Defence Investment Plan 2018 | Part II: Maximizing Defence's success

2.2 Maximizing Defence’s success

The Defence Team’s new way of doing business extends beyond how money will be managed and spent over the coming years. National Defence is approaching investment planning in ways that will both build on the best of past practices and embrace new directions to serve the needs of all Canadians. The following section highlights some of the driving forces that will be factored into future investment decisions.

2.2.1 Capitalizing on innovation

Budget 2018: Equality and Growth for a Strong Middle Class reinforced that Canada’s security and prosperity remain the Government of Canada’s primary strategic interests. Budget 2018 builds on the Innovation and Skills Plan to re-tool Canada’s innovation programs, rules, and regulations to better support Canada’s innovation community. In addition to making programs easier to access and use, the Government is expanding support for Canadian companies that want to scale up and take their innovations to markets around the world.

As Strong, Secure, Engaged makes clear, problem solving, creativity, and knowledge are critical to meet and mitigate evolving defence and security threats. National Defence must foster innovation, exploit research and development, and collaborate across the public and private sectors. New tools that provide awareness of the shifting Canadian Armed Forces operating environment as well as the human dimensions of conflict to better predict and react to crises are essential to success in the changing global environment. Close cooperation between the Forces and the private sector is key to ensuring the Forces has access to advanced technologies and innovations that enable Canada to keep pace with its allies and a step ahead of its adversaries. 

Strong, Secure, Engaged introduced the Innovation for Defence Excellence and Security (IDEaS) program, which will help make this happen.  IDEaS was officially launched and issued its inaugural public call for proposals in April 2018. This competitive process consists of 16 defence and security challenges in many defence and security domains. With eight program elements under IDEaS, additional opportunities will be announced regularly. Since the program launch, the IDEaS team has been engaging key audiences virtually and in-person to reach the broadest range of representation from across Canada’s innovation community. This includes chambers of commerce, academic institutions, industry associations, and more. 

National Defence is investing $1.6 billion over 20 years in IDEaS to evolve and innovate its practices and capabilities to meet the demands of the challenging defence environment.

This will generate tremendous opportunities for businesses, large and small, providing them with export opportunities around the globe. In turn, this will lead to new jobs and economic benefits in Canadian communities from coast to coast to coast.

Through IDEaS, National Defence will reach out to Canada’s most creative minds, whether they are inventors, academics in university labs, or scientists in small and major corporations. These innovative thinkers will have the opportunity to provide the Canadian Armed Forces and Canada’s safety and security communities with unique solutions to today’s challenges.

IDEaS will stimulate innovation through a range of activities including competitions, contests, innovations networks, and ‘sandboxes’ to field-test concepts. The potential for resulting economic spin-offs is enormous. Exceptional opportunities will be created in domains such as surveillance, cyber tools for defence, space, artificial intelligence, remotely piloted systems, data analytics, and human performance areas including cyber capabilities, the space domain, and remotely piloted land, sea, and aerial capabilities.  

2.2.2 Optimizing procurement

Strong, Secure, Engaged aims to deliver the right equipment to the Canadian Armed Forces in a timely manner, leverage these purchases to create jobs and growth, and simplify procurement processes. One of its key goals is to ensure Canadian industry is positioned to deliver equipment and services to the Canadian Armed Forces. Cooperation with the Canadian defence industry not only enhances the Forces’ ability to deliver on its mandate with core military capability, but also provides Canadians with well-paying jobs. The defence sector employs more than 60,000 Canadians and contributes over $10 billion annually to Canada’s gross domestic product (GDP). Canada’s aerospace sector has spawned a further 208,000 jobs in the Canadian economy and contributes close to $28 billion to our GDP.

Strong, Secure, Engaged introduced measures to enhance the effective management of the defence budget and deliver on the government’s commitment to openness and transparency. To better support Canadian industry, Budget 2018 established a new electronic procurement platform to help Canadian small and medium-sized companies better access opportunities to do business with departments and agencies by making opportunities easier to find, simpler to navigate, and faster to award. 

Even though 90% of procurements are delivered within their planned scope and budget, National Defence acknowledges that the defence procurement system needs to reduce transaction times and costs to get the military the equipment it needs when it needs it, to provide value for money, and to ensure Canada derives reasonable economic benefits—all while respecting the imperatives of a global trading regime.  

Procurement is being accelerated within National Defence by eliminating half of the steps previously required for low-risk, low-complexity projects falling under the Project Approval Process Review.

To further assist the defence sector in accessing procurement opportunities, National Defence has regular engagement with industry on key procurement files to respond to questions and increase clarity.

Beyond National Defence, numerous players in Canada’s defence procurement eco-system have a part to play in improving procurement results.

The Sustainment Initiative is an interdepartmental program which modernized the Defence’s procurement approach to in-service support by balancing the four principles of sustainment: performance; flexibility; economic benefits; and value for money.

PSPC’s Buyandsell website, the Government’s open procurement information service, will continue to provide tender opportunities, lists of pre-qualified suppliers and contract awards, information about events for businesses, contacts, and the latest information on how to do business with the federal government.

National Defence works closely with ISEDC, aligning its investments with the Government of Canada’s Inclusive Innovation Agenda. The application of ISEDC’s Industrial and Technology Benefits (ITB) Policy and the associated Value Proposition optimizes ancillary benefits of military procurement. 

Under the ITB Policy, companies awarded defence procurement contracts are required to undertake business activities in Canada equal to the value of the contract. This helps to grow companies, encourage an entrepreneurial and creative society, take advantage of global scientific excellence, and establish preeminent research clusters. It also can lead to new global export markets for Canadian innovators and the broader commercialization of some products.

Collectively, these changes will fast-track the Defence Team’s access to innovation, ensuring that Canada keeps pace with the rapid evolution of technology to eliminate or mitigate emerging threats and remains a step ahead of potential adversaries. 

Procurement is being accelerated within National Defence by eliminating half of the steps previously required for low-risk, low-complexity projects falling under the Project Approval Process Review.

To further assist the defence sector in accessing procurement opportunities, National Defence has regular engagement with industry on key procurement files to respond to questions and increase clarity.

Beyond National Defence, numerous players in Canada’s defence procurement eco-system have a part to play in improving procurement results.

The Sustainment Initiative is an interdepartmental program which modernized DND’s procurement approach to in-service support by balancing the four principles of sustainment: performance; flexibility; economic benefits; and value for money.

PSPC’s Buyandsell website, the Government’s open procurement information service, will continue to provide tender opportunities, lists of pre-qualified suppliers and contract awards, information about events for businesses, contacts, and the latest information on how to do business with the federal government.

National Defence works closely with Innovation, Science and Economic Development Canada, aligning its investments with the Government of Canada’s Inclusive Innovation Agenda. The application of ISED’s Industrial and Technology Benefits (ITB) Policy and the associated Value Proposition optimizes ancillary benefits of military procurement. 

Under the ITB Policy, companies awarded defence procurement contracts are required to undertake business activities in Canada equal to the value of the contract. This helps to grow companies, encourage an entrepreneurial and creative society, take advantage of global scientific excellence, and establish preeminent research clusters. It also can lead to new global export markets for Canadian innovators and the broader commercialization of some products.

Collectively, these changes will fast-track the Defence Team’s access to innovation, ensuring that Canada keeps pace with the rapid evolution of technology to eliminate or mitigate emerging threats and remains a step ahead of potential adversaries.

2.2.3 Centralized infrastructure operations

The Defence Team has made progress in improving the operation of defence infrastructure by consolidating the portfolio to a single point of responsibility and accountability. In place since 2016, this system has created a holistic view of Defence’s significant infrastructure holdings, reduced administrative burdens, increased efficiency, and enhanced responsiveness to operational needs. 

Through centralization, National Defence has implemented a standardized and objective process for project development and implementation, concentrating real property management and construction program management within a single organization. As a result, the Defence Team is consolidating assets with a similar function and accelerating the disposal of underused buildings that do not meet its needs.

Defence also has completed the delivery of a modern real property portfolio information system, which is now used across the country to plan and manage the Defence real property portfolio. These efforts will help to reduce operating costs and liabilities while providing opportunities for Indigenous communities and local businesses to take part in construction contracts or demolition projects.  

2.2.4 Helping Government go green

The Federal Sustainable Development Strategy commits the Government of Canada to reduce greenhouse gas (GHG) emissions from federal departments by 40% from 2005 levels by 2030, excluding military fleets.

The Defence Team manages one of the largest and most complex infrastructure portfolios in the federal government, accounting for roughly 10% of the defence budget each year. Not surprisingly, given its size, National Defence is the single largest contributor to the federal GHG baseline. As such, it has a critical role to play in achieving the federal carbon reduction goal.

Strong, Secure, Engaged outlines the actions National Defence will take to lower its GHG emissions by 40%. The Defence Team is already moving to make this a reality. As one example, Budget 2018 announced that a project to refurbish the antiquated heating plant infrastructure at Canadian Forces Base (CFB) Halifax will be expanded by rehabilitating attached buildings and distribution systems to reduce emissions by a further 20%. CFB Halifax represents 17% of the Department of National Defence’s greenhouse gas emissions. A large part of these emissions come from older heating plants in need of modernization. The upgrades at the plant will reduce emissions by up to 7%, improve energy efficiency, and save on heating costs. Reducing the military’s dependence on commercial energy sources also supports a more agile and secure military force. 

Other greenhouse gas reduction plans include investing $225 million by 2020 in a broad range of infrastructure projects across Canada. Project examples include the construction of a new Canadian Special Operations Regiment complex at CFB Petawawa in Ontario that will be built to green infrastructure standards that meet Leadership in Energy and Environmental Design (LEED®) Silver standards, and a new academic pavilion at the Royal Military College at Saint-Jean Garrison, Quebec.

Supporting the next generation of military leaders through modern training facilities will enable them to perform throughout their careers, while a modernized health services infrastructure will provide them with first-class mental health, medical and dental care to enhance their wellbeing.

The greening of National Defence extends beyond buildings to include the greening of platforms. In addition to the benefits related to infrastructure improvements, the National Defence carbon footprint will be further reduced by transitioning 20% of non-military vehicle fleets to hybrid and electric by 2020, installing electric charging stations at new or retrofitted buildings for both personal and defence fleet vehicles, expanding energy performance contracts to achieve energy efficiencies on bases and wings across the country, and examining alternative energy options for operations.

2.2.5 Inclusive workplace

While the Department of National Defence and the Canadian Armed Forces has always recognized the value-added of a diverse workforce, Strong, Secure, Engaged places an unprecedented focus on diversity and gender equality as a means of strengthening the operational force and positioning the Defence Team as a preferred employer.

Specifically, Strong, Secure, Engaged makes a firm and public commitment to the integration of gender-based analysis plus (GBA+) in all defence activities across the Canadian Armed Forces and the Department of National Defence. This includes recruitment, the design and implementation of programs and services that support its personnel, equipment procurement and operational planning, both domestically and internationally. The Department of National Defence is one of the first departments to publicly embrace GBA+ as a constructive analytical tool, and is working hard to ensure that the entire Defence Team is trained and has the tools it needs to effectively integrate gender and diversity perspectives in decision-making across all business lines. 

A key step in this process – and a best practice recommended by Status of Women Canada – is the establishment of a joint responsibility centre mandated to provide defence-specific advice in the enhanced application of GBA+ analysis. Defence joint responsibility centre within Defence is composed of civilian and military offices that can offer tailored expertise, and a network of Champions for Gender and Diversity in Operations.

The “+” in GBA+ acknowledges that gender based analysis goes beyond biological (sex) and socio-cultural (gender) differences to consider intersecting factors such as race, ethnicity, age, disability, and sexual orientation. GBA+ supports better policy making, priority-setting, and decision making by helping the Defence Team understand the consequences that its policies and operations will have on the fullest extent of Canadian society and to better respond to the situations it encounters when involved in operations overseas.

National Defence is committed to increasing the number of women in the Canadian Armed Forces, and as part of Canada’s future contribution to peace operations. Increasing the number of women in uniform involved in peace support operations leverages the high quality of our personnel to make a significant difference in the world. Women enhance the skill sets available within peace support operations. In particular, they can help facilitate access and support for local women. 

As well, the Defence Team is placing a new focus on recruiting and retaining under-represented populations within the CAF, including, but not limited to, women, Indigenous peoples, and members of visible minorities.  

As such, embracing GBA+ considerations across the full spectrum of work within DND/CAF, including the spending set out in this Investment Plan, is a means of honouring the Canadian ideals of diversity, respect, and inclusion.