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CASR
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Canadian
Defence Policy,
Foreign
Policy,
& Canada-US
Relations
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In Detail
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Arctic SAR
Treaty
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Canadian Defence Procurement – A Procurement Secretariat? – June 2012
Stand-Alone Defence Procurement Agency? We've Been Here Before
Ministerial
Responsibilities & Defence Procurement Agencies Timeline
"It must be remembered that there is nothing more difficult to plan, more
doubtful of success,
nor more dangerous to manage than a new system.
For the initiator has the enmity of all
who would profit by the
preservation of the old institution and merely lukewarm defenders
in
those who gain by the new one." Niccolò
Machiavelli
There are changes afoot for Canadian defence procurement according to announcements by the Minister for Public
Works, Rona Ambrose. Well, she would know. As Minister, Ms Ambrose is responsible for
defence procurement and (on the PR front ) that hasn't been performing all
that well for the Harper Government lately. According to the 'rumour mill', there
is a fresh press for a stand-alone defence procurement agency. That raises the question:
who is directly responsible?
In legislation, the Minister directly responsible for defence procurement is Ms Ambrose herself. According to the
Defence Production Act 1985 –
Powers relating to National Defence 10 (2), – "The Minister shall have exclusive authority to buy or
otherwise acquire defence supplies and construct defence projects required by the Department of
National Defence". But Ms Ambrose has complained of "duplication and the competing agendas" and thwarted
attempted changes.
It has not been made clear who the intransigent parties are. Only that there are too many fingers in the pie.
Is Ms Ambrose leaning towards the creation of a stand-alone procurement agency ? There have been mentions of a
defence procurement Secretariat being established. In that case, a comparable model would be the SAR Secretariat
reporting to the Minster of National Defence. But, with FWSAR
an example of failed procurement, that comparison might not be appreciated.
In practice, defence procurement rarely runs smoothly regardless of whether it is run by either civilians
or the military. Nor is it a simple question of being well-informed shoppers (disposals of surplus or
obsolete military equipment can be even more dragged out than new purchases – often providing grist for news
stories about long-out-of-service weapons sitting in well-heated hangars. So guidelines for equipment disposals should
been regarded as a part of procurement).
Despite having proved politically noisome, Ms Ambrose obviously wants to keep that defence procurement office within
her baliwick. Her recent speeches have emphasized economic growth and innovation through defence spending. That's certainly not the line
DND would have taken. And yet there are many who would advocate the military (or at least DND) having control over
contracting for all defence procurement. Soldiers are the experts, let them do it is the reasoning.
Individual citizens must decide for themselves whether the stand-alone agency is the answer to Canada's disfunctional
defence procurement system. The country has tried most approaches to defence procurement in the past. To give a
flavour for such past efforts, we list below the major changes to Canadian defence procurement agencies since the
outbreak of World War II. Some agencies will have worked better than others. And there is an argument to
be made that 'stirring the pot' alone can have positive effects. The real question is: how could it be
made any worse?
Defence Purchases, Profits Control, and Financing Act (1939)
• Defence Purchasing Board (DPB), 14 July 1939
• War Supply Board (WSB), 01 November 1939
Department of Munitions and Supply Act (1940)
• Department of Munitions and Supply (DMS), , 09 April 1940
— DMS had wartime emergency powers and bought for both Canada and the UK
Department of Reconstruction and Supply Act (1945)
• Department of Reconstruction and Supply (DRS), 18 December 1945
— DRS combined the DMS with CD Howe's Department of Reconstruction
• Defence procurement trans. to Department of Trade and Commerce, February 1947
— Defence procurement once more completely under civilian control
Defence Production Act (1951)
• Department of Defence Production (DDP), 01 April 1951
— Defence procurement once more a stand-alone agency
• Canada-United States Defence Production Sharing Agreement, 1959
— DDP emph. shifts from self-sufficiency to eliminating duplicated efforts
Department of Industry Act (1963)
• Defence procurement transf. to Department of Industry (DOI), 25 July 1963
• Canadian Government Purchasing, Supply, and Repair Services, 4 Sept 1963
— The CGPSRS was to be a central purchasing agency for the entire GoC
— Defence Construction transf. from DDP to Minister of National Defence, 1965
• CGPSRS becomes Department of Supply and Services, 12 July 1968
Government Organisation Act (1969)
• Ministry of Supply and Services (MSS), 01 April 1969
Department of Public Works and Government Services Act (1996)
• Department of Public Works and Government Services, 12 July 1996
— Four departments (incl. Supply and Services) alamgamated, June 1993
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