Tuesday, June 17, 2008

Keep on truckin'

Our defence procurement process seems to be regressing to its usual mess. Can't the government take serious reform steps? Or is it simply unwilling to provide the money needed and to put slightly less emphasis on pork (aka industrial regional benefits)?
A Defence Department project intended to be a straightforward and relatively quick purchase of commercial trucks for the army has gone off the rails after only one firm bid on the multimillion-dollar program and the government determined its proposal didn't meet requirements.

The contract to buy 800 commercial trucks, slightly modified for military use, was originally announced in June 2006 and labelled by then-defence minister Gordon O'Connor as one of the Harper government's top priorities.

Military officials expected the purchase to run smoothly since the vehicles would be based on a commercial design with only minor modifications needed. But vehicle firms shunned the program and only one company, International Truck of the U.S., put in a bid. That company's bid, however, has now been deemed "non-compliant," and it's unclear how the Defence Department will proceed.

The truck project is the latest large-scale military procurement to run into difficulties, with firms either deciding the hassle they face in dealing with the Canadian Forces is not worth the effort, or others being disqualified or deciding not to bid because of what they say are unreasonable requirements set out by the military and Public Works.

In the last month, two companies withdrew from a $100-million project to lease aerial drones for the Afghanistan mission. Officials with both firms have said the financial risk to industry on the project was just too great to entice them to compete. The government then decided that the remaining two firms in the competition didn't meet the requirements, so the bidding has been extended.

Around the same time, General Dynamics of Canada withdrew from the $1.1-billion project to upgrade the navy's frigates after the firm determined the program was not commercially viable. That left only one company in the running, but Public Works and the Defence Department have extended the bidding process as they try to figure out what to do next.

Earlier this year, the $2.9-billion project to build a fleet of supply and transport ships for the navy ran aground after the industry consortiums involved informed the Defence Department that not enough money had been set aside to build the vessels. The military is now asking the government for more funding...

2 Comments:

Blogger Unknown said...

It sounds like the government is giving the old dating line of 'it's not me, it's you'

Meanwhile, our troops have to hurry up and wait for new equipment. Big surprise there! Pfffftt!

7:05 p.m., June 17, 2008  
Blogger Iron Oxide said...

It sounds like Public Works (PWGSC) is up to its old tricks again. I work for natural resources Canada and for three years they prevented us from buying any software costing more then $25000. They did this with a policy of insiting on 1 million dollars worth of waranty coverage on all purchases without allowing the suppliers to increase their prices. Naturally the suppliers refused to sell to us under those conditions and we were without necesary software. They've gotten rid of that rule but it still takes us (because of them) 6 months to purchase anything costing more then $25000, and all purchases must be completed before March 31st therefore don't even bother starting a purchase after the end of August.

If you want to fix military procurement you have to fix PWGSC first. My suggestion would be to completely eliminate it and let each ministry handle its own purchases.

8:37 a.m., June 18, 2008  

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