Mr. Speaker, with regard to (a), during the early to mid-2010 period, decision-makers at Public Works and Government Services Canada, PWGSC, were regularly informed of developments related to the Department of National Defence’s fifth generation fighter jet requirements and proposed sole-source procurement.
PWGSC decision-makers were informed that PWGSC personnel had engaged in discussions with DND, the technical authority, to understand the high-level mandatory capabilities and to determine if a competitive process could be conducted; considered the DND market analysis and met with another potential aircraft manufacturer to discuss their ability to meet the DND mandatory capabilities; and determined that the procurement strategy was in accordance with Treasury Board contracting policy and that this acquisition met the requirements of subsection 6(d) of the Government Contracts Regulations for a sole source acquisition.
Consistent with government guidelines, PWGSC concluded these discussions with DND by requesting and receiving written confirmation from DND that the F-35 was the only aircraft available to Canada that had fifth generation capabilities and met the high-level mandatory capabilities of the Royal Canadian Air Force.
With regard to (b), because of the unique nature of this procurement, including its complexity and value, senior decision-makers were regularly informed about the status of discussions with DND to understand their requirements and assess the possibility of conducting a competitive process.
With regard to (c), the letter provided to PWGSC from the Department of National Defence, as requested by PWGSC acquisitions branch senior staff, was not in lieu of a finalized statement of operational requirements or a complete options analysis. It served as written confirmation from DND that the F-35 was the only aircraft available to Canada that had fifth generation capabilities and met the high-level mandatory capabilities of the Royal Canadian Air Force statement of operational requirement.
With regard to (d), PWGSC requested and received a written confirmation from DND that the F-35 was the only aircraft available to Canada that had fifth generation capabilities and met the high-level mandatory capabilities of the Royal Canadian Air Force.
This letter was the culmination of meetings and discussions between staff from both departments during which rationale for a non-competitive process based on key high-level requirements was presented by DND and found justifiable by PWGSC. Based on where we were in the acquisition continuum, this letter was required to document the reason that a non-competitive strategy was being adopted.
With regard to (e), (f) and (g), the minister was briefed leading up to the July 2010 announcement. The context of these briefings was the department’s obligations on the acquisition aspects of the project. Once PWGSC concluded its due diligence process, the minister was briefed on the department’s advice that we were satisfied that the technical authority, DND, had fulfilled the requirement to justify that only one person or company could meet their high-level mandatory capabilities. In turn, these briefings advised that a sole-source exception provided through subsection 6(d) of the Government Contracts Regulations could be invoked.