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E.R. Campbell said:Several Western (and a couple of Eastern) democracies have tried to "fix" defence procurement but, it seems to me, that we must accept that the process is inherently political. (It's been that way, in our (British based) tradition since, at the very least, 1560 ot 70ish when Elizabeth I and her Lord Treasurer (William Cecil, Lord Burghley) took very direct control of the navy and its dockyards.)
It seems to me that the process can be both political and efficient.
Military requirements must be properly developed and presented. That means, first, that there must be a reference, a "baseline" capability statement ~ the (political) government's responsibility ~ against which deficiencies can be identified and requirements stated.
The government, the bureaucracy, must agree on the the requirements ~ and an independent "challenge" function is not a bad idea ~ and then, equally as importantly, agree on the price.
The "price" may have two components:
1. The "fair market price" which must be agreed my bureaucrats and come from the defence budget; and
2. The surcharges that politicians might want to "buy Canadian," etc ~ this should not be a charge against the defence budget.
The final decision on what to buy and how much to pay is 100% political. Admirals and generals get to say what they need (to meet the government's stated objectives) and want (to be flexible, etc) but they do not get to decide: cabinet does for a variety of reasons, some blatantly political and partisan.
One suggestion is to split PWGSC. "Common" use procurement should remain a core function of PWGSC but "special to service" items for DND and very high value projects should be managed by a reborn Department of Munitions and Supply (you can call it whatever you want) which would answer to a separate minister and deputy, disconnected from both DND and PWGSC. It is still "government procurement," with all the current implications, but a separate, powerful, big spending ministry might be more efficient and effective.
:nod:
DND indeed gets a lot of grief for "Defence" procurement, but few acknowledge that DND actually has little control in the contractual terms and conditions and implementation of any purchase above $25,000 currently -- contracting authority is out of DND's hands and rests with Public Works and Government Services, heavily influenced by Industry Canada where value propositions (VPs) and industrial and technological benefits (ITBs) constrain implementation possibilities. The VPs and ITBs are where industrial, and arguably political and regional factors outpace the operational requirement by several tactical bounds.
COTS, or the "Holy Grail" of MOTS, while expediting the procurement process significantly, aligns to the specifics of an operational requirement in relatively few cases. The C-17 and C-130J were good examples of MOTS that aligned with Canada's operational requirements for strategic and tactical airlift, because the manner that the RCAF conducts those conditions mirrors almost identically the manner in which other Western air forces conduct those missions. Thus an RCAF rounded instead of a USAF rounded and that is really about it for Canada-specific 'modifications.'
The author may have gotten a little caught up in some of the initial elements of concern noted in the Auditor General's Fall 2010 report on helicopters and I believe gets some of the Chinook’s timelines cross-linked; splicing initial intended timelines into the final Government-approved schedules.
Although DND initiated the Medium to Heavy-Lift Helicopter (MHLH) project in the fall of 2005, the project was not given official Government approval by the Treasury Board (TB) to enter into definition phase until June 2006. Within TB's preliminary project approval (PPA) was approval of DND's High-Level Mandatory Requirements (HLMRs). One of the HLMRs required that the first aircraft had to be delivered no later than 36 months after contract award (MACA), and the final aircraft of the fleet to be delivered no later than 60 MACA (five years).
Although DND and PWGSC noted their intent to the Treasury Board to try and expedite the contract award for the Fall 2006 or Winter 2007 period, Government of Canada major capital project regulations (for all Depts, not just DND) require Departments to be granted final approval (then termed Effective Project Approval -EPA), which follows PPA, before they can enter the Implementation Phase. Only with EPA granted can PWGSC then legally sign contracts. Thus, DND and PWGSC, while intending to receive such approvals to permit a Fall 2006 or Winter 2007 contract award, were still subject to Governmental final approval by Treasury Board, EPA, which was granted in June 2009. A contract with Boeing was signed one month later in July 2009.
So the 2008 date for initial delivery was only used during initial pre-approval planning, and only when PWGSC was authorized by TB to enter into contract with Boeing and did so in July of 2009, did the legal/programmatic requirement to deliver first aircraft by July 2012 and the final aircraft by July 2014 take effect. The first aircraft was accepted by DND in June of 2012 (35 months after contract, or one month before the limit) and aircraft 147301 remained with Boeing to be flown by RCAF and Boeing test pilots to finalize the aircraft's type certification. The last aircraft was delivered to the RCAF in June 2014, 59 months after contract award, one month before the TB-approved limit of 60 months.
:2c:
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