Australia has announced the biggest defense reform in 50 years: the Defence Delivery Agency (DDA) will consolidate CASG, GWEO, and NSSG into a single delivery authority focused on getting major programs on time and on budget. The transition starts with a Defence Delivery Group on July 1, 2026, moving to a fully independent DDA on July 1, 2027, led by a National Armaments Director and reporting directly to the Ministers for Defence and Defence Industry. These groups currently manage ~40% of defense spending, underlining the scale of change.
Deliver major defence projects on time and on budget by driving stronger contestability, more accurate cost estimation, and clearer accountability. As Defence Minister Richard Marles put it:
“It will drive stronger contestability, more accurate cost estimation, and clearer accountability for the delivery of major projects.”
Make delivery closer to government for faster decisions, enable commercial‑style flexibility in contracting and budget management, and provide early visibility of risks/costs so Ministers can intervene before issues escalate. Capability definition will be consolidated under the VCDF, then DDA will take over delivery with an approved budget and mandate.
Independent audits have highlighted persistent delivery problems—schedule slippage and procurement process weaknesses. The ANAO Hunter‑class audit found the process lacked value‑for‑money focus and suffered delays and additional costs; the Major Projects Report continues to record significant aggregate schedule slippage across selected programs.
The market is moving toward aligning risk to schedule to provide certainty of outcomes, anticipating DDA’s focus on speed and discipline. Minister Conroy’s message is blunt: “changes kill projects”—and change discipline will be scrutinized.
Winners will be those who can prove schedule certainty, quantify risk, and demonstrate audit‑ready decision‑making across the lifecycle—because governance will now escalate issues earlier and demand evidence.
Outcome: Decisions are rigorously tested.
Predict!: Scenario modeling and quantitative schedule‑risk analysis challenge assumptions and compare value‑for‑money options.
Outcome: Reduce cost blowouts; improve budget confidence.
Predict!: Integrated cost‑and‑schedule risk (probabilistic) to avoid optimism bias and produce realistic forecasts.
Outcome: Transparent, auditable decisions across the lifecycle.
Predict!: Audit‑ready artefacts (inputs, assumptions, outcomes) aligned with ANAO audit expectations for defensible reporting.
Outcome: Deliver faster without sacrificing quality.
Predict!: Critical‑path risk identification and change impact analysis allow proactive mitigation and disciplined change control.
Outcome: Early warning of risk and cost impacts.
Predict!: Dynamic dashboards and reporting provide leadership with early visibility and trend tracking over time.
Learn more about Predict! risk management software.
There’s support for the DDA’s focus on speed and accountability, and caution that structure alone won’t fix culture/process without strong execution. Calling this out shows credibility and situational awareness.
Defense has moved to a delivery‑focused model with ministerial oversight and earlier escalation. Teams who can quantify uncertainty, control change, and prove decisions will be best positioned for future contracts. Predict! helps you do exactly that. Request a demo today to get started.
Author: Andrew Lawson, Enterprise Account Executive at Lumivero
Andrew is a former Army Officer, serving in several campaigns where he provided logistic and equipment support for the Paras, Royal Marines, US Marines, EU Naval Force, and Australian Defense Force. After retiring in 2018, he transitioned to a successful consulting career with EY, focusing on defense capability and acquisition in both the UK and Australia. Currently, Andrew heads up the Lumivero Defense and National Security account, delivering risk management solutions to defense customers. His extensive experience in both the British and Australian militaries, combined with his consulting expertise, makes him a valuable asset in the field of defense project management.
