Defence equipment bungles

Below is an article from the "Age" newspaper followed by an official response. Sadly, neither the report nor the response are surprising. Armies have ALWAYS been plagued by equipment bungles. We sadly remember the Russian soldiers of World War I who were sent into battle with one bullet each. So as much as possible of equipment purchase should be privatized. Soldiers should be given an allowance to buy their own gear. The Army should specify patterns only. Left to provide only the big stuff, the Army might even get that right

The provision of clothing and equipment to Australia's front-line troops has been plagued by "stuff-ups", one of the nation's most senior defence officials has admitted. In an extraordinarily candid briefing, the official stated that troops serving overseas had "missed out" on gear they should have received, and that the body responsible for equipping them, the Defence Materiel Organisation, had engaged in "inappropriate behaviours". "We are going to let the troops down if we don't improve the reliability, quality and safety of our equipment," said Stephen Gumley, head of the Defence Materiel Organisation (DMO).



The comments, made in a briefing to defence industry suppliers in Melbourne on June 23, could cause embarrassment for Defence Minister Brendan Nelson and the nation's top military brass, who last month publicly dismissed claims of inadequate provision of clothing and protective gear to soldiers. The Age has obtained a secret recording of Dr Gumley's briefing, during which he also told industry suppliers: "Frankly, I did not do a good enough job in this area (soldier's clothing and equipment) so we failed in that and I am going to fix it . what has happened has been a big wake-up call for me. Like someone has chucked a big cold bucket of water over my face."

Dr Gumley also told the briefing that Dr Nelson was overwhelmed when he took over the defence portfolio. "My boss got very confused when he got in this portfolio by all the stuff that hit him," Dr Gumley said, before quickly adding that Dr Nelson's "huge intellect" had helped him "get on top of his portfolio in record time". Among a litany of extraordinary revelations, the DMO chief stated that:

* A still-secret inquiry ordered by Dr Nelson into DMO's combat clothing department had found "systematic problems with management in procurement".

* DMO had "stuffed up in clothing" because of a failure to ensure up-to-date technical specifications "across hundreds of our pieces of equipment".

* One quarter of the DMO's combat support and clothing department's staff had been shifted out after an internal investigation, resulting in huge "corporate knowledge loss".

* The army was inefficiently managing its equipment and clothing budget, placing stresses on DMO and defence suppliers who "have to produce all this stuff in rapid urgent time".

* The system troops use to complain about gear and clothing was flawed because troops were failing to get feedback about their complaints, the system was not designed to handle human factor feedback and complaints were dealt with in batches rather than individually.

* He was "very worried" about sole source contracts, in which only one company is able to supply troop gear.

Dr Gumley's comments back up the contents of a secret submission to an internal defence inquiry, revealed last month in The Age, saying that clothing and equipment provided to Australian troops serving overseas was of poor quality and reflected a culture of "near enough is good enough". The damning submission, by a serving defence force member, followed evidence by "Soldier 17" to the military inquiry into the death of Private Jake Kovco that the safety of Australian troops in Iraq was being compromised by shoddy equipment.

Dr Gumley, in his briefing to defence suppliers, said that the "vast majority of what we do is really good. We just have to work out how we are going to fix up the bad bits now." He said he was not alone in engaging in "inappropriate" conduct. "Please, do not think I am throwing bullets here. I am accepting responsibility. I am accepting (responsibility) for some of the stuff-ups that have gone on. But there are a few (stuff-ups) on the other side as well," he said. "If we get our act together, there should be good business for everyone. If we keep going down this vortex, which has seemed to happen over the last 10 to 12 months, it makes us very hard to supply the troops on time."

Dr Gumley said investigations over the past four months had revealed that defence suppliers had falsified test results, employed Asian-based manufacturers despite promising to use Australian subcontractors, and lied about their ability to meet contract deadlines, meaning troops on operational deployments "missed out" on equipment. "See it from my point of view? How can I run an effective procurement office when that sort of stuff is happening?" Dr Gumley said.

When asked why DMO had not taken appropriate action against companies responsible for denying troops gear, he replied: "I don't know." The DMO chief said the reason supplier contracts had dried up despite the huge demand for gear was because political and media scrutiny of DMO meant that his staff could no longer bend the rules. "You bash people enough, what do they do? The become risk adverse, don't they? And public officials will play it by the rule book. What has been really happening is that they (DMO staff) have been giving a lot of flex over the last decade to keep the whole thing running. Now, because they have been bashed, emotionally and psychologically, they are playing it by the rules."

Dr Gumley said reforms already applied to major defence projects would now be applied to minor projects and that minor project suppliers would be encouraged to sign non-binding "ethical" contracts.

Source

The official response:

The Age/SMH today published selected parts of an unauthorised recording of a private meeting on 23 June between the Chief Executive Officer of the Defence Materiel Organisation (DMO), Dr Steve Gumley, and representatives of companies supplying clothing and personal equipment for the Australian Defence Force.

Dr Gumley arranged the meeting to allow a frank and open discussion of procurement issues, to brief the industry representatives on the actions being taken by DMO management, and to discuss further means of enhancing the relationship between DMO and industry.

The material published in the Age/SMH does not represent a balanced summary of the meeting or its key messages.

Dr Gumley acknowledged that there had been shortcomings in DMO's management of clothing procurement, and outlined in detail the actions which had been implemented, or were being considered, to address them. DMO management has taken significant steps to enhance the staffing, management and governance of its clothing supply area.

He emphasised that these shortcomings related to procurement processes. They had not impacted on the support provided to ADF forces deployed overseas. The requirements of our troops overseas have been met, in terms of the quantity and quality of equipment. Our troops deployed on operations have received, and continue to receive, the best combat gear available.

Defence has acknowledged that there have been difficulties in the timely supply of some items of clothing and personal equipment to troops training within Australia. These shortcomings have to be overcome, by the joint efforts of DMO and industry.

Dr Gumley discussed with the industry representatives some specific instances of inappropriate actions on their part.

Dr Gumley was characteristically open and direct in his comments. He acknowledged past deficiencies and shortcomings on the part of both DMO and industry. His key message was a call for a more unified effort between DMO and industry to ensure that the support needs of the ADF continue to be met. The discussion focussed very strongly on action being taken and further options to be considered.

It is very disappointing that a recording was made of the meeting and that its privacy was breached in this manner. The Age/SMH story presents a catalogue of problems and criticisms, rather than a more balanced account of firm management action being taken to address identified problems.

These issues have been subject to DMO management action since late 2005. They also led to an independent review, which commenced in March 2006. The report of that review is currently with the Minister for Defence, the Hon. Dr Brendan Nelson MP.

The Defence Materiel Organisation will continue to work with industry to ensure that our troops receive the best clothing and equipment.

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