Friday, June 12, 2009

Conservatives and CF procurement: Political/industrial policy, not defence policy

This is from the November 19, 2008, Speech from the Throne:
...
Fixing procurement will be a top priority. Simpler and streamlined processes will make it easier for businesses to provide products and services to the government and will deliver better results for Canadians. Military procurement in particular is critical: Canada cannot afford to have cumbersome processes delay the purchase and delivery of equipment needed by our men and women in uniform...
This is how the Conservative government plans to make defence procurement less, er, cumbersome. Lobbyists and votes rule. Hurl:
Tories to revamp military buying procedures
Move comes after critics complain Canadian firms are not benefiting

The Conservative government is changing direction on how it buys military equipment after facing a barrage of criticism that such multibillion-dollar purchases have not delivered enough jobs and work to domestic companies.

Public Works Minister Christian Paradis said Thursday that the government will ask the defence and aerospace industry to participate more in the process [emphasis added] in the hope of avoiding public squabbles like the one that has dogged the $3-billion program to buy new fixed-wing search-and-rescue aircraft. [Where was MND MacKay? I guess he lost in Cabinet the battle to procur the C-27J as the new fixed-wing SAR aircraft.]

The $3-billion purchase has bogged down, with some companies complaining the Defence Department designed the program to favour one particular firm.

"We want to make sure industry is part of the solution given the investments that are coming in military procurement," said Paradis. "It's a good news story and it was important for us to send the message."

Paradis acknowledged the aerospace and defence industry has been critical of how the Harper government has purchased equipment.

Concerns have been raised by industry executives that the Defence Department is too secretive in regard to its procurement process. In addition, some have complained about the lack of quality domestic jobs from the billions of dollars of military purchases made so far.

Paradis said one proposal being looked at would see Industry Canada and Public Works officials more involved in the procurement process from the beginning. He noted that the Defence Department comes up with specifications, but at times industrial regional benefits -- how domestic firms would support and benefit from an equipment deal -- are an afterthought [emphasis added, I guess those military people just can't get their priorities right].

"Sometimes that creates a difficult situation," Paradis said. "What we want to do is to integrate the approach, to have an approach where everyone is sitting at the table at the same time [talk about cumbersome]."

The government plans to acquire billions of dollars ["all these cost are life-cycle (spares, training, maintenance, etc.) and spread over God knows how many years"] of additional equipment including new supply ships, fighter aircraft [some years down the road], armoured vehicles [pretty easy at least for new LAVs built in London, Ontario] and helicopters [another lengthy saga].

Paradis said the decision to improve links with industry and streamline procurement was made in cabinet Thursday. Defence Minister Peter MacKay and Industry Minister Tony Clement were involved. In addition, the move has the support of Treasury Board.

Government officials will set up a series of meetings in the next several weeks with industry executives.

Some Tories have complained they have seen little political return for the government's investments in defence so far [emphasis added]. MacKay recently asked military industry executives to better inform the public that defence spending was creating jobs.

Charles Lajeunesse, president of the Ottawa-based Aerospace Industries Association of Canada, welcomed the move by the Harper government. He pointed out, for instance, that the industry has not been consulted on the fixed-wing search-and-rescue program.

"We can only deplore that it has taken so long for industry consultation," he added.

Lajeunesse said the search-and-rescue aircraft project should become a priority [Huh! Hasn't it been one for some six blinking years? I guess Mr Lajeunesse's priority is the right contracts, not the right plane.]. The military needs the plane and the country's aerospace industry needs the work, he added.

Earlier this year, the association wrote MacKay to raise its concerns that military equipment purchases were not creating quality jobs for Canadians.

The association represents more than 400 companies in an industry that employs 90,000 workers.
E.R. Campbell sums things up nicely at Milnet.ca:
...
In part this is just long overdue recognition of the fact that local,* partisan politics trumps military operational requirements.

The “proposal” to involve Industry Canada and PWGSC before a project is approved is sheer madness but has a very good chance of succeeding – thereby even further reducing the importance of the military operational requirement. The main requirement will become who (which bidder) can provide the most “benefits” for which (critical) riding.

The reason that regional industrial benefits are “an afterthought” is because they are totally, 100% imaginary. There are no such things, never have been and never will be. If there is a “perceived” benefit for, say, Alberta or Québec, it is because it was bought and paid for (cost plus profit) in the contract. No company survives by giving anything away. We – taxpayers - pay (about 110%) for every single “benefit.”

But Canadians believe in benefits – because they are so incredibly ill-informed that they probably believe in the tooth-fairy, too.

See my comments here on why we get "the government we deserve."
Read on in the topic thread. The Conservatives are no real friends of the Canadian Forces; their policies have really been little more than what they perceived as politically expedient--starting with the 2006 election:
Stupid Conservative defence promises

CDS takes on silly Conservative campaign promises
The truly sad thing for Canada is that the Liberals would undoubtedly be worse. But our forces get the governments we give them (and, to repeat, we get the governments we deserve).

2 Comments:

Anonymous Anonymous said...

Hillier for MoD.

Well past the time for nicey-nicey civil service games.

The game should be hardball and the issue should be framed as saving the lives of troops.

5:40 p.m., June 12, 2009  
Blogger Brad said...

What did you expect? It's politics. This will happen everywhere.

8:28 p.m., June 13, 2009  

Post a Comment

<< Home