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Bulletin JULY 2011

C-17A flock to expandA fifth Globemaster III secured

The big pictureUnderstanding the Tiered Body Armour System

Creating a culture of reform

DMO PURPOSE | Equip and Sustain the Australian Defence Force

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: [email protected]

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.

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.

2 | DMO Bulletin July 2011

DMO NEWS

IN ThE NEwS

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

FROM THE CEO

hIgh PRAISE fOR OPS SUPPORT

04 | People power

12 | The big picture

09 | Staying connected

16 | JSF checkup

14 | C-17A flock to expand

INSIDE THIS ISSUE

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 Planning-Army, 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.

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.

DMO Bulletin July 2011 | 3

Dr Stephen Gumley AO CEO DMO


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.

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.

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.

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.

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.

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

� 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.


DMO REFORM

and security doors actually prevented access between physical areas of the building.

The DMO’s Flight Lieutenant (FLTLT) Rebecca Sharp, said it was as if the three parties were working against each other.

“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.

In an effort to facilitate a relationship change, DMO and Boeing staff decided to collocate in the same building.

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.

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

The tripartite Wegetail Team outside its Williamtown office.

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DMO REFORM

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.

“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.

“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

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.

2

�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.


DMO REFORM

� 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

Schedule Capability

Cost

Project Mangement

IN-SERVICE

Engineering Value Stream

Operations Value Stream

Maintenance Value Stream

Supply Chain Value Stream

HR/Training Value Stream

Sustainment Management

Downtime Utility

Cost

SQNLDR level – those who are on the front line in keeping the Wedgetail flying.

SQNLDR Prasad, says the JIG meets on a weekly basis to share problems, ideas and all issues relating to the capability.

“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

management teams can focus on strategy and future planning.

With an integrated, focussed team and an acute awareness of its primary goal, the AEWCSPO has transformed the way it operates.

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

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.

fAST fACT

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DMO REFORM

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.

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

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).

4

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

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.”

“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.

STAYINg CONNECTED

Dual MASTIS Antenna under test.

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�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.


DMO CAPABILITY

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.

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.

What will this new technology actually do?

Situational awareness and command and control will be enhanced with greatly increased data rates and access to Defence specific information networks in real time.

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.

Mr Ridley said this will give the personnel a sense of normality while at sea.

“They’ll be able to contact friends and family easily, and with news, sport and selected

television programs at their fingertips, they’ll be able to stay in touch with what’s happening at home.”

But it’s not just the personnel on board the ships who will be benefitting from this project.

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.

“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.

“EM Solutions, VIPAC, EMC Technologies, and SKM have all contributed to the development and delivery of this capability and are receiving great exposure.”

Good relationships foster good outcomes

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.

SAT-T SPO and BAE Systems attribute the success of this project to their strong working relationship.

“We realised early in the piece that we had

Installing the MASTIS antenna.

DID YOU KNOW?

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DMO CAPABILITY

MASTIS racks installed.

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.”

“We’ve also engaged in open and honest discussions to ensure emerging issues are dealt with, or clearly understood, before they become serious.”

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.

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Your initiatives could help others determine where savings and improvements could be made.

Keep us in the loop by emailing the Bulletin Editor: [email protected]


�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.

DMO CAPABILITY

ThE bIg PICTURE

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.

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.

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

to be tailored to the threat and mission requirements, as determined by the mission commander on the ground.

The new equipment is, on average, three kilograms lighter and is designed for troops patrolling on foot rather than in vehicles.

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.

“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.

Australian Regular Army; Operation Slipper.

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DMO CAPABILITY

Goggles with ballistic and laser protective

lenses

Combat uniform with advanced technologies in fire resistance and rip

stop materials

Combat Helmet

Austeyr Assault Rifle fitted with 4 Power Day Optic, White Light Torch and Night Aiming Laser

Removable knee and elbow pads built into

combat uniform

Multicam™ pattern for visual and non-visual

camouflage

TBAS Belt and chest webbing to carry

equipment pouches and body armour inserts

Soldier Personal Radio

Quick release Tourniquet

Hydration System

ThE ARMY CLOSE COMbATANT


DMO CAPABILITY

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.

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.

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.

At this year’s Avalon International Airshow, the Minister for Defence, Stephen Smith, explained why an additional Globemaster III would be beneficial.

“One C-17A can carry up to four C-130 Hercules loads in a single lift and cover twice

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.

“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.

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.

WGCDR Bishop said while there’s still work to be done, an exciting outcome is on the horizon.

�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.

C-17A fLOCk TO ExPAND

DMO and Boeing staff stand alongside our C-17A aircraft at the Boeing Plant, California, USA.

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DMO CAPABILITY

�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: 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.

“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.

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.

11

A United States Air Force (USAF)C-17A Globemaster III makes a dusty landing in Afghanistan.

10


DMO INTERNATIONAL RELATIONS

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.

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

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

JSf ChECk UP

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.

�The critical development is the JSF Program Office's commitment to taking a far more active role in sustainment planning than previously.

12


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.”

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

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.

ShARINg IS CARINg


DMO AND INDUSTRY

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:

• JointMinisterialRelease-http://www.defence.gov.au/minister/105tpl.cfm?CurrentId=12045

• PublicDCPJune2011Supplement-http://www.defence.gov.au/dmo/id/dcp/dcp.cfm

Independent Project Performance Office:


Disposal Strategy for ADF Assets:

• MINDMMediaRelease-http://www.defence.gov.au/minister/112tpl.cfm?CurrentId=12048

• DMOInternetsite- http://www.defence.gov.au/dmo/disposals/index.cfm

Reforms to Projects of Concern:


Australian Industry Capability (AIC) Program Changes:

• MINDMMediaRelease-http://www.defence.gov.au/minister/112tpl.cfm?CurrentId=12049

• AICProgramFactsheet–http://www.defence.gov.au/dmo/news/dmobulletin/July11/AIC_Flyer.pdf

Commercial Group (Initiatives discussed during the seminar):

• DMOInternetsite-http://www.defence.gov.au/dmo/osc/di/index.cfm

IN ThE SPOTLIghT DEfENCE + INDUSTRY

CONfERENCE 2011

The DMO stand at the D+I 2011 trade exhibition.

13

http://www.minister.defence.gov.au/

http://www.defence.gov.au/dmo/dmo/function.cfm?function_id=15

http://www.defence.gov.au/dmo/dmo/function.cfm?function_id=15

http://www.defence.gov.au/minister/105tpl.cfm?CurrentId=12045



http://www.defence.gov.au/dmo/id/dcp/dcp.cfm

http://www.defence.gov.au/dmo/id/dcp/dcp.cfm







http://www.defence.gov.au/dmo/disposals/index.cfm

http://www.defence.gov.au/dmo/disposals/index.cfm







http://www.defence.gov.au/dmo/news/dmobulletin/July11/AIC_Flyer.pdf



http://www.defence.gov.au/dmo/osc/di/index.cfm

http://www.defence.gov.au/dmo/osc/di/index.cfm


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:

• ConsultwiththeDepartmentofEducation,EmploymentandWorkplaceRelations(DEEWR)andcommunitygroupsin the planning stages of these projects.

• ExplaininourtenderhowwewillbeenforcingaDEEWRapprovedIndigenoustraining,employmentandsupplierplan 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

PROCUREMENT ChANgE

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