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

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

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

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23 février 2018 | Local, Aérospatial

Silicon Valley-style innovation clusters to include aviation companies
Canada's aviation and aerospace industries will play a key role in the creation of innovation superclusters similar to Silicon Valley. Air Canada and PAL Aerospace are among hundreds of companies involved in creating five superclusters across Canada, with a $950 million investment from the federal government that will be matched dollar-for-dollar by the private sector. “We think this is important for Canada,” said Catherine Dyer, chief information officer for Air Canada, in an interview with Skies. “We really view ourselves as a leader in this space, and to build capability in this part of the country, and more broadly for Canada, are two things that we think go very nicely together.” Air Canada will be part of the Quebec-based SCALE.AI supercluster, which aims to use artificial intelligence and robotics to build intelligent supply chains, making Canada a world-leading exporter. “Our hope around this is that it will help us become more efficient in how we deal in our operations excellence program, as well as in our cargo business,” said Dyer. “But from my perspective it has got probably further-reaching opportunities in terms of how we enable employees and customers in creating that Air Canada experience that we're all very focused on. “So most immediately it's going to be focused on the logistics components of our business. But we do believe that artificial intelligence, more generally, has got some fairly broad-reaching implications for our company.” Air Canada was a key player in creating the supercluster submission in late 2017 and sees its involvement as a step toward becoming a global leader in supply chain management. SCALE.AI includes 120 partners across Canada from a wide range of industries, including transportation, telecommunications, mining, food, and oil and gas. “We [Air Canada] would be looking at how we could use artificial intelligence to help us see things maybe we don't see when we're looking at it with human brains,” said Dyer. “That really is the purpose of artificial intelligence, is to take the collective wisdom of many people, and the computing power of machines, and apply it to the business problems that we have today.” Air Canada plans to use artificial intelligence to develop new tools that allow it to better manage cargo capacity, resulting in better customer service. “Timeliness is essential when shipping fresh products and employees will have better tools to forecast the need for space in temperature controlled facilities, facilitate tracking and ensure timely delivery,” said Isabelle Arthur, senior media relations manager for Air Canada, in a statement. “Air Canada already uses artificial intelligence in revenue management, to forecast aircraft maintenance, in marketing, in elevating customer experience and communications by partnering with government, universities in Toronto and Montreal to help Canada retake a leadership position.” PAL Aerospace will be part of the Ocean Supercluster in Atlantic Canada, which plans to use innovation to improve competitiveness in ocean-based industries like fisheries, oil and gas, and clean energy. The company will design and execute projects that encourage collaboration with other supercluster members, small and medium-sized enterprises (SMEs) and academic institutions, said Derek F. Scott, vice-president of program development for PAL Aerospace, in a statement to Skies. “We aim to use supercluster initiatives to advance our digitalization objectives in our modern ocean surveillance programs such as the ice management services we continue to provide the oil and gas industry today,” he said. “In addition, we intend to use the program to advance opportunities to strategically insert other entities such as SME companies into our solution and supply chain for our domestic and international customers.” He noted Canada has the longest coastline in the world, which spans some of the most challenging ocean environments, including the North Atlantic. “Innovation is a solution to challenge, and Canada has an ocean of opportunity to drive innovation into technologies and capabilities that contribute to Canada's economic growth, sustainability and export growth,” said Scott “PAL Aerospace is a leading example of how ocean innovation contributed to its success and the Ocean Supercluster initiative will now give us an opportunity to capitalize on that strength and create even more success for PAL Aerospace and for those companies and entities that work with us on the program.” Along with the SCALE.AI and Ocean superclusters, three others are planned: The Advanced Manufacturing Supercluster in Ontario, which aims to connect Canada's technology strengths to its manufacturing industry; The Protein Industries Supercluster, based in the Prairies, which intends to make Canada a leading source for plant proteins; and The Digital Technology Supercluster, based in British Columbia, which will use big data and digital technologies to unlock new potential in sectors like healthcare, forestry and manufacturing. More than 450 businesses, 60 post-secondary institutions and 180 other participants are involved in the five supercluster initiatives, according to a government news release. It's expected the superclusters will create 50,000 middle-class jobs and grow Canada's economy by $50 billion over the next 10 years. https://www.skiesmag.com/news/silicon-valley-style-innovation-clusters-include-aviation-companies/
27 mars 2023 | Local, Aérospatial

PM details defence spending plans during Biden's visit — but the timelines are largely the same | CBC News
Canada plans to invest $7.3 billion to upgrade its fighter jet bases and Far North landing strips to accommodate the air force's new F-35s, the Prime Minister's Office announced Friday at the conclusion of a visit by U.S. President Joe Biden.
13 juin 2018 | Local, C4ISR

New Cyber Security Strategy bolsters cyber safety, innovation and prosperity
The Government of Canada is committed to defending Canada and Canadians against cyber threats. Today, the Honourable Ralph Goodale, Minister of Public Safety and Emergency Preparedness, the Honourable Harjit S. Sajjan, Minister of National Defence, and the Honourable Navdeep Bains, Minister of Innovation, Science & Economic Development delivered the National Cyber Security Strategy. This new strategy will guide the Government of Canada's cyber security activities to safeguard Canadians' digital privacy, security and economy. The strategy strengthens both how we combat cybercrimes and how we defend against them. It consolidates federal cyber operations into the new Canadian Centre for Cyber Security, which will create one clear and trusted national authority. Instead of several different departments, the Centre will provide a single window for expert advice and services for governments, critical infrastructure operators, and both the public and private sector to strengthen their cyber security. The Centre's first head will be Scott Jones, who is currently responsible for the IT Security Branch at the Communications Security Establishment. A new National Cybercrime Coordination Unit in the RCMP will support and coordinate cybercrime investigations between police forces across the country. New investments will bolster the RCMP's capacity to investigate major cybercrimes that affect the Government of Canada, impact critical infrastructure, and cause the most harm to Canadians. These investments will also enhance the RCMP's ability to conduct criminal investigations with domestic and international partners and provide specialized cyber capability to major investigations. In addition, small and medium-sized businesses will be able to enhance their cyber security with guidance and tools through the Centre, as well as a new voluntary cyber certification program, which will outline best practices to help businesses understand and respond to cyber threats. For Canadians, the strategy and associated investments mean a clear and trusted federal source for cyber security information, practical tips to apply to everyday online activities and heightened awareness of malicious cyber activity. For businesses, the National Cyber Security Strategy puts into place a framework that will improve their systems' resilience. For researchers and academics, it will support advanced research, fostering innovation, skills and knowledge. And for the digital systems we rely on every day, like online banking, electricity grids and telecommunications, it will support stronger security, and more rapid and coordinated federal responses to cyber threats. Quotes “Cyber security is not only a challenge, but an opportunity. Virtually every aspect of our modern lives depends on information technology. If Canadians are empowered to improve their cyber security and adapt to new threats—across government, the private sector and our personal use—we will not only realize the potential of the digital economy and keep our own data secure, but we can sell those skills and innovations to the huge, growing market in the rest of the world, creating high-paying middle class jobs. The National Cyber Security Strategy is the Government of Canada's roadmap to get there.” - The Honourable Ralph Goodale, Minister of Public Safety and Emergency Preparedness “The threats we face in cyberspace are complex and rapidly evolving; more than ever, cyber security is of paramount importance. Cyber security is not just a necessity, but a competitive advantage for Canada. The National Cyber Security Strategy establishes a clear focal point for cyber security within the federal government. The Communications Security Establishment is well-positioned to create and house the Canadian Centre for Cyber Security by building on the tremendous skill and talent that already exist within the government and partnering with industry to strengthen cyber security in Canada.” - The Honourable Harjit S. Sajjan, Minister of National Defence “The Government of Canada is committed to safeguarding Canadians' digital privacy, security and the economy. For Canada's small and medium-sized businesses, cyber threats can have profound economic consequences. That is why we are investing over $25 million over five years for a voluntary assessment and certification program to help small and medium-sized businesses protect themselves against cyber threats. This new certification program will improve cyber security among Canadian small and medium-sized businesses, increase consumer confidence, and better position small and medium-sized businesses to compete globally.” - The Honourable Navdeep Bains, Minister of Innovation, Science & Economic Development “I am honoured to be named the first head of the Canadian Centre for Cyber Security. The Cyber Centre will bring together the government's leading-edge cyber security operational talent from the Communications Security Establishment, Public Safety, and Shared Services Canada to be a unified and trusted source for cyber security information for the country. The Cyber Centre will be outward-facing, open to collaboration with industry partners and academia, as well as a trusted resource for faster, stronger responses to cyber security incidents. Cyber security is, and continues to be a team effort.” - Scott Jones, Head of Canadian Centre for Cyber Security and Deputy Chief, IT Security, CSE Quick facts Canadians spend the most time on-line of any country in the world – at 43.5 hours each per month. Cybercrime costs Canada 0.17% of its GDP, which is equal to $3.12 billion a year. Cyber-crime globally is estimated to cause $600-billion (US) in economic losses in 2018 and more than $6 trillion (US) by 2021. The global market for cyber security products and services is currently worth more than $96 billion (US), and is expected to grow to over $202 billion (US) by 2021. Budget 2018 invested $507.7M over five years and $108.8M per year ongoing to support the new Strategy. It includes: $155.2M over five years and $44.5M per year ongoing, to create the Canadian Centre for Cyber Security; $116M over five years and $23.2M per year ongoing, to the RCMP for the creation of the National Cybercrime Coordination Unit; $85.3M over five years and $19.8M ongoing for increased RCMP enforcement capacity; and $28.4M over five years for cyber certification. The remaining funds are for additional initiatives to support greater cyber security and resilience for small and medium-sized businesses, as well as the energy and financial sectors. In addition, Budget 2018 invested a further $220 million over six years in Shared Services Canada and the Communications Security Establishment to better protect government networks and data; and $30 million over five years and $5 million ongoing in the Canada Revenue Agency to protect taxpayers' personal information. The Strategy reflects the perspectives from the Cyber Review and consultation. https://www.canada.ca/en/public-safety-canada/news/2018/06/new-cyber-security-strategy-bolsters-cyber-safety-innovation-and-prosperity.html

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