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Panel releases report on military procurement

Urges Canada make military procurement decisions based on “key industrial capabilities”


OTTAWA—A panel of experts chaired by Tom Jenkins, special advisor to Public Works and Government Services Minister Rona Ambrose, has released a report designed to help the government design its military procurement policy. The report, entitled Canada First: Leveraging Defence Procurement Through Key Industrial Capabilities, was prepared to help develop the Ottawa’s defence procurement strategy, the government said.

“Our government will carefully review and consider this report as we continue to improve military procurement and focus on maximizing its economic benefits for Canadian families,” Ambrose said in a press release.

The report recommends that Canada make military procurement decisions based on several “key industrial capabilities,” including Arctic and Maritime security, protecting the soldier, command and support, cyber-security, training systems and in-service support. The report recommends making innovation and contribution to Canada’s economy key drivers for
future military procurements by requiring bidders to specify upfront the value they propose to add to Canada’s economy as a result of their bid proposal. Bids, the report says, should include at least the following elements: technology transfer and IP retention, in-country innovation, global product mandates and development of specific skills and training.

As well, bids should include at least the following elements: technology transfer and IP retention, in-country innovation, global product mandates, and development of specific skills and training. Another recommendation involves reviewing the practice of having the prime contractor as single point of accountability (SPA). Each procurement plan should be required to examine the impact of that single point on the implementation of a defence procurement strategy.

The government said the report lays the groundwork for ensuring value for money, decreasing timelines, engaging industry early and substantively and improving the oversight and governance of major purchases.

The Canadian Association of Defence and Securities Industries estimates that every billion dollars in defence and security spending creates or sustains 18,000 jobs and creates $710 million in GDP.