives discussed
during the seminar):
• DMO Internet site - http://www.defence.
gov.au/dmo/osc/di/index.cfm
Procurement change
On 1 July, a policy to strengthen Indigenous employment opportunities came into effect and will influence the
way the DMO does business.
Under the Indigenous Opportunities Policy (IOP) additional requirements have been placed on Commonwealth
Procurements valued at $5 million ($6 million for construction) that take place in regions with significant Indigenous
populations.
In relation to these procurements, the DMO must:
• Consult with the Department of Education, Employment and Workplace Relations (DEEWR) and community groups
in the planning stages of these projects.
• Explain in our tender how we will be enforcing a DEEWR approved Indigenous training, employment and supplier
plan with the successful tenderer.
For more information see the Defence Procurement Policy Manual or to view the IOP Guidelines, head to
www.deewr.gov.au/iop
19 | DMO Bulletin July 2011