Dr Stephen Gumley, CEO of the Defence Materiel Organisation, announced his decision to retire from his post last week.
The Secretary of the Department of Defence, Dr Ian Watt, advised the Minister for Defence Stephen Smith and the Minister for Defence Materiel Jason Clare of Dr Gumley’s decision.
Dr Gumley has spent more than seven-and- a-half years in one of the most difficult and challenging jobs in Government and has done a difficult job very well, according to Ministers Smith and Clare.
This was recognised in 2010 when he was appointed an Officer of the Order of Australia in the Australia Day honours.
Gumley was appointed as the CEO of the DMO in 2004 and in 2005 oversaw the transition of the organisation to an Australian Government prescribed agency.
As Australia’s largest project manager, the DMO is responsible for more than 200 major projects each worth more than $20 million and 120 minor projects.
Dr Gumley has led significant reforms to Defence procurement, including the recommendations of the Kinnaird and Mortimer Reviews and significant contracting reforms which have led to a reduction of the schedule slippage of around 20 to 25 per cent.
He has also led a program to increase the professionalism of the DMO.
As a result of the changes he has led Dr Gumley leaves the Defence organisation in a much stronger position than when he commenced, the Ministers said in a statement.
It’s not clear whether Gumley’s decision to retire was influenced by rumoured changes to the DMO.
Although no announcements have been made as yet many observers expect the DMO’s semi-independent status as a prescribed agency may be undermined by moves to re-integrate it more closely with the Defence bureaucracy under the over sight of not one but two so-called ‘associate secretaries’.
Prior to being appointed head of the DMO, Gumley had 20 years of international commercial and project management experience.
He was CEO of the Australian Submarine Corporation, a Vice President of Boeing based in Seattle and the CEO of a number of research, development, manufacturing and exporting corporations.
The Ministers thanked Dr Gumley for his significant contribution; his deputy, Warren King, will take up the position of Acting CEO of the DMO and the position of CEO will be advertised in coming weeks.