Buying below the radar - CDN military procurement

[CD]

Interesting story in the news today...

Buying below the radar
While in Opposition, Defence Minister Gordon O'Connor was disgusted over the lack of competition in military procurement. Now, the tables are turned, and critics say civilian oversight and accountability have disappeared from the process of buying costly military equipment

David Pugliese, The Ottawa Citizen
Saturday, January 20, 2007

In the summer of 2005, Gen. Rick Hillier embarked on a bold plan to re-equip the Canadian Forces, a move that would have seen one of the costliest purchases of military equipment since the Second World War.

The proposal called for the acquisition of more than 40 new planes, fleets of C-130J transport aircraft and Chinook helicopters. New search-and-rescue planes were also part of the mix, with the C-27J as the front-. favoured by the air force.

There would be no competition among aerospace companies for the lucrative deals. This equipment was needed immediately, the military argued. The estimated $6 billion to $8 billion in contracts proposed by Gen. Hillier and his senior officials, with the blessing of then Liberal defence minister Bill Graham, would be directed to specific firms since the military believed that they alone had the equipment that could fit the bill.

In the Opposition ranks, Conservative defence critic Gordon O'Connor reacted with disgust over the government and military's use of what he labeled sole-source procurements -- where there is no competition and the contract is directed to one company.

"To me it's outrageous," Mr. O'Connor told the Citizen at the time. "We're talking about billions of dollars and we're talking about aircraft we will have for decades. It may be the right choice. But how do we know, because there's no competition? With competition we become aware of all the technical problems, (the) costs and we get an idea whether it's the right solution."

The Liberals, Mr. O'Connor charged, were trying to spend billions of dollars without any real public scrutiny. "It's just about guaranteed down the line that with that many sole-sourcing (contracts) there's going to be problems," he warned.

Gen. Hillier's plan was scuttled when officials at Industry Canada raised objections about the deal and Liberal cabinet ministers started questioning how the public would react to the awarding of billions of dollars in non-competitive contracts just before an election.

More than a year later, the tables have turned. The Conservatives are in power and they are buying many of same aircraft Gen. Hillier originally proposed in the plan he presented to the Liberal government.

Negotiations are underway to purchase Chinook helicopters made by Boeing in the U.S. No other choppers were really seriously considered. Lockheed Martin's C-130J transport plane was selected by the procurement process that Mr. O'Connor complained, when in Opposition, was rigged to favour the Lockheed aircraft.

The Conservatives also added to the mix the purchase from Boeing of a fleet of C-17 strategic transport planes. Again, the process was viewed by many in the aerospace industry as a de-facto sole-source award, with the government stating from the beginning that its preferred plane was the C-17, although the governments in both cases denied the sole-source charges.

Mr. O'Connor, now defence minister, says the procurement process for the C-17, C-130J and Chinook helicopters is fair, open and transparent. His officials declined to explain the discrepancy between those comments and the allegations he made while in Opposition.

Complete story here (may require registration)

[shitdisturber]

A politician is a hypocrite??? No I can't believe that!

[cloudcounter]

They print it- they spend it.
Instructions : Disengage Brain Before Use.
DBBU

[Icebound]

.

We forget that politicians are there only to screw life up, and the real work is done by your professionals, the Public Servants. They actualy DO do some homework on these things and try to get you the best deal, even if it might mean bending a rule or two.

Now, once in a while a rule gets bent a little too far, and we have to hold a public inquiry or two.... but for the most part, you are well served, as long as the politicians keep their mitts off.

So they may well be sole-sourcing (or nearly so), not necessarily because they have any particular Liberal or Conservative agenda, but because they think it will probably get the best product for the least amount of hassle.

I am betting also that Harper's new conversion to Environmentalism similarly has nothing to do with agenda, but more with the facts-of-life presented to him by his Public Service .... which has been studying these things from before he even thought of politics, and will be continuing to do so well after he is gone.


....


.



.

[Nark]

Whats wrong with "sole sourcing" a proven product? ex. C-17 and C-130 etc...

Like Gen. Hillier said, you need these products right away. These are the big ticket items, lets not forget about all those "soldiers(?)" who went into Afgahnistan in 2001 with green cammies. How long did it take before your riflemen got desert cammies? If I remember correctly the CF had to "borrow" cammies from the Brits before they got their own, anyone know something about that?

The CF needs alot of things, and I don't think airplanes are at the top of the list. Sorry to throw a wrench in to it.

[shitdisturber]

Whats wrong with "sole sourcing" a proven product? ex. C-17 and C-130 etc...

Like Gen. Hillier said, you need these products right away. These are the big ticket items, lets not forget about all those "soldiers(?)" who went into Afgahnistan in 2001 with green cammies. How long did it take before your riflemen got desert cammies? If I remember correctly the CF had to "borrow" cammies from the Brits before they got their own, anyone know something about that?

The CF needs alot of things, and I don't think airplanes are at the top of the list. Sorry to throw a wrench in to it.

There's nothing at all wrong with sole sourcing if that's the best tool available. Having spent 15 years in the military I'm all for our people getting the best equipment money can buy so they can do their jobs. I just find it laughable that O'Connor was a constant critic of the practice when he was the Opposition Defense Critic; and has done nothing but sole source since he became Defense Minister.

[WJflyer]

Sole-sourcing is the only option for us to get the equipment here on time to replace worn out equipment. C-17's and new C-130J's will relieve pressure on the C-130 fleet, which has started its predicted implosion already. Chinooks are the best aircraft for the environment in Afghanistan, as due to their tandem rotor design, they are the most efficient for lifting large loads and don't suffer from the altitude and heat.

When our military bosses say we want x piece of equipment, he means he wants x piece of equipment, not y piece of equipment. Leave decision making to the military brass as they know what we need, just approve the budget.

[electraguy]

I mean honestly, need we bring up the Commorat, the greatest hangar queen ever. Its brand new and it makes the Sea King servicabilty record look good. Would perhaps sole sourcing a decent machine from say sikorsky with a proven design have been a bad idea. I agree, the military should tell the government what they NEED and thats the equipment they should get not the next cheapest knock off. I can't wait to see the CF get there new 117's 130J's and Chinkooks. I look forward to the JSF coming to Canada!!!

[WJflyer]

I mean honestly, need we bring up the Commorat, the greatest hangar queen ever. Its brand new and it makes the Sea King servicabilty record look good. Would perhaps sole sourcing a decent machine from say sikorsky with a proven design have been a bad idea. I agree, the military should tell the government what they NEED and thats the equipment they should get not the next cheapest knock off. I can't wait to see the CF get there new 117's 130J's and Chinkooks. I look forward to the JSF coming to Canada!!!

I have been informed that there is the strong possibility of delay in the delivery of the Cyclones, up to a year or more, due to issues at Sikorsky. Something about a lengthy industrial action relating to the development of helicopters...

[monkeyspankmasterflex]

Re Cyclone delay...

Strike sets back chopper work



Replacement helicopters for Canada’s geriatric fleet of Sea Kings will be delivered at least 5 1/2 weeks late from Sikorsky International because of a strike at the company’s factory in the United States.

However, the federal government says the delay is reasonable, and it is forgoing the late penalty provisions in the contract, which allowed it to charge up to $100,000 a day in penalties to a maximum of $36 million.

The $1.85-billion deal announced with fanfare by the federal Liberals in 2004 required delivery of the first of 28 maritime helicopters by Nov. 30, 2008.

That has been changed to Jan. 9, 2009.

At the time of the announcement, federal officials emphasized that the penalties would serve as a deterrent to the project being late.

Sikorsky International has blamed the delivery delay of the S-92 Cyclones on a strike by the Teamsters union that ended last April.

Pierre Manoni, a spokesman for the Department of Public Works, said the federal government accepted the explanation.

"The problem with the labour dispute pushed back the delivery date," he said.

"The government determined that a labour dispute caused an excusable delay, and we’re going to amend the contract." Manoni said it’s expected the remaining S-92 Sikorsky choppers will be delivered at a rate of one per month after the first aircraft arrives in Canada.

Timely delivery of the Cyclones was emphasized when it was announced, partly because the fleet of existing Sea Kings requires high levels of maintenance.

There have also been two crashes of the Sea Kings in the past three years, the most recent when a helicopter ditched in the ocean off Denmark last February.

Questions about delays started to emerge last February, when The Canadian Press obtained a schedule that indicated the preliminary design for the S-92 helicopters was six months behind its original schedule.

At the time, the Department of National Defence insisted a new schedule was in place for the Cyclones and it said the time would be recovered in a new schedule.