Evidence of meeting #37 for National Defence in the 39th Parliament, 1st session. (The original version is on Parliament’s site, as are the minutes.) The winning word was boeing.
A recording is available from Parliament.
Director General, Land, Aerospace and Marine Systems and Major Projects Sector, Public Works and Government Services Canada
In the event of a termination of this contract, Canada would be liable for:
“completed work in accordance with the basis of payment in the contract; costs plus profit thereon for all work in process; and costs of and incidental to the termination (e.g., taking of inventory, preparation of accounts and statements, etc.)”
But we've also built in a provision whereby Canada could choose to have Boeing sell the aircraft to another customer, including the U.S. Air Force, and in such an event Canada would receive the net sale proceeds calculated as the gross selling price less any milestone payments still owing by Canada. Appropriate and reasonable expenses related to the sale and the cost of any delays—
Director General, Land, Aerospace and Marine Systems and Major Projects Sector, Public Works and Government Services Canada
No.
Minister of Public Works and Government Services
You mean liquidated damages. You could have said—
NDP
Dawn Black NDP New Westminster—Coquitlam, BC
—the helicopter contract. If you cancel, if the government changed—there's talk of an election—how much would it cost Canadian taxpayers, that's the base for the question?
Minister of Public Works and Government Services
Let's not have that thought this morning.
NDP
Dawn Black NDP New Westminster—Coquitlam, BC
When the Minister of National Defence was here discussing procurement, he said, and I'll quote for you:
I think you'll find in the procurement process, as you get into it, that the Department of Defence has very little to do with the procurement process other than setting the requirements and providing the funds.
So who do you believe is the lead minister for defence procurement? Who has the final level of responsibility? When you talked about ITARs, you said that goes over to the Department of Foreign Affairs. It's very difficult, as a member of this committee, to really understand who has the authority and responsibility at the final end.
Minister of Public Works and Government Services
Legally speaking, the government buys. So if you want a legal answer, the government buys. But I think the better answer, which is the one I believe you're looking for, is it's a collegial effort. The Minister of Defence, through his public servants, identifies the needs of the Ministry of Defence, which are then transmitted to Public Works and discussed with Public Works and Treasury Board. We've got three departments that are discussing the needs and the specs, and there's a consensus that's reached over the specs, and then the specs become an ACAN or an RFP or an SOIQ.
Conservative
The Chair Conservative Rick Casson
Thank you.
Mr. Minister and officials, thank you very much for being here. As you indicated, hopefully we will come up with some good solid recommendations—
Conservative