Defence Procurement Agency (Hansard, 25 April 2002)

§ Dr. Moonie

Five key targets have been set for the Chief Executive of the Defence Procurement Agency for the financial year 2002–03.

The first three key targets apply to projects covered by the Major Projects Report which have passed their Main Gate approval. Key targets 2 and 3 are consistent with goals set in the Department's public service agreement (PSA), adapted to cover cumulative performance. The 426W fourth key target relates to improvements in DPA customer satisfaction and the fifth to the costs of running the agency. The key targets are:

Key Target 1: Key requirements compliance

Predicted achievement of customers' core requirements for projects¹97 per cent.

Key Target 2: Average cumulative in-service slippage

Average cumulative slippage of in-service dates² at 31 March 2003 not to exceed 12.1 months.

Key Target 3: Average cumulative cost growth

Average cumulative cost variation³ at 31 March 2003 not to exceed 2.2 per cent.

Key Target 4: Customer survey satisfaction rating

Customer satisfaction rating 70 per cent.⁴

Key Target 5: Agency running costs

No excess against DPA resource control totals. ¹ Up to 10 core requirements per project are agreed between the DPA and Ministry of Defence headquarters, defining the essential characteristics of the equipment. ² Variation between in-service date (ISD) approved at "Main Gate" (the major investment decision point) and currently predicted ISD. Cumulative target of 12.1 months includes 11.7 months average slippage already incurred on the relevant project population. The in-year target is for no more than 0.4 months average new slippage. ³ Variation between cost approved at Main Gate and current estimate. The average cost growth already incurred on the relevant project population amounts to 2.2 per cent.: the in-year target is, therefore, for 0 per cent. average cost growth. ⁴ Aim is to secure 80 per cent. satisfaction rating by 2005–06 which would place the DPA among best performers for analogous organisations; 70 per cent. would be an incremental improvement on last year's rating of 67 per cent.