Defence Materiel Organisation The Defence Materiel Organisation ( ' DMO ' ) is the Australian Government agency responsible for the acquisition , through - life support and disposal of equipment for the Australian Defence Organisation . The DMO is part of the Australian Department of Defence , and manages the acquisition and support of a diverse range of materiel ( equipment ) , including aircraft , ships , vehicles , electronic systems , uniforms and rations . The DMO budget ( 2012 – 13 ) was A $ 9 billion , shared between purchasing new equipment and sustainment and through - life support ( maintenance , upgrades , fuels , explosive ordnance and spares ) . The DMO manages some 180 major projects ( each with a budget over $ 20m ) and more than 75 minor projects . It employs more than 7 , 000 military , civilian and contracted staff in more than 70 locations around Australia and internationally . Organisation . DMO 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 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 is separately accountable to the Minister of Defence for its budget and performance . DMO ' s stated vision is to become the leading program management and engineering services organisation in Australia . Its goal is to deliver projects and sustainment on time , on budget and to the required capability , safety and quality . Mortimer review . In May 2008 , 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 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 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 . Post - Mortimer reforms . 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 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 the management of ' Projects of Concern ' including the development of formal remediation plans for designated projects . Leadership . 2004 – 2011 . 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 the DMO website , the executive team has considerable private and public sector experience , as well as extensive military domain knowledge . Under Gumley , the executive team consisted of : In addition , several major capital acquisition programs were led by senior military or civilian managers . In January 2009 the DSTO ( Deputy Chief Defence Scientist level ) position of Chief Systems Integration Officer was added to the management team . 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 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 . Since 2012 . On 13 February 2012 , Warren King ( former Deputy CEO ) was appointed CEO . The executive team now consists of : In addition , several major capital acquisition programs are led by senior military or civilian managers .