First Principles Review of Defence
1 April 2015
Minister for Defence Kevin Andrews today released the First Principles Review of Defence, which recommends changing Defence’s federated structure to an integrated approach to provide greater capability. The review found that Defence is ‘suffering from a proliferation of structures, processes and systems with unclear accountabilities’, creating waste and inefficiencies. It recommends numerous changes to Defence’s structure, internal processes, and personnel management. It also recommends disbanding the Defence Materiel Organisation (DMO) and creating a new Capability Acquisition and Sustainment Group in Defence to oversee procurement and DMO’s historical responsibilities.
The Government has agreed, or agreed in-principle, to 75 of the 76 recommendations and will adopt the review’s recommended two year implementation plan to start immediately. The Secretary of Defence, Dennis Richardson, and the Chief of the Defence Force, Mark Binskin, will oversee the structural changes required with assistance from an external Oversight Board to be chaired by review chair David Peever.
The Government does not agree with the recommendation to fold the Defence Science and Technology Organisation into Defence. Similarly, while the review recommends rationalising a number of defence estate holdings, the Government will assess these on a case by case basis.
The Government will release the next Defence White Paper and Force Structure Review later this year. The White Paper will be accompanied by a ten-year Defence Capability Plan and a new Defence Industry Policy Statement.