Vanguard Magazine

I IN-HOUSE KNOWLEDGE www.vanguardcanada.com OCTOBER/NOVEMBER 2015 9 Speculation abounds over when, how or if Canada will move closer towards the procurement of UAVs such as this HALE Global Hawk. On the campaign trail, the Conservative government had promised a new CAF reserve unit in Yellowknife. The Liberal government is under no obligation to follow through on promises made by politicians on the campaign trail … even the good ones. Defence Spending The Liberal Party committed to maintain current National De- fence spending levels, including current planned increases. It's relevant to note that there is no direct correlation between type of government and defence spending; rather, external events including international threats and the economy typically shape federal defence policy and capital acquisition. Some major procurements first identified in CFDS are moving forward and will continue to post-election, while others are likely to see continued delays. However, if spending envelopes are set at the same levels that the Conservatives set them at, procuring kit may still be a chal- lenge. Delays in programs may mean additional trade-offs for the CAF. Moving forward on key programs that are already under- way, such as Fixed Wing Search and Rescue, is essential to ensure that the CAF gets the capabilities it needs. The Royal Canadian Navy For the RCN, the CSC procurement process is currently under- way, with bidders responding to the Crown on Warship Design and Combat System Integration packages. No party has expressed opposition to the procurement — indeed, the Liberals even com- mitted to funneling any cost savings found through other pro- grams into the RCN — so NSPS programs like CSC should con- tinue to move along at whatever pace the Crown sets. Though not identified in CFDS, the stopgap for JSS — the refurbishing of a supply ship for the RCN — has also not received opposition from any party. The RCN is in such dire need of a solution here, and contracts have been signed, making it unlikely that direction will change from the new Liberal government, particularly given their commitment to the RCN. The Royal Canadian Air Force The RCAF will receive different attention from the Liberals. All parties have been in favour of a new fleet of FWSAR aircraft, so industry can expect this procurement to go forward after the close of the competitive bid process. However, the Liberals committed to an open competition for the CF-18 replacement program — one that will be open to all competitors except the F-35. Procurement competitions are important to ensuring that the CAF gets the right equipment for the capabilities it seeks to acquire, but external events like the increased threat from Russia may necessitate the need for capabilities to defend North American aerospace sooner rather than later, be it a CF-18 replacement, the North Warning Sys- tem replacement, or even a new capabilities like a HALE asset. Nevertheless, the declining price of oil may restrict a new gov- ernment's spending power. The Canadian Army Major capital procurement for the Canadian Army could re- ceive a mixed reception from the new House. Completed bids, such as MSVS, ISSP and the Coyote upgrade are unlikely to be cancelled, but could see delays as the new government priori- tizes the acquisition of other platforms for the RCN and RCAF. Though there traditionally have been no open objections from any party to recapitalizing Army equipment, the Canadian Army may be seen as a lower priority for upcoming procurement proj- ects. Additionally, the new Liberal government may re-define the role of the Canadian Armed Forces in its new White Paper, which would shift capability requirements. Industry investing in recapitalizing the Army should be patient and strategic, as is highly likely that program delays could occur, especially as our new government reviews its vision for the CAF. Proceed Strategically Under the new government, industry would be smart to proceed cautiously. New Ministers and MPs will likely have a significant learning curve when engaging with their new portfolios. Strate- gically engaging the right decision-makers on both sides of the House, within the civil service, and even within program review bodies, will be essential to access and influence decision making that impacts Canadian industry and enables them to deliver the right equipment for the Canadian Forces with the best value for Canadian industry.

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