Evidence of meeting #21 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 procurement.
A recording is available from Parliament.
Conservative
Conservative
Kelly McCauley Conservative Edmonton West, AB
I'll continue while we're handing them out.
In summary, there are two contracts worth $40 million for marine architect engineering services. They've been awarded to Seaspan for work done. We know the HEPP exists. These were awarded in 2015, I believe, long after the start of the process for NSPS where we said there would be no public money invested in their infrastructure. It looks as if we're contradicting that. We said at the beginning and it's been in writing: no public money toward the infrastructure to get either Irving or Seaspan up and running. But at the same time, we're investing money into their company. You're saying it's for different boats.
I find it difficult to understand, or maybe you can explain how we can give $40 million. I think the total over was about $80 million altogether. I only have copies for the $40 million. Perhaps you can explain how we can be putting $40 million in 2015 into a shipyard that's been working on our ships for several years, and that there won't be any overlap of that money into the NSPS.
Assistant Deputy Minister, Acquisitions Branch, Department of Public Works and Government Services
Thank you for the question, Mr. Chair.
Conservative
The Chair Conservative Tom Lukiwski
Because of the shortness of time, could you keep your comments to about a minute, please.
Assistant Deputy Minister, Acquisitions Branch, Department of Public Works and Government Services
Thank you for your comments.
Funding from the government's horizontal engineering program plan was not used to fund Seaspan's shipyard infrastructure improvements. Its infrastructure improvements of $170 million were made at zero cost to Canada. It'll be building several different types of ships for the Canadian Coast Guard and the Royal Canadian Navy, as I said earlier. The horizontal engineering program plan is an early investment in engineering and production work to ensure efficiencies in streamlining. It will increase shipbuilding efficiency and maximize benefits to taxpayers, because it will reduce duplication of work and ensure standardization of processes across all the ship builds.
Conservative
NDP
Erin Weir NDP Regina—Lewvan, SK
As tempted as I am to push for more of these shipbuilding contracts to be awarded to Saskatchewan, I'd actually like to broaden the discussion to aircraft.
Ms. Campbell, in your opening remarks, you spoke about the virtues of an open and competitive process for procurement. I wonder if such a process would be feasible for fighter aircraft.
Assistant Deputy Minister, Acquisitions Branch, Department of Public Works and Government Services
Thank you for the question.
I'm going to ask my colleague Mr. Finn to respond to that.
RAdm Patrick Finn
Thank you very much for the question.
As per our minister's mandate letter, we are looking at all options for the replacement of the fighter aircraft. Right now, no decisions have been made. The full spectrum is being looked at. Our minister has asked us many questions, about approaches, products, how it could be done, what could be done, to make sure he has all the information he needs that he can bring to his colleagues to bring to decision. Absolutely, what you describe is among the options that are being considered. No decision has been made at this time.
NDP
Erin Weir NDP Regina—Lewvan, SK
You'd say an open competition is feasible but the government has not necessarily decided to pursue that type of procurement to replace the CF-18.
RAdm Patrick Finn
I can't speak for the government in the context of the information we're providing. We are continuing to provide information across the whole spectrum, looking at the government contracting regulations, everything that's possible. At this point, no decision has been made.
NDP
Erin Weir NDP Regina—Lewvan, SK
If the government wanted to have an open competition to consider various models of fighter, that would be doable from an official standpoint.
RAdm Patrick Finn
The process we go through in looking at requirements is that my colleagues at PSPC and I receive these after the decisions are made, after the military has established the requirements. Then they're looked at under the government contracting regulations to see what applies. That is definitely an option that can be pursued. It's information that we're providing, including information on competitions.
NDP
Erin Weir NDP Regina—Lewvan, SK
One of the reasons I ask is that there have been media reports that the government has decided to purchase Super Hornets through a sole-source contract. Is that information not accurate?
RAdm Patrick Finn
Any information that talks about decisions having been made is speculative, and we're not there yet. We're still working through the information. At this point, our minister and his colleagues have not directed us in any way. We're continuing to pull information together on various products. We remain a member of the F-35 consortium, which enables us to bring information forward on that product. We are working with colleagues at PSPC and at ISED on all of the aspects of value propositions and what would occur. That information is still flowing. We have not been informed of any decisions being made.
NDP
Erin Weir NDP Regina—Lewvan, SK
Since you mentioned the F-35 consortium, I am struck by the fact that the governing party promised, during the election campaign, not to buy F-35s. I also note that, just recently, it was reported that the government missed a payment to the F-35 consortium. Does either of those facts suggest that the government will not be buying F-35s?
RAdm Patrick Finn
Again, I can't speak for the government, but I will perhaps just address the payment issue.
The payment is made for the U.S. fiscal year. Typically, we make it in early May. We have not made it this year as of yet. Some years we have made it early, well beforehand, and some years we have made it after the fact. It certainly is the intention to meet our financial commitments to our U.S. ally this fiscal year. We will be making that payment.
Lisa, did you want to add something?
Assistant Deputy Minister, Acquisitions Branch, Department of Public Works and Government Services
Thank you for the question.
I would just say that the government remains committed to building a more agile, better equipped military while ensuring best value for Canada. This partnership, the MOU specifically with JSF, doesn't commit Canada to any particular option. What it does is it gives some industrial benefits to Canada while it decides what its requirements are.
NDP
Erin Weir NDP Regina—Lewvan, SK
Does it guarantee industrial benefits to Canada, or does it just keep us in the mix for potential industrial benefits?
