Government Operations Committee on June 2nd, 2016

[Ramez Ayoub, Liberal, Thérèse-De Blainville, QC]

It really must be figured out why the general and administrative costs are going from $15.9 million to $1.3 million. There must be an explanation in accounting. I dare hope that the explanation is of that nature. Otherwise, another explanation must be provided.

[Basil Cavis]

Okay.

[Ramez Ayoub, Liberal, Thérèse-De Blainville, QC]

I was not trying to put you on the spot. If you would like to answer me later, you can send the information to the analysts.

[Basil Cavis]

Yes, if that's okay with you. I will have to look at those figures.

[Ramez Ayoub, Liberal, Thérèse-De Blainville, QC]

You will have to figure out where that difference comes from.

That's the last of my questions. I will share the rest of my time with Mr. Drouin.

Thank you.

[Francis Drouin, Liberal, Glengarry—Prescott—Russell, ON]

How much time?

[The Vice-Chair, Liberal, Yasmin Ratansi]

One and a half minutes.

[Francis Drouin, Liberal, Glengarry—Prescott—Russell, ON]

Again, just for Mr. Paul, it seemed very interesting with DCC.

A couple of months ago, the former national security advisor said publicly that cybersecurity is now the biggest threat and much bigger than terrorism. When you're procuring, do you consider cybersecurity?

Has that changed, from 10 years ago, in how you're procuring today? You mentioned that you're building something at the data centre at Borden, so I imagine it does. How has that changed in the organization?

[James Paul]

I'll let Mélinda Nycholat come in as well, because procurement achieves the security requirements for a project that National Defence dictates. One of the things we require from our clients is a clear statement on the security requirements. We put into effect, through the contracting process, the clearance requirements for contractors, individual employees, and so on. The levels do vary. You want the security requirements to be as low as possible, because they add to costs and delays in delivering a project. Once they're defined, then we make sure that all the proper clearances are obtained.

Is that the area that you're looking for an answer on?

[The Vice-Chair, Liberal, Yasmin Ratansi]

Mr. Drouin, I'm so sorry, but your time is up.

We will go to the last five-minute round because we have committee business to discuss.

Monsieur Blaney.

[Steven Blaney, Conservative, Bellechasse—Les Etchemins—Lévis, QC]

Thank you very much, Madam Chair.

Ms. Nycholat, have you ever provided financial contributions to the companies you do business with to enable them to fulfill contractual obligations?

[Mélinda Nycholat]

Are you asking me whether DCC has made payments to companies that bid on our contracts?

[Steven Blaney, Conservative, Bellechasse—Les Etchemins—Lévis, QC]

Exactly.

[Mélinda Nycholat]

No, not at all.

[Steven Blaney, Conservative, Bellechasse—Les Etchemins—Lévis, QC]

I am asking you this question because allegations are being made in newspapers about the naval strategy. Money has allegedly been transferred to shipyards to increase their capacity, and that is neither in the spirit of your policies nor in the spirit of the naval strategy.

That brings me to the next question. Have you ever considered using your services for military equipment, for instance, since you are involved in procurement?

[Mélinda Nycholat]

No. We have never been asked to handle equipment procurement.

[Steven Blaney, Conservative, Bellechasse—Les Etchemins—Lévis, QC]

Is that not part of your mandate?

[Mélinda Nycholat]

It is but only for infrastructure and the environment.

[Steven Blaney, Conservative, Bellechasse—Les Etchemins—Lévis, QC]

That's not part of your mandate, but you do have expertise in procurement and in managing public funds. For instance, I think that there is currently a military contract for the purchase of vehicles, including with the Mack Defense company. Are you not involved in that?

[Mélinda Nycholat]

No, we are not involved. Moreover, we of course often take care of infrastructure to support equipment.

[Steven Blaney, Conservative, Bellechasse—Les Etchemins—Lévis, QC]

Okay.

Have you participated in exercises in the past? In every country, the major procurement principles are constantly being questioned. Does that come under departments in charge of public works? Does it come under armed forces?

Have you already participated in scenarios where your entity managed procurement contracts, be it for vessels, aircraft of military vehicles?

[Mélinda Nycholat]

Not to my knowledge.

But I could maybe ask Jim if he knows if we've ever been asked to participate in any kinds of discussions or committees reviewing whether we should participate in procurement practices related to other procurements like equipment.

[James Paul]

The short answer is no. There is cross-communication, because whenever National Defence comes up with a budget to procure a new form of equipment—a plane, ship, tank, vehicle, or whatever—they also look at the infrastructure requirements to support it. We give input on that planning part.

[Steven Blaney, Conservative, Bellechasse—Les Etchemins—Lévis, QC]

On that, if there are delays...because obviously in what we now call the national shipyard strategy....

[James Paul]

National shipbuilding program.