Background
Over the years the dress of the day has changed for military personnel. Most personnel now wear operational clothing-Canadian Disruptive Pattern (CADPAT), naval combat, flying dress and Air Force combat (currently being implemented)-as normal dress of the day rather than Distinctive Environmental Uniforms (DEU). The new dress regulations throughout the CF have inadvertently created inequities with respect to replacement of clothing.

The Clothing Upkeep Allowance (CUA) is a monthly non-taxable benefit paid to CF members to offset out-of-pocket purchases of DEU items. When the CUA rates were last reviewed in 1992 many more members than today wore their DEU on a daily basis and thus replaced pieces of that kit regularly. However, today the vast majority of members wear operational clothing that is replaced free of charge as needed. As a result, military members who must wear and pay for the replacement of DEU are placed at an economic disadvantage relative to their colleagues in operational dress.


The current CUA rates were established in 1992 in conjunction with Treasury Board, and stand at $17.05 for men and $20.73 for women. This figure was based on the average replacement intervals and associated retail costs for DEU items as estimated in 1992.

Although CUA rates have not increased, the procurement cost of DEU items has increased considerably, resulting in heavy subsidization of CF clothing store prices. If CUA were updated to reflect present-day procurement costs, current scales and usage patterns, it could result in 24 different scales of entitlement.

As well, most military members have cut back on their CUA spending by wearing the new operational clothing as normal dress of the day. Based on FY 04/05, the total CUA paid to CF Regular Force members with more than one year of paid service was $11,770,920.00. The actual amount received by the department for DEU cash sales during the same year, however, was only $660,453.88. This represents only a 6 per cent return.

Since FY 95/96, the percentage of CUA credited to the military member's pay, when compared to the actual percentage spent on the purchase of DEU, has decreased from a high of 40 per cent to a low of 6 per cent.

Scope
Due to the changing circumstances in the dress of the day, the Department of National Defence (DND) found that the CUA no longer satisfied its intended purpose. The Department took steps to modernize the system for replacing DEU to ensure fairness for all military members.

First, DND improved the efficiency of CF clothing procurement, issue and usage with the implementation of a cost-effective, contracted online purchasing system for replacement DEU. Clothing Online allows military personnel to purchase their DEU items directly from the contractor and have them delivered to the address of their choice. This program has finished a successful trial, with high customer satisfaction rate, and is being adopted for general use.

The points-based replacement system
The points-based system reflects changes in dress of the day throughout the CF. Its introduction will enable CF personnel to keep their DEU in good condition and meet dress requirements regardless of uniform worn or work location.

The points-based replacement system is founded upon an assignment of points. The points would be based on the scales of entitlement, which represent the clothing requirements across the CF.

Two new usage tiers have been introduced that reflect the member's usual dress of the day. Tier one applies to personnel in units that usually wear DEU, while tier two applies to individuals in units that usually wear operational clothing such as CADPAT, Light Weight Combat Clothing (CEMS Project), flying gear or naval combat rig.

Total point allocation takes into account the life expectancy of each DEU item as well as the scales of issue and replacement cost. Due to more frequent wear, tier one personnel will naturally wear out those garments at a faster rate. Accordingly, personnel who routinely wear DEU will receive a higher allocation of points than those who usually wear operational dress.

To promote cohesion amongst all CF personnel and facilitate administration, the allocation of points has been harmonized. Tier one personnel will receive 600 points annually while tier two personnel will receive 200 points per year. Points will be assigned to the members online annually based on information extracted from Peoplesoft.

Unused points will automatically roll over until a maximum of 1200 points are accumulated. This equates to the approximate point value required to replace one complete scale of DEU issue.

The points-based replacement system will allow the user to go to an online application, login with a user ID and password, and redeem points towards DEU. For example, the user would order a short-sleeved white shirt, at 16 points; the points would then be subtracted from their bank. Once a user has exhausted their annual allocation of points, they would be unable to order any further clothing on a point basis until they receive their next annual allotment. However, measures will be in place within the supply system to ensure that anyone facing extenuating circumstances could acquire their necessary items of kit. Members would also have the capability to purchase garments Online at the contract price.


Benefits of the points system
The points system replacement of DEU items is an improvement over CUA in that:

• it will enable equitable treatment of all CF members in the issue and maintenance of their dress uniforms (DEU)
• it is easier to administer and keep current with future changes to cost, replacement interval, and scaled entitlement of DEU order of dress

Replacing CUA with the points-based system will save the Crown millions of dollars annually - funds that will be reallocated to other departmental priorities.

The rollout date for this new system is 01 September 05.



For a listing of the points cost per item and maximum annual
order quantity, click here. (internal users only)

Frequently Asked Questions (internal users only)