Aerospace industry gives Value Proposition Guide a thumbs up
Dec. 19, 2014, Ottawa - The federal government has released a Value Proposition Guide that provides clarity and direction for companies who will be preparing bids under the rules set out by the new Defence Procurement Strategy (DPS). By including value propositions as a weighted portion of evaluating procurements, the Guide requires successful bids to be competitive not only when it comes to price and technical merit, but also in the way that they support Canadian innovation and economic priorities.
“Today’s announcement is a very important milestone in strengthening Canada’s procurement process,” said Jim Quick, President and CEO of the Aerospace Industries Association of Canada (AIAC). “The Value Propositions Guide incorporates themes that our members have been requesting for a long time, and encourages companies to formulate innovative, competitive bids that provide real benefit to Canadian industrial capabilities and priorities. This is excellent news for Canadian industry and taxpayers, and we applaud the government for their leadership on this important initiative.”
The document outlines four broad criteria to guide bidders in developing their value propositions:
- Direct or indirect support for Canada’s defence sector;
- Contribution to Canadian supplier development;
- Contribution to Canadian research and technology development; and
- Support for Canadian export development.
While these four criteria are the broad principles that will be used to guide value propositions, government will have the flexibility to provide additional direction regarding evaluation criteria and the weight assigned to value propositions on a procurement-by-procurement basis.
“Every country that is engaged in building and strengthening a strong domestic aerospace industry knows that government-industry partnership is fundamental to success. The release of the Value Propositions Guide is an excellent step forward for both Canada’s procurement practices and our support of Canada’s aerospace industry. Value propositions recognize and encourage investment and innovation as essential to the continued competitiveness of the aerospace industry, and they leverage procurement spending to meet this objective. I commend the government of Canada for the introduction of the Guide today, as well as the collaborative process used to develop the principles within the guide,” said Barry Kohler, President of Bell Helicopter Textron Canada and AIAC’s 2013-2014 Board Chair.