The 8th annual ShipTech Forum was held virtually on February 25-26, 2021 with over 250 participants from government/DND/CAF (53 per cent), and industry (47 per cent) partaking in speaking and networking opportunities.
Built around the theme of Naval In-Service Support, the timing of the conference could not have been better, as it was held the same week that the Parliamentary Budget Office released their report on the Canadian Surface Combatant, and the Office of the Auditor General released their report on Canada’s National Shipbuilding Strategy. For those who attended from across Canada, they were richly rewarded with an exceptional insight into the what, the how, and the why of the Canadian Naval In-Service Support.
The What
The first day of the forum was foundational, providing a very deep understanding of the “what” is Naval In-Service Support and its importance to both the Canadian Coast Guard and the Royal Canadian Navy. Themes included the importance of Naval In-Service Support being a primary consideration from design to disposal. The opportunities that currently exist for Canadian industry, and the greater opportunities that could accrue as a result of strategies such as the Key Industrial Capabilities initiative. Putting all of these themes, the “what” into context was superbly done by RAdm Simon Page (Ret’d) who was the Associate Assistant Deputy Minister Material at the Department of National Defence. Page has transitioned to the responsibilities of the Assistant Deputy Minister Defence and Marine Procurement at the Department of Public Services and Procurement Canada. Suffice it to say, that as a result of his distinguished military and public service career, and his new portfolio, the event could not have had a better speaker to provide a candid assessment of the overall status of Canadian Naval In-Service Support. His message was very much focused on recent successes, upcoming challenges, and strategic trends.
After a week of predominately negative reporting in the media about the state of Canadian Shipbuilding/Ship Repair, it was refreshing to hear about the many successes that have and continue to occur in Canada’s maritime sector. Broadly, the retired RAdm Page spoke about an environment characterized by an increased trust between industry and government, which has led to a better understanding of our common sense of purpose enabling outcomes that better share risk. He was also optimistic that digital and innovation were being embraced across the eco-system with promising results on the horizon. His overall assessment was quite pragmatic, which was reinforced during his comments on current challenges.
With all of the positive and significant changes taking place, it was noted that they still need to be solidified in our CULTURE. Similarly, there are still a number of silos, cylinders of excellence, that still exist, and we collectively need to do a better job at managing the “system” and our respective “enterprises”. He also punctuated a challenge that was a recurring theme throughout the forum which was, despite the exciting future in Canada’s maritime sector, “spectacular” was his exact word, we all need to remain aware and focused on the personnel challenges that exist in both industry and government. This will require an “all hands on deck” approach to ensure we sustain our positive momentum into the future.
With respect to strategic trends, he reinforced digital, specifically the Naval Integrated Data Environment, and three characteristics that are becoming key to all procurements:, Gender Based Analysis Plus, greening considerations and sound diversity and inclusions practices and policies. He also noted two trends that he believed would be invaluable to improve in-service support delivery in today’s context. The first, is the responsibility of government, to take some of the pressure off major crown projects and inject agility into our procurement by better leveraging in-service support contracts. The second pertains to industry and the assessment that, in the spirit of continuous improvement, more positive outcomes could be achieved with even greater partnerships amongst industry.
He concluded by reminding everyone that industry’s success is government’s success, and government’s success is industry’s success. To reinforce this point, he gave a very grateful and heartfelt thanks to industry for all of their tremendous support during the COVID-19 pandemic which was instrumental in the RCN meeting its readiness requirements and global deployment commitments.
The How
The second day was equally as insightful as it provided a number of presentations on the future of Naval In-Service Support and “how” it can and will be delivered. As Canadians, we should be extremely proud of the industry capabilities that have been and are currently under development. We were reminded of the fact that there are many Canadian companies competing globally as a result of our acquisition and modernization of the Halifax class frigates. We were provided demonstrations of how digital models and digital twins will enable more effective and optimal workflows, how they will deliver more effective training, and higher levels of maintenance support to our fleets both onboard and ashore.
We were reminded that there are solutions available today that will enable edge, core, and cloud computing securely. When a question was asked whether this progress will lock out small and medium enterprises, the answer was a categorical no. It was assessed that if anything, it will enable and encourage Canadian small and medium enterprises to compete, or in a climate of increased partnership, to partner. All of this optimism was equally grounded in a number of realities. The flow of data between systems, OEMs, government, and industry will require a collaborative effort to ensure “standards”. It was also assessed that there needs to be a more fundamental conversation on security classifications/standards as industry delivers ever more secure infrastructure. Put more bluntly, as technology has evolved, have defence policies on how militaries classify and secure data equally evolved?
The Why
A common mistake made by senior executives when communicating to their teams is to focus on the “what” and the “how”, assuming that everyone understands the “why”. This year’s ShipTech Forum was very fortunate to have Dr. Dave Perry, Vice President of Canadian Global Affairs Institute and one of Canada’s foremost experts on the National Shipbuilding Strategy. He shared his in-depth analysis and insights on the status of the National Shipbuilding Strategy (NSS) so far. Dr. Perry noted the tremendous success of the program particularly pertaining to the Domestic and Economic benefits that have been delivered and will continue to be delivered. He also noted that there is fundamentally a greater and more sophisticated appreciation and understanding of the complexity of building capable warships by organizations such as the PBO and the OAG.
He also reinforced the fact that the ships being delivered to the CCG and the RCN are being built because they have important mandates to fulfill in the safety, security, and defence of our nation on behalf of Canadians. A fact that he notes is unfortunately absent in many of the NSS conversations, particularly in the media. He went on to provide a very technical insight into how government will actually “pay” for these ships in the future. He observed that if PBO’s number is correct regarding the Canadian Surface Combatant program with an additional $17 billion required, the impact on the federal balance sheet would be roughly $300-350 million per year, and that won’t start until after the first ship is accepted by the Navy sometime after 2031. He then rhetorically asked, is that a significant sum when we are attempting to forecast our national budget from 2030-2070? Despite all of these positives, he did share his deep-seated concern that in the current environment it could or will be difficult to ensure the NSS “KEEPS SOLD”. He then provided a few recommendations for government and specifically the CCG/RCN to ensure the NSS “KEEPS SOLD” and for greater and more effective communications with all of government.
The 8th annual ShipTech Forum provided an invaluable and timely dialogue on the status and importance of the Shipbuilding/Ship Repair Sector in Canada. Despite the recognized challenges, the overall tone of the forum was that of optimism and a genuine belief that Canada has established a global leading maritime sector. A sector that will hopefully attract young Canadians to enthusiastically work in it, and if we continue to do this properly, compete successfully on the international stage. The “what” and the “how” are clear and all stakeholders need to keep reminding Canadians about the “why” this is important. The collective success of the Canadian Maritime Sector is predicated on ensuring the NSS “KEEPS SOLD”.
VAdm Ron Lloyd (Ret’d) was the Master of Ceremonies for ShipTech Forum 2021.