February 7, 2014, Halifax, Nova Scotia – The Honourable Diane Finley, Minister of Public Works and Government Services (PWGSC), addressed the Aerospace and Defence Industries Association of Nova Scotia (ADIANS) on Canada’s new Defence Procurement Strategy (DPS). The three key objectives of the Defence Procurement Strategy (DPS) are to: deliver the right equipment to the Canadian Armed Forces (CAF) and the Canadian Coast Guard in a timely manner; leverage our purchases of defence equipment to create jobs and economic growth in Canada; and streamline defence procurement processes.
The Defence Procurement Strategy (DPS) was unveiled earlier this week at the Economic Club of Canada, in Ottawa. It is informed by the Government’s extensive engagement with the industry and by the recommendations found in the Jenkins and Emerson reports commissioned by the Government of Canada.
The Defence Procurement Strategy (DPS) represents a fundamental change in the Government of Canada’s approach to defence procurement, and includes the following components:
Delivering the right equipment to the Canadian Armed Forces and the Canadian Coast Guard in a timely manner:
- Ensuring early and continuous industry and client engagement in the procurement process;
- Starting in June 2014, publishing an annual Defence Acquisition Guide that outlines National Defence (DND) procurement priorities; and
- Establishing within DND an independent, third-party challenge for military requirements.
Leveraging our purchases of defence equipment to create jobs and economic growth in Canada:
- Using a weighted and rated Value Proposition, to assess bids for defence and major Canadian Coast Guard procurements;
- Implementing an Export Strategy to support international sales opportunities and participation in global value chains;
- Identifying and applying Key Industrial Capabilities (KICs) to inform potential economic benefits of individual procurements so that they meet the CAF’s needs and increase the competitiveness of Canadian firms in the global marketplace; and
- Establishing an independent, third-party Defence Analytics Institute which will provide expert analysis to support the objectives of the Defence Procurement Strategy (DPS) and its evaluation.
Streamlining defence procurement processes:
- Adopting a new regime to ensure streamlined and coordinated decision-making for defence and major Canadian Coast Guard procurements;
- Establishing a Defence Procurement Secretariat within Public Works and Government Services Canada to ensure close coordination among key departments; and
- Reviewing the current National Defence delegated authority to purchase goods with a view to increasing the level from the current $25,000 to achieve more efficient procurement practices.
The implementation of the Defence Procurement Strategy (DPS) will begin immediately with a phased implementation following ongoing industry consultations.
- DND will publish its first annual Defence Acquisition Guide in June 2014.
- The Defence Procurement Strategy (DPS) will encourage competitiveness of Canadian defence-related firms on both a domestic and international stage.
- Defence procurement spending has significant potential to produce substantial spin-off benefits to Canada’s knowledge, innovation and export-based economy.
- Key Industrial Capabilities (KICs) are areas of the Canadian defence industry where Canada has the capability to support CAF needs and thus potential to spur economic growth and job creation.
- The Defence Procurement Secretariat will use the principles of early and frequent engagement, and draw on independent advice to ensure faster and more efficient decision-making to streamline defence procurement processes.
- Canada has over 650 firms engaged in providing defence goods and services, generating $9.4 billion in revenue, with an estimated economic impact of $6 billion of GDP and employment for 64,000 full time employees. Half of the industry’s revenues are from exports.
“The Harper Government is committed to giving our men and women in uniform the equipment that they need, in a more timely and cost-effective way and at better value for taxpayers. It is also important that we leverage our investments for greater benefit to the Canadian economy because that means jobs, growth and prosperity for everyone. Canada’s defence industry has some of the best talent in the world and it is important that Nova Scotia companies can compete here and in the global defence market.”
Public Works and Government Services Minister, Diane Finley
“ADIANS is pleased to work collaboratively with Minister Finley to provide Nova Scotia’s defence-related industries with an update on Canada’s military procurement. ADIANS members play a key role in driving growth and competitiveness for the province and Atlantic region.”
Aerospace and Defence Industries Association of Nova Scotia (ADIANS) President, Glenn Copeland
PWGSC news releases are also available at http://www.tpsgc-pwgsc.gc.ca/medias-media/index-eng.html.
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