Introduction to Defence Procurement in Canada

Transcription

1 Introduction to Defence Procurement in Canada From IRB to ITB and the value proposition. Best Defence November 2016 Presented by Nicole Verkindt

2 What is an offset? National Security Exemptions Canada s Program

3 What is an offset? Commonly referred to as industrial participation, industrial cooperation, regional or industrial benefits, defence offsets exist around the globe and vary from country to country. They are meant to spur and maintain industrial and high tech growth in the country where the procurement is being undertaken, and are primarily focused on military goods and procurement.

4 National Security Exemptions Offsets run contrary to most free trade agreements, but national security exceptions are often built in to allow for offset agreements. They allow for governments to maintain important/critical capabilities in country, as well as avoid trade disputes (example: softwood lumber).

5 A BRIEF HISTORY OF CANADA S OFFSET POLICY

6 Players In volved Canada has a number of players involved in the procurement process. They are as follows: Government/ Politicians DND Public Services and Procurement Canada (formerly PWGSC) Innovation, Science, and Economic Development (formerly Industry Canada) Regional Development Agencies Industry Associations

7 THE ORIGINAL IRB POLICY

8 The original IRB Policy Pass/Fail evaluation criteria did little to ensure the best results for Canadian industry. Lacked teeth penalties not fulfilling your IRBs were not strong enough

9 THE WAY FORWARD: INDUSTRIAL TECHNOLOGICAL BENEFITS

10 Th e W ay F or w ar d ITBs Change was made in February 2014 represents a focus on to companies that will be best for Canada and Canadian jobs. Simply put, we will do business with companies who bring jobs to Canada. -Minister Diane Finley, Minister of PWGSC, October 17, 2013

11 ITBs and Value Proposition Represents a shift from IRB policy (scoring on pass/fail basis) to Industrial and Technological Benefits (ITB), with a Value Proposition. Focus on Value Proposition as a weighted, rated, and required element of bids. Standard weighting of 10% of the total evaluation of the bid have seen some up to 20% and points being awarded on a prorated basis

12 ITBs and Value Proposition Favours actions that reflect: Investments that strengthen Canadian market segments. (Formerly Key Industrial Capabilities) Investments that support enhanced productivity. Broader Industrial and Technological high-value activities, such as technology transfers.

13 ITBs and Value Proposition (continued) Focus on helping companies export Timing of fulfilling Value Proposition commitments will also be considered; 30% of transaction identified at time of bid.

14 WHEN DOES THE ITB POLICY APPLY?

15 When does the policy apply? The ITB Policy, including the Value Proposition, will apply to all eligible defence procurements over $100 million and to all eligible Canadian Coast Guard procurements over $100 million and for which the National Security Exception applies. All eligible defence procurements with contract values between $ million will be reviewed for the use of Value Propositions. Have seen it on one contract below $20 million

16 WHAT S IN IT FOR ME? HOW CAN I GET INVOLVED?

17 What s in it for me? Huge opportunities to get involved in the defence industry 100% CCV requirement Major programs underway - NSS, iaor, CSC, JSS, AOPS, AJISS

18 How do I get involved? 15% minimum set aside for SMEs as part of the ITB obligation R&D/Export potential - Primes get additional points for helping SMEs do R&D and export

19 Ways to get involved: Trade associations: SODA Regional Development Agencies: FedDev Trade shows: Best Defence, CANSEC IS&ED: IRB/ITB Managers OMX: Online platform to connect, manage, track

20 2nd Gen Online Platforms What we want, when we want it.

21 INTERNET OF EVERYTHING: DATA IS THE NEXT BACON:

22 DIGITAL MESH: PLATFORMS CONNECTING TO THE DATA

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25 Nicole Verkindt theomx.com