Transcript Slide 1

NSPS to Wider Industrial Policy
February 27th 2012
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© 2012 CADSI All Rights Reserved
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NSPS STRENGTHENS OUR ECONOMY AND SECURITY
October 19th, 2011 – CADSI today saluted the federal government’s fair and balanced
approach to acquiring new naval and coast guard vessels to protect and promote
Canada’s maritime interests in a way that will properly equip our men and women in
uniform and maximize jobs, innovation and economic activity in Canada.
CADSI congratulates Irving Shipbuilding and Seaspan Marine on their success in being
selected as the lead shipyards for this multi-year, multi-billion dollar program.
On behalf of our 860 members, we strongly support the government’s decision to build
its naval and coast guard fleets in Canada and to manage their production in a way
that mitigates the boom-and-bust cycles normally associated with ship fleet
construction, said CADSI President Tim Page.
Canada has a proud and internationally renowned maritime heritage. Today’s NSPS
announcement is a tangible demonstration of the federal government’s commitment
to provide world-class ships to the men and women of the Royal Canadian Navy and
Canadian Coast Guard and to strengthen the economy and the security of Canada.
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NSPS STRENGTHENS OUR ECONOMY AND SECURITY
Today’s announcement is good news for Canadian workers in the defence and security
sectors who have the expertise and know-how to deliver state-of-the art ships and
equipment to the Royal Canadian Navy and the Canadian Coast Guard, said Page.
Following this milestone accomplishment, CADSI encourages the federal government
to move to contracts with the down-selected shipyards as quickly as possible, ensuring
an appropriate balance of risk between the Crown and private industry.
CADSI members will continue to work collaboratively with the government in the
months to come on a series of equally important decisions regarding how best to
engage Canada’s marine, systems integrators and defence electronics sectors. This will
increase the role of Canadian workers to complete the yards’ work with state-of-theart mission and weapon systems and further contribute to the government’s jobs,
innovation, and economic agendas.
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Sovereignty, Security and Prosperity
Government Ships
Designed, Built and Supported by Canadian Industry
The Report of the CADSI Marine Industries Working Group – May 2009
A Strong Economy/
Operational Fleets
National Security
SOVEREIGNTY
−
Employment
in Canada
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Ships designed, built, &
supported in Canada
Canada’s Marine Industries are broader
than the ship construction that occurs in
shipyards. They include project
management, ship design, and systems
integration and equipment supply
involving many hundreds of Canadian
companies, most of them Small and
Medium Enterprises. Systems and
equipment are generally categorized as
either platform (e.g. propulsion, electrical
and hotel services) or mission specific
(e.g. command and control, sensors,
guns, missiles, helicopter operations,
underwater systems).
© 2012 CADSI All Rights Reserved
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CADSI’s Overarching Policy Goal
March 22nd 2011 Federal Budget:
The Government is committed to … developing a
procurement strategy, in consultation with industry,
to maximize job creation, support Canadian
manufacturing capabilities and innovation, and
bolster economic growth in Canada.
Creation and implementation of a Defence Industrial
Strategy for Canada, based on:




Articulating key Industrial Capabilities (KIC) based on
sovereignty, security and/or economic value to Canada
Establish and nurture centres of excellence in those
capabilities
Target federal R&D, export support and procurement
strategies around those capabilities and Canadian
champions
Focus the IRB program around the KIC list
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Key Industrial Capabilities
CADSI believes that Canada needs to
identify the Key Industrial Capabilities
(KICs) need for the purpose of:
 Sovereignty
 Security (assured access)
 Economic value to Canada
Defence is not a free market
– rather it is a managed market internationally –
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Key Industrial Capabilities (cont’d)
CADSI proposes that the KICs are:
 (IA/Cyber) IT Security Architectures, Systems
Integration, and In Service Support
 Space-Based Radar Surveillance
 Systems Integration
 Platform In Service Support (ISS), Integrated
Logistics Support, Maintenance Repair and
Overhaul
 C4ISR Systems and Solutions
 Ordinance/Ammunition
 Small Arms
 Shipbuilding and Marine Industries
 Armoured Vehicles
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Key Industrial Capabilities (cont’d)
 Aircraft, Special Mission Aircraft and Aircraft
Missionization
 Simulation and Training Systems and Solutions
 CBRNE Detection, Protection, and
Decontamination. Chemical, Biological,
Radiological, Nuclear, and Explosive (CBRNE)
 (PPE) Personal Protective Clothing and Equipment
for Defence and Security
 Shelters & Containers
 (Services) IT, Procurement, Management, Test &
Evaluation, and R&D Services
 Engines and Power Generation
Basis for a structured dialogue with officials to establish a robust list of KICs
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Reform to the procurement process
At the same time, is urgent and should include:
 Require Cabinet approval of a domestic industrial plan at the PPA
stage
 Modify PWGSC’s Canadian content policy to allow directed
procurement to Canadian sources in the defence sector
 Rate requirements based on KIC list and direct Canadian industrial
participation
 Buy what the government co-invests in with Canadian industry
 Obtain IP at time of acquisition if OEM is foreign
 Stop single point of accountability with a foreign OEM for ISS
 Balance risk, based on the CADSI paper, that allocates risk where
it can best be managed
 Canada as a first buyer
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NSPS to Wider Industrial Policy
Why is NSPS special?
 Supported by Canada’s Shipbuilding Policy
 Applies to a group of procurements
 Long term predictable recurring requirement
Can the approach be applied in other areas?
 Air fleet ISS?
 Land vehicle production?
 Soldier System requirements?
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Questions
Contact Information
Timothy I. Page, President
[email protected]
Janet Thorsteinson, Vice-President
[email protected]
CADSI
130 Slater Street
Suite 1250
Ottawa, ON K1P 6E2
[email protected]
613-235-5337
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