Michael Slack

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Michael Slack

Leveraging the North AmericanDefence Industrial Base for theWarfighter: Challenges andOpportunitiesInternational CooperationMichael SlackDirector Continental Materiel CooperationDefense Industrial Base Seminar and WorkshopsWashington, DCJune 16, 2010


Outline1. Current Environment – Canada2. Current Realities – Canada3. Current Environment – United States4. Current Realities – United States5. Future of International Cooperation6. DiscussionASSISTANT DEPUTY MINISTER (MATERIEL) • SOUS-MINISTRE ADJOINT (MATÉRIELS) 1


Current EnvironmentCanadaASSISTANT DEPUTY MINISTER (MATERIEL) • SOUS-MINISTRE ADJOINT (MATÉRIELS) 2


Canada First Defence Strategy(policy)• Clear vision for Defence• Comprehensive 20-year plan based on:• Global security environment;• Government level of ambition;• Military requirements – operational experience, optimal mixof capabilities;• Fiscal envelope.• Plan will deliver the flexible, combatcapablemilitary that Canadians expectand deserve – excellence at home andleadership abroad.ASSISTANT DEPUTY MINISTER (MATERIEL) • SOUS-MINISTRE ADJOINT (MATÉRIELS) 4


Canada First Defence Strategy(Investments)PREVIOUS INVESTMENTS MENTIONED IN CFDS1. Strategic Airlift Capability (4 C-17s)2. Tactical Airlift Capability (17 C-130Js)3. Medium to Heavy Lift Helicopter (6 Chinook D and 15Chinook F)MANDATED BY CFDS1. 15 Destroyers and Frigates2. 17 Fixed Wing Search & Rescue Aircraft3. 65 Next-Generation Fighter Aircraft4. 10-12 Maritime Patrol Aircraft5. Land Combat Vehicles and SystemsASSISTANT DEPUTY MINISTER (MATERIEL) • SOUS-MINISTRE ADJOINT (MATÉRIELS) 5


Current RealitiesCanadaASSISTANT DEPUTY MINISTER (MATERIEL) • SOUS-MINISTRE ADJOINT (MATÉRIELS) 6


2010 Defence Budget• Total Defence Budget 2010-2011: $20.6 Billion• As part of efforts to reduce the projected budgetdeficit in 2010-2011 the Government announcedausterity measures involving most GovernmentDepartment spending to be reduced.• The Government will reduce growth in NationalDefence’s budget by $525 million in 2012–13 and$1 billion annually beginning in 2013–14.• Defence spending will continue to grow but moreslowly than previously planned.ASSISTANT DEPUTY MINISTER (MATERIEL) • SOUS-MINISTRE ADJOINT (MATÉRIELS) 7


Strategic Review (SR)Purpose of SR1. Strategic Reviews aim to improveexpenditure planning, spending andoversight across government. The SRprocess requires DND to:A. Comprehensively assess 100% of direct programspendingB. Identify 5% of this spending for potentialreallocation across government or reinvestmentwithin DND2. SR process must complete by Mar 2011ASSISTANT DEPUTY MINISTER (MATERIEL) • SOUS-MINISTRE ADJOINT (MATÉRIELS) 8


Current EnvironmentUnited StatesASSISTANT DEPUTY MINISTER (MATERIEL) • SOUS-MINISTRE ADJOINT (MATÉRIELS) 9


Recent and ongoing United Statesmilitary operations• Afghanistan (94,000 personnel)• Iraq (92,000 personnel)• Counter-piracy in Horn of Africa (Combined TaskForce 151)• Counter-Terrorism and Homeland SecurityASSISTANT DEPUTY MINISTER (MATERIEL) • SOUS-MINISTRE ADJOINT (MATÉRIELS) 10


Current RealitiesUnited StatesASSISTANT DEPUTY MINISTER (MATERIEL) • SOUS-MINISTRE ADJOINT (MATÉRIELS) 11


Quadrennial Defense Review 2010• Rebalances US military capabilities and reforms defence processesand institutions to– Prevail in today’s wars– Prevent and deter conflict– Prepare to defeat adversaries and succeed in a wide range ofcontingencies– Preserve and enhance the All-Volunteer Force• Emphasizes flexibility of the force and investment in key enablers• Sets the force on a path toward sustainable rotation• Integrates activities with other U.S. Government agencies and alliesand partners• Initiates a cooperative, tailored approach to global defence postureINDUSTRIAL BASE• Robust and capable defense industry essential to US interests• Department will rely on market forces to sustain industrial andtechnological capabilities but be prepared to intervene whenabsolutely necessary to create and/or sustain competition,innovation and essential industrial capabilities• Recognizes the value of allied defence industrial capacities.• DoD will continue to rely on allies’ capabilities and ensure fairnessin the procurement processes within the US• Deepen collaborative effort with allies to innovate against 21 stcentury threatsASSISTANT DEPUTY MINISTER (MATERIEL) • SOUS-MINISTRE ADJOINT (MATÉRIELS) 12


Defense Budget• Congress has proposed a defence budget of$663.8B for 2010. Represents a 3 % increaseover 2009 budget.• Compared to 2009 Budget, O&M, militarypersonnel and RDT&E increased by 4.2%, 5.0%and 1.3% respectively• Defense procurement decreased by 1.8%.ASSISTANT DEPUTY MINISTER (MATERIEL) • SOUS-MINISTRE ADJOINT (MATÉRIELS) 13


Future of InternationalCooperationASSISTANT DEPUTY MINISTER (MATERIEL) • SOUS-MINISTRE ADJOINT (MATÉRIELS) 14


Supporting the Warfighter:Challenges• Need to continue major military operations forforeseeable future• Lower budgets for defence• Balancing the need for low tech and high techsolutions• Buy American legislationASSISTANT DEPUTY MINISTER (MATERIEL) • SOUS-MINISTRE ADJOINT (MATÉRIELS) 15


Supporting the Warfighter:Opportunities• Maintaining and upgrading existing systems willbecome a greater priority vis-à-vis thedevelopment of new programs• Increased repair and overhaul for equipmentreturning from operations• Greater need to leverage internationalcooperation to reduce costs and spread riskASSISTANT DEPUTY MINISTER (MATERIEL) • SOUS-MINISTRE ADJOINT (MATÉRIELS) 16


Conclusion• Cooperation is even more essential• Leveraging the most capability with the lowestcost benefits the Warfighter• Challenges exist in Canada-United Statesdefence materiel relationship, but…• Opportunities for collaboration exist betweenCanadian and United States industry andbetween two governments• Key is timely identificationASSISTANT DEPUTY MINISTER (MATERIEL) • SOUS-MINISTRE ADJOINT (MATÉRIELS) 17


DiscussionASSISTANT DEPUTY MINISTER (MATERIEL) • SOUS-MINISTRE ADJOINT (MATÉRIELS) 18

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