Volume 31 Issue 5
Letter from the EditoR
As long as we’ve been publishing CDR (over 30 years), Canada’s procurement system has been a problem, either because it was too slow to respond to the needs of the military, or because it did not sufficiently advance and support Canada’s own defence and aerospace industry. And all too often, because of a convoluted system, by the time the military received the requested equipment, it was obsolete or out of date.
The only time we can recall Canada’s military being equipped with any kind of alacrity was during the Afghanistan conflict when Canadian soldiers were in a shooting war. At that time the UOR (Urgent Operational Requirement) was employed by DND to expedite delivery of required equipment. That was how the military had to work around the cumbersome acquisition process that was in place at that time.
CDR has long called for a single point of accountability in defence procurement. Countries like the UK, Australia and the US have had agencies in place for this purpose for a long time. Now finally, as Canada looks to achieve 2% defence spending to meet its NATO commitment, PM Carney, in October of this year, announced the establishment of the Defence Investment Agency.
READ: PM Carney Launches New Defence Investment Agency to Rebuild, Rearm, and Reinvest in the CAF
The goal of the new agency is to, “… equip the Canadian Armed Forces at the speed of relevancy”, said Stephen Fuhr, Secretary of State for Defence Procurement. But, as the new agency looks to focus on projects in the $100 million plus category, the concern is that Canadian companies, many of which are SMEs, could get left behind. While CDR applauds the goal of streamlining defence procurement, we consider it essential that Canadian industry participates fully and that means the smaller players too.
As Canada looks to build its defence industrial base, we’d like to see the government engage with the SMEs, especially in areas like unmanned, AI, cyber security et al and that’s why perhaps the new Defence Investment Agency should look at contracts in the $5 million to $20 million range where start-ups live.
The Defence Investment Agency is a good initiative, albeit overdue, and we applaud the Carney administration for moving in that direction but if Canada is to build a strong foundation for its defence industrial base it must not leave the SME behind.
ANATOMY OF AN SME BID
Speaking of SMEs and Defence Procurement, as you’ll read in “Leveling the Playing Field”, prepared by Ottawa Bureau Chief, James Careless in this issue, Canadian drone company, CUAVs, believes the SME is at a clear disadvantage. The company contends, “…the current Canadian defence procurement process favours large prime contractors, simply because of the lengthy duration and substantial demands on bidders.” Chances are the new defence procurement agency will correct this issue but that remains to be seen. As you’ll read in our report, CUAVs says, “…When it came to conducting the RCN ISTAR competition, the diligence of the Navy was exceptional. But the timeline was something else…. it took an entire year to get the ‘no’. We had to sustain ourselves for that year waiting for a no, and it’s that timeline that will just break you as a small company.” So, let’s hope as the new Defence Investment Agency settles in, it is mindful of its relationship with Canada’s defence industry, especially the SMEs which, perhaps surprisingly, comprise 85% of the industry in Canada.
SKYGUARDIAN, THE FUTURE OF UNCREWED
Each year around this time our focus turns to the ever-evolving field of the unmanned. Some say unmanned is the future of modern warfare and as you’ll read in this issue of CDR, SkyGuardian from General Atomics is slated to be Canada’s premier uncrewed aircraft in the years ahead. At CDR we like it when Canadian industry benefits and, as you’ll learn in our Cover Story, Team SkyGuardian is a collaboration between General Atomics Aeronautical Systems, and a group of Canadian industry leaders (CAE, MDA Space L3Harris Technologies).
The project is slated to produce 11 remotely piloted aircraft systems (RPAS) and six ground control systems. The CQ-9B Guardian aircraft will be focused on delivering surveillance, strike, and reconnaissance capabilities and the newly designated CQ-9B RPAS is poised to play a critical role in defending the homeland and North America. For an in-depth look at SkyGuardian, we invite you to read the incisive Cover Story in this issue.
