Government of Canada



Government of Canada

February 05, 2014 09:19 ET

Leveraging Defence Procurement to Create Jobs and Benefit the Economy

OTTAWA, ONTARIO--(Marketwired - Feb. 5, 2014) - Public Works and Government Services Canada

The Honourable Diane Finley, Minister of Public Works and Government Services and the Honourable Robert Nicholson, Minister of National Defence, launched 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 today at the Economic Club of Canada. 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.

Quick Facts

  • 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 the 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.

Quotes

"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. Now we will also leverage our investments to create high paying, highly skilled jobs right here in Canada."- Public Works and Government Services Minister Diane Finley.

"Today's launch of the Defence Procurement Strategy reaffirms the Government's commitment to develop and maintain a first-class, modern military that is well-equipped to take on the challenges of the 21st century. The Department of National Defence continues to see positive impacts of new equipment on military operations. For example, at the height of Canadian combat operations in Afghanistan the Armoured Heavy Support Vehicle System was acquired to provide our troops additional protection from improvised explosive devices and rockets." - National Defence Minister Robert Nicholson

"The Defence Procurement Strategy will improve economic outcomes from defence and security procurement projects. Earlier and more effective industry engagement will drive procurement decision-making from now on. I am confident this new approach will match Canada's promising industrial capabilities with the opportunities arising from government procurements, to the benefit of industry, the Canadian Armed Forces, and Canadians in general." - Industry Minister, James Moore

"As our Government continues to focus on the real priorities of Canadian workers and their families-jobs, growth and long-term prosperity-ensuring that key sectors of our economy succeed in markets abroad is essential. Under the Export Strategy announced today as part of the Defence Procurement Strategy, Canada will be more aggressive and effective than the intense competition we face in the defence sector, a priority sector under the Global Market Action Plan, and this will ensure all of our diplomatic assets are harnessed to support and advance our commercial interests in key global markets, which we know supports job creation and prosperity here at home." - International Trade Minister Ed Fast

"The Defence Procurement Strategy will help the Canadian Coast Guard renew its fleet. I am proud to be part of this government which continues to show unprecedented support for the Canadian Coast Guard to ensure its dedicated men and women have the resources they need to do their jobs keeping Canadian waterways safe." - Fisheries and Oceans Minister, Gail Shea

"This is a critical and positive milestone, and a transformational approach to how our military and Coast Guard will be equipped and supported. On behalf of more than 1,000 CADSI members and the industries' 109,000 employees, we give full credit to the Government for today's comprehensive response to its Budget 2013 commitment to improve defence procurement outcomes. Once in operational effect, the policy and implementing measures announced today will strengthen the Canadian Armed Forces and Canadian Coast Guard, and enhance Canada's economic and national security interests. We look forward to continuing to work closely with the Government to fully realize the clear intent of these policy, process and governance measures." - Canadian Association of Defence and Security Industries (CADSI) President, Tim Page

"Today's announcement is excellent news for the aerospace industry, our armed forces and Canadian taxpayers. The Government's commitment to assessing the value procurements have for Canadian jobs, innovation and research and development capacity will help to ensure that military procurements provide 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." - Aerospace Industries Association of Canada President and CEO Jim Quick

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Contact Information

  • Marcel Poulin
    Office of the Honourable Diane Finley
    819-997-5421

    Media Relations
    Public Works and Government Services Canada
    819-956-2315