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Backgrounder

Canadian Forces Contractor Augmentation Program

BG–04.010 - July 14, 2004

INTRODUCTION

For over a decade, the Canadian Forces (CF) has undertaken a number of contingency operations abroad. From significant operations in Bosnia-Herzegovina and Afghanistan to important missions in Africa, the Golan Heights and East Timor, these operations have placed considerable strain on military personnel, particularly those in specialized trades, and has thus constrained the ability of the CF to sustain its operations abroad. This heightened operational tempo has occurred in the face of a post-Cold War defence realignment, which saw the defence budget reduced and the size of the regular force reduced to 60,000 from 88,000 personnel.

To alleviate some of this strain, internal studies recommended that support services be contracted to the private sector where conditions permitted. Contractor augmentation would allow the CF to focus on its core roles, would improve the quality of life for CF members, and would ultimately provide the CF with additional operational flexibility. The resulting “Canadian Forces Contractor Augmentation Program” (CANCAP) contract was signed in December 2002. CANCAP provides a standing contractor capability that can be called-up when and where needed by the CF to support on-going or future operations.

BACKGROUND

In hostile environments, support services must be provided by military professionals. To ensure self-sufficiency, the armed forces of most nations retain a range of specialized military trades, from cooks to engineers. To augment these trades, the troops themselves are often assigned a host of secondary duties, on top of an already demanding workload. But peace support operations often last for many years in stable conditions; once-hostile regions can become relatively stable. Under such circumstances, the use of non-military support services contracted to the private sector can free-up military personnel for the core military roles where they are most needed.

Although specific types of services, like laundry, had been contracted out in the past, the full range of support services were first contracted out by Canada in 2000 under a program called the Contractor Support Program, or CSP. The focus of CSP was specific to the Canadian Contingent Stabilization Force (SFOR) in Bosnia. The contractor, engaging a mix of local and Canadian staff, took over a wide range of support services needed by Canada's troops. This included logistics support (e.g. cooking, laundry, and vehicle maintenance), buildings maintenance, and telecommunications services. Health care was not a part of this original contract. Those in military occupations that normally oversaw these services were freed-up to support operations in other places, and the reduction in secondary duties for the troops freed them up to focus on their core roles.

THE CANCAP PROGRAM

The CANCAP program was initiated by the Deputy Chief of the Defence Staff in July 2000. It has as its objectives:

To provide the Canadian Forces with additional operational flexibility through enhanced support capacity;
To free up military personnel for employment where their military skills are most needed; and
To concentrate on the preservation of support to Canadian Forces war fighting skills in our combat support and combat service support forces.

The CANCAP procurement process involved extensive consultation and communications with industry. The requirements included a prerequisite for Canadian content, and the evaluation methodology was based on the best technical submission with cost as a consideration.

A Request for Proposals (RFP) was issued in 2002 and six bidders were evaluated on their abilities to provide support to deployed operations abroad for up to 1,500 military personnel in any one location as well as for simultaneous support of two separate 1,500 military person operations anywhere in the world.

In December 2002, the Government of Canada awarded a pre-arranged support services contract to SNC-Lavalin/PAE Government Services. The CANCAP contract is for five years with options for 2, two-year periods and 1 one-year period. The contract is valued at $200 million for the initial five-year period and a further $200 million for the option years.

The CANCAP contract is designed as a framework to facilitate the delivery of services for up to 10 years during contingency operations. The contract provides a planning and management augmentation capacity and ready access to a world-class provider capable of supporting operations abroad. Each CANCAP support operation is a separately defined activity within the overall contract.

Contracted services provided by CANCAP can include any or all of the following:

Administration and Management;
Food Services;
Materiel Management and Distribution;
Communication and Information Systems;
Land Equipment Maintenance;
Health Services;
Transportation;
Accommodation and Support
Construction Engineering Services
Power Supply and Distribution;
Water Supply and Distribution;
Waste Management;
Facilities Operations and Management;
Roads and Grounds;
Fire Services;
Geomatics Support
Environmental Management; and
Ammunition Support.

As part of the contract, the contractor is required to provide a full-time planning staff, integrated with the CF's Joint Support Group (JSG) in Kingston, Ontario. Ultimately, the contractor must be capable, with 90 days notice, of sourcing, deploying, and managing all required support services for a deployed operation.

CANCAP IN BOSNIA-HERZEGOVINA

In September 2003, the CANCAP contractor assumed responsibility for the provision of support services in Bosnia-Herzegovina. The previous contractor had provided excellent support under the CSP program since 2000 and this high level of service has continued under the CANCAP program. The CANCAP contractor is responsible for the vast majority of the services listed above, with the exception of: ammunition support, health services, and geomatics support.

CANCAP IN AFGHANISTAN

Unlike in Bosnia-Herzegovina, where CANCAP assumed the support responsibility from a previous contractor, the 2003 deployment of some 2,200 personnel to Kabul in support of Operation Athena required the creation of two camps in an area of the world where there is little or no domestic infrastructure or support apparatus. The fact that in a span of less than three months the Canadian Forces and the CANCAP contractor were able to put in place a fully functioning city with power, sanitation, electrical and communications services is testament to the success of the CANCAP initiative.

As is the case in Bosnia-Herzegovina, the CANCAP contractor provides the majority of support services listed above, again with the exception of: ammunition support, health services, and geomatics support. In addition, the current security environment in Afghanistan precludes the contractor from providing transportation services as well as the local purchase order component of the materiel management and distribution support function.

The theatre activation in Kabul has not been without its challenges, but this is to be expected when mounting an operation of such magnitude. What should be noted is that when these challenges have arisen, both DND and the CANCAP contractor have worked collaboratively to remedy them.

FUTURE ACTIVITIES

The CANCAP contract value of $200 million was based on the contracted support required for a single 1,500-person mission, as was experienced in Bosnia, at a cost of approximately $40 million per year for five years. The costs of constructing the two camps in Kabul were approximately $50 million. The sustainment mission in Afghanistan at a cost of $85 million for the year, coupled with the continuing commitment in Bosnia-Herzegovina at a cost of $50 million per year, will consume a significant amount of the original five-year contract expenditure authority of $200 million. While there is sufficient contract authority available for planned support in both theatres until August 2004, the current contract value would not have permitted any additional work or new responsibilities for the near future.

For this reason, DND worked with Public Works and Government Services Canada to prepare a submission to Treasury Board, requesting an increase of $300 million in the initial $200 million five-year contract value. The increase in contract authority allows the Canadian Forces to continue to conduct missions overseas in support of Canada's foreign policy.

It is important to note that this increase is not the result of overspending or mismanagement of funds. It is recognition of CANCAP's value to the Canadian Forces in supporting operations abroad. In addition, an increase in contract authority does not commit DND to spending the additional funds, but will provide the Canadian Forces flexibility in support of operations.

CONCLUSION

While there is little doubt that CANCAP has provided extraordinary support to DND over the past two years, contractor augmentation does not replace a capability. A modern army must be capable of sustaining itself in hostile conditions, and the CF will retain this capability. At the same time, given the unprecedented demand for the CF on peace operations around the world, greater operational flexibility is needed—CANCAP offers this flexibility. Where local conditions permit, the CF can now turn to the private sector for augmentation, thereby freeing up limited and often critical resources to be employed where they are needed most. At the same time, the strain on CF personnel can be reduced and quality of life enhanced, both abroad and at home.

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