National Fighter Procurement Secretariat Overview
October 2012
Canada’s fighter aircraft are aging
- The Royal Canadian Air Force acquired its fleet of 138 CF-18’s between 1982 and 1988, with an original life expectancy until 2003. There are 77 aircraft left
- Through modernization programs, the life expectancy of the CF-18’s has been extended to 2017-2020. Further life extensions are being considered
- The CF-18 has been the backbone of Canada’s air defences, a fundamental part of Canada’s contribution to the defence of North America and support to international missions
- The 2008 Canada First Defence Strategy identified the need for next-generation fighters to carry out core missions of RCAF
- In 2010, the Government of Canada announced its intention to procure 65 F-35s to replace its CF-18s
The Government of Canada launched a 7-point Action Plan
- The Auditor General Spring 2012 report on replacing Canada's fighter jets was critical of how Canada's acquisition of F-35's has been managed to date
- The Government agreed with the AGs recommendation and conclusions and put in place a Seven-Point Action Plan on April 3, 2012
- The Action Plan aims to ensure Canada acquires the fighter aircraft it needs to complete its core missions and to ensure public confidence in an open and transparent acquisition process
- The Action Plan must be completed before the Government will proceed with the purchase of any replacement aircraft for the CF-18
Seven-Point Action Plan
- Funding envelope for the acquisition of F-35 frozen
- Immediately establish Secretariat within PWGSC
- DND will provide annual updates to Parliament
- DND will evaluate options to sustain a Canadian Forces fighter capability
- TBS will commission independent review of costs
- TBS will ensure full compliance with procurement policies prior to approving project
- Industry Canada will update Parliament on F-35 industrial participation benefits
Canada’s participation in the Joint Strike Fighter Program
- Since 1997 Canada has been a participant in the Joint Strike Fighter program along with the U.S., the U.K., the Netherlands, Italy, Turkey, Denmark, Norway and Australia
- Though the funding for the acquisition of the F-35's is frozen, Canada remains a partner in the Joint Strike Fighter program through a Memorandum of Understanding with eight partner countries
- The MoU does not commit Canada to buy the F-35s. In order to keep the F-35 option open, Canada will maintain its involvement in the project as it implements the seven-point action plan
- Canada's participation in the Joint Strike Fighter program also brings significant economic benefits for Canadian industry
National Fighter Procurement Secretariat established
- The National Fighter Procurement Secretariat is responsible for the coordination and implementation of the Seven-Point Action Plan
- The Secretariat is guided by three core principles:
- Due diligence through strong governance
- Third party oversight
- Open and transparent communications
“I am pleased to announce that the Secretariat is operational and will play the lead coordinating role as the Government moves to replace Canada’s aging CF-18 fleet.”
~ Minister Ambrose, June 13, 201
1. Due diligence through strong governance
- Implementation of the Action Plan will be vetted through a Deputy Minister (DM)-level Governance Committee (DMGC) that will:
- act as a non-partisan decision-making body
- include direct central agency participation and oversight
- include the participation of two independent members from outside the public service
- bring all of the relevant Departments together around one table
- DMGC is supported by an Interdepartmental ADM-level Steering Committee (ISC) which will work through issues raised at DMGC before bringing them back for final decision
- Seven-Point Action Plan
- DMGC ensures due diligence and presents conclusions to Ministers
- Report back to Canadians on CF-18 replacement
2. Third party oversight
- The use of non-governmental independent third parties will enhance openness, impartiality and transparency of the Action Plan
- DMGC's two independent members provide unbiased support and advice:
- L. Denis Desautels, former Auditor General of Canada (1991–2001) and a recipient of the Order of Canada; and
- Dr. Kenneth Norrie, an economic historian and currently a professor of economics at McMaster University
- An independent review of the F-35 costs has been commissioned by TBS
- results on the cost of the F-35 will be made public in late Fall 2012
- An analysis of options to sustain a fighter aircraft capability is underway
- An independent review of the acquisition process to date is taking place
- results will be available in Spring 2013
3. Open and transparent communications
- Parliament and the Canadian public need to have confidence in the open and transparent acquisition process that will be used to replace the CF-18 fleet
- As a result, the Secretariat is committed to coordinating timely, open and transparent communications through:
- regular reporting to Parliament
- ongoing briefings with stakeholders
- a dedicated website to post and share information
- regular updates on the status of implementing the action plan
Better outcomes for Canadians
The Secretariat’s goal is to ensure that:
- all options to sustain Canada's fighter capability have been thoroughly assessed
- the costs of the F-35 have been independently verified
- all the steps taken in the acquisition process have been independently reviewed
- the Canadian public, industry and our international partners are kept apprised of progress in implementing the Action Plan
- the Action Plan will be completed before any decisions to replace the CF-18 are made
- Parliament and the Canadian public have confidence in the open and transparent acquisition process to replace the CF-18 fleet
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