13 juin 2018 | Local, Aérospatial, Naval, Terrestre, C4ISR
By EMILY HAWS
Department of National Defence deputy minister Jody Thomas says she'll work through the summer to review how the Canadian government buys defence equipment, with a view to paring down the procurement process to get projects out the door quicker.
That could even mean more use of sole-source contracts, when it doesn't make sense to hold a competition.
She says the department wants to ensure the money outlined in Strong, Secure, Engaged—the government's 20-year defence policy unveiled last year—is spent.
The department took flak earlier earlier this year for not having the capacity to push procurement projects outlined in the plan through the system at the expected pace.
Speaking at a June 7 conference organized by the Canadian Global Affairs Institute think-tank in Ottawa on the first anniversary of the defence policy, Ms. Thomas suggested switching up the rules around sole-source contracting. She discussed the idea on a panel with other top DND executives Gordon Venner and Bill Matthews, moderated by CGAI defence procurement expert David Perry.
“I think what we want to do and what is expected of us is to have an honest conversation,” Ms. Thomas told the audience. “Where we know there's one supplier in the world that is compliant, Five Eyes-compliant, NORAD-compliant, whatever compliancy we need—to run a competition [in that case] where there is no hope of multiple bidders wastes [everyone's] time; it's kind of disingenuous and dishonest,” she said, referring to security alliances of which Canada is a member.
“We have to talk to ministers about that, and ministers are open to that conversation.”
Mr. Perry said in a separate interview that the change in process would be a big deal, but it would only happen if the government decides its priority is to spend money. The department is trying to determine a better balance between spending and oversight, he said, but it needs to keep in mind that the “objective is to spend money, not follow a thousand steps and do multiple dozens of reviews.”
Sometimes government officials try overly hard to make the bid process competitive, said Mr. Perry, so they end up sending to Treasury Board for review some bids that clearly don't meet requirements. This leaves Treasury Board officials with only one compliant bidder, which in turn leads these keepers of the public purse to ask more questions and perhaps conduct reviews.
For example, the government is looking at buying one or more tanker aircraft, and is narrowing down the list of eligible companies, said Mr. Perry. There are basically only two companies that sell tankers, Airbus and Boeing, he said.
“You set it up so that everyone has a chance, but that doesn't actually mean that you can actually have a really competitive environment that have at least two bids that actually meet all of the mandatory things you need to meet to submit a bid,” he said.
Depending on the extent the rules shift, they may require approval from not just Defence Minister Harjit Sajjan (Vancouver South, B.C.), but Treasury Board and the larger cabinet, he added.
Conservative MP James Bezan (Selkirk-Interlake-Eastman, Man.) and NDP MP Randall Garrison (Esquimalt-Saanich-Sooke, B.C.), defence critics for their respective parties, said they support streamlining the procurement process, but Mr. Bezan said the Liberals just need to be more decisive. Industry representatives are also supportive, with the Canadian Association of Defence and Security Industries (CADSI) calling the move “refreshing” in an emailed statement.
DND is trying to increase its procurement workforce, said Ms. Thomas, adding that the procurement process is the same regardless of whether the contract is worth $1-million or $1-billion. Ms. Thomas, who has been in her role since October, said the rules were put in place after the department received criticism from the auditor general.
“We've been risk-averse and we've been criticized, so a deputy's normal reaction to criticism or recommendations from the auditor general is to put process in place,” she said. “I absolutely understand that; we need to make sure it's appropriate to the complexity of the project.”
She said she's going to work through the summer to analyze the number of steps in the procurement process to determine the value they serve and where they can be reduced.
Ms. Thomas said she will create “sort of a lean methodology of the number of hands something has to touch, how long do we spend in project definition, [and] how long we spend in options analysis.”
Byrne Furlong, a spokesperson for the defence minister, said in an emailed statement the review will accelerate approvals and delivery.
“Ensuring our Canadian Armed Forces [are] well-equipped to deliver on what Canada requires of them is a significant undertaking,” she said, adding the government is committed to doing so.
Earlier this year, Mr. Perry authored a report suggesting the procurement plans laid out in Strong, Secure, Engaged could be threatened by long-standing process problems. The new policy would see procurement ramp up from about $3.5-billion to $4-billion annually, in 2018-19 dollars, to $12-billion.
Defence procurement budgets were cut from about 1990 until the mid-2000s, he said. Now Prime Minister Justin Trudeau (Papineau, Que.) is trying to play catch-up, but there's a bottlenecking of purchases. The government both doesn't have enough people to approve the projects, nor the quality of experience to work the larger, more technical jobs, Mr. Perry said in a previous interview.
There are five critical steps to procuring defence equipment which spans from identification to close-out. Most work is done by DND to determine what it needs, said Mr. Perry, but the actual competition is run by Public Services and Procurement Canada (PSPC). The change in rules Ms. Thomas is contemplating would only apply to DND, she said, as that's her jurisdiction.
CADSI president Christyn Cianfarani said, to her knowledge, a review in such a systematic way hasn't been done for some time. She said she sees the move as positive, allowing the government to properly balance risk and acquisition.
“With the launch of SSE and the Investment Plan, the deputy minister's call to review the system is timely,” she said. “In this critical period of recapitalization, we simply cannot expect to move four times the volume of procurement through the same old procurement system.”
When asked about the sole-sourcing of contracts, Ms. Cianfarani said competition is just one tool to meet policy objectives. She wants more sole-sourcing to Canadian firms and more Canadian-only competitions between companies with similar capabilities, price, and proven roots in Canada.
Mr. Bezan said sole-source contracting is almost impossible to do when the country isn't at war because one must argue it's in the best interest of national security and the taxpayer.
The Liberals need to be more decisive on what equipment they want to buy, he added, saying they are risk-averse.
“Fighter jets is a good example. They have punted the close of the competition—making the decision—until 2021,” he said. “Most countries run these competitions in around a year, and this was launched three to four months ago ... they should be able to close this off and make a decision within six to nine months.”
The Conservative government before it tried and failed to procure fighter jets for several years too, incurring political controversy along the way, with accusations of conducting a flawed process of the purchase of billions of dollars.
Mr. Garrison said the NDP welcomes efficiencies in the procurement process that benefit the armed forces and support Canadian industry, as well as meet DND targets.
13 février 2023 | Local, Aérospatial
The funds will be for new advanced air-to-air missiles, still-to-be-determined weapons projects for the stealth fighters and maintenance of the weapons stockpiles.
22 avril 2021 | Local, Aérospatial
Faits saillants : • Quatre entreprises canadiennes de l'aérospatiale se joignent à l'équipe • Ces entreprises offrent leur expertise en ingénierie, en logistique, en formation et simulation, ainsi qu'en gestion de mission • La base de fournisseurs de l'équipe emploie plus de 18 000 Canadiens. MIRABEL, Québec, le 22 avril 2021 – Quatre entreprises canadiennes se sont jointes à l'équipe Team Artemis, renforçant ainsi son expertise et ses capacités pour soutenir le programme de systèmes d'aéronefs télépilotés (SATP) de l'Aviation royale canadienne (ARC). Airbus Defence and Space Canada, située en Ontario, se joint aux entreprises albertaines ATCO Frontec, Canadian UAVs et Lockheed Martin CDL Systems en tant que membres de l'équipe Team Artemis, dirigée par L3Harris Technologies, une entreprise novatrice du secteur des technologies, et Israel Aerospace Industries (IAI), un chef de file mondial dans le développement de systèmes d'aéronef sans pilote (UAS). Ces nouveaux membres apportent leur expertise en ingénierie aéronautique, en logistique du déploiement, en formation et simulation et en gestion de mission. Ils se veulent un complément aux membres de l'équipe qui fournissent des composants canadiens essentiels : la tourelle électro-optique/infrarouge (EO/IR) de la série WESCAM MX de L3Harris et le moteur PT6A de Pratt & Whitney Canada, au Québec. L3Harris, dont les opérations canadiennes se déroulent dans 14 sites et 6 provinces, est l'entrepreneur principal et assurera l'intégration du C4ISR pour la plateforme, ainsi que l'ensemble des activités de soutien en service pour la durée prévue du contrat, soit de plus de 25 ans. La base de fournisseurs de l'équipe Team Artemis emploie plus de 18 000 Canadiens, génère des revenus de 11 milliards de dollars et pratique ses activités d'un océan à l'autre. « L'ajout de ces entreprises bien établies, à la fois novatrices et hautement qualifiées, consolide davantage notre position pour offrir à l'ARC la meilleure solution pour répondre à ses besoins en matière de SATP », a déclaré Ugo Paniconi, directeur général de L3Harris, à Mirabel. « Notre équipe offrira une solution éprouvée et rentable, qui comprendra un contenu industriel canadien à la fois important et durable, ce qui se traduit par du travail et des emplois importants à travers le pays. » L'équipe Team Artemis propose l'UAS Artemis, basé sur l'UAS Heron TP de IAI, mais conçu de façon unique afin de respecter les spécifications canadiennes. Le Heron TP est en service depuis plus de 10 ans au sein de la Force aérienne israélienne et a été sélectionné par les Forces armées allemandes. Il s'agit du seul système éprouvé au combat qui satisfait aux exigences opérationnelles rigoureuses de l'ARC. Le gouvernement du Canada prévoit acquérir un système SATP pour mieux répondre à ses besoins en matière de défense. Le SATP sera intégré à un réseau de systèmes de renseignement, surveillance et reconnaissance afin de permettre une circulation d'information en temps quasi réel, laquelle est essentielle aux opérations de l'ARC. L3Harris a été choisie comme soumissionnaire qualifié à la fin de mai 2019. La demande de propositions devrait être publiée plus tard cette année, le contrat sera attribué en 2022 ou 2023 et la livraison du premier système est prévue en 2024 ou 2025. L3Harris est l'une des entreprises en défense et en sécurité des plus importantes et des plus diversifiées au Canada et emploie plus de 2 300 Canadiens. Pour en apprendre davantage, visitez le site TeamArtemis.ca. 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 les capacités du système, 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. ###
7 décembre 2018 | Local, Aérospatial, C4ISR
Murray Brewster · CBC News The Liberal government has budgeted up to $20 million in this fiscal year to rejoin NATO's Airborne Early Warning and Control System (AWACS) program, reversing a Conservative-era budget cut in the name of alliance utility and solidarity. Defence Minister Harjit Sajjan and other senior officials recently appeared before a House of Commons committee to talk about the country's return to the long-standing alliance programme, which sees more than a dozen nations cost-share the operation of E3-A surveillance planes. New documents, released to CBC News under access to information law, show Canada has agreed to a partial return to the program through operations and support. It's a compromise decision that leaves the country's aerospace companies partly out in the cold — and one expert is questioning whether the reasons which led the former government to drop out of the program still exist. One of the major complaints voiced about the program behind closed doors in Stephen Harper's government had to do with NATO's reluctance to deploy the sophisticated surveillance aircraft on missions to Afghanistan and Iraq. The aircraft eventually were used for those missions, but not without considerable debate and what some Canadian officials saw as foot-dragging on NATO's part. 'A tough sell' Defence expert Dave Perry said that, going forward, the Liberals will have to justify this particular reinvestment more carefully. "If they don't actually use them in an operational context when it matters, then it's going to be a tough sell," he told CBC News. National Defence defends the decision to jump back into the program, saying in an email that "several things have changed, causing Canada to re-evaluate the relevancy" of its participation. A major factor is the introduction of the Liberal government's new defence policy, which emphasizes the need for better surveillance and reconnaissance. Canada had been part of the AWACS program for decades. When the Conservatives pulled the plug they cast the decision in economic terms, saying it had "little direct benefit." The planes were deployed in Europe and occasionally on other operations. The debate within the Harper government was over the logic of paying for a defence system that doesn't contribute directly to the defence of North America. "Accordingly, it is debatable whether it is appropriate for Canada to carry nearly 10 per cent of the programme, given that it is one of the two NATO members on the North American side of the Atlantic Ocean, and, as such, would benefit considerably less from AWACS than the 26 members on the European side," reads a March 22, 2016 internal government briefing note. NATO AWACS aircraft currently fly surveillance missions in support of reassurance measures in eastern Europe ordered after Russia's annexation of Crimea. The program is also providing "tailored assurance measures" for Turkey because of the crisis in Syria and is watching out for terrorist movement in the Mediterranean Sea. "I think time will tell, and it will depend on whether these aircraft are actually used," said Perry, an analyst at the Canadian Global Affairs Institute. "If they're not used, then it will be a struggle to justify Canadian participation, however good it is for wider burden-sharing within the alliance and support to allies." Business opportunities The internal briefing note shows the decision to quit in 2011 cost Canadian defence contractors the right to bid on hundreds of millions of dollars in work related to the modernization of observation planes, known for their distinctive radar domes. Rejoining the plan will allow Canadian companies a finite set of bidding opportunities, a National Defence spokeswoman said. "Canada did not regain access to AWACS-related industrial benefits for modernization and upgrade when it re-engaged with the program," said Jessica Lamirande in an email. "However, Canadian industry has regained eligibility to compete for contracts related to the operations and maintenance of the AWACS." The briefing shows Canada is, in some respects, being treated like a new member of the plan, which means Ottawa pays for operations and support of the aircraft "while the fleet modernization will continue to be the responsibility of the programme's current 16 members, who will retain all of the industrial benefits associated with the programme." Prior to the Liberal government's decision to return to the program, officials held out the hope that rejoining might "restore Canada's ability to bid on such contracts." Conservative defence critic James Bezan described the government's approach as a "half-measure" and said rejoining AWACS became necessary after the Ukrainian crisis. "They're not spending as much as we were and we're not getting the full benefits of industrial contracts," he said, noting the Commons defence committee pointed out that Canada was not getting everything it could out of NATO contract opportunities. "The Liberals are always late to the table and that's what we're seeing here." https://www.cbc.ca/news/politics/awac-nato-surveillance-ukraine-1.4931098