Vanguard Magazine

Even with a reformed set of require- ments and priorities, the Department of National Defence (DND) will need to enhance its ability to move programs quickly and efficiently through the sys- tem. To begin with, DND must expand the ranks of procurement experts, which are currently depleted. 3 This procurement capacity must be strengthened outside of DND as well, since defence procurement in Canada is a whole-of-government pro- cess, with three key departments – DND, PSPC and ISEDC – effectively having an equal say. In this process, DND is represented by both the military and civilian branches of the department. In naval procurement the Commander RCN sets the requirement as the Project Sponsor and the Assistant Deputy Minister (Materiel) conducts the procurement as the Project Manager, normally through a dedicated project management office (PMO) for large capi- tal projects. PSPC supports the PMO as the contracting authority for Canada and is mandated to obtain the best price for goods and services by using a competitive bid process whenever possible. Finally, IS- EDC is tasked with ensuring the winning bidder commits to conducting business in Canada equal to the value of the contract. This process is lengthy and involves sig- nificant coordination by the DND PMO, as all three departments must agree for a project to proceed. In 2014, with considerable fanfare, the Government of Canada announced the Defence Procurement Strategy (DPS), a government-wide initiative to improve defence procurement involving four fed- eral departments (National Defence, the Canadian Coast Guard, Public Services and Procurement Canada, and Innova- tion, Science and Economic Development Canada). Many specific objectives were established – but in the main, most have failed to advance. There have been chal- lenges in bringing projects to fruition, no improved understanding of available industry solutions, unrealistic defence in- dustrial objectives, an absence of meaning- ful dialogue with industry, and the failure to create a true risk sharing framework. References: 1. Richard B. Fadden and Guy Thibault, "Three ways to improve defence pro- curement in Canada," CDA Institute (April 6, 2022). 2. Albert Kho and Christopher Penney, "The Industrial and Technological Benefits Policy: An Analysis of Con- tractor Obligations and Fulfillment," PBO (May 12, 2022). 3. "Military procurement chief wants defence firms to stop overpromising, underdelivering," CBC (April 19, 2023). www.vanguardcanada.com APRIL/MAY 2024 27 D E F E N C E P R O C U R E M E N T OCTOBER 22 & 23, 2024

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