Audit Scope, Recommendations, and Key Findings

  • Long description

    Updated: 10 May 2021

    Objective

    Whether National Defence; Fisheries and Oceans Canada; Public Services and Procurement Canada; and Innovation, Science and Economic Development Canada managed the National Shipbuilding Strategy in a manner that supported timely renewal of the federal large vessel fleet.

    Key Findings

    • Federal fleet was not being renewed in a timely manner.
      • Persistent shipbuilding delays
      • Schedule management weaknesses [National Defence, CCG, PSPC]
      • Inadequate risk management tools [PSPC]
      • Delays in confirming achievement of target state [PSPC]
    • Note: The audit mentions departments made key decisions during the audit period to place the strategy on a more viable path and took steps to help sustain operations until new ships could be delivered.

    Recommendations

    Recommendation 1

    The Canadian Coast Guard, National Defence, and Public Services and Procurement Canada (PSPC) should implement mechanisms to obtain current and reliable schedules and monitor progress toward targets and delivery timelines.

    Recommendation 2

    PSPC should improve risk management tools at the National Shipbuilding Strategy’s management level to enable better risk analysis, risk mitigation action plans, and enhanced monitoring of risk mitigation measures.

    Recommendation 3

    PSPC should apply lessons learnt from the first 2 shipyards when determining a schedule for the third shipyard to achieve target state.

    National Defence Response [Joint with DFO/CCG, and PSPC]

    • Agree that having complete, current, and reliable schedules is essential for decision-making and management of the shipbuilding projects.
    • Departments will continue to work together and with shipyards to:
      • improve delivery and accuracy of schedules; and
      • ensure more disciplined reporting of progress towards targets. Current tools, such as the shipyard-produced Integrated Project Schedules, and approaches, including earned value management, will be further matured to ensure that schedules are properly managed and to support oversight by governance committees at all levels.

    Management Action Plan

    • Milestone A [Q2 FY 21/22]: Integrated Project Teams (IPTs) will ensure that fulsome shipyard-produced Integrated Master Schedule (IMS) updates, supported by metrics outlining a clear critical path, are presented during recurring NSS governance committee meetings.
    • Milestone B [Q2 FY 21/22]: IPTs will ensure that Earned Value Management is used as an analytical tool to measure shipyard-produced IMS performance, with results presented during recurring NSS governance committee meetings.
    • Milestone C [Q2 FY 21/22]: IPTs will review new and existing shipbuilding contracts to determine whether shipyard-related schedule obligations and deliverables are appropriate and/or are being met.

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