Defence procurement - Land

On the same subject

• 

  January 9, 2018 | Information, Naval

  Managing Intellectual Property in Defence and Marine Procurement

  Industry and government collaborate on Principles for the Management of Intellectual Property in Defence and Marine Procurement In 2017 Public Services and Procurement Canada, the Department of National Defence, Innovation Science Economic Development Canada and the Canadian Coast Guard worked with Canadian defence industry representatives such as Canadian Association of Defence and Security Industries (CADSI) and Aerospace Industries Association of Canada (AIAC), through the Defence Industry Advisory Group, to develop principles for the management of IP in defence and marine procurement. The Principles for the Management of IP in Defence and Marine Procurement (Principles) provide a broad policy foundation for IP management in defence and marine procurement by the Government of Canada that: reflect the Government's national interests and strategic defence and marine capability needs reflect the defence industry's interests in the protection of privately developed IP as valuable business and economic assets and as a factor in creating and sustaining an innovative Canadian defence and marine industry recognize that the development, protection and commercialization of IP are critical among several priorities to advance a broader Canadian socio-economic agenda, including economic growth and jobs recognize that IP management occurs between the Government and defence industry in strategic and dynamic sectors subject to rapid technological changes, and emerging defence capabilities and vulnerabilities serve as a framework for adaptable, flexible, principles-based and outcome-based approaches using IP management strategies that help government secure needed capabilities and ensure value for money while bolstering industry innovation and sustainability, and serve as a framework to help define IP requirements, draft contracts and design bid evaluations at earliest stages in procurements, while also helping guide the management of IP throughout the lifecycle of defence and marine assets The Principles align with the Canadian Government's Contracting Policy and Policy on Title to Intellectual Property Arising Under Crown Procurement Contracts, which prescribed a whole-of-government approach to IP management and addresses the ownership and licensing of intellectual property arising during a Crown procurement contract. Principles for the management of intellectual property in defence and marine procurement The Principles reflect key points of agreement between government and the Canadian defence industry on how government intends to approach the management of IP throughout the life cycle of defence and marine assets. The Principles serve as a framework for government and industry on the framing of requirements, the design of bid evaluations, and the drafting of contracts. They should also guide the management of IP during the life cycle of assets, seeking to balance the national interests of the government and the industry's interests to maximize benefits for Canada. The Principles recognize that the development, protection, and commercialization of IP are among several priorities to advance the broader Canadian socio-economic agenda, such as economic growth and jobs. The Principles also recognize that IP management discussions between governments and defence suppliers occur in strategic sectors subject to rapid technological changes, and emerging defence capabilities and vulnerabilities. As a result, governments are facing shorter and shorter procurement life cycles and having to return to market sooner to benefit from technological changes, while ensuring value for money. Defence firms, on the other hand, are in a position to offer technological evolution through the lifecycle of products and offer new products and services which may significantly alter the performance or the cost of the item procured. Being able to take advantage of this dynamic market will require that IP discussions take place very early on during the procurement phase and be considered as a function of the life cycle of the product or service. In this context, adapted, flexible, principles-based and outcome-based IP management strategies can help the Government secure needed capabilities, while ensuring value for money and working with industry to foster technological advantages and economic benefits. http://www.tpsgc-pwgsc.gc.ca/app-acq/amd-dp/propriete-intellec-property-eng.html

• 

  November 14, 2019 | Information, Aerospace, Naval, Land, C4ISR, Security

  The real obstacle for reforming military spending isn’t in the defence ministry. It’s the Treasury Board

  KEN HANSEN Ken Hansen is an independent defence and security analyst and owner of Hansen Maritime Horizons. Retired from the Royal Canadian Navy in 2009 in the rank of commander, he is also a contributor to the security affairs committee for the Royal United Services Institute of Nova Scotia. For people inside the Department of National Defence, a minority Parliament – coupled with election promises for increased social spending and tax cuts – represents an uneasy calculus. Defence spending is always on the chopping block because it represents the largest pool of discretionary spending in the federal budget, and every party spent the recent federal election campaign being vague about military policy – offering some kind of oversight-body reform or scrutiny over the billions of dollars that have been earmarked, even as they lent their support to ensuring the military has the equipment it needs. In particular, the single largest program in Canadian defence history – the Canadian Combat Ship plan for 15 warships – will be a tantalizing target for politicians looking to get rid of perceived fat. Such cuts to shipbuilding programs have even already become normalized: The order for Halifax-class frigates were trimmed to 12 from 18 in 1983 and the Iroquois-class destroyers to four from six in 1964, to name just two. The political leaders weren't wrong when they said the military procurement system is broken. But regardless of which party had won this past election, and no matter what tweaks at the edges that the Liberal minority government and its potential supporters pursue, the reality is that the core issue remains unaddressed: Treasury Board's bulk approach to purchasing the country's military kit. Treasury Board policy states that bulk buys are how military procurement should be done, to ensure the lowest per-unit cost. But this forces tough decisions about what to buy, since the larger the order, the longer it will take to produce them all – not to mention the problems involved with trying to predict the future of warfare. Information systems become outdated in five years; weapons and sensors in 10. With a planned operating life of 25 years, any ships ordered today will be out-of-date by the time the first are delivered, and fully obsolete by the time the last one arrives. Block purchasing leads to block obsolescence. Traditionally, when technological change threatens to render military systems obsolete, the best way to hedge was to order in batches of the smallest number acceptable. In the years before the world wars, for instance, countries working to build competent naval forces put less emphasis on fleet numbers and more on technology and industrial capacity until the last moments before conflict. Technological competence was as important as numbers for fleet commanders. Another outcome of bulk buys is that the volume means that they happen only every two to three decades (or longer, in the worst cases). With such lengthy dry spells between purchases, it is impossible to retain corporate knowledge in either the defence or civilian branches of government. More frequent purchasing keeps the process alive in both practice and concept, with lessons learned that can be implemented by the same people who made the mistakes in the first place. Such irregularly timed purchases have created desperation among defence planners whose vision of the future consists of short golden days of competence and pride, followed by long years of rust-out and irrelevance. Unwittingly, the dark decades were in large part of the military's own making because of its desperate desire to acquire the absolute best model available – a practice known as “gold-plating” – instead of working steadily to build capacity and skill that would address long-range fleet needs. This is a collision of interests. The Treasury Board looks only at capital-acquisition decisions from the perspective of the buyer. It's left to the military to worry about how long they may have to operate obsolescent or obsolete equipment and systems, and to do the necessary mid-life upgrading, which is partly why costs balloon spectacularly. Life-cycle cost data is actually far more important that the initial sticker shock of the newest and shiniest model advocated by the military's leadership. The mindset needs to change. Politicians who implement bureaucratic change will probably see some improvements in decision-making. But the biggest obstacle to defence procurement is that bulk purchasing is our lone approach, and that it happens only every few decades. Regular, planned capital acquisition is the best path forward, but all paths to the future must first run through the Treasury Board. No amount of political policy adjustment can change that. https://www.theglobeandmail.com/opinion/article-the-real-obstacle-for-reforming-military-spending-isnt-in-the-defence/

• 

  April 24, 2018 | Information, Aerospace, Naval, Land, C4ISR

  Bridging the ­Procurement Divide

  CHRIS MACLEAN © 2018 FrontLine Defence (Vol 15, No 2) A critically honest and engaged discussion about government and industry engagement, was held recently at the Telfer School of Management as part of the new Complex Project Leadership Programs. The program participants (mostly federal civil servants who are involved in procurement) interacted with executive-level industry leaders – Joe Armstrong, Vice President and General Manager at CAE; Jerry McLean, Vice President and Managing Director of Thales Canada; Iain Christie, Vice President of AIAC; and Kevin Ford, CEO of Calian – who shared their leadership insights, as well as what it is really like to do business in Canada. Through the highlighting of mutual pain points and frustrations, as well as identifying what is being done well and ways to move forward together, efficiently, each party gained insight and understanding that is sure to improve communication and future progress. It was evident that both sides wanted to learn from each other and pinpoint the principles that would help achieve mutual success; ultimately impacting the national economic footprint and saving taxpayer dollars. From the industry perspective, dependability equals direction. When a company can be assured that it has a fair opportunity to compete for a contract, it can set its sights on that goal and will make the necessary investments to ensure the best possible outcome. When government programs start and stop and change and restart, companies find it difficult to justify the extended costs because they lose their competitive edge and/or any ability to make a profit. Instability does not save the taxpayer, but it does have the potential to impact both quality of product and sustainability of the bidders (therefore employment numbers). Contracts equal sustainability and confirmation that the company direction is on track for success. Profit equals growth and further investment. Employment and supply chain purchases depend on a profit margin that allows growth. This “number one” business requirement conflicts with the government's prime directive is to ensure its bidders make a bare minimum of profit. When asked what they need from their government counterparts in order to create a better working relationship and foster a robust industry that can contribute to a strong GDP, the industry panelists identified two key elements. One was “more accuracy in the procurement process” and the other was “predictability”. Industry must be able to foresee where profits and sustainability could potentially come from. The time it takes to award large projects is also a limiting factor to success. It was noted that, since the beginning of time, a cornerstone of success for industry has always been ensuring the satisfaction of its client. It is believed that trust in the quality of the product and ease of customer service will lead to sustainability in the form of continued business. Not so with government contracts, which seem skewed to ensure previous successes gain no advantage, and must in some cases be hidden from decision-makers. Not taking into account a company's excellent past delivery performance, was said to contribute to industry's lack of incentive to perform to the best of its ability at all times. A company's ability to invest goes beyond individual contracts, which means the prospect of being evaluated for value can be a powerful incentive for going that extra mile – if exploited, not suppressed. Government employees were encouraged to exhibit courage in pursuing ways to truly streamline the procurement process, rather than repeatedly adding more and more layers of approvals and meetings. Industry leaders across the spectrum have commented on a palpable “lack of trust” on the part of government negotiators. Does this mistrust come from contract negotiators feeling the pursuit of profit is somehow un-Canadian? Or does it mean a company does not care enough about its customers? Neither assumption is accurate, and this may be one area where a culture change could make a world of difference. As one audience member exclaimed: “This was the best, most transparent conversation regarding the procurement process, I have ever heard.” While large-scale procurements will always be contentious due to the huge dollars and risk at stake, embracing the concept of open and unreserved dialogue, like what was experienced by this small group, has the potential to uncover procurement pitfalls and create a more progressive process. The Telfer School of Management's Complex Program Leadership programs focus on the hard and soft skills necessary to successfully deliver inherently complex programs and projects, while emphasizing strategic thinking, creative problem solving, stakeholder engagement, and leadership skills as key building blocks for this goal. http://defence.frontline.online/article/2018/2/9586-Bridging-the-vast-%C2%ADProcurement-Divide