Madam Chair, thank you for inviting me here today.
I appreciate the opportunity to participate in your study of government procurement and today's panel on military procurement.
As members know, Public Works and Government Services Canada plays a key role in ensuring that the Canadian Forces have the equipment they need to do their job.
In 2007-2008, Public Works awarded contracts totalling $12.5 billion. Of this amount, more than 47% or $5.9 billion was for contracts on behalf of the Department of National Defence.
Madam Chair, it is up to the Department of National Defence to define its needs. Public Works, in conjunction with other departments, develops the procurement strategy, prepares solicitation documents, conducts the tendering process and obtains approval for and signs the contract.
We then have an ongoing role in interpreting contracts and negotiating any necessary amendments.
As we all know, while the Government of Canada is re-equipping the military over the medium and long term, there is also a need to equip as quickly as possible the Canadian Forces in Afghanistan.
We have been working with the Department of National Defence, Industry Canada and the Treasury Board Secretariat to make military procurement more streamlined while also ensuring that Canadian suppliers have a fair chance to compete.
Among the efficiencies that have been introduced are the following. With the Department of National Defence, we seek combined Treasury Board spending and contract approvals, where appropriate. We have been using integrated project teams. We are using instruments such as Solicitation of Interest and Qualification with performance demonstration. We are procuring off-the-shelf equipment and technologies where appropriate. And finally we're focusing on acquiring proven, effective equipment, employing high-level performance specifications, as opposed to detailed technical specifications.
Historically it has taken an average of 107 months from the identification of a need to the award of a contract for a large military project. Our goal is to reduce this period to 48 months or less. And Madame Chair, we are making progress.
For example, the government announced in June 2006 that it would acquire four C-17s. The four aircraft were delivered within 22 months. To meet an urgent requirement for heavy logistic trucks in Afghanistan, Public Works awarded a contract in March 2007, less than six months after cabinet gave us the green light to proceed. We expect the vehicles to be delivered by the end of the summer.
These examples demonstrate that we do have the ability to act quickly. We are working hard to make speed an integral part of the process without compromising integrity or incurring undue risk. Above all, our goal is to ensure timely procurement of military equipment in a fair, open, and transparent fashion, using healthy competition wherever possible to secure best value for Canadians. In all cases we work very hard to adhere to the rules and to ensure Canadian taxpayers are well served.
I will be pleased to answer your questions.