To put this level of expenditure in perspective: more than 80 per cent of the Australian Defence Force's war fighting assets will be replaced or upgraded over the next 10 to 15 years. The Defence Materiel Organisation (DMO) and Defence have a major role to play in this transformation, but so does Australian industry - and this is the backdrop to the upcoming Defence + Industry Conference to be held in Adelaide 30 June - 2 July.
It's also a fact that industry, particularly Australian industry, needs to understand and respond effectively to Defence requirements when bidding for projects: being able to supply to specification at the right price may not be enough. Defence expects its suppliers to have the flexibility and sustainment capacity to deliver capability to the Australian Defence Force and to maintain that capability through life-of-type.
Acquisition and sustainment of the various programs that contribute to enhanced Defence Force capability are managed by the DMO. In coming years the main areas of spending will include: electronic systems, weapons and munitions, maritime platforms and systems, land and vehicles, and aerospace platforms and systems.
Understanding DMO strategies for procurement will therefore be critical to Australian industry success in winning Defence contracts, and D+I is one means of engaging directly with those who make decisions about which company or consortium wins Defence contracts.
It's been two years since the previous conference, and DMO is considering other means to engage with industry. The D+I forums are regarded as important - to get the message out on DMO current policy and procedures.
In the context of equipping and sustaining an effective ADF, DMO says it has two important goals in achieving its mission: efficiency and effectiveness.