1. Military Equipment Procurement Supplier Quality Assurance ASQ Presentation 06 November 2015
Hear about Defence Contracting for Military Equipment and the Defence
approach to supplier quality assurance. The discussion will include: an
overview of the military equipment procurement process; quality management
system standards such as ISO 9001:2008 and clauses specified in contracts;
how the Department uses risk management and a process-audit approach to
conducting quality assurance services at military equipment supplier facilities;
and current trends in weapon system management / long-term in-service
support contracts.

2. Breakout Speaker Vernon Purcell Quality Assurance Manager Calgary
Department of National Defence
Directorate of Quality Assurance
Calgary Workcentre
Welcome to the Breakout session: Military Equipment Procurement - Supplier Quality Assurance
My name is Vernon Purcell. I work for the Department of National Defence (DND); Directorate of Quality Assurance.
I joined DND in 1982 in Halifax and was transferred to Calgary in 1998.
I’ve been very fortunate to work with a wide range of suppliers across Canada – delivering quality military products and services to the Navy, Army and Air Force.
Vernon Purcell is the Quality Assurance Manager in Calgary with the Department of National
Defence, Directorate of Quality Assurance. He and his staff work with a number of defence
industry contractors in the Southern Alberta region; providing supplier quality assurance
services during the manufacture or repair of military equipment. Prior to moving to Calgary,
Vernon worked in Halifax and performed supplier quality assurance services at defence
industry suppliers throughout the Atlantic Region.
Vernon graduated from the Nova Scotia Institute of Technology with a diploma in Mechanical
Engineering Technology and also holds a business management Certificate from Henson
College, Dalhousie University.

3. Outline Military equipment procurement process;
Contract Clauses - Quality;
Risk management and quality assurance at supplier facilities; and
Current trends in weapon system management & long-term in-service support contracts
Question period
This is an outline of the topics we’ll cover.
If you have questions, please ask during the presentation. There will also be time for questions at the end.

4. Participants Your information needs?
What role do you perform in your organization?
To focus on your needs and deliver information that will be beneficial to you, I’d like to learn more about you
Name
Organization
Your Role in the organization
What you would like to get from a presentation on military procurement?

5. Military Procurement Operations Equipment Program Management Support
Navy
Army
Air Force
Joint Deployments
Navy (Maritime), Army (Land), Air Force
Major Project Delivery
International & Industry Programs
Organization – very Generalized overview
Broad Terms – Equipment
In very general terms, the people involved with military equipment are organized in two groups – Commands and Equipment Program Management Sections
Operations: Navy, Army, Air Force – Commands that assign people and equipment to tasks, operations, deployments, exercises, etc.
Equipment Program Management Support – National Defence Headquarters (NDHQ) organization that manages the life-cycle of equipment for military operations. “cradle to grave” or “conception to disposal”
Assistance Deputy Minister – Materiel. The Materiel Group is the single, central service provider and program authority for materiel for the Canadian Armed Forces (CAF) and the Department. ADM(Materiel) is accountable to the Deputy Minister (DM) for materiel’s full life cycle – from acquisition, through maintenance and support, to disposal.
Navy (Maritime), Army (Land), Air Force
Major Project Delivery
International & Industry Programs

6. Military Procurement
Department of National Defence buys a wide range of supplies and equipment
Basic Supplies
Buy direct from Industry
Use Acquisition Cards, Local Purchase Orders and Standing Offers
Military Equipment Spares & Supplies
Within financial limit - Direct from Industry
The Canadian Armed Forces purchases a wide range of equipment and supplies

7. Military Procurement Military Equipment over Financial Limit
Equipment Program Management processes
$$, Funds Approval, Technical Details, Quality Details, Supply & Logistics Details
Defence creates requisition
Defence sends the requisition over to Public Works & Government Services Canada (PWGSC) for the contracting process
Funds budgeting, forecasting, allocation
Engineering, design, development, qualification, technical data, specifications, drawings, bill of materials
Quality requirements, inspection, testing, quality management system, risk identification & analysis, project management
Supply & Logistics, packaging, marking, manuals, operation instructions

8. Military Procurement PWGSC deals with Industry
Electronic “Buy and Sell” Process
Requests for quotation, proposals, contract award
PWGSC Web Site has very detailed information
Defence needs
Science and Engineering
Allocation and approval of funding
Technical Details (specifications, drawings, statement of work, support requirements)
Government “Team” approach to getting a contract in place that will have the correct quality of product/service delivered to meet CAF user needs for the best price / value.

9. Military Procurement Major Defence Equipment Procurement
Ships, Vehicles, Aircraft, Weapons
Senior Level Strategy
Canada First Defence Strategy
Defence Acquisition Guide
Several other Government Departments involved – Treasury Board, PWGSC, Industry Canada, Regional Agencies

10. Military Procurement - Summary
User / Operational Need
Equipment Program Management Requisition Process
PWGSC Contracting Process
Contract Awarded to Defence Industry Contractor
Very simple view of the process from user need to contract award
If QAC “Q” Quality Assurance at Source of Supply
DND QA will be conducted at contractor facility

11. Military Procurement
Any comments or questions?

12. Contract Clauses - Quality
Contracts awarded to Canadian Industry
Basic supplies
subject to receipt inspection at receiving Unit or Depot
Military Supplies ~ non-complex
Quality Assurance Code “C”
Compliance with ISO 9001:2008
Provide evidence of conformance (~ C of C)
Subject to inspection & verification at receiving Unit or Depot

13. Contract Clauses - Quality
Contracts awarded to Canadian Industry
Military Supplies and Equipment ~ Complex
Quality Assurance Code “Q”
Subject to Quality Assurance at the contractor (or subcontractor) facility
Standard Acquisition Clauses and Conditions (SACC) Manual Clauses
D5510C DND QA at Source of Supply
D5540C Compliance with ISO 9001:2008
others (Packaging, Marking, Delivery, C of C)

14. Risk Management & Quality Assurance
Canadian Contracts with QAC “Q”
Foreign Defence Contracts with Quality Assurance at the source of supply
USA, NATO, other Nations with agreements
Canadian Personnel will represent the Foreign Defence Departments
No direct cost to contractor supplying products / services

15. Risk Management & Quality Assurance
NATIONAL HQ
Edmonton .
The Directorate of Quality Assurance has a Headquarters in Gatineau (Ottawa).
Vancouver .
Quebec City
Winnipeg .
Mirabel
Victoria
Gatineau .
London
Calgary
Halifax
Montreal
Kitchener
Longueuil
Toronto
Kingston

16. Risk Management & Quality Assurance
Government Quality Assurance
Contract review and post award meeting
Risk analysis
Quality audit planning
Quality auditing
System audit, Process audit, Product audit
Corrective Action
Product Release / Delivery

17. Risk Management & Quality Assurance
Follow Project Management Guidelines
Product Risk
Supplier (Contractor) Risk
Quality Assurance Auditing
ISO 9001:2008
ISO Auditing Guidelines
NATO Allied Quality Assurance Publication 2070 Mutual Government QA

18. Risk Management & Quality Assurance
Goal of DND Supplier Risk Management and Quality Assurance auditing
Establish Confidence in the supplier
Maintain Confidence in the Supplier
Our clients “EPM” personnel, often want us to QA the equipment

19. Trends Longer Term Contracts Optimized Weapon System Support Contracts
In-service Support Contracts
Standing Offer Contracts
Supply Arrangements (Basic Ordering Agreements)

20. Trends
ISO 9001:2008 to ISO 9001:2015
Quality Management System Registration Certification not mandatory to bid
Focus is on compliance to Standard
Value versus Lowest Price
Build longer term supplier relationships
Commercial versus military specification

21. Trends Military use of Quality Management Systems
Defence Suppliers – ISO 9001
Fleet Maintenance Facilities – ISO 9001
202 Workshop – ISO 9001
Major Supply Depots – ISO 9001
CF Recruiting – Process Manual – ISO 9001
Air Maintenance Squadrons – AF9000+ and Airworthiness Accreditation

22. Questions???