November 5, 2019 | Local, Aerospace, Naval, Land, C4ISR, Security

A new Defence Procurement Agency – Would it solve anything?

By Brian Mersereau

Defence Watch Guest Writer

During the recent federal election, the issue of considering a new Defence Procurement Agency or DPA surfaced again.

The Liberals made such an organization part of their defence platform this time around as part of their plan to improve military procurement.

While positive outcomes could result from a new organizational structure, simply installing one will not in and of itself create an efficient procurement model. It most certainly will not address in any substantive manner why taxpayers pay far too much to acquire the defence capabilities Canada needs to protect our sovereign interests in a world that has become increasingly unstable in recent years.

It appears that, in many cases, Canada pays more per unit of capability to satisfy its defence needs than most of its allies. Unfortunately, though quite logically, this phenomenon has effectively shrunk the size of our armed forces as the number of platforms we can afford to acquire continues to dwindle due to high costs.

While this approach can create short-term jobs, they are ultimately unsustainable since there is no international market for our higher-priced solutions. This is not the direction in which Canada should be headed.

Before Canada decides to move ahead with a new procurement agency, it should assemble a “smart persons” panel or forum to thoroughly review the existing system and establish the mandate and objectives of whatever type of organization results from said review. Such a review group must be composed of people from the public and private sector with significant experience, not skewed with staff whose procurement experience primarily consists of exposure to the Canadian “way”.

During this review, the panel must examine various issues which are currently perceived to be an impediment to the efficiency of Canada's procurement system. Based on my own years of experience on both the buy and sell sides of the procurement equation, the following areas merit some serious thought:

Organizational Structure

The fewer individuals, departments and oversight committees with their fingers in the “procurement pie”, the quicker and more coherently things will get done. Even at today's interest rates, time really is money for all involved in the process. Adding more time to a schedule for another management review quite often has a negative impact.

While I understand governance and oversight committees have their place, their overinvolvement can produce negative outcomes if mandates are not absolutely clear and if individuals on these committees have limited experience with respect to the issue at hand.

Risk

Canada's ongoing method for defence procurement is that it will not assume any risk on their side of a contract. If Canada insists the private sector must accept all risk, the private sector will so oblige – but at a significant price and to the detriment of schedules and timelines. As contract prices necessarily increase, so do governments costs to manage the contract.

In reality, the most efficient procurement solution for Canada would see some elements of risk managed by the buyer, rather than entirely borne by the seller. More consideration needs to go into balanced risk-sharing formulas.

Process

Canada has an extremely hands-on procurement process for major systems during the competitive phase, as well as during the implementation of the contract. Even in this digital age, Canada hamstrings its own progress with the sheer degree of detail and bureaucracy it requires; unbelievably, freight trucks are still required to deliver proposals.

It seems as though, on occasion, the buyer thinks it knows more about designing and engineering the defence systems Canada needs than the actual designers and engineers for whom it is a primary occupation. Requirements of little or no consequence are painstakingly spelled out in the greatest of detail. Such an approach has a tremendous impact on the amount of time consumed by both the buyer and seller, again driving up costs and extending schedules. Less “hand holding” by the customer must be seriously considered.

Sole Source

In the procurement world, “sole source” is often viewed as a dirty phrase. Frequently, Canada attempts to run competitions in scenarios where the chances of achieving any meaningful savings or benefits related to competition are low at best. This takes years and drives costs higher at no measurable gain for the buyer. The parameters of when and under what circumstances Canada should move directly to a sole source should be thoroughly reviewed. Significant resources are being wasted managing nearly meaningless processes.

Skills

Canada's internal skill set for managing large, complex defence procurements does not appear to be adequate. As a result, it turns more and more often to the expertise of external third parties in order to keep up with large private sector firms at the negotiation table from a knowledge and experience standpoint. While there will always be a need for some third-party expertise, project managing many external suppliers in the negotiation phase – each of whom have their own agendas – only further complicates the already convoluted procurement process. Canada would be much better off with an enhanced internal core staff.

If Canada takes the time to review the appropriateness of some form of DPA model, it must cast the net wider and review other critical aspects of the procurement process – or else any organizational changes will inevitably succumb to the systematic inertia of the overall process. A failure to do so means Canada will continue struggling mightily to stand-up the level of defence and security necessary to secure its citizens in an increasingly turbulent world.

https://ottawacitizen.com/news/national/defence-watch/a-new-defence-procurement-agency-would-it-solve-anything

On the same subject

April 16, 2020 | Local, Aerospace, Security

Longview delivers first production Viking CL-415EAF “Enhanced Aerial Firefighter”
Longview Aviation Services (LAS) of Calgary, Alta., in co-operation with Viking Air Limited of Victoria, B.C., announced the first Viking CL-415EAF “Enhanced Aerial Firefighter” has been delivered to launch customer Bridger Aerospace Group of Bozeman, Mont., U.S.A. Bridger Aerospace became the launch customer for the Viking CL-415EAF “Enhanced Aerial Firefighter” program after signing a multiple aircraft purchase agreement in May of 2018. The contract with all options exercised is valued at $204 million and covers the sale of six CL-415EAF amphibious aerial firefighting aircraft. Manufacturer's serial number (MSN) 1081, the first Canadair CL-215 to undergo the major modification to the EAF “Enhanced Aerial Firefighter” configuration, took its inaugural flight on March 9, 2020 outside of program-collaborator Cascade Aerospace's facility in Abbotsford, B.C. After application of Bridger's livery at International Aerospace Coatings' facility in Spokane, Wash., MSN 1081 flew over the central Rocky Mountain range to Bozeman, Mont., for delivery to Bridger Aerospace in advance of the 2020 North American wildfire season. Tim Sheehy, founder and CEO of Bridger Aerospace Group, stated, “Aggressive initial attack and advanced technology in support of the wildland firefighter are the core of Bridger's ethos. The Viking CL-415EAF is the most capable initial attack asset on the planet and we are proud to be the launch customer for this incredible capability.” Robert Mauracher, executive vice-president of Sales and Marketing for Viking, commented, “We are very excited and proud to be delivering our first Viking CL-415EAF Enhanced Aerial Firefighter to Bridger Aerospace in time for the 2020 North American wildfire season. The delivery of our first Enhanced Aerial Firefighter is the culmination of a multi-faceted collaborative project originally launched in 2018 and represents the solid partnership that has developed between Viking, LAS, and Bridger over the past 24 months. We are now looking forward to adding a second aircraft to their fleet in the coming months.” The CL-415EAF “Enhanced Aerial Firefighter” modification program, announced in 2018 as a collaboration between the two subsidiaries of Longview Aviation Capital, provides an economic boost throughout Western Canada derived from job creation, aerospace manufacturing innovation, supply chain development, academic partnerships, and global export opportunities. The Viking CL-415EAF modification program forms part of a staged approach to utilize the advancements made with the LAS converted aircraft as the basis for the proposed next-generation Viking CL-515 new-production aerial firefighting and multi-purpose amphibious aircraft. The Viking CL-415EAF “Enhanced Aerial Firefighter” is a specially selected CL-215 airframe converted to turbine configuration using Viking-supplied conversion kits. It features a new Collins Pro Line Fusion integrated digital avionics suite, Pratt & Whitney PW123AF turbine engines, increased fire-retardant capacity, and improvements to numerous aircraft systems. The Viking CL-415EAF represents the evolution of the type, providing best-in-class water drop performance utilizing the higher delivery two-door water drop system combined with a zero-timed maintenance program and a “new aircraft” factory-supported warranty program. All obsolete components impacting the worldwide fleet of CL-215 & CL-415 aircraft are replaced in the CL- 415EAF, and the upgraded aircraft is designed to failsafe FAR 25 certification criteria with no preset life limit. The very short scooping distance of the CL-415EAF aircraft is expected to outperform competitors from initial attack to sustained major fire suppression, and the combination of safety and longevity represents exceptional value inherent in purpose-built aerial firefighting amphibious aircraft. The CL-415EAF aircraft is the only aerial firefighter with factory OEM support offered by Viking's Customer Service and Product Support division, including management of all Continuing Airworthiness, warranty items, in-service engineering, initial provisioning, as well as offering Viking's M+ all-inclusive maintenance support program. All improvements and obsolescence issues addressed in the CL-415EAF aircraft will become the new aircraft production standard in the manufacture of an all new, next generation CL-515 multi-purpose amphibious aircraft. https://www.skiesmag.com/press-releases/longview-delivers-first-production-viking-cl-415eaf-enhanced-aerial-firefighter
May 14, 2019 | Local, Aerospace, Naval, Land, C4ISR, Security, Other Defence

Questions abound over ‘ugly’ defence procurement system following Mark Norman case
By NEIL MOSS Canada would be 'better served' if defence projects are overseen by a non-partisan body, says a retired Armed Forces colonel, who oversaw procurement and equipment management policy. https://www.hilltimes.com/2019/05/13/questions-abound-over-ugly-defence-procurement-system-following-mark-norman-case/199729
January 5, 2021 | Local, Aerospace

The decline of Canada’s defence aviation industry
By RICHARD SHIMOOKA If the government is serious in its desire to sustain the aerospace, and defence aerospace industry, it must do so through a well-reasoned and resourced strategy. Of all sectors, aerospace has been among the hardest hit in the global economy to date. This not only includes airlines, but manufacturers and maintainers—with decreased orders and reductions in maintenance, repair, and overhaul work due to reductions in service, which has knock-on effects for the rest of the economy. Aerospace is arguably among the most vibrant industrial sectors in the Canadian economy—with high levels of R&D spending and export revenues. Until recently, Canada was a top-five civil aerospace producer internationally, though its position has slid in the past several years. https://www.hilltimes.com/2020/12/30/the-decline-of-canadas-defence-aviation-industry/277088

All news