Back to news

November 21, 2019 | Local, Naval

Why the Australians are better at buying new warships than Canadians: report

Andrea Gunn (agunn@herald.ca)

OTTAWA, Ont. —

Canada could have a thing or two to learn from the Australians when it comes to buying warships, a new report claims.

Ian Mack, a retired rear admiral and director-general in the Department of National Defence, released a paper via the Canadian Global Affairs Institute on Friday shedding light on what he believes are some key mistakes in the way Ottawa has handled the $60-billion procurement of a new fleet of frigates.

Mack has a unique perspective. He served in his DND role from 2007 to 2017 and was responsible for the conception, shaping and support of the launch and implementation of the National Shipbuilding Strategy, including the initial stages of the Canadian surface combatant competition. In 2017 Mack was selected by the Australian government to join an international expert advisory panel for their Future Frigate Program as it moved into its competitive evaluation process.

In the paper, Mack points out the similarities between the two countries: they embarked on the procurement process at about the same time, they both sought to break the boom-and-bust cycle of shipbuilding, and ultimately they would both end up selecting BAE's Type 26 global combat ship as their preferred design.

But the differences, Mack says, are what have encumbered Canada's process, and why the Canadian government took three years longer to go from government approval to design selection than the Australians,

In the paper, Mack points to excessive red tape, inexperience among officials working on the project, and a general lack of drive to change the process to make it more efficient and cost-effective.

For example, the Australian government made the decision up front to restrict the competition to three shipbuilders and their warship designs, whereas Canada only required shipbuilders to qualify to compete, which over 10 of them did.

The initial request for proposals for the Canadian surface combatant also included hundreds of mandatory technical requirements characterized in great detail which proved problematic and led to an eventual overhaul of the process. In comparison, for Australia's future frigate, there were only a few mandatory requirements of any kind with further guidance provided to bidders via a question and response process.

Mack also pointed out that in Canada, the project management office was about the same size as in Australia but entirely drawn from the public service and the Canadian Armed Forces, with a significant number of team members having little or no applicable industry experience or knowledge, whereas in Australia, the office was populated by knowledgeable contractors.

The Canadian government, Mack concludes, has traditionally worn blinders when it comes to executing complex procurement projects.

“It takes a serious investment of effort to study what others are doing,” he writes.

“One useful place to start is by comprehensively exploring other nations' approaches to identify gems we might adopt and trial before we need to buy warships again.”

https://www.thechronicleherald.ca/news/local/why-the-australians-are-better-at-buying-new-warships-than-canadians-report-377148/

On the same subject

  • Quebec shipyard is setting up an Arctic icebreaking research centre

    August 4, 2020 | Local, Naval

    Quebec shipyard is setting up an Arctic icebreaking research centre

    Centre to serve as hub for innovation in Canadian Arctic, Davie Shipyard executive says Murray Brewster · CBC News · Posted: Aug 04, 2020 4:00 AM ET | Last Updated: 8 hours ago Describing itself as Canada's polar partner, the Chantier Davie Shipyard in Quebec plans to announce the creation of a national centre on Tuesday focusing on icebreaking in the country's Arctic. It is, according to a senior executive at the Levis, Que., company, more than just an engineering centre and will encompass the climatic, economic and social factors that will drive the region for the next 30 years and beyond. "It is a bigger discussion," said Spencer Fraser, the director of business development for the Inosea Group of Companies, which owns the shipyard. "It's not just around icebreaking and shipbuilding in Canada." The Arctic icebreaking centre is intended to bring together community and business leaders as well as scientists and engineers — from both northern and southern Canada — in a conference later this year. Shaping the Arctic economy of the 21st century They'll be asked to envision and debate what kind of ships and infrastructure are needed to drive future economic and social development in Canada's Arctic, which is being transformed by climate change and shifting geopolitics. "We're getting together to ask: In 2050, the North is going to look like this, what do we want the economy to look like? And what do we need to do today to get the wheels in motion so we can achieve that?" Fraser told CBC News. More than that, he said, the centre is intended to be a place of ongoing dialogue that will hopefully produce the kind of innovation needed to restore Canada as a world-leader in Arctic operations. By tapping into a wide range of expertise, he said the Chantier Davie initiative intends to showcase Canadian Arctic ingenuity on the world stage, which has for the last 20 years been dominated by Finland and Norway. The company, which is on track to be the federal government's third go-to shipyard under the National Shipbuilding Strategy, intends to carve out a place as the country's premier icebreaker-builder. The other two strategic shipbuilding partners are Irving Shipbuilding in Halifax, which concentrates on the construction of warships, and Vancouver's Seaspan, which is building fisheries science vessels and naval support ships. Chantier Davie was given a federal contract worth up to $827 million to convert three existing commercial icebreakers for use by the Canadian Coast Guard. The first vessel — CCGS Captain Molly Kool — was delivered, but the other two — CCGS Jean Goodwill and CCGS Vincent Massey — have been delayed, the Fisheries Department recently told The Canadian Press. The federal government wants to see its third strategic yard concentrate on building icebreakers and intends to funnel the construction of six ships to the company in the coming year. Concurrently, it has asked the wider shipbuilding industry to build a case for the construction of heavy icebreakers in the Far North. Centre should focus on changes facing the Arctic: expert Rob Huebert, a professor at the University of Calgary and an Arctic expert, said an icebreaking centre of excellence is a novel and important idea. He said the country was, until the 1980s, a world leader in the field, but interest and investment waned after Far North oil and natural gas development plans were shelved. However, he said it needs to be more than just window-dressing and a business vehicle for Chantier Davie. "If they're being serious, they'll not just be focused on their product," Huebert said. "If it is just simply, 'look at what good icebreakers we have and look at how we can provide work' then that, in my mind, will really be just a PR exercise." Appointment of U.S. Arctic co-ordinator may signal more muscular American policy Liberals guarantee immediate icebreakers work for new entrant in federal shipbuilding program What the centre needs to do is go beyond what one company or another produces and focus on how the changing Arctic will be affected by a myriad of circumstances and conditions and the technology Canada will need to address them, he added. Climate change and shifting geopolitical rivalries are but two examples. The Trump Administration recently appointed a career diplomat to become the country's first Arctic co-ordinator — a sign that the country is taking the region more seriously. The U.S. Air Force also recently published an Arctic strategy intended to counter Russia and China's growing influence and ambitions in the region. https://www.cbc.ca/news/politics/arctic-icebreaking-centre-1.5672800

  • Anand defends hesitation to further invest in defence as NATO secretary general arrives in Canada | CBC News

    June 19, 2024 | Local, Land

    Anand defends hesitation to further invest in defence as NATO secretary general arrives in Canada | CBC News

    The cabinet minister in charge of the federal treasury says it doesn't make sense to pour vast amounts of money into the Department of National Defence until it has the capacity to spend what it's being given.

  • We are looking for suppliers with artificial intelligence capabilities !

    June 4, 2020 | Local, Aerospace, Naval, Land, C4ISR, Security

    We are looking for suppliers with artificial intelligence capabilities !

    A prime contractor is looking for suppliers with artificial intelligence capabilities. More specifically, it is looking for companies that have developed solutions that allow users to manage a large amount of information. For example, solutions that detect anomalies, enhanced learning (predictive analysis) and self-learning (probable decision tree). If you think you can meet this need, please contact: Charbel Khoury at charbel.khoury@aeromontreal.ca or Pauline Breyton at pauline.breyton@aeromontreal.ca Thank you !

All news