CDR asked Quebec Bureau Chief, Peter Diekmeyer, to speak with one of the industry’s most seasoned professionals about policy opportunities amidst the onset of a federal election cycle.

CDR ONE-ON-ONE – DARCY BYRTUS: Government and Industry Relations, BMT North America

CDR: What key challenges and opportunities are on the table as the decade long Trudeau Administration draws to a close?

Darcy Byrtus: Generalized instability, resurging geopolitical tensions in regions ranging from Russia to the Middle East and the Indo Pacific, and accelerating technology shifts are challenging traditional relationships. Threats of U.S. tariffs on NATO allies such as Canada and Denmark as a tool to achieve policy objectives are raising broader questions regarding economic and defence cooperation.

Canada is highly dependent on trade. Negative impacts from a shift towards protectionism could have spillover effects on domestic priorities such as climate change which remains a critical global issue. The defence sector’s ability to respond to these challenges will be impacted by the inherent tensions between the government’s planned short-term cuts in operations and maintenance and Canada’s commitment to increase defence spending to 2% of GDP.

But there are opportunities. We can leverage Canadian competitive advantages in innovation, reinvigorate underused domestic supply chains, diversify markets, broaden relationships with other allies, and further develop Canada’s expertise, infrastructure, and presence in the Arctic through vehicles such as the ICE Pact agreement.

PERSONNEL & RESOURCE SHORTAGES

CDR: What advice is BMT giving to procurement officials who continue to navigate personnel and resource shortages?

Darcy Byrtus: The key challenge remains getting our men and women in uniform the equipment they need to do their jobs. That said, increases in defence procurement activity during the last 20 years have not been matched by corresponding increases in personnel under the purview of the Assistant Deputy Minister (Materiel) (ADM Mat) and other key bodies. But there are no magic bullets. Canadian government procurement personnel include some of the world’s most highly trained, skilled, experienced and effective talent. These people take years to train.

Going forward, we favor a balanced approach that combines long-term career development pathways for new public sector hires, with public-private partnerships that leverage outside consultants to help address gaps. At BMT, as part of our normal recruiting to get the best people, we plan to continue to leverage what can be a key under-used resource, recently retired Canadian Armed Forces members that want to continue to support the defence enterprise.

CDR: What lessons did you learn during your work on the Canadian frigate acquisition program that the Royal Canadian Navy can apply as it rebuilds its fleets?

Darcy Byrtus: BMT has identified a broad range of best practices through mandates such as the Engineering Management and Support (ELMS) contract. The most important lesson that I have drawn through my personal work on countless Canadian and allied naval procurement programs is to remain optimistic and positive in hard times. 

Modern large-scale procurements being undertaken by the Royal Canadian Navy and Royal Canadian Air Force are extremely complex endeavors with a lot of moving parts, interests and actors. Delays, technological challenges, funding gaps and other challenges are part of the drill. Remaining positive and focused is crucial to getting over these humps.

Another opportunity is the huge productivity gains that can be achieved by developing and adhering to schedules. Modern procurements are complex dynamic systems that involve hundreds, and often thousands of interconnections. Delays in even minor components can hamper critical paths that push program deliveries back significantly leading to millions of dollars per day in opportunity and out of pocket costs.  

A CHANGING ENVIRONMENT

CDR: What changes has BMT seen during the past year and how have you responded?

Darcy Byrtus: BMT’s business has grown rapidly as we help key clients address strategic challenges, particularly those related to planning, executing and transitioning into service generational Royal Canadian Navy and Canadian Coast Guard shipbuilding projects. BMT has increased staff significantly in our Ottawa, Halifax and Victoria offices to contribute to several initiatives that are at critical stages. These efforts are essential to maintaining the operational viability of key ships, many of which are much older than the sailors that operate them.

BMT has also increased its capabilities, diversified its portfolio, and created synergies by better balancing market demands in non-defence areas. This diversification promotes skills development and provides BMT with the opportunity to transfer learning from other industries.    We are also seeing increased opportunities both in the United States and internationally in collaboration with other units in BMT’s global organization.

CDR: You mentioned “accelerating technological shifts,” as key opportunities. Can you be more specific?

Darcy Byrtus: Canada is well positioned to increase investments in innovation in areas ranging from shipbuilding to space, and cyber defence. We possess numerous competitive advantages that we can leverage to spur growth, strengthen national supply chains, increase export potential and contribute to overall national security. However, we also need to address increased technological threats and competition in areas such as artificial intelligence, quantum computing and uncrewed systems.

BMT has also been helping defence stakeholders address growing concerns about climate change which the Supreme Court of Canada has confirmed is an existential threat to mankind. We support the Royal Canadian Navy in the development of environmental sustainability policies and in identifying requirements for new procurements and within existing platforms to help meet decarbonization goals.

LOOKING AHEAD

CDR: What other opportunities is BMT pursuing?

Darcy Byrtus: BMT has seen increased demand from the Director General Maritime Equipment Program Management (DGMEPM) team for environmental and engineering advice related to implementing Canada’s Defence Energy and Environmental Strategy.   

BMT has also invested in the management of energy micro grids that can support the development of renewable energy sources for remote communities and of operational energy that can supply forward deployed forces. We have invested in a capability to support Arctic infrastructure for use in future Army, Navy and Air Force initiatives. That capability has grown significantly amid increasing demand from commercial clients and opportunities presented by defence projects such as NORAD Modernization. 

Looking forward, new initiatives such as the ADM (Mat)’s Continuous Capability Sustainment approach, which addresses through-life capabilities from acquisition to disposal will impact all aspects of procurement and sustainment that BMT is involved with. We look forward to leveraging expertise from key internal personnel to help with this important initiative.

CDR: What is the single key message you’d like to leave with readers of Canadian Defence Review?

Darcy Byrtus: Canada’s recent Defence Procurement Review and announced Defence Industrial Strategy initiatives are key steps towards achieving the integrated, long term, national strategy we need to maximize outcomes. However, we also need broad commitments, persistent focus, and clear goals that enable industry to align their investments and actions with Government partners.

CDR: Thank you.

Peter Diekmeyer is CDR’s Quebec Bureau Chief