Dr Stephen Gumley has been reappointed chief executive officer of Defence Materiel Organisation (DMO).

Dr Gumley's employment status has moved from a fixed term contract to ongoing Australian Public Service (APS) employee status. His contract was due to expire in February 2009.

The change to Dr Gumley’s employment conditions show the Government's confidence in Dr Gumley and his commitment to continue implementing the reforms across DMO's procurement and sustainment business, according to Parliamentary Secretary for Defence Procurement Greg Combet.

Mr Combet said he and Defence Minister Joel Fitzgibbon had been very impressed with the reforms and business improvements Dr Gumley had brought to the DMO.

"There is still more to be done, however under Dr Gumley's leadership we are confident that the reform process will continue," Mr Combet said.

The DMO buys and maintains equipment for the Australian Defence Force with more than $100 billion of acquisition and sustainment business currently under management.