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Begin New Search Topic Military Affairs Content Type Policy Brief Publishing Institution Canadian Global Affairs Institute (CGAI) Publication Year within 10 Years Publication Year within 5 Years

1. Use it or Lose it: Corporate Over-Planning in the Air Force

Author:
Ross Fetterly
Publication Date:
01-2020
Content Type:
Policy Brief
Institution:
Canadian Global Affairs Institute (CGAI)
Abstract:
The Canadian government allocates funds to departments through the annual federal budgetary process. With a Department of National Defence (DND) budget in the fiscal year 2019-20 of close to $22 billion,2 and expenditures spread out across a broad range of very different and distinct activities, expending the full allocation can be a significant challenge. While federal departments are permitted some carry-forward of eligible lapsing funds from one fiscal year to the next, in fiscal year 2018-19 the amount designated was up to five per cent of the operating budgets in their Main Estimates.3 With the federal government projecting significant budgetary deficits in the coming years, restricting or eliminating carry-forward of funding may be limited or eliminated to reduce deficits. Past practice within the department has been for the Investment Resource Management Committee (IRMC), chaired by the deputy minister, to decide on funding allocations of the carry-forward, based on departmental corporate priorities. While from an institutional perspective that aligns funding with optimal funding requirements, the consequence to organizations such as the Royal Canadian Air Force (RCAF) is that only a limited amount of lapsed funding may be allocated the following fiscal year. Thus, the air force has a significant incentive regarding its budget: to “use it or lose it”.4 RCAF corporate over-planning (COP) is a principal in-year strategy to maximize the use of allocated financial resources. Yet, at the operational and tactical level, the concept and application of in-year over-planning is not sufficiently understood. This paper will frame over-planning within the context of the RCAF and then recommend strategies to integrate over-planning into the air force culture. Corporate over-planning is essentially a means toward an end; specifically, that of maximizing output given by defined resource allocation. The paper will first consider defence planning approaches and budget allocations, and then consider the strategic environment within which the organization operates. The third section will emphasize the need for change in how the RCAF manages financial resources, followed by a section on adapting to change. The fifth section will review the concept of over-planning. That will be followed by a discussion of RCAF institutional corporate over-planning. The seventh section will consider budgeting as communication and how this supports maintenance of a common operating picture within the RCAF on over-planning. The final section will focus on RCAF corporate over-planning by discussing the structural unexpended rate, applying an absorption rate in operations and maintenance activities, and planning investment opportunities.
Topic:
Government, Armed Forces, Military Affairs, and Budget
Political Geography:
Canada and North America

2. Defence Procurement Canada: Opportunities and Constraints

Author:
Jeff Collins
Publication Date:
12-2019
Content Type:
Policy Brief
Institution:
Canadian Global Affairs Institute (CGAI)
Abstract:
Substantive defence issues rarely make national political campaign platforms. However, in the 2019 federal election, reforming the defence procurement bureaucracy to overcome delays became a highlight for not one but two of the country’s main political parties. To “ensure that priority projects are progressing on time and on budget”, the Conservatives called for the creation of a defence procurement secretariat within the Privy Council Office, akin to a model used by the Robert Borden government in the First World War. The winning Liberal party went further and promised to create a separate defence procurement agency, called Defence Procurement Canada (DPC). As of this writing, details remain sparse, but as with the Conservatives, the ostensible purpose of such a reform is to ensure that “Canada’s biggest and most complex defence procurement projects are delivered on time and with greater transparency …” Considering that the government’s own defence white paper, 2017’s Strong, Secure, Engaged (SSE) found that 70 per cent of all defence procurement projects were not delivered on time, the existing bureaucratic process warrants a serious look. In fact, a substantial shake-up of the Canadian defence procurement bureaucracy has not taken place since the last separate procurement organization, the Department of Defence Production (DDP), was abolished in 1969. Arguments for altering the bureaucratic architecture of Canadian defence procurement have ebbed and flowed since the mid-2000s, when the first of successive governments began acquisition plans for replacing decades-old fleets of equipment, including CF-18 jets, Protecteur-class auxiliary oiler replenishment ships, Halifax-class frigates and Iroquois-class destroyers. With much publicized delays in these and other major Crown projects (MCPs), reform advocates have drawn attention to Canada’s multi-departmental procurement process as a source of frustration. Unique among allies, Canada relies principally upon three departments – National Defence (DND), Public Services and Procurement Canada (PSPC) and Innovation, Science and Economic Development (ISED) – for acquiring MCPs. Other countries typically rely on one of three approaches to acquiring material for their armed forces: procurement by individual armed services (United States); centralized government organizations (United Kingdom) or independent civilian corporations (Sweden). Although it is not clear whether the Liberal proposal is a new department (akin to the DDP), a Crown corporation or an agency under the DND’s auspices, any restructuring of the defence procurement system will not be easy. No matter what shape it takes, any new organization must deal with rearranging a complex set of institutional realities based on decades’ worth of statutes, policy frameworks and human resources allocations. Political realties still apply, too. Any new organization must contend with Canadian procurement politics, including the impact of new governments, differing priorities, regionalism and purchasing patterns.
Topic:
Defense Policy, Politics, Military Affairs, Weapons, and Military Spending
Political Geography:
Canada and North America