Preserving capacity, General Tom Lawson, Chief of the Defence Staff, Keys to Canadian SAR
Issue link: http://vanguardcanada.uberflip.com/i/560684
22 AUGUST/SEPTEMBER 2015 www.vanguardcanada.com P PROCUREMENT models of procurement, fearing that the resulting solutions will be more expen- sive. However, in general, the reverse is found to be true; giving suppliers the flexibility that allows them the freedom to invest where they wish to, while also considering where they might gain econ- omies of scale, export the capability, or reduce their costs. A critical part of this process is to determine what best value looks like and to articulate this to indus- try effectively and robustly. This isn't a simple exercise either, and probably why the use of the Cheapest Compliant Solution method is so com- mon. There are so many competing fac- tors to consider, but best practice is to understand what is affordable and then start to consider: how much more could be willingly paid for an excellent solution over one which just meets requirements? The answer to this seemingly simple question allows bidders to effectively un- derstand that their client is willing to pay $XXX more for a solution which is Y% points better and to plan their solutions and commercial offers accordingly. In order to achieve maximum benefit, the implications of spending decisions on the economy and how best to use avail- able resources should be considered. In the policy pamphlet "A benefit, not a burden" produced by the policy institute at Kings College London (UK), the au- thors argue that the benefits from defence spending go beyond the military and technological advantages and suggest that the defence industry also provides signifi- cant economic value in terms of domestic employment levels, high technology skills and financial contributions. Canada is leading the way with this growing consensus. As part of the De- fence Procurement Strategy, the Govern- ment of Canada has committed to en- suring purchases of military equipment create greater economic opportunities by promoting a sustainable, innovative and globally competitive Canadian defence industry. Similar approaches are in effect in Australia with their Australian Industry Capability (AIC) program. Ensuring that these elements are con- sidered and managed in the context of the program, in the wider environment in which it will operate, and done so in a transparent way whilst ensuring public money is spent most effectively, are key challenges faced by defence departments worldwide. Government of Canada has taken many steps towards mitigating the problems of the past; there is no easy an- swer, but the methods explored above are certainly proving to be a viable way of re- ducing risk of failure and delivering the goals for achieving best value. The acquisition of the Fixed-wing Search and Rescue aircra is now looking to engage suppliers on the basis of delivering the capability, without overly specifying how this will be achieved. Minister of Public Works Diane Finley has been an outspoken proponent of Canada's new Defence Procurement Strategy. As part of the Government's Economic Action Plan 2015, $2.5 million in annual funding was allocated to increase the analytical capacity required to support the Strategy. Captain Duane Drobot (le) and Captain Bryn Evans (right), CC-115 Bualo aircra pilots with 442 Transport and Rescue Squadron practice a search pattern during a search and rescue (SAR) exercise