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Leveraging Defence Procurement to Create Jobs and Economic Growth in Canada

VANCOUVER, BRITISH COLUMBIA -- (Marketwired) -- 03/13/14 -- PWGSC

The Honourable Diane Finley, Minister of Public Works and Government Services, attended the CanSecWest Conference today to highlight Canada's new Defence Procurement Strategy (DPS).

The Defence Procurement Strategy (DPS) represents a fundamental change in the Government of Canada's approach to defence procurement, and includes the following components:

Delivering the right equipment to the Canadian Armed Forces and the Canadian Coast Guard in a timely manner:

--  Ensuring early and continuous industry and client engagement in the
    procurement process;
--  Starting in June 2014, publishing an annual Defence Acquisition Guide
    that outlines National Defence (DND) procurement priorities; and
--  Establishing within DND an independent, third-party challenge for
    military requirements.

Leveraging our purchases of defence equipment to create jobs and economic growth in Canada:

--  Using a weighted and rated Value Proposition, to assess bids for defence
    and major Canadian Coast Guard procurements;
--  Implementing an Export Strategy to support international sales
    opportunities and participation in global value chains;
--  Identifying and applying Key Industrial Capabilities (KICs) to inform
    potential economic benefits of individual procurements so that they meet
    the CAF's needs and increase the competitiveness of Canadian firms in
    the global marketplace; and
--  Establishing an independent, third-party Defence Analytics Institute
    which will provide expert analysis to support the objectives of the
    Defence Procurement Strategy (DPS) and its evaluation. The interim board
    was announced on February 19, 2014.

Streamlining defence procurement processes:

--  Adopting a new regime to ensure streamlined and coordinated decision-
    making for defence and major Canadian Coast Guard procurements;
--  Establishing a Defence Procurement Secretariat within Public Works and
    Government Services Canada (PWGSC) to ensure close coordination among
    key departments; and
--  Reviewing the current National Defence delegated authority to purchase
    goods with a view to increasing the level from the current $25,000 to
    achieve more efficient procurement practices.

Quick Facts

--  The three key objectives of the Defence Procurement Strategy (DPS) are
    to: deliver the right equipment to the Canadian Armed Forces (CAF) and
    the Canadian Coast Guard in a timely manner; leverage our purchases of
    defence equipment to create jobs and economic growth in Canada; and
    streamline defence procurement processes.
--  DND will publish its first annual Defence Acquisition Guide in June
--  The Defence Procurement Strategy (DPS) will encourage competitiveness of
    Canadian defence-related firms on both a domestic and international
--  Defence procurement spending has significant potential to produce
    substantial spin-off benefits to Canada's knowledge, innovation and
    export-based economy.
--  Key Industrial Capabilities (KICs) are areas of the Canadian defence
    industry where Canada has the capability to support CAF needs and thus
    potential to spur economic growth and job creation.
--  The Defence Procurement Secretariat will use the principles of early and
    frequent engagement, and draw on independent advice to ensure faster and
    more efficient decision-making to streamline defence procurement
--  Canada has over 650 firms engaged in providing defence goods and
    services, generating $9.4 billion in revenue, with an estimated economic
    impact of $6 billion of GDP and employment for 64,000 full-time
    employees. Half of the industry's revenues are from exports.


"The Harper Government is committed to giving our men and women in uniform the equipment that they need, in a more timely and cost-effective way and at better value for taxpayers. It is also important that we leverage our investments for greater benefit to the Canadian economy because that means jobs, growth and prosperity for everyone. Canada's defence industry has some of the best talent in the world and it is important that Canadian companies can compete both here and in the global defence market." - Public Works and Government Services Minister, Diane Finley.

Related Products

Defence Procurement Strategy

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PWGSC news releases are also available on our Internet site.

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Marcel Poulin
Office of the Honourable Diane Finley

Media Relations
Public Works and Government Services Canada

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