Preserving capacity, General Tom Lawson, Chief of the Defence Staff, Keys to Canadian SAR
Issue link: http://vanguardcanada.uberflip.com/i/1159607
www.vanguardcanada.com AUGUST/SEPTEMBER 2019 19 Sponsored Content programs are few and far between with lead times of over 18 months to come to fruition. Added to this, there are constant program delays that easily add months if not years to the procurement process. This is a lifetime in the life of a SMB. The structure of the industry is also biased towards large primes who control all major procurements, leaving SMBs with only the ITB policy as an entry point to participate on large procurements. What this means is that once a major program is awarded, the SMB still needs to wait until a sub-contract is provided by the prime contractor and this adds extra time until revenues can actually be made by the SMB. SMBs cannot survive with only con- tracts at initial procurement and acquisi- tion time, as major programs are so few and far apart. Gaps between programs can spell the end of some companies without continuous backlog. To maintain its work- force and continuous work, it is imperative that SMBs have access to the In-Service- Support (ISS) portion of large programs to be able to grow. This provides a more stable revenue stream for the long-term. The key is to be able to stack several ISS projects to ensure a minimum level of work at the onset of every year and keep adding new programs. We need a more "SMB-friendly" government procure- ment system that encourages primes to have SMBs participate in the long-term sustainment of programs. Small and me- dium-sized firms struggle to win govern- ment and defence contracts and the gov- ernment does not always understand how an SMB business model differs from those of our bigger counterparts; the system is complex and geared to address established large corporate requirements. We need to reduce the complexity of contracts and contracting processes such that Canadian SMB capacity can be promoted. The 'un- bundling' on contracts would ensure that SMBs benefit during the duration of large programs and not only at acquisition time. Next, assuming that the SMB has a solid backlog, the next problem is the availabil- ity of the proper resources. Aerospace is already experiencing a labour shortage and in addition, we live at a time of digital trans- formation where new competencies and knowledge are required. We need to invest in the re-training of our experienced work- force and align our education system to be able to fulfil upcoming job requirements. Finally, surviving is not enough, as a SMB we need to grow. The only way to do so is through innovation and R&D so that the company can evolve with chang- ing market demands. However, innova- tion means investment and that can be achieved only with profitability and avail- ability of funding. With long procurement cycles, SMBs need support to access pro- grams targeted to the industry's innova- tion agenda that would send a signal that Canada is committed to the long-term development. Today's programs such as BCIP and IDEaS are just a drop in the bucket compared to what would really be required to sustain an innovation and R&D agenda for Defence and Aerospace. Fortunately, a government program such as the Strategic Innovation Fund is a good step in the right direction. At Bluedrop, we have been both success- ful and fortunate at navigating the intri- cate Defence and Aerospace procurement processes while keeping abreast of govern- ment policies to support SMBs. Bluedrop has benefited from Investment Framework transactions, BCIP and SIF programs and is involved on major Canadian programs in both acquisition and in-service support. This has been the result of extensive strate- gy definition, persistence and hard work to access these programs. The company had to transform itself from a pure courseware design and production service company to become a more complete training product and service company. This meant extensive investment and commitment in the strat- egy and the development our people. The success Bluedrop is having with its new suite of Virtual Reality Rear Crew Mission Simulators is a result of a very fo- cused plan and close relationship with ma- jor OEMs. The quality of our workforce has been the key success factor in adapting to market needs and providing excellent products and services to our customers. What is becoming extremely clear is that we cannot grow based on Canadian pro- grams only. It is imperative that SMBs ex- tend their reach to export markets. Again, this means further investment and access to continuous work. This is what makes working in a SMB both thrilling and challenging. As a SMB, we need to remain nimble, listen to our cus- tomers while having a clear strategy to take advantage of government programs and procurement policies while encouraging an innovation culture within the company. Jean-Claude Siew is the Vice President for Technology and Simulation for Bluedrop Training & Simulation Inc. (BTSI). Jean-Claude has profound domain knowledge of training and simulation and management leadership of a company. He is focused on growing BTSI by bring- ing technology leadership and by further developing the products and services business working closely with large Aerospace and Defence OEMs. Jean- Claude has accumulated more than 20 years' experience in the aerospace and defence industry, more specifically in-flight simulation and training for both civil and military pilots at CAE Inc. As an executive and leader in high technology domain, Mr. Siew was successively Director of Business Development, Vice President for Visual Systems and then Vice President Systems Engineering. Mr. Siew has set up and managed a company in Banga- lore, India for software development and digital content creation. More recently, Jean-Claude was President & CEO of a TSX venture public company that provides advanced technological security solu- tions for governments and corporations by using biometric identification, access control and intelligent video surveillance. Jean-Claude Siew graduated from l'École Polytechnique de Montréal in 1984 and is a Professional Engineer specialized in Aeronautics. perspeCtive The success Bluedrop is haVing wiTh iTs new suiTe of VirTual realiTy rear crew Mission siMulaTors is a resulT of a Very focused plan and close relaTionship wiTh Major oeMs.