New strategy revealed for military procurements
Feb. 5, 2014, Ottawa - Today the Honourable Diane Finley, Minister of Public Works and Government Services, and the Honourable Rob Nicholson, Minister of National Defence, unveiled the government’s new Defence Procurement Strategy, announcing that leveraging military procurements so that they provide greater benefits to Canadian industry and jobs will play a key role in the way that the government evaluates bid proposals in the future.
The new strategy introduces value propositions as a component of evaluating bids for major government purchases alongside technical specifications and price. Proposed value propositions must demonstrate how bids will support Canadian Key Industrial Capabilities (KICs) and other productivity drivers such as intellectual property, innovation, and high-value job creation. In addition, the strategy also incorporates early industry engagement as the value proposition structure and weighting for individual procurements are developed.
“Today’s announcement is excellent news for the aerospace industry, our armed forces and Canadian taxpayers,” said Jim Quick, President and CEO of the Aerospace Industries Association of Canada (AIAC). “The government’s commitment to assessing the value procurements have for Canadian jobs, innovation and R&D capacity will help to ensure that the money the government spends on military purchases provides maximum benefit to the Canadian economy while also ensuring that our armed forces continue to receive the equipment they need to protect our country. We applaud the government for this new strategy and will continue to provide any support and assistance we can during the implementation process.”
Ministers Finley and Nicholson highlighted the government’s commitment to working closely with AIAC and the industry as the strategy is implemented. Key Industrial Capabilities, to which the value propositions will apply, will be further refined in consultation with industry over the coming months. National Defence will also produce an annual Defence Acquisitions Guide (DAG) that will reflect future operational requirements over a period of 5 to 20 years, a long-awaited initiative that will provide industry with direction as it identifies its R&D priorities. The first DAG will be published by June 2014.
The Defence Procurement Strategy marks another step in the implementation of recommendations made by the Honourable David Emerson and Tom Jenkins in two reports on aerospace and procurement submitted to the government in recent years. AIAC and its members were heavily involved in the development of those reports and have been working closely with industry and government to support their implementation.