Auditor general criticizes National Shipbuilding Procurement Strategy
The Canadian Press
C
anada’s navy may get neither the type nor the number of warships it needs because of the government’s budget inflexibility and failure to do its defence-policy homework, Canada’s auditor general warns. Michael Ferguson’s latest report examines the National Shipbuilding Procurement Strategy and the first few projects, which are already in the queue but still in the planning stages. His report gives the government credit for a smooth, consultative process in establishing the framework arrangement and says oversight mechanisms are in place to protect taxpayers, but suggests the government is being rigid in aspects that could harm the navy over the long term. “The ships haven’t even been designed yet, so it is very early in the process,” said Ferguson, who pointed to the current $26-billion budget to replace the country’s existing frigates and destroyers. “Based on all of the information available right now, it looks like that $26 billion will be insufficient to acquire 15 ships to replace the existing 15 ships.” The budgets for the planned frigate replacement and the Conservatives’ signature Arctic patrol ship program have not been revised or increased in more than half a decade, despite rising labour and material costs. As a result, the report says, it’s unclear how many ships the strategy will produce, particularly with such cost restrictions in place—meaning the navy could be forced to reduce the fleet size below its needs. The audit points out that in order to stay within budget, the navy has made capability trade-offs on both the Arctic patrol ships and planned replacements for military supply ships. Ferguson said the 30-year, $34-billion strategy requires close monitoring but also budget flexibility. “While budgets are a useful control, Canada may not get the military ships it needs if budgets are not subject to change,” Ferguson wrote. The Conservatives have tended to treat “rough estimates” as budget caps, the auditor said. The budgets for the Arctic patrol ships and the Canadian surface combatants, meant to replace the frigates, have not been adjusted since 2007-08, and according to National Defence, ``there have been significant increases in cost elements, which are impairing the affordability of the military ships.’’
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PurchasingB2B’s Paper Goes Green
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he November/December issue of PurchasingB2B is printed on Rolland Enviro100 Satin paper, which is EcoLogo, Processed Chlorine Free (PCF) and Forest Stewardship Council (FSC) certified and manufactured in Canada from 100-percent, post-consumer recycled material from North American recycling programs by Cascades using biogas energy (methane from a landfill site). This alternative green energy source is supplying the paper mill with 93-percent of its thermal energy needs. Manufacturing Rolland Enviro100 Satin produces 85-percent less greenhouse gas emissions than the average 100-percent recycled paper and 94-percent less than the average 100-percent virgin paper. According to Cascades’ environmental calculator, compared to products made with 100-percent virgin fiber, this issue of PurchasingB2B saves: 8 trees 6 5 tennis courts
10,001 kg CO2 emissions of 3 cars per year
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Bélanger Wins Supplier of the Year
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lumbing accessories and faucets manufacturer Belanger has won the 2013 Top Supplier Award from Chalifour Canada, a Spancan member. The award recognizes strong sales growth, high fill rates, innovative products and the ability to collaborate in partnership. “This award reflects the strong business relationship that has developed between Belanger and Chalifour Canada,” said Andrew Pantelides, procurement and merchandising manager at Chalifour Canada. “When committed and experienced partners share a vision and their know-how, the most valuable products are truly distinguished; it’s an honour and privilege to be working closely with a vendor partner like Belanger.”
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