Procurement of Capabilities
Description
Procure advanced capabilities to maintain an advantage over potential adversaries and to keep pace with Allies, while fully leveraging defence innovation and technology. Streamlined and flexible procurement arrangements ensure Defence is equipped to conduct missions.
Planning highlights
Effective defence procurement is vital to ensuring the Canadian Armed Forces (CAF) has the necessary range of capabilities required to protect and defend Canada and Canadians. To achieve this goal it is necessary to reform Canada’s procurement model, reducing complexity and redundancy, in order to ensure the timely delivery of projects.
There are a number of steps that can be taken immediately to help streamline defence procurement and build on recent measures to improve procurement across government. These measures will keep us on track with planned budget profiles and deliver new capabilities when they are needed.
Departmental Result 5.1 - Defence procurement is streamlined
- Reduce departmental approval times through initiatives such as the Project Approval Process Renewal that seeks to reduce process time and enable increased project throughput allowing projects to be completed in a shorter time.
- Increase the transparency and timeliness of communication with defence industry associations, including instituting meetings between the Department of National Defence (DND) and Canadian industry through a Defence Industry Advisory Group and other fora.
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Work with partners to increase the DND's contracting authorities for goods up to $5 million by 2018, allowing over 80 percent of defence procurement contracts to be managed by National Defence.
Planned results
Departmental Results | Departmental Result Indicators | Target | Date to achieve target | 2014–15 Actual results | 2015–16 Actual results | 2016–17 Actual results |
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5.1 Defence procurement is streamlined | % of projects that meet the approved project development and approval timelines (low risk and low complexity projects) | To be determined by 31 March 2019 | To be determined by 31 March 2019 | Not Available | Not Available | Not Available New indicator as of 2018-19 |
% of projects and services contracts that are awarded within established performance targets | 100% | 31 March 2019 | Not Available | Not Available | Not Available New indicator as of 2018-19 |
Note: For more information about National Defence performance indicators, please visit GC InfoBase xxxv.
Departmental Result 5.2 - Defence equipment acquisition is well-managed
- Grow and professionalize the procurement workforce to strengthen the capacity to manage the acquisition and support of today's complex military capabilities. We will achieve procurement workforce growth through successful execution of hiring activities and creation of workforce pools. The talent and knowledge development of the entire procurement community will be optimized through enhanced training and professional accreditation of the workforce.
- Key equipment projects in 2018-19 include:
- Artic and Offshore Patrol Ships continued construction;
- Joint Support Ship continue design and production engineering;
- Canadian Surface Combatant Project is expected to select a warship design;
- CF-18 fighter aircraft replacement open and transparent competition; and
- CF-18 interim capability project to supplement the CF-18 fighter aircraft until the permanent replacement arrives.
For more details on these and other projects, refer to the following websites:
Planned results
Departmental Results | Departmental Result Indicators | Target | Date to achieve target | 2014–15 Actual results | 2015–16 Actual results | 2016–17 Actual results |
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5.2 Defence equipment acquisition is well-managed | % of capital equipment projects that remain in approved scope | 100% | 31 March 2019 | 100% | 100% | 100% |
% of capital equipment projects that remain on approved schedule | 100% | 31 March 2019 | 38% | 71% | 87% | |
% of capital equipment projects that remain within approved expenditure authority | 100% | 31 March 2019 | 94% | 100% | 100% |
Note: For more information about National Defence performance indicators, please visit GC InfoBase xxxviii.
The Royal Canadian Navy's Future Fleet: The Arctic and Offshore Patrol Ships
There will be continued and significant progress in Arctic and Offshore Patrol Ship xxxix capability in 2018-19. The lead ship, the future HMCS Harry DeWolf, will be launched; the first two mega-blocks for the second ship in the class, the future HMCS Margaret Brooke, will move out of the construction hall; the keel laying for the third ship in the class, the future HMCS Max Bernays, will occur and the cutting of steel for the fourth ship in the class, the future HMCS William Hall, will commence.
Departmental Result 5.3 - Defence information technology acquisition is well-managed
- Enhance the planning, design, development and deployment of technology-enabled solutions, capabilities and changes to the IM/IT capability within National Defence via extensive collaboration with partners, clients, stakeholders and colleagues.
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Enhance interoperability of new IT-enabled systems both within DND and across the Government of Canada by conducting enterprise architecture reviews within DND and the Government of Canada to prevent the development of disparate solutions to common IT problems.
Planned results
Departmental Results | Departmental Result Indicators |
Target | Date to achieve target | 2014–15 Actual results | 2015–16 Actual results | 2016–17 Actual results |
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5.3 Defence information technology acquisition is well-managed | % of information technology projects that remain in approved scope | 100% | 31 March 2019 | 100% | 100% | 100% |
% of information technology projects that remain on approved schedule | 100% | 31 March 2019 | 85% | 90% | 90% | |
% of information technology projects that remain within approved expenditure authority | 100% | 31 March 2019 | 95% | 100% | 95% |
Note: For more information about National Defence performance indicators, please visit GC InfoBase xl.
Departmental Result 5.4 - Supplies are available and well-managed
- Enhance materiel accountability by implementing modern, effective inventory controls, supply chain management and inventory valuation.
- Continue to deliver on the 2016 Inventory Management Action Plan and other complementary initiatives designed to improve the effective management of defence materiel and accuracy of materiel data as it relates to quantity, location, condition and price;
- Complete a review to determine the best option to govern National Defence’s end to end supply chain;
- Complete a pilot project to determine the application of business analytics to improve supply chain performance; and
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Continue to maintain a robust materiel management oversight and monitoring framework through the use of a nationally contracted stocktaking and stock verification control program with reporting of results to senior management.
Planned results
Departmental Results | Departmental Result Indicators | Target | Date to achieve target | 2014–15 Actual results | 2015–16 Actual results | 2016–17 Actual results |
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5.4 Supplies are available and well-managed | % of stock that is unavailable to meet forecasted demand | Less than 7.93% | 31 March 2019 | 5.78% | 5.1% | 5.01% |
% of stock that is identified as surplus | To be determined by 31 March 2020 | To be determined by 31 March 2020 | Not Available | Not Available | Not Available New indicator as of 2018-19 |
Note: For more information about National Defence performance indicators, please visit GC InfoBase xli.
Budgetary financial resources (dollars)
2018–19 |
2018–19 Planned spending |
2019–20 Planned spending |
2020–21 Planned spending |
---|---|---|---|
3,135,903,543 | 3,135,903,543 | 4,022,785,915 | 2,670,950,633 |
Human resources (full-time equivalents)
2018–19 Planned full-time equivalents |
2019–20 Planned full-time equivalents |
2020–21 Planned full-time equivalents |
---|---|---|
2,316.94 |
2,322.73 | 2,328.53 |
Note: Financial, human resources and performance information for the National Defence’s Program inventory is available in the GC InfoBase xlii.
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