Evidence of meeting #31 for National Defence in the 42nd Parliament, 1st Session. (The original version is on Parliament’s site, as are the minutes.) The winning word was terms.

A recording is available from Parliament.

On the agenda

MPs speaking

Also speaking

Christyn Cianfarani  President, Canadian Association of Defence and Security Industries

11:50 a.m.

An hon. member

[Inaudible—Editor]

11:50 a.m.

Liberal

Sherry Romanado Liberal Longueuil—Charles-LeMoyne, QC

We'll just call them colleagues.

That said, I've asked this question before in terms of our Victoria class submarines. What are your thoughts in terms of our need for nuclear to be able to operate under ice?

11:50 a.m.

President, Canadian Association of Defence and Security Industries

Christyn Cianfarani

As a general principle, and in terms of base knowledge, it is the responsibility of the Department of National Defence to define the capability stack that we need in this country.

As for what I can tell you from an industry perspective, I do think the industry could gear up to provide technologies, components, or a labour force in order to undertake the build of submarines in this country should we so desire to have it refreshed as our capability stack.

11:50 a.m.

Liberal

Sherry Romanado Liberal Longueuil—Charles-LeMoyne, QC

Would it be something that you think we should be looking at focusing on, given the fact that we do have nuclear capabilities here in Canada, in terms of industrial benefits?

11:50 a.m.

President, Canadian Association of Defence and Security Industries

Christyn Cianfarani

I most certainly think that for any capability stack we want to have in terms of our Armed Forces, we should be looking at how we can involve the industry in support of it.

11:50 a.m.

Liberal

Sherry Romanado Liberal Longueuil—Charles-LeMoyne, QC

Thank you.

11:50 a.m.

Liberal

The Chair Liberal Stephen Fuhr

Thank you.

Ms. Gallant, you have the floor.

November 29th, 2016 / 11:50 a.m.

Conservative

Cheryl Gallant Conservative Renfrew—Nipissing—Pembroke, ON

Thank you, Mr. Chairman.

In regard to Ms. Romanado's recognition of the passing of two of our military personnel, I'd like to say that there were at least three in the past week, and we would be remiss, given that he had a very young daughter....

My first question is in regard to the CSC RFP clause, which basically sets a gag order on bidders and subcontractors. Do you think this will stifle transparency on the CSC project?

11:50 a.m.

President, Canadian Association of Defence and Security Industries

Christyn Cianfarani

In the initial phases when the RFP was released, we raised a concern over the clause being there. Since it has been clarified for all bidders, our focus has been on ensuring that this clause, or the clarifications on this clause, which allow for industry to showcase itself in the natural course of business.... We've been focused on making sure that industry is aware that the clause has been clarified. To date, in our conversations with our committee, we have not sensed any concern now, or less concern, from industry that they would not be able to showcase their technologies and would be restricted in any way from actively bidding on the procurement.

11:55 a.m.

Conservative

Cheryl Gallant Conservative Renfrew—Nipissing—Pembroke, ON

You mentioned the Emerson aerospace review. Does the national shipbuilding strategy actually implement parts of the Jenkins report?

11:55 a.m.

President, Canadian Association of Defence and Security Industries

Christyn Cianfarani

Yes, it does, in terms of the idea of leveraging. In particular, a tool was created that is called the “value proposition”, which is the way in which we will gain the most industrial benefits or industrial participation up front in the bidding process.

That tool, and the concept around that tool—the value proposition tool and the ITBs that go with it—were essentially suggestions made under the Jenkins report. That is the result of the suggestions in play in terms of the tool.

11:55 a.m.

Conservative

Cheryl Gallant Conservative Renfrew—Nipissing—Pembroke, ON

In what way can we improve the military procurement process in Canada?

11:55 a.m.

President, Canadian Association of Defence and Security Industries

Christyn Cianfarani

Wow. Where do you want me to start?

11:55 a.m.

Some hon. members

Oh, oh!

11:55 a.m.

An hon. member

[Inaudible—Editor]

11:55 a.m.

President, Canadian Association of Defence and Security Industries

Christyn Cianfarani

Yes, I only have two minutes.

As I've said, what really is of great concern for industry is understanding where we're going and what capabilities we want and having stable funding for the purchase of those capabilities throughout the acquisition phase. That signal is the single biggest important thing for us, so that we can make investments in the technologies that are needed in order to put them in the pipeline so that eventually we can deliver on the projects.

11:55 a.m.

Conservative

Cheryl Gallant Conservative Renfrew—Nipissing—Pembroke, ON

What is your view on the NSPS? Do you think it should be changed in any way?

11:55 a.m.

President, Canadian Association of Defence and Security Industries

Christyn Cianfarani

As we mentioned in our opening statement, we fully support the NSS, or the NSPS. I think the single biggest thing we can do with respect to the NSS is to stay the course. It is going to be a challenge. These are or will be some of the most complex warships in the world. There are bound to be hurdles, risks, and challenges, and the biggest thing that we can do as a country is to have it supported by all parties.

11:55 a.m.

Conservative

Cheryl Gallant Conservative Renfrew—Nipissing—Pembroke, ON

Looking at the Dutch model of modularity, for example, and in reading in ATIP, we know this is something that was discussed back in 2014. Do you believe it's a good idea for the Royal Canadian Navy moving forward? If yes, why? If no, why not?

11:55 a.m.

President, Canadian Association of Defence and Security Industries

Christyn Cianfarani

In terms of modularity, do you mean batch build...? Is that what you're referring to?

11:55 a.m.

Conservative

Cheryl Gallant Conservative Renfrew—Nipissing—Pembroke, ON

No, I mean—

11:55 a.m.

President, Canadian Association of Defence and Security Industries

Christyn Cianfarani

Okay. You mean modules like the hull module being separated out or systems modules....

11:55 a.m.

Conservative

Cheryl Gallant Conservative Renfrew—Nipissing—Pembroke, ON

That's right.

11:55 a.m.

President, Canadian Association of Defence and Security Industries

Christyn Cianfarani

When you build these things, they are naturally modular in terms of the products that go within them. There will be natural modules integrated together in a coherent whole as these things are built. It will also probably come out that we'll build these in batches, because given that it is occurring over such a long period of time, it's logical that you're going to have technology changes as the build cycle goes along.

11:55 a.m.

Conservative

Cheryl Gallant Conservative Renfrew—Nipissing—Pembroke, ON

There's also modularity in terms of purpose of mission. One module can be put in place for a salvage operation, for example, and another module for a rescue operation. Is that anything that is of interest to your members?