Vanguard Magazine

perspeCtive the ConStAnt ChAllengeS of SmAll medium buSineSSeS (Smbs) in CAnAdA'S defenCe And AeroSPACe domAin Surviving and Growing: BY JEAN-CLAUDE SIEW bluedroP trAining & SimulAtion inC. W ith billions of dollars an- nounced for new pro- grams and an acquisition budget coupled with defence procurement policies, it may seem that the environment is ideal for SMBs to grow and prosper in the coming years. The reality is not as simple as SMBs need to navigate their way through the procurement processes and constant delays in programs. Accessibil- ity to financial and human resources is a constant challenge. However, a SMB like Bluedrop is not only surviving in this en- vironment but is succeeding in positioning itself for growth. Through Canada's 'Strong, Secure, En- gaged' defence policy, the government of Canada has developed a long-term plan for operational funding requirements, new acquisitions and sustainment. It has estab- lished a separate Capital Investment Fund that is earmarked for identified new pro- grams with an acquisition budget of $213 billion and a sustainment budget of $108 billion. The major program plans are pub- lished years in advance and have industry consultation processes as they near the competitive bidding process. The '2018 Defence Investment Plan' includes the detailed listing of future proj- ects and programs that are expected to be undertaken and the expected dates of award through to completion. Within this program there are specific requirements for industrial benefits and Canadian con- tent with an emphasis on Key Industrial Capabilities (KICs). Canada's Industrial and Technological Benefits (ITB) Policy objectives are to fa- cilitate economic development and long- term sustainment of Canada's Defence Sector. This positions Canadian companies to move up the value chain, capture mar- ket opportunities, benefit from subsequent commercialization opportunities. ITB Poli- cy encourages the participation of Canadian SMBs as suppliers on major federal procure- ments by maximizing the amount of busi- ness activities in Canada involving work di- rectly related to a given acquisition as well as work in the Defence Sector more broadly by strengthening innovation and R&D in Canada. The opportunities contribute di- rectly to increasing market competitiveness and establishing a defence pedigree such that SMBs can better access export markets. The above policies would suggest that the Canadian Defence and Aerospace do- main offers great opportunity for growth and continuous innovation. However, the reality is not as straightforward as we may think for SMBs operating in this space - where entry barriers are high and surviving as a SMB is an everyday challenge. Even with a detailed listing of future projects and programs that are expected to be undertaken and the expected dates of award through to completion, these future 18 AUGUST/SEPTEMBER 2019 www.vanguardcanada.com Sponsored Content

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