1. NSPS to Wider Industrial Policy
February 27th 2012
September-21-18
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2. 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.
September-21-18
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3. 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-the-art mission and weapon systems and further contribute to the government’s jobs, innovation, and economic agendas.
September-21-18
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4. Sovereignty, Security and Prosperity
Government Ships
Designed, Built and Supported by Canadian Industry
The Report of the CADSI Marine Industries Working Group – May 2009
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).
Operational Fleets
Ships designed, built, & supported in Canada
Employment
in Canada
A Strong Economy/
National Security
SOVEREIGNTY −
September-21-18
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5. 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
September-21-18
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6. 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 –
September-21-18
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7. 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
September-21-18
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8. 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
September-21-18
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9. 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
September-21-18
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10. 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?
September-21-18
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11. Timothy I. Page, President Janet Thorsteinson, Vice-President
Questions
Contact Information
Timothy I. Page, President
Janet Thorsteinson, Vice-President
CADSI
130 Slater Street
Suite 1250
Ottawa, ON K1P 6E2
September-21-18
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