24 February 2005

A closer look at the defence increase

The federal government's budget news releases correctly highlighted the increase in defence spending as being the largest injection of new money into the Canadian Forces in two decades.

It is interesting, though, to take a closer look at what was mentioned in the budget announcements and what wasn't mentioned. Here are a few from a quick reading -

Increases:

- $3.0 billion to permit expanding the Regular Force by 5, 000 members and the Reserve Force by 3, 000. This commits money to fulfill a long-standing government promise to reduce the burden on an already heavily burdened force. Several problems have been identified in meeting this requirement beyond available cash. They include lingering problems in the recruiting system and in the reserve force some ongoing difficulties with retention.

There is a marketing and human resource management problem underneath this all. DND needs to have a closer look at who they want to recruit, especially in the Reserve component, and then design a set of HR policies and a promotional campaign to reach those people. There was a pretty clever recruiting program a few years ago, the first in decades, but something just didn't click with target audiences. I'd venture that DND needs to look again at the issue and strengthen its advertising and public affairs teams to keep DND in the public eye.

In all of Newfoundland and Labrador, for example, there is not a single military public affairs officer (MOC 66), either in the Regular or Reserve component. The one full-time PA position is located in Goose Bay and that was recently turned into a civilian job. That is in a province where DND recruits a huge chunks of its annual quota, where it has an operational and training presence and where there is a strong likelihood DND will be involved in local civilian emergency response.

Here's a thought - either contract out the work to civilian agencies, even on a local basis. If there is a problem in hiring people to wear a uniform, there is enough expertise in the civilian community to fill the gaps at home.

In the interests of full disclosure, I am a PR consultant and I served as a DND reserve PAO for six years. If they want to tender the work, I'll gladly bid. As much as I'd love the work, as long as the process is fair, I really don't care who gets the job.

Meeting the recruiting targets will take more than cash.

- $3.2 billion for readiness including training, ammunition, spares and repairs. One of the hardest hit areas of the defence budget in the past decade has been available stocks of ammunition for training and operational uses. There has been some innovative use of simulators but for soldiers, there is nothing quite like the experience of tossing a hand grenade or firing a live round from a howitzer.

- $2.7 billion for new equipment. There is a need for new wheeled logistic vehicles, in addition to the Iltis light trucks that are currently being replaced. There is also a need for new light aircraft to replace the Buffalo, a Hercules replacement, as well as new logistics ships.

Typically, DND major procurement decisions fall victim to political concerns:

- Chretien cancelled the EH-101 purchase purely for political expediency, hamstrung the military for a decade and then wound up spending more money keeping the old aircraft flying and ultimately buying fewer new aircraft.

- In advance of the 1993 election, the outgoing Tory government acquired an Italian-designed knock-off known in the Canadian Forces as the LSVW. A high centre of gravity and constantly squealing brakes are just a few of the problems with the vehicle.

- The Griffon helicopter was acquired in an untendered contract worth about $1.2 billion under a minister of national defence fond of classical music and wearing capes. The decision was made solely for political purposes since the helicopter has repeatedly shown it can't do the jobs it was supposed to do. Don't take my word for that one; ask the Auditor General.

Military procurement needs to be based on a few simple requirements:

1. It must be the right piece of kit for the task.
2. It must allow for the maximum compatibility with our major allies, thereby reducing acquisition and operating costs. Simplest way to do that is buy stuff they use.
3. It must represent value for money. Canadian Forces members deserve the best equipment at the most reasonable price regardless of where it is made.
4. It must be acquired in sufficient numbers to meet immediate training and operational requirements as well as provide a surge capacity for international crises.
5. It must be as flexible and adaptable as possible.
6. Buy it quickly. No procurement should take 15 years unless we are inventing some whole new technology. Off-the-shelf means just that.

Overall, procurement needs to be driven by operations. What do the people need? How fast can we get it to them? If it doesn't work, get rid of it and find something that does.

Personally, I don't think most soldiers would care if their rifle was made in Burlington or Bhutan as long as they knew it was the best thing available and could do the job they need.

Defence Policy 1994 committed to buying more off-the-shelf items although this hasn't really been followed. Sure the army bought some camping equipment and multi-purpose tools but major items like weapons effects simulators, combat clothing, helmets and most major capital purchases have gone through lengthy (decades long) processes that are inherently inefficient and costly. Weapons effects simulators are one of my favourite examples - the project started when Chretien came into office and final delivery is anticipated this year. WES gear has been in wide use among our allies for almost 25 years.

DND history is replete with examples of poor procurement decisions. An opportunity to acquire 5 ton logistics vehicles from the US would have ensured compatibility with a major ally, tons of available and cheap spares and a lower unit cost based on the much larger US acquisition. DND passed on the chance. Likewise, in 1990 an offer of free armoured vehicles - brand new tanks and personnel carriers was nixed, reportedly by treasury board based on anticipated life-cycle costs.

When time came to replace the Iltis light utility truck, DND decided to acquire two different vehicles for the Reserve and Regular component. The Regular Force got a German-built truck known colloquially as the G-wagen. The Reserve Component got a bunch of civilian Silverado pick-ups trucks that really shouldn't be deployed outside Canada. Repeated opportunities to acquire HUMMVs have simply slipped by.

I could go on and on, but the stories are getting tired and old.

As I noted in another post the Canadian Forces has changed. Under General Hillier I would expect to see some smart decisions that focus on what his soldiers, sailors and airmen need to do their jobs.

Let's hope the politicians can stay out of his way. If you pay the guy big bucks, then let Hillier deliver results like we know he can.

Otherwise, Canadian taxpayers will see further billions wasted because the politicians really wanted a monkey as Chief of Defence Staff rather than an accomplished professional.

Bill Graham never struck me as an organ grinder.