No need to test military equipment: officials

Canada says it’s not obligated to ensure purchases work

Canada is under no obligation to ensure the military equipment it purchases can actually do the job, federal officials are arguing, as they admit they have never tested the latest search and rescue gear to be used by the military and coast guard.

The admission by staff of Public Services and Procurement Canada is among the evidence in a complaint by two defence firms that argue the government’s decision to award a contract to a rival company was unfair.

The complaint was filed on July 27 with the Canadian International Trade Tribunal by Kongsberg Geospatial of Ottawa on behalf of Critical Software, a Portuguese firm. The complaint centres on the government decision to name MDA Systems the winner of a $5.6 million contract to provide software to help in search and rescue missions.

Critical Software, which teamed with Kongsberg to bid on the project, had originally raised concerns with the government about why the two companies’ proposal was thrown out on a technicality. The Critical Software system is used by more than 1,000 organizations, such as coast guards, police and military in more than 30 countries in Europe, Asia, Africa and South America.

But because Critical Software and Kongsberg didn’t provide a percentage figure of how many systems were in use in each region, their bid was disqualified by the government.

The two companies questioned that decision and were stunned when federal officials admitted they have never tested the winning system and didn’t actually know whether it meets the requirements of the Canadian Forces or the Canadian Coast Guard.

Public Service and Procurement Canada officials stated “Canada may, but will have no obligation, to require that the top-ranked Bidder demonstrate any features, functionality and capabilities described in this bid solicitation or in its bid,” according to the federal response provided to Kongsberg/Critical Software and included in its complaint to the trade tribunal.

The government noted in its response that such an evaluation would be conducted after the contract was awarded and insisted the acquisition process was fair and open.

Public Services and Procurement Canada declined to comment because the complaint is before the trade tribunal. MDA also declined to comment.

Ranald McGillis, president of Kongsberg Geospatial, said in an email to Postmedia that the firm hopes the complaint will lead to improvements in the procurement system.

“We filed this complaint because, in our view, the evaluation did not follow the process defined, resulting in a competition that was neither open nor fair,” he noted. “We were concerned when we learned that at least one of the mandatory requirements for this project was not actually evaluated at all.”

In the meantime, coast guard officials have sought to purchase some of the technology that had been originally offered by Critical Software and Kongsberg, according to company officials. The software, which includes a mapping component, allows users to plan and supervise a search and rescue mission.

“We were further concerned when the end customer came back to us after the contract was awarded, trying to purchase basic components of the required technology — which suggests that the evaluation missed the mark in providing the end customer with what they need,” McGillis stated.

The complaint asks the tribunal to order the federal government to reimburse the two companies for the cost to prepare their bid as well as any lost profits. No financial figure was included.

Kongsberg and Critical Software have been pursuing the Canadian contract for years.

In 2011, the Department of National Defence announced it had an urgent need to buy a web-enabled search and rescue mission management system application for use by the military and the Canadian Coast Guard. In 2013, the government published a notice to industry that it was looking for companies to bid on what it stated would be a commercial, off-the-shelf project.

Kongsberg expressed interest in bidding and defence officials suggested the firm might want to partner with Critical Software since that company was known for producing a top-notch system for maritime rescue.

There was little movement on the project until 2017 when Public Services and Procurement Canada issued a request for bids. But Kongsberg noted the request was also significantly different than what the government had originally sought.

The trade tribunal has acknowledged receiving the complaint but it is unclear at this point how it will proceed.