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Capability Acquisition and Sustainment Group

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36-640: The Capability Acquisition and Sustainment Group ( CASG ) is an organisation within the Australian Department of Defence , responsible for acquisition , supply chain management , and sustainment of military equipment and materiel including aircraft, ships, vehicles, electronic systems, weapons, ordnance, uniforms and rations for the Australian Defence Force . CASG employs more than 7000 military, civilian and contracted staff in more than 70 locations around Australia and internationally. CASG

72-605: A Bachelor of Engineering with First Class Honours from the University of Tasmania in 1978 and was elected as a Rhodes scholar in 1979. He was awarded a Doctor of Philosophy from St Catherine's College , the University of Oxford in 1982 and an MBA from the University of Tasmania in 1994. He is a Fellow of The Institution of Engineers Australia and a Fellow of the Australian Institute of Company Directors . Gumley

108-417: A big wake-up call for me. Like someone has chucked a big cold bucket of water over my face." In December 2010, a leaked diplomatic cable under the heading " fuzzy math on costs" described a discussion Gumley and a US naval officer after the release of Australia's May 2009 Defence white paper. The cable expressed doubts about Australia to adequately fund its proposed military expenditure and said that "Gumley

144-600: A change of government, is the Secretary of the Department of Defence (SECDEF), currently Greg Moriarty . SECDEF reports to the Minister for Defence , Richard Marles . Australia has had at least one defence-related government department since Federation in 1901. The first Department of Defence existed from 1901 until 1921. In 1915, during World War I, a separate Department of the Navy

180-584: A chief executive with "significant private sector and commercial experience". Mortimer also recommended that a general manager Commercial position be created to implement a business-like focus throughout the organisation. Ministerial statements in 2010 and 2011 suggested that the Government believed new procurement reforms were needed. On 26 November 2010, the Minister for Defence, Stephen Smith, in adding project AIR 5418 Joint Air to Surface Stand-off Missile (JASSM) to

216-590: A comprehensive reform of combat clothing for the Australian Defence Force was implemented. Key outcomes of the independent 2007 review included ensuring that deployed Australian troops receive high quality clothing and personal equipment, and the release of a five-year forecast of procurement opportunities in the sector Clothing and Personal Equipment Procurement Plan to provide industry with sufficient guidance to enable broad business planning. In an interview with The Age newspaper 5 July 2006, precipitating

252-452: A single entity. The DMO was given responsibility for purchasing, through-life support and disposal of military equipment assets, other than facilities and administrative assets. In July 2005, DMO became a Prescribed Agency under Australian Financial Management and Accountability legislation, meaning that although it remains a part of the Department of Defence , it was separately accountable to

288-515: A strong belief within the incoming Government that Gumley had been largely responsible for a significant improvement in the handling of Defence projects. Following his appointment, Gumley immediately implemented six reform themes under the slogan "change is goodness". The six themes were: Under Gumley's leadership DMO successfully provided a range of new and leading-edge equipment for the Australian Defence Force. Significant reforms were also underway to tackle Australia's national skills shortages in

324-580: A timely basis", and that "the planning of testing and acceptance and the resolution of testing and acceptance issues for Joint Project 2070 by the DMO has been inadequate." This report further stated that "this project demonstrates that, in respect of Defence major capital equipment acquisition projects, it remains the case that further enhancement of these monitoring and reporting mechanisms is required to properly inform decision making by both Defence and Government." Ministerial statements in 2010 and 2011 suggested that

360-687: Is the primary decision-making committee in the Department of Defence, supported by six subordinate committees, groups and boards. The Defence Committee is focused on major capability development and resource management for the Australian Defence Organisation and shared accountability of the Secretary and the Chief of the Defence Force. The members of the Defence Committee are: As of 2016

396-558: The Minister of Defence for its budget and performance. DMO's stated vision was to become the leading program management and engineering services organisation in Australia. Its goal was to deliver projects and sustainment on time, on budget and to the required capability, safety and quality. The DMO budget in 2012–13 was A$ 9 billion, shared between purchasing new equipment and sustainment and through-life support (maintenance, upgrades, fuels, explosive ordnance and spares). In May 2008,

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432-457: The Supply and Development (for munitions and materiel), and Civil Aviation . The current Department of Defence was formally created in 1942, when Prime Minister John Curtin renamed the existing Department of Defence Co-ordination. The other defence-related departments underwent a series of reorganisations, before being merged into the primary department over the following decades. This culminated in

468-543: The 'Projects of Concern' list, stated that the listing was because of "our poor management, our failure to keep government properly and fully informed about the project and its difficulties." Minister Smith also said that he had asked Defence to review the effectiveness of its management of major projects. On 6 May 2011 Minister Smith announced further Defence procurement reforms aimed at improving project management, minimising risk at project start and identifying problems early and on 29 June 2011, Minister Smith announced reforms to

504-427: The 2007 review, Gumley admitted endemic problems within the DMO. The provision of clothing and equipment to Australia's front-line troops has been plagued by "stuff-ups", one of the nation's most senior defence officials has admitted. In an extraordinarily candid briefing, the official stated that troops serving overseas had "missed out" on gear they should have received, and that the body responsible for equipping them,

540-564: The Australian Government commissioned a review of Defence procurement, which included in its terms of reference a report on the progress of implementing reforms from the last such review – the 2003 Kinnaird Review. The review was conducted by David Mortimer, who presented his findings in September 2008. Mortimer identified five principal areas of concern. There was/were: In all, Mortimer made 46 recommendations, with 42 accepted in full by

576-510: The DMO website, the executive team has considerable private and public sector experience, as well as extensive military domain knowledge. In March 2009, the Corporate general manager of the DMO, Jane Wolfe, was dismissed for unsatisfactory performance. The Canberra Times reported that its 'senior public service sources' believe she is the highest-ranking Australian Commonwealth public servant to ever have been dismissed for underperformance. Wolfe

612-607: The Defence Materiel Organisation, had engaged in "inappropriate behaviours". "We are going to let the troops down if we don't improve the reliability, quality and safety of our equipment," said Stephen Gumley, head of the Defence Materiel Organisation (DMO). The Age has obtained a secret recording of Gumley's briefing, during which he also told industry suppliers: "Frankly, I did not do a good enough job in this area (soldier's clothing and equipment) so we failed in that and I am going to fix it … what has happened has been

648-509: The Department of Defence (SECDEF) is a senior public service officer and historically the appointees have not come from military service. Dr Stephen Gumley Stephen John Gumley , AO (born 26 October 1956) was the first Chief Executive Officer of the Australian Defence Materiel Organisation , serving in the role from February 2004 to July 2011. Gumley was educated at The Hutchins School . He obtained

684-577: The Department of Defence consists of ten major organisational groups: The Chief of the Defence Force (CDF) and the Secretary of the Department of Defence (SECDEF) jointly manage the Australian Defence Organisation (ADO) under a diarchy in which both report directly to the Minister for Defence and the Assistant Minister for Defence. The ADO diarchy is a governance structure unique in the Australian Public Service . The Secretary of

720-479: The Government and three accepted in part. One recommendation was not accepted – that the DMO should be separated from the Department of Defence and become an executive agency. This recommendation, which was also made in the 2003 Kinnaird Review, was not implemented by the Howard government . As an executive agency, the DMO would receive its own acquisition funding stream as a government appropriation, and would be headed by

756-479: The Government believed new procurement reforms were needed. On 26 November 2010 the Minister for Defence, Stephen Smith (Australian politician) in adding project AIR 5418 Joint Air to Surface Stand-off Missile (JASSM) to the 'Projects of Concern' list, stated that the listing was because of "our poor management, our failure to keep Government properly and fully informed about the project and it's difficulties." Minister Smith also said that he had asked Defence to review

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792-666: The abolition of the three service departments in 1973. A new Department of Defence Support was created in 1982, but abolished in 1984. In May 2022, the department was renamed Defence Australia. The Australian Department of Defence, along with the Australian state and other governments are known to fund the Australian Strategic Policy Institute (ASPI), a defence and strategic policy think tank based in Canberra , Australian Capital Territory . The Defence Committee

828-686: The contracting of many roles within CASG, and the lowest number of civilian APS staff within Defence. Maritime Domain Land Domain Air Domain Joint Systems Domain Business Management Domain Dr Stephen Gumley was the DMO's chief executive officer from February 2004 until his retirement was announced by the Minister for Defence, Stephen Smith, on 7 July 2011. Gumley had headed an executive team of around 20 senior managers. According to

864-503: The defence of Australia and its national interests. Along with the ADF, it forms part of the larger Australian Defence Organisation (ADO) and is accountable to the Parliament of Australia , on behalf of the Australian people, for the efficiency and effectiveness with which it carries out government policy. The executive head of the department, who leads it on a day-to-day basis, independent of

900-541: The defence sector including an internal program of professionalisation and an ambitious external program entitled Skilling Australia's Defence Industry. An assessment of a large number of projects in May 2008 by DMO found that the average cost of DMO projects compared to their budget indicated that projects were being delivered at 99.2% of their budgeted cost. The Minister for Defence, Joel Fitzgibbon and The Parliamentary Secretary for Defence Procurement, Greg Combet , acknowledged

936-438: The effectiveness of its management of major projects. On 6 May 2011 Minister Smith announced further Defence procurement reforms aimed at improving project management, minimising risk at project start and identifying problems early and on 29 June 2011 Minister Smith announced reforms to the management of 'Projects of Concern' including the development of formal remediation plans for designated projects. Under Gumley's leadership

972-476: The improvements Gumley had brought to the organisation. Later Australian National Audit Office (ANAO) reviews of specific projects and capabilities were qualified in their assessment of the effectiveness of DMO reforms. For instance ANAO report 24 of 2009-10 of March 2010 identified "a range of ongoing issues which detracted from the effective procurement of explosive ordnance for the Australian Defence Force", that "there remains considerable scope for improvement in

1008-606: The management of 'Projects of Concern' including the development of formal remediation plans for designated projects. On 1 April 2015, the Minister for Defence released the First Principles Review. The review recommended that the Defence Materiel Organisation should be disbanded and the transfer of its core responsibilities in relation to capability delivery to a new Capability Acquisition and Sustainment Group, which took effect from 1 July 2015. The First Principles developed were: The Focus on core business principle led to

1044-563: The management of explosive ordnance", and that it was too early to confirm whether proposed reforms would provide enduring improvement to Defence and the DMO's management of the procurement and sustainment of explosive ordnance. The findings of ANAO Report 37 of May 2010 into the Lightweight Torpedo Project included that – for that project – "project management and planning was inadequate, and in some instances key project documents were either not developed, or were not developed on

1080-400: Was A$ 9.3 billion. CASG was also managing 109 sustainment products with a total annual budget of A$ 7.7 billion; for a total annual budget of A$ 17.0 billion. The Defence Materiel Organisation was formed in 2000 when the then Defence Acquisition Organisation merged with Support Command Australia , bringing together the Department of Defence's capital acquisition and logistics organisations into

1116-475: Was appointed Deputy Secretary CASG. In November 2018, Tony Fraser was appointed Deputy Secretary CASG. In August 2022, Chris Deeble was appointed Deputy Secretary CASG. Department of Defence (Australia) Defence Australia is a department of the Australian Government that is responsible for administering the Australian Defence Force (ADF) and its related entities, and is charged with

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1152-493: Was created. The two departments merged in 1921 to form the second Department of Defence , regarded as a separate body. A major departmental reorganisation occurred in the lead-up to World War II. The Department of Defence was abolished and replaced with six smaller departments – the Defence Co-ordination (for defence policy, financial, and administrative matters), three "service departments" ( Army , Navy , and Air ),

1188-663: Was established in June 2015 after the Defence Materiel Organisation was disbanded after recommendations from the First Principles Review. As of 30 June 2021, Defence through the Capability Acquisition and Sustainment Group (CASG) was managing 161 major projects and 13 minor acquisition projects, at various phases in the Capability Life Cycle, worth a total of $ 121.6 billion, with an annual acquisition budget

1224-769: Was previously CEO of the Australian Submarine Corporation (2002–2004), Vice President at Boeing in Seattle (1999–2001), CEO of aviation software supplier The Preston Group (1998–1999) and CEO of the entrepreneurial Global Lightning Technologies Group (1993–1997). In February 2004, Gumley was appointed the inaugural CEO of the Defence Materiel Organisation (DMO). He guided the organisation in its transition to an Australian Government Prescribed Agency on 1 July 2005. In May 2008, Parliamentary Secretary for Defence Procurement, Greg Combet announced an extension to Gumley's tenure, stating that his reappointment reflected

1260-598: Was reinstated in April 2010 following a legal challenge against procedural aspects of her dismissal in the Federal Court of Australia . The case is said to have "significant implications" for the Senior Executive Service of the Australian Public Service , where legal challenges to performance decisions have been rare. On 13 February 2012, Warren King (former Deputy CEO) was appointed CEO. On 31 August 2015, Kim Gillis

1296-422: Was unable to explain how the costing for the equipment of the white paper came about." On 7 July 2011 the Minister for Defence, Stephen Smith, announced that Gumley had retired, with immediate effect. The Opposition's defence spokesman Senator David Johnston speculated whether Gumley had resigned of his own volition or was "pushed". In 2006, Gumley was named by The Institution of Engineers Australia as one of

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