The big-bang (one bidder) procurement plan
BY LAWRENCE MARTIN
THURSDAY, SEPTEMBER 1, 2005 UPDATED AT 3:50 AM EDT
FROM THURSDAY'S
GLOBE AND MAIL
Last we heard from General Rick Hillier, he was calling the enemy "detestable murderers and scumbags." Since our military chiefs are usually a few shades less colourful, Redneck Rick triggered a storm.
Now the good general has got the town buzzing again -- this time with a big-bang plan to overturn Ottawa's sloth-ridden procurement practices and fast-track the acquisition of a new fleet of 50 planes at a cost of $6-billion.
The plan is to ram a deal favouring mainly American companies -- no other bidders need apply -- through cabinet before Christmas.
Makes sense, say the boys at the Defence Department. The new planes -- heavy-lift helicopters, search and rescue aircraft, and cargo vehicles -- are badly needed to replace our creaking craft, especially when we've got grunts in Afghanistan who are vulnerable without the right stuff. The planes they're using now are three and four decades old.
Go the usual procurement route, supporters of the proposal say, and you wait for almost a generation. Indeed, the Defence Department did a study a while back. Average time for a military purchase from the concept stage to actual acquisition? Seventeen years!
Enter Redneck Rick, the blunt Newfoundlander with a bolder military vision than peacekeeping. "We are the Canadian Forces," he said, "and our job is to be able to kill people."
Gen. Hillier has experience working with the U.S. Army in Afghanistan and other places. He also has experience working with Paddy O'Donnell, a former vice-chief of the defence staff who now heads CFN Consultants, the lobby group trying to sell the Liberal government on the new aircraft. When Gen. Hillier headed up the National Defence Headquarters Secretariat, he reported directly to Mr. O'Donnell.
The connections -- there are others between CFN and key players in the defence boardrooms -- have aroused some suspicions. Opponents of the big-bang plan see a cozy old boys' network trying to get Defence Minister Bill Graham to approve it.
It's rare to have no competitive bidding -- sole sourcing, as it's called -- on the purchase of one type of aircraft, let alone three. Competitive bidding would likely save at least $1-billion on the new planes, and that's no small change.
Competition might also give Canada's Bombardier a chance at the contract on one of the aircraft -- the fixed wing search and rescue. Bombardier's representatives say the company would be able to modify one of their aircraft, the Dash 8, to fit the requirements. Why give the jobs to the Americans, they say, after what they've done to
Canada on softwood lumber? Other potential bidders on the contracts are Europe's Airbus, which is producing a military transport craft, the A400M.
You can avoid other bidders by using an old trick: You make the technical requirements for the planes so specific that only the company you have in mind can fulfill them.
"The military has basically decided what aircraft they want," a senior Defence Department source said. "They don't want a competitive process."
A lobbyist for one of the companies being overlooked was not amused. "Any other defence minister would look these guys in the eye and say bull. It wouldn't even get to the table."
Mr. Graham has yet to state a preference. But the pressure is building. Yesterday, the Defence Department staged a briefing for top bureaucrats from other departments to try to bring them on board.
Gen. Hillier, who is, indeed, a breath of fresh air, has some support among the politicians. His argument -- We're in Kandahar and I don't have this and I don't have that and we can't wait forever -- is a strong one for accelerating the procurement system. On that issue, there appears to be agreement. Mr. Graham has long favoured procurement reform.
But is ramming through a $6-billion deal without competitive bidding the way to go?
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