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Why conflicts arise during the Procurement process or “ Why can’t you get me what I want?” Darryll G. Luesby MA&S Instructor Material Management Training Center luesby.dg@forces.gc.ca : Why conflicts arise during the Procurement process or “ Why can’t you get me what I want?” Darryll G. Luesby MA&S Instructor Material Management Training Center luesby.dg@forces.gc.ca


Interest and Role in Canadian Defence Procurement: Interest and Role in Canadian Defence Procurement Regional Development Agencies Public Works & Gov’t Services Treasury Board Finance Revenue Privy Council Office Foreign Affairs & Int’l Trade Industry Canada Justice Environment DIAND


Slide3: MEET OPERATIONAL REQUIREMENTS through a competitive, fair and accessible approach (best value for money). Promote long term industrial/regional development. Further the achievement of other national objectives. Such as: Assist Canadian firms in becoming competitive in domestic and world marketplaces, Green procurement Competing Priorities Meeting Government Procurement Objectives


Slide4: Defence Procurement Objectives * Maximum platforms * Maximum effectiveness * Best technology * Lowest acquisition cost * Lowest operating costs * Maximum interoperabilty * Maximum flexibility * ???? Non-defence objectives * Minimum acceptable level * Minimum acceptable level * Acceptable level * Maximum Cdn content * Max regional benefits * Enhance Cdn tech base * Enhance Cdn exports * Minimize FX payments * Enhance competitiveness


Slide5: The procurement decision environment Internal environment (DND) Service rivalry. DPG. Business planning.


Slide6: The procurement decision environment Internal environment (DND) Service rivalry. DPG. Business planning. Non-defence environment (OGD) Role of the other players. PWGSC. IC. DFAIT. Reg Agencies. PCO. Justice. Finance


Slide7: The procurement decision environment Internal environment (DND) Service rivalry. DPG. Business planning. Bureaucratic environment (OGD) Role of the other players. PWGSC. IC. DFAIT. Reg Agencies. PCO. Justice. Finance Legal environment WTO. NAFTA.(Offsets) AIT.(Regional benefits) Commercial Law. (EH101) Aboriginal Agreements


Slide8: The procurement decision environment Internal environment (DND) Service rivalry. DPG. Business planning. Bureaucratic environment (OGD) Role of the other players. PWGSC. IC. DFAIT. Reg Agencies. PCO. Justice. Finance Legal environment WTO. NAFTA.(Offsets) AIT.(Regional benefits) Commercial Law. (EH101) Aboriginal Agreements Political environment Big P political. EH101. Pearson AP. Subs & Day Care (Both $600 million). Base closures. Peace lobby, Sep11


Slide9: The procurement decision environment Internal environment (DND) Service rivalry. DPG. Business planning. Bureaucratic environment (OGD) Role of the other players. PWGSC. IC. DFAIT. Reg Agencies. PCO. Justice. Finance Legal environment WTO. NAFTA.(Offsets) AIT.(Regional benefits) Commercial Law. (EH101) Aboriginal Agreements Political environment Big P political. EH101.. Subs & Day Care (Both $600 million). Base closures. Peace lobby International environment US/Cda agreements (DPSA,). NATO. Leopard tank (Trade with EU)


Slide10: The procurement decision environment Internal environment (DND) Service rivalry. DPG. Business planning. Bureaucratic environment (OGD) Role of the other players. PWGSC. IC. DFAIT. Reg Agencies. PCO. Justice. Finance Legal environment WTO. NAFTA.(Offsets) AIT.(Regional benefits) Commercial Law. (EH101) Aboriginal Agreements Political environment Big P political. EH101. Pearson AP. Subs & Day Care (Both $600 million). Base closures. Peace lobby International environment UK/Cda agreements (Upholders). NATO. Leopard tank (Trade with EU) Fiscal environment 1990s Cut costs at all cost. No long term commitment


Slide11: The procurement decision environment Internal environment (DND) Service rivalry. DPG. Business planning. Bureaucratic environment (OGD) Role of the other players. PWGSC. IC. DFAIT. Reg Agencies. PCO. Justice. Finance Legal environment WTO. NAFTA.(Offsets) AIT.(Regional benefits) Commercial Law. (EH101) Aboriginal Agreements Political environment Big P political. EH101. Pearson AP. Subs & Day Care (Both $600 million). Base closures. Peace lobby International environment UK/Cda agreements (Upholder). NATO. Leopard tank (Trade with EU) Fiscal environment Cut costs at all cost. No long term commitment Personalities Chretien, Axworthy, Martin, Manley


Slide12: The procurement decision environment Internal environment (DND) Service rivalry. DPG. Business planning. Bureaucratic environment (OGD) Role of the other players. PWGSC. IC. DFAIT. Reg Agencies. PCO. Justice. Finance Legal environment WTO. NAFTA.(Offsets) AIT.(Regional benefits) Commercial Law. (EH101) Aboriginal Agreements Political environment Big P political. EH101. Pearson AP. Subs & Day Care (Both $600 million). Base closures. Peace lobby International environment US/Cda agreements (DPSA, LUVW). NATO. Leopard tank (Trade with EU) Fiscal environment Cut costs at all cost. No long term commitment Personalities Chretien, Axworthy, Allan J. (Intl airport at Port Hawkesbury The unexpected 707. Airbus. LAV, LUVW