On October 26, 2010, the Auditor General of Canada, Sheila Fraser, tabled her Fall Report in the House of Commons. Chapter 6 of the Auditor General’s Report, “Acquisition of Military Helicopters,” examines the acquisition of the CH-148 Cyclone maritime helicopter to replace the CH-124 Sea King and the acquisition of the CH-147 Chinook for a new Medium- to Heavy-Lift Helicopter capability. Specifically, the chapter examines how the Department of National Defence (DND) and Public Works and Government Services (PWGSC) managed these acquisitions as well as the contract award process. The findings and recommendations of the Auditor General are found on the Office of the Auditor General of Canada’s website, at the following link: http://www.oag-bvg.gc.ca/internet/English/parl_oag_201010_06_e_34289.html

The Department of National Defence welcomes the findings and recommendations of the Auditor General, and summarizes its response as follows:

Recommendations of the Auditor General:

The Department of National Defence agrees with the recommendations made in Chapter 6 of the Report of the Auditor General and is taking action to address each one.

The Maritime Helicopter Project and the Medium- to Heavy-Lift Helicopter Project

Overall, the Department of National Defence considers the Maritime Helicopter Project (MHP) and the Medium- to Heavy-Lift Helicopter (MHLH) projects to be highly successful. Both MHP and MHLH will deliver world-class capabilities to the Canadian Forces, and are on track to remain within their approved funding envelopes.

Improving Defence Procurement

The Department of National Defence takes the challenge function of its oversight boards very seriously and will continue to improve its project approval policies, processes, and guidance.

The Government has also taken a number of steps in recent years to improve and streamline the defence procurement process, which has enabled the Government to introduce and replace new capabilities at a faster pace than ever before while ensuring the best value possible for Canada with each acquisition.

In line with the Canada First Defence Strategy, the Government of Canada is committed to providing the men and women of the Canadian Forces with the right equipment to enable them to carry out their important tasks at home and abroad, through a best value procurement approach.

The Department is finalizing a Management Action Plan which will be released and identify a detailed course of action in response to Chapter 6 of the Fall 2010 OAG Report.