Materiel

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Materiel and Transformation
Presented by DAN ROSS Assistant Deputy Minister
for Materiel Department of National Defence at
the PMI-OVOC / DND Project Management
Symposium Ottawa, Ontario November 29, 2005
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MY FOCUS TODAY

• The Materiel Group Organization
• The MAS Business Environment
• Business Transformation
• CF Transformation Future Acquisitions

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The Materiel Group Organization
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The Materiel Group Organization
ADM(Materiel)

• is a central service provider and program
  authority for all materiel acquisition and
  support programs
• Provides functional guidance
• manages materiel from concept to disposal
• provides logistics planning for military
  operations
• oversees defence materiel relations with other
  departments, governments and international
  organizations

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The Materiel Group Organization
ADM(Materiel) Contd

• employs 4300 civilian and military (60/40 split)
  nation-wide and on missions overseas
• manages an annual budget of approx
• 1.4B for capital expenditures
• 1.9B for maintenance and upgrade activities
• oversees approx 22B in equipment assets
• has in excess of 5B in inventory

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BUSINESS TRANSFORMATION CHALLENGES

• Increase in CF operational tempo
• Accelerates equipment maintenance and repair,
  shortens lifecycles
• Dynamic new vision of Canadas military role
• laid out in the Defence Policy Statement
• Central to CF Transformation
• Budget 2005
• Projects a 13B defence spending increase

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Business Transformation THE ACQUISITION PROCESS
OUR CURRENT BASELINE
Identify Deficiency
Preliminary Approval
Effective Approval
Contract Award
Initial Operating Capability
Close Out
Full Operating Capability
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44 mos.
49 mos.
14
70 mos.
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13
TOTAL 107 months
OUR TARGET BASELINE
Contract Award
Identify Deficiency
Preliminary Approval
Initial Operating Capability
Close Out
Full Operating Capability
Effective Approval
24 mos.
21 mos.
3
60 mos.
3
TOTAL 48 months
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Business Transformation
TOOLS FOR TRANSFORMATION

• High-level Statements of Requirements (SORs)
• Maximize use of off-the-shelf solutions
  (MOTS/COTS)
• Eliminate or minimize DND-unique specifications
  and customization in Request for Proposals
• Evaluation of proposals that are
  performance-based and offer Best Value to the
  Crown

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Business Transformation
TOOLS FOR TRANSFORMATION contd

• Consider past vendor performance in evaluations
• Performance-based service contracts, driven by
  outcomes

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Business Transformation
TOOLS FOR TRANSFORMATION contd

• New Major Project Delivery Division
• Multiple PMs with small, highly skilled staffs
• Centralized PM support directorate
• Centres of expertise
• Professional development in project management
• Mandatory training programme
• Mentoring, professional development, succession
  planning

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CF Transformation
FUTURE ACQUISITIONS

• Airlift Capability Project (ACP)
• Amphibious Ships
• Fixed Wing Search and Rescue Aircraft
• - to replace selected Hercules and
  Buffalo aircraft
• Modernization of the CP-140 Aurora and CF-18
• Maritime Helicopter Project
• Medium-Lift Helicopters
• Joint Support Ships
• - to bolster sealift capability and
  logistic support

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CF Transformation
FUTURE ACQUISITIONS (contd)

• Mobile Gun System
• - direct fire capability on a versatile,
  interoperable platform
• Multi-Mission Effects Vehicle (MMEV)
• Medium Support Vehicle System (MSVS)
• VICTORIA In-Service Support Contract (VISSC)

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QUESTIONS?