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September 24, 2019 | Local, Aerospace, Naval, Land, C4ISR, Security

Want to Win Government Business? Don’t be too ‘Commercial-Centric’

Governments may be open for business, but that doesn't mean doing business with a government is necessarily easy. Government procurement is complex - this is not by happenstance. The rules on public procurement stem from a number of sources including law (trade agreements, the common law and legislation) and policy. It can be a painful and costly learning curve for companies that want to sell goods and services to the country's largest buyers if they don't understand the rules.

Government decision-makers are answerable to a very wide range of stakeholders, including the Canadian voters who put them in office and the Canadian taxpayers who fund their operations. In a public procurement, it's not just about getting the best deal – it is also about meeting the broader public interest and achieving long-term policy objectives.

The Goal is to Promote Fairness

Competition is the rule in public procurement because it offers a fair, open and transparent environment, and meets the public objective that all potential suppliers get a fair kick at the can to sell to government. This is important when you consider that, for example, the Department of National Defence is the largest Canadian purchaser of goods and services from the Canadian defence industry.

Canada has implemented several trade agreements in the past few years, including the Canada-European Union Comprehensive Economic and Trade Agreement (CETA), the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP), and the Canadian Free Trade Agreement (CFTA) (which replaced the Agreement on Internal Trade (AIT)). Understanding how these agreements impact procurement is even more important for suppliers and their federal, provincial and territorial government customers, as well as for the municipal, academic, school and hospital (MASH) sector which may now be subject to trade agreements for the first time or subject to additional or new rules brought about by these new trade agreements.

Prepare your RFP Response Team for a Long Haul

Businesses must understand the processes that come into play in public procurements, such as the need to resource their RFP response team for a long period of time or the impact of failing to meet mandatory RFP requirements (disqualification from the procurement process).

Learning to manage the length of time it takes to progress through a procurement cycle, and to navigate the processes, is a big challenge. In business, relationships matter, but developing a good working relationship with key decision makers in government departments or agencies can be difficult since government tends to have greater workforce mobility and people change in and out of roles frequently. Further, dealing with government means complying with lobbying law and conflict of interest rules. In many jurisdictions, discussions about procurement requirements outside of public solicitation processes is considered lobbying, as it is attempting to sell products or services to the government. Conflict of interest rules may also preclude certain people from doing business with government officials.

Approaching public procurement with a "commercial-centric" view often leads to frustration. The federal government does understand "how business works," but there are still many aspects of a public procurement that are not (and cannot be) commercially focused, including those related to complying with applicable trade agreements, protecting the public interest, and serving policy objectives such as regional development and economic diversification. Companies participating in a public sector procurement process face unique compliance requirements that don't come into play with a typical private commercial transaction.

Expect Heightened Security Requirements

With the increasing attention being paid to cybersecurity and data protection, companies will find they are now subject to more stringent security requirements, including an increased requirement for product functionality and security control disclosure in advance of their products or services being accepted by government buyers. This level of disclosure can extend through to greater access to the underlying technology used so that the customer itself can test for, and understand, cyber-threat vulnerabilities.

Whether this is your first foray into the world of government procurement – and you need to understand the rules of public procurement so that you can properly understand the RFP documents and the plethora of government policies – or you have a broader interest focused on influencing government policy and direction as it relates to your business or your industry, knowing how to best position your organization to take advantage of both possible routes is critical to a successful government procurement business. Waiting until you have lost a bid is too late to effect a change for your organization's benefit.

Be Proactive with the Right Advice

Regardless of your focus, knowing how the system works and how to best advocate for your interests is a crucial and part of any successful business plan. Working with a legal team that has knowledge and experience in all of these areas and can assist with strategic planning and approach from start to finish is critical to success.

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  • Military expert suggests Canada may want to consider its own space force

    January 7, 2019 | Local, Aerospace

    Military expert suggests Canada may want to consider its own space force

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  • 3 New Thematic Calls for Prototypes / 3 nouveaux appels thématiques pour les prototypes

    April 6, 2022 | Local, Aerospace, Naval, Land, C4ISR, Security

    3 New Thematic Calls for Prototypes / 3 nouveaux appels thématiques pour les prototypes

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  • L3Harris remporte un contrat de 482 millions $ US (609 M$ CA) auprès de l'Aviation royale canadienne pour le prolongement du soutien des CF-18

    April 24, 2022 | Local, Aerospace

    L3Harris remporte un contrat de 482 millions $ US (609 M$ CA) auprès de l'Aviation royale canadienne pour le prolongement du soutien des CF-18

    Points clés :  Témoigne des capacités et de l'expertise de L3Harris en matière de soutien en service de premier choix  Confirme la position de L3Harris en tant que seul centre d'excellence au Canada pour les avions de chasse  Souligne un partenariat canadien fructueux de 35 ans pour la flotte d'avions CF-18 MIRABEL (Québec), le 21 avril 2022 — L3Harris Technologies (NYSE : LHX) a remporté un contrat basé sur la performance d'une durée de 4 ans avec années d'option et d'une valeur de 482 millions $ US (609 millions $ CA), renouvelant le soutien en service pour la flotte d'avions de chasse CF-18 Hornet exploitée par l'Aviation royale canadienne (ARC) jusqu'au retrait de service de la flotte prévu en 2032. Dans le cadre du processus d'analyse de rentabilisation de soutien, les quatre fondements de l'initiative de soutien, soit la performance, la rentabilité, la flexibilité et les avantages économiques, ont été les moteurs de l'élaboration d'une solution optimisée et bien adaptée. Gr'ce à ce renouvellement de contrat, L3Harris continuera d'assurer les activités liées à la gestion de la flotte et du programme, à la maintenance, à l'ingénierie, à la gestion du matériel, aux publications électroniques, au soutien logistique intégré, à la gestion de données et au soutien pour les logiciels opérationnels. Ces activités se dérouleront aux installations de L3Harris à Mirabel, ainsi qu'aux bases des Forces canadiennes (BFC) de Cold Lake et de Bagotville. « Ce contrat témoigne du fait que L3Harris est l'unique centre d'excellence au Canada pour les avions de chasse, en plus d'être une preuve de notre efficacité et de notre engagement constants envers l'orientation client, une exécution sans faille et un partenariat à long terme avec l'ARC », a déclaré Ugo Paniconi, directeur général de MAS, L3Harris. Récemment, L3Harris a souligné 35 ans de soutien en service pour les CF-18, notamment d'importants travaux de prolongation de la durée de vie structurale et de modernisation des systèmes leur permettant de demeurer fonctionnels au plan opérationnel et accroissant la valeur de l'investissement du Canada pour ces aéronefs. Le contrat, basé sur la performance, apportera flexibilité, avantages économiques et valeur dans le cadre de l'Initiative de soutien du Canada. L3Harris a créé des centaines d'emplois de haute technologie au Québec gr'ce aux contrats de soutien pour l'avion F/A-18 avec le Canada, l'Australie, la Suisse, la Finlande, l'Espagne et les États-Unis. La division de Mirabel de L3Harris compte plus de 1 150 employés au pays et est l'un des principaux intégrateurs de soutien en service du ministère de la Défense nationale. À propos de L3Harris Technologies L3Harris Technologies, une entreprise multinationale flexible et novatrice du secteur des technologies aérospatiales et de la défense, propose des solutions complètes qui répondent aux besoins des missions de haute importance de nos clients. Elle offre des technologies de défense et commerciales de pointe dans les domaines aérospatial, aéronautique, terrestre, maritime et cybernétique. L3Harris a un chiffre d'affaires annuel de plus de 17 milliards de dollars et 47 000 employés, avec des clients dans plus de 100 pays. L3Harris.com. Déclarations prospectives Le présent communiqué de presse contient des déclarations prospectives fondées sur des attentes, des hypothèses et des estimations actuelles de la direction relatives au rendement et à la conjoncture économique futurs. Ces déclarations sont énoncées sous réserve des règles d'exonération (safe harbor provisions) prévues à l'article 27A de la Securities Act, loi américaine de 1933 et à l'article 21E de la Securities Exchange Act, loi américaine de 1934. L'entreprise met en garde les investisseurs du fait que toute déclaration prospective est soumise à des risques et à des incertitudes, si bien que les résultats réels et futurs sont susceptibles de différer de façon significative de ceux exprimés ou sous-entendus dans ces déclarations prospectives. Les énoncés concernant la valeur ou la valeur prévue des commandes, contrats ou programmes sont des déclarations prospectives soumises à des risques et à des incertitudes. L3Harris décline toute intention ou obligation de mettre à jour ou de réviser ses déclarations prospectives consécutivement à l'obtention de nouveaux renseignements ou à de nouveaux événements ou pour tout autre motif. Personnes-ressources : Marcella Thompson Systèmes de mission intégrés Marcella.Thompson@L3Harris.com 214-430-8872 Jim Burke Relations avec les médias Jim.Burke@L3Harris.com 321-727-9131

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