Preserving capacity, General Tom Lawson, Chief of the Defence Staff, Keys to Canadian SAR
Issue link: http://vanguardcanada.uberflip.com/i/560684
20 AUGUST/SEPTEMBER 2015 www.vanguardcanada.com P PROCUREMENT Traditional procurement approaches often amplify this problem by focusing on a large number of detailed technical requirements and conducting evaluations based on compliance to those. Usually, this leads to decisions based entirely on technical compliance and price, resulting in selection of the "cheapest technically compliant solution" as opposed to the "best value solution." In order to mitigate the risk of not getting the best solution, occasionally the technical requirement is written towards a particular solution or, worse still, over-specified such that no solution fits easily, resulting in spiralling costs. In the vast majority of cases this is done unintentionally, however the effect is that the projects tend to stall under loud complaints from industry and the political pressure subsequently exerted. An alternative procurement approach, now being used more regularly, is to un- derstand what success looks like at the start of the process and then use that as the measure against which bidders' solu- tions are assessed. For example, the ac- quisition of the Fixed-wing Search and Rescue aircraft capability (which has also faced some negative press in the recent past) is now looking to engage suppliers on the basis of delivering the capability, without overly specifying how this will be achieved. This "Capability-Based Procurement" model provides bidders with a detailed picture of the successful outcome for the whole programme, but interestingly al- lows them more flexibility to meet the needs in innovative ways. Some bidders may choose to deliver the requirements using Military Off-The-Shelf equipment, whereas others will provide a more tai- lored solution. The key here is for defence teams to evaluate these solutions on a fair and transparent basis. The assessment must therefore consider all of the out- comes, goals, dependencies and risks, and adequately differentiate between what are likely to be excellent competing solutions. Fundamentally, this approach, which re- duces the risk of failure significantly, re- focuses the assessment of suppliers from technical compliance towards thinking about their ability to deliver the outcomes required. Buyers tend to resist these alternative A policy pamphlet produced by the Policy Institute at Kings College London argues that defence spending includes benefits that fall outside the scope of the military and defence industry sectors, providing high-tech skills and increased employment. 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.