Value Added Analysis and its Potential Impact on Canadian Military Procurements

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The Canadian Federal government is currently at a crossroads when it comes to managing its procurement projects for the Canadian Armed Forces (CAF). The first choice involves using current practices which are resulting in procurement projects chronically running over budget and behind schedule. This can be attributed to prioritizing domestic economic and manufacturing development by demanding would-be vendors manufacture their capital assets in Canada along with excessive customizations of capital assets to “Canadianize” them. The second choice involves streamlining the entire procurement process. This includes taking the tasks assigned to multiple Departments in the Federal government and amalgamating them into one. It also includes choosing the best vendors and capital assets for procurement based on their merit, competency and quality of merchandise as opposed to their willingness to invest in Canada. The strategy that would best underpin and guide these procurement reforms is called, Value Added Analysis (VAA). To objective will be to make capital procurement projects stay within budgets and on schedule for completion and delivery. Currently, the National Shipbuilding Strategy (NSS), which is an ongoing capital procurement project for both the Royal Canadian Navy (RCN) and the Canadian Coast Guard Service (CCGS) is an excellent case study to show how aspects of VAA are already being implemented into managing capital procurement projects. The NSS also provides examples of how VAA can be further implemented into managing capital procurement projects.