International and Industry Programs at National Defence

Ms. Jennifer C. Hubbard Director General International & Industry Programs

2November2017

DIRECTOR GENERAL INTERNATIONAL & INDUSTRY PROGRAMS

ASSISTANT DEPUTY MINISTER (MATERIEL)

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Outline

•  Domes/cPrograms

ü  DefenceProcurementü  Canada’sDefencePolicyStrong,Secure,Engagedü  SupporttoCanadianIndustry

•  Canada–UnitedStatesDefenceMaterielCoopera/on

•  Interna/onalDefenceMaterielCoopera/on

•  DoingbusinesswithNATO

Domes-cProgram

ProcurementRolesandAuthori-es

Privy Council Office

Support Cabinet Decision Making

(Challenge Function)

Defence Procurement: A Government of Canada activity involving multiple Ministers

CABINET Ministers are collectively answerable to the

House of Commons for the policy and conduct of the Cabinet as a whole.

Ministers have “portfolios” and are responsible, answerable and accountable to the House of Commons for their particular

departments.

Global Affairs Canada

Enforce trade obligations

Promote trade and investment

Export Opportunities

Department of Justice

Legal Advice

Regional Development

Agencies

Support regional development

Knowledge of industrial capability

Department of Finance

Management of

Fiscal Framework

Treasury Board Secretariat

Procurement Policy

Expenditure Authorities

Innovation Science and Economic

Development Canada Manage Industrial and

Technological Benefits / Value Propositions

Public Services and Procurement Canada

Contracting Authority

Procurement Process Integrity

Department of National Defence

Sets Requirements

Life Cycle Materiel Management Defence Program and Budget

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Domes-cProgram

Strong,Secure,Engaged:Canada’sNewDefencePolicy

Reinves'nginandModernizingCoreCapability

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Domes-cProgram

•  AsstatedinStrong,Secure,Engaged,Canadianindustryiscri/caltotheabilityoftheCanadianArmedForcestodeliveronitsmandate.

•  Na/onalDefenceiscommiMedtoworkingwithitsdepartmentalpartnersto:–  Increasetransparencyand/melinessofcommunica/onswithdefenceindustryassocia/ons–  ProvideCanadianswithregularupdatesonmajorprojectsandprogramstoincreasetransparency,communicatechallengesandmeasureperformance

– Maintainandre-enforceearlyengagementswithdefenceindustryonaproject-by-projectbasis–  ProvideanannualupdatetotheDefenceAcquisi/onGuide–  PublishNa/onalDefence’sInvestmentPlanstar/ngin2018

•  TheDefenceIndustryAdvisoryGroup,establishedin2015,facilitatescoordinateddialogueandincreasedstakeholderengagementbetweentheGovernmentofCanadaandthedefenceindustry

•  CollaboratewiththeCanadianAssocia/onofDefenceandSecurityIndustries(CADSI)forGovernmentpar/cipa/oninCANSEC(Canada’sannualDefenceandSecurityTradeShow)

Government’srela-onshipwiththedefenceindustry

Domes-cProgram

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DeliveringProjects:ProjectManagementinNa-onalDefence

–  Project Identification •  Identification of a capability deficiency

–  Options Analysis •  Articulation of a high-level Statement of Requirements •  Procurement Strategy and socio-economic leveraging approaches

–  Project Definition •  Request for Proposals

Specifications, Statement of Work, Value Proposition, Evaluation Plan

–  Project Implementation •  Contract Award and delivery of capability

Indu

stry

Eng

agem

ent

Domes-cProgram

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Makinguseoftheavailabletools:• TheDefenceAcquisi-onGuide(DAG)- TheDAGisdesignedtohelpindustryan/cipateDND’sprocurementrequirements.Ithasadetailedlistofupcomingprojectsandcontactinforma/onforeachproject. hLp://www.forces.gc.ca/en/business-defence-acquisi-on-guide-2016/index.page• BuyandSell- HostedbyPublicServicesandProcurementCanada;Requestsforinforma/on,RequestsforProposals,etc.arepostedonthissite;publicandsearchable;includesno/fica/onsforIndustryEngagementevents.

hLp://buyandsell.gc.ca• OfficeofSmallandMediumSizedEnterprises-AssistssmallandmediumsizedenterprisesinbeMerunderstandinghowthegovernmentbuysgoodsandservicesaswellasencouragestheirpar/cipa/oninfederalgovernmentprocurement.

hLps://www.tpsgc-pwgsc.gc.ca/app-acq/pme-sme/index-eng.html Na/onalInfoLine:1-800-811-1148

• UnderstandValueProposi-onandIndustrialandTechnologicalBenefits;leverageRegionalDevelopmentAgencies- Procurementofmajorcapitalequipmentoaenresultsinacontractawardtoalargeprimecontractor.Tobesuccessful,Canadiansuppliersshouldbepreparedtoworkwithprimecontractors.

hLps://www.ic.gc.ca/eic/site/086.nsf/eng/h_00005.html

DoingBusinesswiththeGovernmentofCanada

Domes-cProgram

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•  Thereisa‘wholeofgovernment’efforttosupportCanadiandefenceexportmarketdevelopment

•  Suppor/ngexportscanbenefittheDepartmentofNa/onalDefence-  FacilitatedbyGlobalAffairsCanadaandtheTradeCommissionerservicealongwithDNDandtheCanadianDefenceAMachés.Closecollabora/onwiththeCanadianCommercialCorpora/on(CCC)

•  ExamplesofhowtheInterna/onalandIndustryprogramsDivisionandtheDefenceAMachéscanbeofassistance:

-  Trackupcomingdefenceacquisi/onsinothercountriesandresearchandunderstandforeignprocurementprocesses

-  Trackopportuni/esforcoopera/onandcollabora/on-  Assistwithpointsofcontactinforeignministriesanddepartmentsofdefence-  RaiseawarenessofCanadiandefenceindustrialcapabili/es-  HelpfacilitateCanadianindustry’spar/cipa/onintradeshowsabroad

SupporttoIndustry-Exports

Domes-cProgram

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•  GlobalAffairsCanadaisresponsiblefortheestablishment/implementa/onoftheexportcontrolprocessinCanadaandissuesexportpermitstoCanadianindustry.

•  DNDprovidesexpertadvicetoGlobalAffairsCanadaonexportcontrolcasesinvolvingcontrolleddefenceandsecurity-relatedgoodsandservices.

•  DNDgenerallynotconsultedonexportstoNATOallies,Japan,SouthKorea,NewZealand,Australia,andSweden.

•  TheDepartment’sinternalexportpermitconsulta/onprocessfollowsarigorousmethodologythatreliesonexpertadvicefromanumberofinternalstakeholders.

•  Na/onalsecurity,defencepolicy,andCanadiandefenceindustrialbaseareconsidera/onswhenassessingapplica/ons.

•  Na/onalDefencereviewsapproximately600-700exportcontrolapplica/onsperyear.

Domes-cProgram

SupporttoIndustry–Exports(con-nued)

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•  LeLersofSupporttoForeignGovernment

-Canspeaktofactsaboutcontractualrela/onships(cau/on:mustavoidopinionandapercep/onofendorsement)

•  LoansofMaterielandProvisionofServiceAgreementsundercertaincondi-ons:

-  Nodisrup/ontodefencereadiness-  NoadverseaffecttopublicconfidenceinDefence(e.g.thepoten/alclientisnotcontroversialfromaforeignpolicyperspec/ve)

-  ShouldnotbeusedifthereisareasonablealternatesourceandshouldnotcreateadependenceonDefence(e.g.commerciallyavailable)

-  DirectbenefittoNa/onalDefence,and/orsupportsexportopportuni/es-  FullcostrecoveryforProvisionofService,rentalfeeorequivalentreturntothedepartmentforLoans

OtherSupporttoIndustryfromNa-onalDefence

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Domes-cProgram

General•  ResponsibleformanagingspecificCanada-USbilateralagreementsandprovidingpolicyadviceonUSdevelopmentsimpac/ngNa/onalDefence/CanadianArmedForcesmaterielinterestsand/orCanadianindustry

•  AssistsCanadiandefenceindustryinaddressingmarketaccessissuesintheUS

ForeignCompara-veTes-ng(FCT)•  AllowstheUSDoDtoiden/fy,testandprocureforeigndevelopeddefencetechnologiesofinteresttoDoD

•  Canadahaspar/cipatedintheprogramsince1980with108FCTprojectswithCanadiancompaniestodate:–  InvestmentsofUSD$155.7MtoevaluateCanadiantechnologysofar

•  35projectshaveresultedinprocurementsofapproximatelyUSD$400M

•  VisitstoCanadianindustryaresupportedbyNa/onalDefenceandInnova/on,ScienceandEconomicDevelopmentCanada(ISED),aswellasitsregionaleconomicdevelopmentagencies

Canada-UnitedStatesDefenceMaterielCoopera-on

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•  AspertheUnitedStatesNa9onalDefenseAuthoriza9onsActFY1993,theNa/onalTechnologyandIndustrialBase(NTIB)oftheUnitedStateswasexpandedtoincludeCanada.

•  TheNa9onalDefenseAuthoriza9onsActFY2017sawtheNTIBfurtherexpandedtoincludeAustraliaandtheUnitedKingdom.

•  CanadianindustrywasconsultedonNTIBenlargementthroughtheDefenceIndustryAdvisoryGroup(DIAG).

NorthAmericanTechnologyandIndustrialBaseOrganiza-on(NATIBO)•  InsupportofNorthAmericanna/onalsecurity,theNATIBOwascreatedin1987to

coordinatethetechnologyandindustrialbaseac/vi/esofdefenceorganiza/onssuppor/ngtheNorthAmericantechnologyandindustrialbase.

Na-onalTechnologyandIndustrialBase(NTIB)

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Canada-UnitedStatesDefenceMaterielCoopera-on

WorkingwithourAllies

•  CanadahasDefenceMaterielMOUwithAlliesandclosePartnersto:

–  Promotedefencematerielrelatedinterac/ons–  Provideframeworkforspecificprojects/ac/vi/es–  Facilitatereciprocalaccesstospecializedcapabili/es(qualityassurance,testandevalua/on,mutuallogis/cssupport,etc)

–  Confirmparametersofexchangeofinforma/on,use/managementofintellectualproperty–  Encouragecoopera/onrelatedtotheresearch,development,andproduc/onofmilitaryequipment

•  Opportuni/estoleveragematerielrela/onshipstosupportCanadianindustrymarketdevelopmentopportuni/es(orviceversa-leverageCanadianindustrymarketpenetra/ontoopendoorsfordefencerela/onships)

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Interna-onalDefenceMaterielCoopera-on

•  Ingeneral,Canadiandefenceindustrywinsapproximately26millionEUReachyearatNATOandalmostexclusivelythroughtheNATOSupportandProcurementAgency:

–  ProcurementatNATOCommunica/ons&Informa/onAgency:528millionEUR(2016)

–  ProcurementatNATOSupport&ProcurementAgency:2.96billionEUR(2016)

•  CanadaistakingstepstoimprovetheCanadiandefenceindustry’sawarenessofupcomingNATOopportuni/es:

–  Appointmentin2016ofaCanadianLiaisonOfficer(Lieutenant-colonelrank)totheNATOSupportandProcurementAgency

–  AnnualNATOIndustryConference&TechNetInterna/onal(NITEC)eventheldinOMawainApril2017.First/meheldoutsideEurope

–  Leveragedomes/cDefenceandSecuritytradeshowsandconferencestoshareNATOrelatedinforma/on

•  Na/onalDefenceservesasthena/onalauthoritytoconfirmtheeligibilityofCanadiancompaniestopar/cipateinNATOSupportandProcurementAgencyprocurements.

Opportuni-esforCanadianDefenceIndustrytobidonNATOrequirements

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DoingBusinesswithNATO

•  TheJointDelega/onofCanadatoNATO,withtheCanadianTradeCommissionerServiceinBelgiumandLuxembourg,keepCanadianindustryinformedofbusinessopportuni/eswithNATO

•  AllNATOprocurementopportuni/esthatareno/fiedtotheCanadianDelega/onarepublishedontheBuyandSellwebsite

- hMps://buyandsell.gc.ca/

•  Formoreinforma/ononbusinessopportuni/eswithNATOcontacttheJointDelega/onat:- hMp://www.forces.gc.ca/en/business-connec/ng-foreign-markets/canadian-industry-doing-business-nato-faqs.page

-  BNATO@interna/onal.gc.ca-  JaneLi,FirstSecretaryInvestment,Jane.Li@interna/onal.gc.ca-  Lieutenant-colonelMar/nBédard,CanadianLiaisonOfficer–NPSA,calo@nspa.nato.int

Opportuni-eswithNATO

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DoingBusinesswithNATO

SeniorLevelEngagementwithNATONATOConferenceofNa-onalArmamentsDirectors(CNAD)• Plenaryheldtwiceannually(springandfall)atNATOHQ,Brussels• Includesall29NATOAllies,pluscounterpartsfromNATOpartnercountries.AssistantDeputyMinister(Materiel)aMendsforCanada

• Providesoversighttocapabilitydeliveryandassessessub-structureofworkinggroups

NATOSupportandProcurementAgency(NSPA)• Execu/vebodyoftheNATOSupportandProcurementOrganisa/on(NSPO),ofwhichallNATOna/onsaremembers.

• JenniferC.Hubbard,currentlyDirectorGeneralInterna/onalandIndustryProgramsatNa/onalDefence,isthechairpersonoftheNSPO(2year-term)

• SingleNATOorganisa/onprovidingsupporttoopera/onsandexercises;systemsprocurement(includingarmamentsprocurement)andlife-cyclemanagement;fuelmanagement;strategictransportandstorage;logis/csservicesandprojectmanagementtoNATO,Allies,andpartnerna/ons;

• Customer-fundedagencythatoperatesona"noprofit,noloss"basis;

NATOCommunica-onsandInforma-onAgency(NCIA)

• NATO’sprincipalCommand,Control&Communica/on(C3)capabilitydelivererandComputerInforma/onSystem(CIS)serviceprovider.

• Execu/vebodyoftheNATOInforma/onandCommunica/onOrganisa/on(NCIO).

• Mr.GuyCharron,currentlyDirectorGeneralInforma/onManagementTechnologyandStrategicPlanningatNa/onalDefence,isthechairpersonoftheNCIO(2year-term) 16

DoingBusinesswithNATO

Transatlan-cdefencetechnologicalandindustrialcoopera-on

“A stronger defence industry across the Alliance, which includes small- and medium-sized enterprises, greater defence industrial and technological coopera'on across theAtlan'c and within Europe, and a robust industrial base in the whole of Europe andNorthAmerica,remainessen'alforacquiringneededAlliancecapabili'es.”

-WarsawSummitCommuniqué,8July2016

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DoingBusinesswithNATO