Thank you, Mr. Chair.
As you mentioned, my name is Tom Ring, and I am the assistant deputy minister of the Acquisitions Branch at the Department of Public Works and Government Services Canada.
As many of you will know, Public Works and Government Services Canada operates as a common service agency for the Government of Canada. Its activities are directed toward providing service and support to departments, boards, and agencies' programs. In accordance with the Defence Production Act, the Minister of Public Works and Government Services Canada has exclusive authority to buy or acquire defence supplies and construct defence projects required by the Department of National Defence.
The acquisitions process requires that departments define their operational requirements, including the essential characteristics of the goods or services being sought. Upon receipt of these requirements, Public Works examines the potential sources of supply, identifies applicable contracting issues, and develops a contracting approach. A key task in the procurement process is to ensure that the acquisition of goods and services meets the government's overall policy goals and objectives.
All of the above steps in the procurement process are done in accordance with the government contracting regulations and rules in a manner consistent with the principles of fairness, openness, and transparency, and all the while maximizing value for Canadian taxpayers.
With respect to the issue before us today, Canada has been a participant in the joint strike fighter program since 1997. This early participation in the program allowed NATO allies, as was mentioned by my defence colleagues, to participate in a program that did not include any obligation to purchase but allowed us to be directly involved in the competition that was held to identify which supplier would be selected to develop the joint strike fighter. It also afforded Canadian defence industries significant opportunities to be part of the overall program, and the government's announcement of its intention to acquire the F-35 on July 16 represents an important milestone in this process.
In the Canada First defence strategy, the government included a commitment to replace its fleet of CF-18 fighters with a next-generation fighter aircraft. Based on this commitment, the Department of National Defence developed a more detailed statement of requirements. My colleagues from National Defence have mentioned that already, and will speak further, I am sure.
As a result of this, National Defence advised Public Works that it had determined that only the F-35 Lightning II meets the requirements for a fifth-generation fighter capability. The Department of Public Works and Government Services validated this requirement, as established by the Department of National Defence. While other fifth-generation aircraft do exist, they are either not available to Canada or are in development with non-allies. Having determined that only a single source of supply exists to meet the approved requirement, the next stage of the acquisition process is to assess the options for how that good or service should be acquired.
As has been discussed already, the F-35 can be acquired through the joint strike fighter program memorandum of understanding. This approach offers numerous advantages over procuring through a foreign military sales option. Not the least of these advantages is an 8% reduction in cost. Thus, acquiring the F-35 through the joint strike fighter memorandum of understanding is consistent with the Government of Canada policy to acquire goods and services at the best value to Canadian taxpayers. Finally, the F-35 will meet the operational requirements as set out in the Canada First defence strategy.
I'd be pleased to respond to any questions you have.