Government Operations committee  Perhaps I could start, Mr. Chair. Moving to performance specification is a cultural change, and that has a significant history. The materiel branch of the Department of National Defence, prior to program review, had about 13,000 people. Several thousand were research and development scientists who were split off.

Government Operations committee  Madam Chair, I'd be happy to do that. Our requirement was stated, as we said, in performance terms of protection levels from improvised explosive devices, mines, and direct fire from what's called an RPG, a rocket-propelled grenade--formerly produced by the Soviet Union--with wide proliferation in many parts of the world.

Government Operations committee  It would be at least 30 years, easily.

Government Operations committee  Or at least 25 years, easily. The Leopard 2 is being used in about 10 countries. It is not an old tank, it is a new one, and the technology is very good. We are a part of an international user group. We have guaranteed supply of the new technology for at least 30 years.

Government Operations committee  The requirement is up to 40 that are capable of deployed operations. Normally, we would deploy 20. We have another 20 that would be available to replace those 20 in operations for maintenance and repair and overhaul, because they get badly abused and worn while they're in deployed operation, and we have 40 for training.

Government Operations committee  They're fully in service now. We made no modifications to the C-17 except to put a Canadian maple leaf on the tail. They are in Texas right now having the standard defensive self-protection system put on. The other two have been done. They are fully in service.

Government Operations committee  Madam Chair, I think that's a very good question. It is an area I personally am concerned about, the department is concerned about, and the Department of Public Works is concerned about. Not related to any specific program--obviously I can't comment on that--but when you ask industry to take on the full-service delivery of something, and to do it over a 20-year period, even though you'll renegotiate labour rates on an annual or biannual basis, and you ask them to take on the management and deliver, let's say, power by the hour for an aircraft, or a ship being available to go to sea on a daily basis, and you ask them to do all that management and take all that risk, there's a price to that.

Government Operations committee  Obviously I have to avoid any specifics about the Halifax-class modernization, because bids close next week. Two members have asked questions about costing and how we determine reasonable cost estimates. It is a very rigorous process. DND historically has been very successful at estimating costs and not exceeding those costs and having to go back to government for additional money or authority to spend money.

Government Operations committee  There is a formal process in place. Liliane?

Government Operations committee  Perhaps I'll let my colleague talk to the notion of secrecy and bidding and costs, and those issues, because there are very specific government contracting regulations that apply, which are obviously a framework in which we have to live. In terms of not releasing the detailed specifics—from my point of view—of the major platforms, some of those requirements are still in the broad option definition phase, and we may have initial indicative estimates of what they might cost.

Government Operations committee  The department has done an enormous amount of work in analyzing those investment requirements, not just for equipment but for the personnel levels of 70,000, and 30,000 civilians, rebuilding our infrastructure, what resources are required to raise readiness levels so we are prepared both to respond domestically—have excellence at home—and to play a leadership role overseas.

Government Operations committee  People discuss that very rarely, but to me that is an enormous change in our ability to acquire major platform. In the past in DND, someone had to save enough money to have a big bag of gold to pay a contract. And as you all know, in our lives, with our own salaries, how do you save $250,000 to buy a house in three years?

Government Operations committee  It's a huge understatement, sir.

Government Operations committee  I'd be happy to. We stated a very simple, performance-based requirement in terms of payload, range, and manoeuvrability, that sort of thing, with our C-17s. We posted an advance contract award notice with Public Works and Government Services Canada where we stated to the whole world that this is our basic requirement and invited anyone who felt that they could meet that requirement to inform us.

Government Operations committee  Madam Chair, the Prime Minister announced about a month and a half ago, I think, a fundamental departure from a defence policy foundation that we defend Canada, we contribute to international commitments, and so on--and that will obviously be articulated as part of that--but, more fundamentally, a long-term commitment to the finance, to the funding, with an accrual budgeting component that's extremely important, a commitment to 1.5% real growth, and from 2011-12 another 0.5%, which is compounded.