Vanguard Magazine

www.vanguardcanada.com APRIL/MAY 2024 33 Sponsored Content While PSPC's notice signified an im- mediate shift in approach, it is naïve to think it will be quick or easy. Focusing proposal evaluation on past vendor per- formance rather than individual resumes is to be commended, but the government has little experience doing so for profes- sional services bid evaluations. Unlike in the United States, Canada has no history of using vendor performance in govern- ment procurement, so it's unclear what data would be used and how (or whether) it would be leveraged to award evaluation points or to reduce points. Another consideration is the need to tighten up the definition of a bidder. When bid teams or joint ventures are formed primarily to score maximum eval- uation points, confidence diminishes as to whether the entire team will deliver. This behaviour is an extension of the staffing- agency mindset that led to the ArriveCAN debacle. No wonder recent examples have eroded trust between government and the defence services industry. And yet, Canada is home to agile, tech- savvy companies that offer innovative solu- tions toward better defence procurement. As a services and solutions ally to DND for 57 years, ADGA contracts directly to many government departments and is a significant and longstanding employer of veterans. We are also a tier-2 partner to other defence companies delivering on their government contracts. ADGA applauds this PSPC notice and has championed for this change for some time. Moreover, we want to leverage our rich history as a government ally to help rebuild trust in defence services contrac- tors. ADGA is optimistic that if government collaborates with industry on different evaluation methods and terminology, together we could avoid choosing the wrong criteria, unintended consequences, and making the new situation worse than the one being resolved. inquiry into the ArriveCAN app scandal. Among other allegations, testimony re- vealed that two consultants received mil- lions in government contract dollars to de- velop the app, except they subcontracted all the work. In this business, we understand this is not a new phenomenon. At ADGA Group, we have previously written about the pit- falls of government contracting for capac- ity rather than for capability (Vanguard, August/September 2023, Volume 30, Number 4), so it is with much optimism for the future that we applaud and wel- come this change by PSPC. One desired outcome stated by PSPC is to reduce the number of contracts focused on task-based (i.e. "capacity") contracts while increasing the number of solutions- based (i.e. "capability") contracts. At ADGA, we have already transformed our own business over the last several years— from a focus on task-based to solutions- based contracting. ADGA has skilled and experienced em- ployees, many of whom currently fulfill government-managed task-based con- tracts. However, we know that real value- added outcomes are achieved when em- ployees work as a team and are solutions focused, responsible and accountable. TOWARDS BETTER DEFENCE PROCUREMENT: Rebuilding Trust in Defence Services Contractors By Jack MacDonald, Technical Director, ADGA Group PERSPECTIVE T aking a moment for reflec- tion, 2023 was simultane- ously a year of pessimism and optimism. On the one hand, budget cutbacks were announced earlier in 2023 that adversely affected the delivery of ser- vices to Canadians. For Department of National Defence (DND) operations par- ticularly, these cutbacks had an immediate impact on defence services. On the other hand, many long-awaited procurements were announced in 2023, such as the Future Fighter Capability (January), Strategic Tanker Transport Capability (July), Multi-Mission Aircraft (November), and Land C4ISR (December), to name a few. Perhaps a more important announce- ment was the notice by Public Services and Procurement Canada (PSPC) about changes to professional services. Aiming to strengthen integrity and controls on profes- sional services supply arrangements, these changes will have a ripple effect across the defence industry. Compared to the handful of major equipment acquisitions, profes- sional services contracts awarded each year number in the hundreds. The tipping point for this change was a series of statements made during the

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