13 juin 2018 | Local, Aérospatial, Naval, Terrestre, C4ISR

Defence deputy minister to start sweeping procurement-rules review this summer

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.

New defence policy ups procurement spending

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.

Liberals just need to decide, says Conservative critic

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.

https://www.hilltimes.com/2018/06/13/defence-deputy-minister-begin-reviewing-procurement-rules-summer/147489

Sur le même sujet

  • F-35s Are Dead: The Sixth Generation of Fighter Aircraft Is On Its Way

    21 janvier 2020 | Local, Aérospatial

    F-35s Are Dead: The Sixth Generation of Fighter Aircraft Is On Its Way

    by Kris Osborn Key point: At this rate, the F-35 won't even see combat before its outmoded. It is also possible that the new 6th-generation fighter could use advanced, futuristic stealth technology able to enable newer, more capable air defenses. The air defenses of potential adversaries are increasingly using faster computing processing power and are better networked together, more digital, able to detect a wider range of frequencies and able to detect stealthy aircraft at farther distances. The Air Force has begun experimenting and conceptual planning for a 6th generation fighter aircraft to emerge in coming years as a technological step beyond the F-35, service leaders said. "We have started experimentation, developmental planning and technology investment," Lt. Gen. Arnold Bunch, Military Deputy, Office of the Assistant Secretary of the Air Force, Acquisition, told Scout Warrior in an interview. The new aircraft, engineered to succeed the 5th-generation F-35 Joint StrikeFighter and explode onto the scene by the mid 2030s, is now in the earliest stages of conceptual development with the Air Force and Navy. The two services are now working together on early conceptual discussions about the types of technologies and capabilities the aircraft will contain. While the Air Force has not yet identified a platform for the new aircraft. The Air Force characterizes the effort in terms of a future capability called Next-Gen Air Dominance. While Bunch did not elaborate on the specifics of ongoing early efforts, he did make reference to the Air Superiority 2030 Flight Plan which delineates some key elements of the service's strategy for a future platform. Fighter jets in 20-years may likely contain the next-generation of stealth technology, electronic warfare, sophisticated computer processing and algorithms, increased autonomy, hypersonic weapons and so-called "smart-skins" where sensors are built into the side of the aircraft itself. Some of these characteristics may have been on display more than a year ago when Northrop Grumman's SuperBowl AD revealed a flashy first look at its rendering of a new 6th-generation fighter jet. Northrop is one of a number of major defense industry manufacturers who will bid for a contract to build the new plane - when the time is right. While there are not many details available on this work, it is safe to assume Northrop is advancing concepts, technology and early design work toward this end. Boeing is also in the early phases of development of a 6th-gen design, according to a report in Defense News. The Navy's new aircraft will, at least in part, replace the existing inventory of F/A-18 Super Hornets which will start to retire by 2035, Navy officials said. The Navy vision for a future carrier air wing in 2040 and beyond is comprised of the carrier-launched variant of the Joint Strike Fighter, the F-35C, and legacy aircraft such as the EA-18G Growler electronic jamming aircraft. Also, around this time is when Navy planners envision its 6th generation aircraft to be ready, an aircraft which will likely be engineered for both manned and unmanned missions. Technologies are rapidly advancing in coatings, electromagnetic spectrum issues, artificial intelligence, maneuvering, superiority in sensing the battlespace, communications and data links, Navy leaders have said. Navy officials also add that the Navy is likely to develop new carrier-launched unmanned air vehicles in coming years as well. For instance, Northrop's historic X-47B demonstrator aircraft was the first unmanned system to successfully launch and land on the deck of an aircraft carrier. Analysts have speculated that as 6th generation developers seek to engineer a sixth-generation aircraft, they will likely explore a range of next-generation technologies such as maximum sensor connectivity, super cruise ability and an aircraft with electronically configured “smart skins.” Super cruise technology would enable the new fighter jet to cruise at supersonic speeds without needing afterburner, analysts have explained. As a result, super cruise brings a substantial tactical advantage because it allows for high-speed maneuvering without needing afterburner, therefore enable much longer on-location mission time. Such a scenario provides a time advantage as the aircraft would likely outlast a rival aircraft likely to run out of fuel earlier. The Air Force F-22 has a version of supercruise technology. Maximum connectivity would mean massively increased communications and sensor technology such as having an ability to achieve real-time connectivity with satellites, other aircraft and anything that could provide relevant battlefield information.The new aircraft might also seek to develop the ability to fire hypersonic weapons, however such a development would hinge upon successful progress with yet-to-be-proven technologies such as scramjets traveling at hypersonic speeds. Some tests of early renderings of this technology have been tested successfully and yet other attempts have failed. The Air Force Chief Scientist, Dr. Geoffrey Zacharias, has told Scout Warrior that the US anticipates having hypersonic weapons by the 2020s, hypersonic drones by the 2030s and recoverable hypersonic drone aircraft by the 2040s. There is little doubt that hypersonic technology, whether it be weaponry or propulsion, or both, will figure prominently into future aircraft designs. Smart aircraft skins would involve dispersing certain technologies or sensors across the fuselage and further integrating them into the aircraft itself, using next-generation computer algorithms to organize and display information for the pilot. We see some of this already in the F-35; the aircraft sensor fusion uses advanced computer technology to collect, organize and display combat relevant information from a variety of otherwise disparate sensors onto a single screen for pilots. In addition, Northrop's Distributed Aperture System is engineered to provide F-35 pilots with a 360-degree view of the battlespace. Cameras on the DAS are engineered into parts of the F-35 fuselage itself to reduce drag and lower the aircraft's radar signature. Smart skins with distributed electronics means that instead of having systems mounted on the aircraft, you would have apertures integrated on the skin of the aircraft, analysts have said. This could reduce drag, increase speed and maneuverability while increasing the technological ability of the sensors. It is also possible that the new 6th-generation fighter could use advanced, futuristic stealth technology able to enable newer, more capable air defenses. The air defenses of potential adversaries are increasingly using faster computing processing power and are better networked together, more digital, able to detect a wider range of frequencies and able to detect stealthy aircraft at farther distances. The new 6th-generation fighter will also likely fire lasers and have the ability to launch offensive electronic attacks. https://nationalinterest.org/blog/buzz/f-35s-are-dead-sixth-generation-fighter-aircraft-its-way-114901

  • Government to commit to building first three warships despite budget concerns

    11 juin 2021 | Local, Naval

    Government to commit to building first three warships despite budget concerns

    The first tranche of the controversial Canadian Surface Combatant project would see three vessels constructed at Irving Shipbuilding on the East Coast.

  • Congress offers procurement boost for F-35 jets in FY24 spending bill

    23 mars 2024 | Local, Aérospatial

    Congress offers procurement boost for F-35 jets in FY24 spending bill

    The U.S. Air Force would receive enough money to buy 51 F-35As in fiscal 2024 under the compromise defense spending bill lawmakers released.

Toutes les nouvelles