You'll have to forgive me on this one. It's in a level of detail in the chapter that I'll have to re-familiarize myself with, because my backup on this chapter isn't here. He had to go to another meeting.
The specifics on the way DND presently allocates its resources to priorities are described in paragraphs 5.17 to 5.21 in the report. There are a number of fora in which receipts for demands for needed military equipment can be presented. They are evaluated by senior committees within National Defence. They use what information they have available to make the best decisions they can make with respect to the allocation of those resources.
We note in the chapter that the requests for funding always exceed the department's capacity to fund the demands. They're only able to fund about 70% of the demands received. But the department does have a good mechanism in place to ensure that they make the best use they can in allocating those funds to the priority projects.