The Defence Materiel Organisation (DMO will fold its responsibilities into the Department of Defence.
The government agreed to most, but not all, of the First Principles Review of Defence earlier this year. In the 2015-16 Budget, the government has decided to proceed with abolishing the DMO with effect from July 1, 2015. The annual funding of AU$805 million allocated to the agency will be transferred to Defence.
The government has not yet identified the extent of the savings to be made from abolishing the agency, stating that it will be determined later in 2015.
Defence indicated that it has allocated AU$694.7 million over four years for its ICT Investment Plan.
The department's chief information officer group has stated that its priority for 2015-16 will be to strengthen the governance and accountability for IT across the Defence organisation in line with the First Principles Review.
The department said this would be achieved through extensive collaboration across all groups and services for business process standardisation, information management, IT service delivery reform, and whole-of-Defence business architecture.
The CIO group will be continuing its reform projects, including terrestrial communications, centralised processing, next-generation desktop, IT service management transformation, and Defence One -- the move to a whole-of-Defence HR system.