It is understood that the $2-billion competition to chose a supplier for up to 138 armoured infantry fighting vehicles may have to start all over again after the Department of Public Works intervened in the tender process.
Peter MacKay, the Defence Minister, and Julian Fantino, the Associate Minister for Procurement, are under pressure for their role in the F-35 saga, with the opposition parties calling for their heads.
Speculation about a June Cabinet shuffle is gaining currency in Ottawa, with both defence ministers seen as prime candidates to be moved.
One person close to the freshly-married Mr. MacKay suggested a demotion would give him an excuse to walk away from politics, make some money in the private sector and enjoy his new life. But another source close to the Defence Minister said he remains committed to politics and has no plans to go anywhere.
Regardless of whether Stephen Harper decides to risk creating a public schism in the Conservative Party by moving one of its founding fathers from the job he loves, it is clear that neither Mr. MacKay nor Mr. Fantino are happy with the way military procurement has now been taken over by the Department of Public Works, which will house the new secretariat looking at the F-35 purchase.
The source close to Mr. MacKay noted that he is the one taking the heat for the shortcomings of the F-35 project in public, yet he is no longer in control of the process.
The $2-billion close combat vehicle project has highlighted the tension between National Defence and Public Works.
The new, medium-weight infantry support vehicle is intended to fill the gap between the LAV IIIs that were hit so often by improvised explosive devices in Afghanistan and the Leopard C2 tank.
Three bidders were chosen – French giant Nexter, General Dynamics Land Systems and BAE/Hagglunds – but sources suggest that all failed tests set by National Defence. A bidders’ conference was convened by DND to discuss price and technical modifications. However, the meeting was cancelled by the independent Fairness Monitor, which deemed it may have been unfair to bidders that did not make it onto the short-list and expose the government to lawsuits.
The process has now ground to a halt and Public Works Minister, Rona Ambrose, wants it to start over again, to avoid accusations of bid-rigging. National Defence is believed to prefer to modify the specifications and move forward with the existing bidders.
The concern within National Defence is that Public Works is expanding its role as the overseer of all major procurement projects, not just the F-35. Sources suggest those fears are well founded and the government’s plan is to have Public Works conduct all military procurement after the Forces have written the statement of requirement that details what they need.
According to one person on the inside, the whole procurement process is a study in dysfunction. The military, with no war to concern itself with, is venting its aggression on Public Works and the civilians in its own department, who claim they are told only what the uniforms want them to know. At the same time, the politicians and the bureaucrats are having their own battles. Mr. MacKay and his deputy minister, Rob Fonberg, are said to be barely on speaking terms since the Auditor-General’s report landed.
Public Works is in the process of assimilating much of the procurement file, effectively making Mr. Fantino redundant, without having acquired the intellectual horse-power to do the job properly.
The F-35 secretariat was established as an exercise in fire-fighting to deflect political heat but a more comprehensive solution is required for all military procurement.
It will require government to explain how it proposes to evaluate complicated procurement projects, since Public Works clearly does not have the expertise at present.
It will involve clarification on who is ultimately responsible if things go wrong.
And it may mean Peter MacKay’s excellent adventure as Minister of Defence comes to an end.
Original Article
Source: national post
Author: John Ivison
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