Defence Procurement - Sustainment Initiative

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Item Information

Policy Notification ID
PN-118
Associated SM version
No change
Associated SACC Manual version
No change
Effective date
2016-10-19
Pilot policy
No

The Defence Procurement - Sustainment Initiative (SI) is a collaborative undertaking aimed at procuring tailored in-service support solutions for existing and new military equipment. Effective June 8, 2016, every new and existing military maintenance and repair procurement valued at $20 million* or more will follow a coherent and standardized interdepartmental approach guided by the four principles of sustainment: performance, value for money, flexibility and economic benefits. These principles will inform decision making by the applicable Defence Procurement Strategy (DPS) governance committee.

*Note: This threshold applies to the total value of the procurement or the project, inclusive of all taxes and fees, project management costs, definition costs, equipment/materiel costs, interim support costs, and contingencies. Any given project may have multiple procurements to deliver the full defence capability or requirement defined by project or program. The nature of the funding is irrelevant (Vote 1 or Vote 5).

Timeline

The timeline for the implementation has been established as follows:

If your contract is expected to be issued or extended during these phases The following requirements apply, regardless of your procurement process activities or governance actions to date
June - Sep 2016
  • Sustainment Business Case Analysis (SBCA) optional at DPS committees
Transition:

Oct 2016 - Dec 2017
  • SBCA Questionnaire mandatory
  • SBCA teams do not have to recommend whether or not a detailed options analysis is required; the DPS committees will advise if there is a requirement
Steady State:

Starting in Jan 2018
  • Full SBCA process mandatory
  • As part of SBCA Questionnaire results, SBCA teams must recommend whether or not a detailed options analysis is warranted; the DPS committees will either accept or reject this recommendation
  • The SBCA process and DPS engagement should be initiated 2-3 years in advance of issuing or extending a sustainment solution, where possible

Context

The Government of Canada (GC) is modernizing how defence equipment and services are acquired, using innovative procurement practices to receive best value for Canadian taxpayers.

Building on the Defence Procurement Strategy (DPS), the SI is transforming the way the Government of Canada approaches and manages the maintenance of military equipment. It provides horizontal opportunities to leverage strategic initiatives such as Smart Procurement, Procurement Modernization, the DPS and the Export Strategy on Defence Procurement, to improve the administration of defence sustainment contracting.

Sustainment refers to all of the activities required to support Canadian Armed Forces (CAF) fleets and equipment throughout their lifespan. The goal of the SI is to generate tailored solutions that maximize value to Canada through balancing and optimizing the four principles:

  • Performance - defence equipment that is operationally ready and mission capable
  • Value for money - the required outcomes are procured at a price commensurate with the market rate for comparable procurements
  • Flexibility - an adaptable and scalable support system that can readily be adjusted to changes in operational requirements and/or operating budgets
  • Economic benefit - leverage industrial benefits from defence procurements to create jobs and economic growth for companies in Canada

The SBCA tool and process were developed in consultation with key government and industry stakeholders of the procurement community and are fully aligned and governed by the DPS governance committees. The SBCA process will enable and strengthen early interdepartmental collaboration to develop and assess options against the four principles mentioned above and prepare you to go through a series of approval milestones.

Centers of Expertise, comprised of technical and contracting experts from DND, PSPC and ISED, have been established to support and guide you through the SBCA process.

Standard Acquisition Clauses and Conditions Manual, Supply Manual and Standard Procurement Templates

There are no changes to the Standard Acquisition Clauses and Conditions Manual, the Supply Manual or the standard procurement templates.

For more information

Inquiries regarding the Sustainment Initiative may be sent to the following email address: TPSGC.DPPApublications-APPDpublications.PWGSC@tpsgc-pwgsc.gc.ca.

GCpedia Site: Defence Procurement - Sustainment Initiative

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