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Procurement – General

Defence Procurement Canada

  • The Government is taking action to procure the equipment needed by the Canadian Armed Forces.
  • The Prime Minister has asked me to support the Minister of Public Services and Procurement in the creation of Defence Procurement Canada.
  • This will ensure that Canada’s biggest and most complex National Defence procurement projects are delivered on time and with enhanced transparency.
  • The Government is still examining the best way to implement this mandate, and a decision will be made in due course.

Key Facts

  • National Defence manages over 12,000 service contracts.
  • In 2019, National Defence’s contracting authorities for goods and services increased to:
    • $5M for competitive contracts; and
    • $250,000 for non-competitive contracts.

Details

  • Strong, Secure, Engaged outlined six key commitments to streamline defence procurement, to better meet the needs of the military, and deliver projects in a more timely manner.
    1. Increasing financial authorities: In May 2019, the Government of Canada increased National Defence’s financial authorities for competitive service contracts from $1 million to $5 million. National Defence now handles over 80% of its contracts. Service contracts over $5 million are still handled by Public Services and Procurement Canada, on behalf of National Defence.
    2. Simplifying project approval: For low-risk projects managed by Public Services and Procurement Canada on behalf of National Defence, a pilot project was established to eliminate the additional step of seeking Treasury Board approval. This will reduce project development and approval times by at least 50% for these types of projects.
    3. Incentivizing research and development: Through the application of the Industrial and Technological Benefits policy to defence procurement, the Government incentivizes Canadian research and development. For example, the policy has been integrated into the procurement of new advanced fighter aircraft and remotely piloted aircraft systems.
    4. Enhancing industry engagement: Public Services and Procurement Canada and National Defence regularly engage with defence industry to respond to questions and increase clarity regarding project requirements. For example, through the procurement process for a new advanced fighter aircraft, the Government of Canada hosted an industry day, regional forums, and consultations designed to engage and inform industry on the proposal process. 
    5. Increasing the procurement workforce: Since 2015, National Defence has hired an average of 75 new procurement experts per year to strengthen its capacity to manage the acquisition of complex military capabilities.
    6. Enhancing transparency: With the publication of the 2018 Defence Investment Framework and the 2019 Annual Update, National Defence delivered on the commitment to increase transparency of deference procurement by providing Canadians with regular updates on major projects and programs.

Version 5; 2020-02-24 – Source: QP Note on Improving the Defence Procurement Process

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