Evidence of meeting #158 for Government Operations and Estimates in the 42nd Parliament, 1st Session. (The original version is on Parliament’s site, as are the minutes.) The winning word was system.

A video is available from Parliament.

On the agenda

MPs speaking

Also speaking

Carla Qualtrough  Minister of Public Services and Procurement and Accessibility
Les Linklater  Associate Deputy Minister, Human Resources-to-Pay Stabilization, Department of Public Works and Government Services
Michael Vandergrift  Associate Deputy Minister, Department of Public Works and Government Services
André Fillion  Assistant Deputy Minister, Defence and Marine Procurement, Acquisitions Program, Department of Public Works and Government Services
Ron Parker  President, Shared Services Canada
Denis Bombardier  Chief Financial Officer, Shared Services Canada
Gérard Deltell  Louis-Saint-Laurent, CPC
Jean Yip  Scarborough—Agincourt, Lib.
Marty Muldoon  Chief Financial Officer, Finance and Administration Branch, Department of Public Works and Government Services

5:20 p.m.

Conservative

Kelly McCauley Conservative Edmonton West, AB

Are you negotiating right now?

5:20 p.m.

Assistant Deputy Minister, Defence and Marine Procurement, Acquisitions Program, Department of Public Works and Government Services

André Fillion

We are in negotiations with the preferred bidder as part of the conditions precedent phase.

5:20 p.m.

Conservative

Kelly McCauley Conservative Edmonton West, AB

My understanding is that the CITT ruling was to delay everything 90 days until it could do the review, not to do any negotiations. Correct me if I'm wrong.

5:20 p.m.

Assistant Deputy Minister, Defence and Marine Procurement, Acquisitions Program, Department of Public Works and Government Services

André Fillion

One of the bidders filed a procurement review complaint to the Canadian International Trade Tribunal on November 21. The tribunal has decided to inquire into the complaint, and it also issued an order to postpone the award of the contract.

5:20 p.m.

Conservative

Kelly McCauley Conservative Edmonton West, AB

I thought it was also not to continue any of the negotiations.

5:20 p.m.

Assistant Deputy Minister, Defence and Marine Procurement, Acquisitions Program, Department of Public Works and Government Services

André Fillion

It's a postponement of the award of the contract. The negotiations are ongoing. Maybe Michael can add to that.

5:20 p.m.

Conservative

Kelly McCauley Conservative Edmonton West, AB

If it's not successful, then we won't have lost any time.

5:20 p.m.

Associate Deputy Minister, Department of Public Works and Government Services

Michael Vandergrift

We've also asked the CITT, under the regulations, to rescind the order prohibiting the award of the contract, given the urgency of this case. We've made that request to the CITT, as well, so that we can proceed on schedule. The case, of course, will be heard at the CITT, and we'll make our defence.

5:20 p.m.

Conservative

Kelly McCauley Conservative Edmonton West, AB

As long as it's not getting delayed....

I'm going to get back to a Coast Guard question. Why was the Coast Guard future capability design not rolled under the NSS, under the same kind of rules?

5:20 p.m.

Assistant Deputy Minister, Defence and Marine Procurement, Acquisitions Program, Department of Public Works and Government Services

André Fillion

Much like the defence policy, “Strong, Secure, Engaged”, which sets a path for the future capabilities of the Canadian Armed Forces, that was not part of the national shipbuilding strategy per se. Obviously, when the NSS was announced, there was a program of work that was also established at that time, but the long-term investments required for the Canadian Armed Forces, the navy and the Coast Guard are part of a separate decision, which is a policy for the department and the forces.

5:20 p.m.

Conservative

Kelly McCauley Conservative Edmonton West, AB

Do you agree with the way the contract is spelled out, the way it does not limit the design search to stay within Canada, or how the RFP is set up for it? Are you happy with how the RFP is for choosing the design for that? I understand that it's not as favourable to Canada as perhaps the NSS.

5:20 p.m.

Assistant Deputy Minister, Defence and Marine Procurement, Acquisitions Program, Department of Public Works and Government Services

André Fillion

I'm sorry, but I'm having trouble hearing you.

5:20 p.m.

Conservative

Kelly McCauley Conservative Edmonton West, AB

I mean the contract, the RFP, for the Coast Guard future capability. I asked why it didn't go under the NSS. I understand the NSS is focusing on helping develop Canadian industry, Canadian capacity. I understand that the future capability design is not under the NSS, and therefore it does not provide the same kind of benefit to Canada. I'm just asking whether that is something you approve of, or whether it is an outlier. Is there a benefit to doing that process as opposed to following the NSS?

5:20 p.m.

Associate Deputy Minister, Department of Public Works and Government Services

Michael Vandergrift

I assume, Mr. McCauley, that you're talking about the three icebreakers.

5:20 p.m.

Conservative

Kelly McCauley Conservative Edmonton West, AB

No, I mean the Coast Guard future capability design.

5:20 p.m.

Associate Deputy Minister, Department of Public Works and Government Services

Michael Vandergrift

As Mr. Fillion said, it's still policy work under way. There's no active RFP for future Coast Guard design that I'm aware of.

5:20 p.m.

Conservative

Kelly McCauley Conservative Edmonton West, AB

My understanding is that there is this capability to design future ships for the Coast Guard but not following the NSS guidelines, and therefore we won't see the same economic benefits from capacity-building that we could count on.

5:20 p.m.

Conservative

The Chair Conservative Tom Lukiwski

Unfortunately, we'll have to leave it at that because we're out of time.

Do we have any further questions from the government side?

Mr. Blaikie, go ahead.

5:20 p.m.

NDP

Daniel Blaikie NDP Elmwood—Transcona, MB

I have three minutes, but if Mr. McCauley would like to pursue his questions with those three minutes, he's welcome to.

5:20 p.m.

Conservative

The Chair Conservative Tom Lukiwski

We have one three-minute intervention left.

5:20 p.m.

Liberal

Kyle Peterson Liberal Newmarket—Aurora, ON

Don't we have five minutes?

5:20 p.m.

Conservative

The Chair Conservative Tom Lukiwski

You had five minutes but you ceded that time.

5:20 p.m.

Liberal

Kyle Peterson Liberal Newmarket—Aurora, ON

Maybe I want to uncede it so I can run out the clock so I don't have to hear Mr. McCauley for three more minutes.

5:20 p.m.

Voices

Oh, oh!

5:20 p.m.

Conservative

The Chair Conservative Tom Lukiwski

There is a three-minute intervention left. We've gone through a complete round except for the three-minute intervention that is left.