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.
3:45 p.m.
Conservative
The Chair Conservative Tom Lukiwski
If you could keep it to about a 30-second answer, Minister, I'd appreciate it.
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Minister of Public Services and Procurement and Accessibility
Yes, we definitely have a close working relationship with IBM. We've set up a technical experts committee with IBM, Oracle and the department. It's a cross-department initiative that ensures all technical issues are addressed immediately and don't become problems, and it has worked quite effectively.
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Conservative
The Chair Conservative Tom Lukiwski
Thank you very much.
Mr. McCauley, you have seven minutes, please.
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Conservative
Kelly McCauley Conservative Edmonton West, AB
Welcome back, everyone. I think most of you have been with us before.
Minister, can you explain why your government still has not released the RFP and the draft RFPs for the Canadian surface combatant to the PBO?
3:45 p.m.
Minister of Public Services and Procurement and Accessibility
It is my understanding that arrangements have actually been made between DND.... I understand that question was asked of the President of the Treasury Board and arrangements are now being made.
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Conservative
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Minister of Public Services and Procurement and Accessibility
When exactly will it be released, Michael?
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Michael Vandergrift Associate Deputy Minister, Department of Public Works and Government Services
I think they're working out the arrangements around the management of it, because of the sensitive information in the RFP. There have been exchanges of correspondence between the PBO and the deputy minister on this.
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Conservative
Kelly McCauley Conservative Edmonton West, AB
When will you release the RFP and the draft RFP to the PBO? He has top clearance. There's nothing in there that can be hidden from him, nothing that's too sensitive for the PBO to see. When will it be released to the PBO?
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Minister of Public Services and Procurement and Accessibility
All I can tell you is that DND and the PBO are working out those details right now.
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Conservative
Kelly McCauley Conservative Edmonton West, AB
Okay.
When last we checked with the PBO, which was very recently, DND had refused to release the information.
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Minister of Public Services and Procurement and Accessibility
As of this morning, my understanding is that they're working out those details.
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Associate Deputy Minister, Department of Public Works and Government Services
The deputy minister has written to the Parliamentary Budget Officer offering to provide the RFP and making arrangements around.... People have particular security clearances—
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Conservative
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Associate Deputy Minister, Department of Public Works and Government Services
It's the RFP for surface combatants.
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Associate Deputy Minister, Department of Public Works and Government Services
That will have to be worked out with the deputy minister and the Parliamentary Budget Office. The request has been for the RFP, as I understand it.
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Conservative
Kelly McCauley Conservative Edmonton West, AB
Do you find it acceptable that the largest spending project in Canadian history has taken so many years and so many requests for your government to respond, to provide the RFP to the PBO? You've even stated it as a challenge in your NSS annual plan about project budgets, etc.
Why so long? Do you find it acceptable?
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Minister of Public Services and Procurement and Accessibility
I'm not sure I would characterize it as either unacceptable or acceptable. I wish these things would go more quickly, but right now we're at a point at which that information is being exchanged.
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Conservative
Kelly McCauley Conservative Edmonton West, AB
Okay.
The PBO in his report on the combat ships has said that there is going to be about a quarter of a billion dollars in added cost from inflation, etc., for every month of delay.
Do you agree with that assessment?
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Minister of Public Services and Procurement and Accessibility
Is that what we have assessed it at?
December 6th, 2018 / 3:45 p.m.
André Fillion Assistant Deputy Minister, Defence and Marine Procurement, Acquisitions Program, Department of Public Works and Government Services
We're aware of the assessment. Obviously, the budget for the entire project is with National Defence and their chief financial officer. They also have their own calculations, which they use.
In reality, if you look at the size of the contracts and the size of the project—in the $50-billion to $60-billion range, with inflation—their assessments, I think, are fairly close to what the PBO has been coming up with in his own assessment.
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Conservative
Kelly McCauley Conservative Edmonton West, AB
Okay.
When are we actually going to start cutting steel for the frigates, please?
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Minister of Public Services and Procurement and Accessibility
Do you mean for the CFP?
It will be in 2025 or 2026.
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Conservative
Kelly McCauley Conservative Edmonton West, AB
Okay. I think the last time you were before us, you said 2021. Now it's—