"Canada First" Defence Strategy Procurement

The Government of Canada is delivering on its “Canada First” commitment to strengthen Canada’s multi-role, combat-capable defence force. The Department of National Defence is purchasing up to $17.1 billion of equipment and related support services for the Canadian Forces.

This Government is doing procurement faster and fairly, getting the right equipment for the Canadian Forces, at the right price for Canadians, with the right benefits for Canadian industry. Strengthening the Canadian Forces by investing in these key capabilities is long overdue.

This first step forward for the “Canada First” Defence Strategy procurement will include acquisitions of:

The Canadian Forces’ need for both a strategic and a tactical airlift capability is a clear result of the missions they are mandated to fulfil and the operations they carry out in the protection and defence of Canada and contribution to global peace and security. These two types of airlift capabilities serve different purposes and therefore require different aircraft that meet the specific requirements of the Canadian Forces.

Strategic airlift is the rapid transport of a large number of passengers and/or over-sized heavy cargo over long distances within Canada or between Canada and a theatre of operations. For example, the Canadian Forces’ Disaster Assistance Response Team requires the use of strategic airlift to deploy on humanitarian aid operations.

Tactical airlift acts as the lifeline of deployed forces, transporting equipment troops and supplies to, within and from a theatre of operations. On Operation Archer, in Afghanistan, the CC-130 Hercules aircraft provides tactical airlift on a daily basis, without which the mission could not be sustained.

Estimated project value: $5 billion, including spares, logistics support, and project and contingency costs. An additional $3.3 billion will be spent over the next 20 years on in-service support; a large portion of the work will be done by Canadian industry.

Procurement: For the strategic component, a competitive Advance Contract Award Notice (ACAN) will be posted (see definition below). The tactical airlift project will employ a competitive solicitation of interest and qualification (SOIQ – definition below) to solicit interest from industry. In-service support for the strategic fleet will depend on the outcome of the equipment procurement process. In-service support for the tactical fleet will be competitively procured and performed by Canadian industry.

Delivery: The requirement for this equipment is urgent. Delivery is expected as soon as possible and will continue until the requirement is fully met.

The Government of Canada recognizes the vital need for medium-to heavy-lift helicopters and will deliver an aircraft to the Canadian Forces that meets their operational needs.

A medium-to heavy-lift helicopter capability will allow the Canadian Forces to reach remote locations in a wider range of geographic areas and challenging environments inaccessible by ground-based transport or fixed-wing aircraft. With the Canadian Forces’ increasing focus on joint operations and expeditionary forces, this capability will serve as a paramount asset in responding to disaster situations and terrorist attacks, both at home and around the world.

Estimated project value: $2 billion for the acquisition of the helicopters. An additional $2.7 billion will be spent over the next 20 years on in-service support, largely to be conducted by Canadian industry.

Procurement: For the acquisition of the helicopters, a competitive Advance Contract Award Notice (ACAN) will be posted (see definition below). The in-service support contract will be competed by the prime helicopter manufacturer through a request for proposals.

Delivery: The requirement for this equipment is urgent. Delivery is expected as soon as possible and will continue until the requirement is fully met.

The new medium-sized logistics trucks will address the needs of the Canadian Forces as the existing fleet of logistics trucks reaches the end of its service life. The Regular and Reserve Forces will use the trucks in a wide range of roles—from support to deployed operations to domestic emergencies.

Estimated project value: $1.1 billion, plus an additional estimated $100 million for 20 years of in-service support from Canadian industry.

Procurement: A competitive procurement process will select contractors for new trucks for the Canadian Forces. Requests for proposals will be released for all elements of the project. Canadian industry will benefit from the in-service support component, as localized maintenance and support is a key requirement.

Delivery: The requirement for this equipment is urgent. Delivery is expected as soon as possible and will continue until the requirement is fully met.

The Navy’s new support ships will address the needs of the Canadian Forces as the existing fleet of replenishment ships (HMCS Protecteur, and HMCS Preserver) reaches the end of its service life.

The support ships project will deliver three multi-role vessels with substantially more capability than the current fleet. In addition to being able to provide at-sea support (re-fuelling and re-supply functions) to deployed naval task groups, they will also be capable of sealift operations as well as support to forces deployed ashore.

Estimated project value: $2.1 billion for design and construction of the three ships, and associated logistical and training support. Contracted in-service support, which will be competitively procured from Canadian industry as part of the proposals submitted by bidders, is estimated at approximately $800 million. The ships will be built in Canada, in accordance with Canadian shipbuilding policy.

Procurement: Competitive. The initial stage (pre-qualification) of this project received government approval in 2004. During the initial stage, four shipbuilding consortia were “pre-qualified” for the next stage of procurement. The government has now approved the project definition phase, and the pre-qualified bidders are being invited to submit implementation proposals for preliminary ship design, project implementation plans, and an in-service support plan. Two consortia will be awarded contracts for the definition phase, and will compete for the final implementation phase, to be evaluated based on the definition phase plans.

Delivery: The requirement for this equipment is urgent. Delivery is expected as soon as possible and will continue until the requirement is fully met.

Advanced Contract Award Notice (ACAN) is a competitive procurement process employed by the Department after a thorough comparison of the Forces’ requirements and known goods or services available on the market. The ACAN is posted, indicating that a particular contractor/supplier has been identified as able to provide the required good or service. Other companies are entitled to submit a statement of capability to indicate that they are able to produce the required product.

Solicitation of Interest and Qualification (SOIQ) is a new approach to procurement that invites potential suppliers to indicate their interest and demonstrate their ability to meet mandatory, high-level performance criteria. If more than one potential supplier meets the mandatory criteria, a formal Request for Proposal will be issued. This performance-based approach to contracting is fair, open and transparent. This competitive process fosters strong two-way relationships between the Department and industry.

The following is a breakdown of the Capital Project Costs and the ISS costs for the procured products, as well as, the total cost for procuring all equipment.

To: Alberta's Child; albertabound; AntiKev; backhoe; Byron_the_Aussie; Cannoneer No. 4; ...

The table is interesting -- the figure for the "total project cost" is reported, as well as the smaller capital cost. This is sound financial management. So far as I know, only the DND reports costs this way. Other government capital programs would only report the immediate capital costs -- thus looking cheaper than they actually are.

To: Clive; GMMAC; Pikamax; Former Proud Canadian; Great Dane; Alberta's Child; headsonpikes; Ryle; ...

I love our new Government.

Canada ping!

Please send me a FReepmail to get on or off this Canada ping list.

4 posted on 06/29/2006 4:12:51 PM PDT by fanfan (I wouldn't be so angry with them if they didn't want to kill me!)

Good to see Canada's forces getting the equipment they deserve.

Good to see Canada's forces getting the equipment they deserve.

They deserve a hell of a lot more.

6 posted on 06/29/2006 4:30:04 PM PDT by CaptainCanada ("Macht doch Eiern Dreck aleene!" (Take care of your own mess!).)

True, but it's a good beginning. Lets see what else develops.

Close Air Support! This is a critical short fall in our forces and needs to be addressed. I know they are looking at button on systems for existing platforms but we need actual attack helicopters.

9 posted on 06/30/2006 8:07:39 AM PDT by starbase (Understanding Written Propaganda (click "starbase" to learn 22 manipulating tricks!!))

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