ASD/Contracting Out

[Edward Campbell]

Why is it so hard to find someone to operate CFS Alert?  Previous tries here, here and here.

Wanted:

• Someone to calculate the latest Post Living Differential formula
• Someone to check out CFB Suffield's ecosystem

Look at the requirement: "... a single contract, which would include, but not necessarily be limited to: food services, roads and grounds maintenance, transportation services, vehicle and infrastructure maintenance services at CFS Alert. The requirement also includes support to other DND activities on Ellesmere Island, such as support to the DND facilities in Eureka, on an as and when required basis."

Consider, also, the duration: "... a period of five (5) years with options to extend the period of performance by one three (3) year period, and by a further two (2) year period."
Source: http://www.merx.com/English/SUPPLIER_Menu.asp?WCE=Show&TAB=1&PORTAL=MERX&State=7&id=PW-%24PSD-007-21646&src=osr&FED_ONLY=0&ACTION=&rowcount=&lastpage=&MoreResults=&PUBSORT=0&CLOSESORT=0&IS_SME=Y&hcode=rfgm1e6MAw%2bRKFm3gUJZxQ%3d%3d

I doubt that even a major engineering consortium like SNC Lavelin (at which I guess this contract is being aimed) can do all those things and make money in ten years.

Several members here have been to Alert and can attest to the fact that support services must work at about 95%+ effectiveness - to hell with efficiency or cost effectiveness - 27/7, year in and year out. Civilians are not accustomed to that level of service guarantee and they are, probably, not sure they manage it.

That's why some services, like air transport, cannot be contracted - CFS Alert needs the guarantee that the CF provides when it supports its own. There was, I believe, a good look given to contracting the air support to the terrestrial radio that connects Alert to the world.* I think that potential contractors simply laughed when told about the service level requirements so, I think,  the Air Force still flies technicians to visit the remote radio relay sites when repair or maintenance is required. I'm told it is some of the "hairiest" flying in the world.

But, a lot may have certainly has changed in the 20ish years since I last had any involvement.

ASD and contracting out and COTS and so on makes a lot of very good sense in a whole lot of areas - but sometimes the nature of the task makes it too hard for Canadian companies and this contract and the hard requirement for Inuit 'content' just adds to the burden.

__________
* Because Alert is beyond the 'footprint' of the high capacity satellites that are in geostationary orbit. The satellites in non-geostationary orbit, which can serve Alert, do not have enough bandwidth.

 

[Neill McKay]

I think you're right.  It looks as if a lot of risk is to be transferred to the prospective contractor. 

With ASD contracts the general rule is that you can transfer as much risk as you like, but you'll pay for it on what I suspect is an exponential curve.  It's well within the bounds of possibility that the contractor would have to pad his price considerably beyond the cost of providing the service internally, and on top of that his price is likely to include insurance that the government does not carry.  Sometimes the economics of it just don't work out.

 

[dapaterson]

And, in some bureaucracies, crafting an RFP that no one will bid on is in your interest, as it permits you to "prove" that you're the most cost-effective option, thus preserving and protecting your empire - since it's far more impressive to command the troops and the toys than it is to manage a contract.

(Not to suggest that this is necessarily the case here, but it is not unheard of)