Briefing on the Market Analysis
Meeting with Companies May 31, 2013
- To provide details on the Pricing Questionnaire and the Industrial Benefits Questionnaire
- Respond to questions and provide information on next steps
Pricing Questionnaire - Approach
- Use Life Cycle Costing framework
- Request Rough Order Magnitude costing information
- Provides companies with required assumptions and cost estimates up-front
- Incorporates feedback from companies on draft Questionnaire
- Developed based on advice and oversight of Independent Review Panel (IRP)
The following table indicates the cost area and who is responsible for providing the data, its calculations and assumptions.
|Cost area||Calculation and assumptions|
|Acquisition||provided by companies based on 65 aircraft delivered in 2020|
|Sustainment||provided by companies based on 30 years operational life beginning in 2020|
|Operational||burn rate × 11,700 flying hours per year + fixed amount for personnel, base support, etc. provided by Department of National Defence (DND)|
|Attrition||provided by companies based on attrition rate and replacement cost|
|Disposal||fixed amount provided by DND|
|TOTAL||Sum of five cost areas|
Industrial Benefits Questionnaire
- appropriate for a market analysis
- provided in draft to companies for comment
- provides flexibility to provide info on potential benefits to Canadian industry, whether through Industrial and Regional Benefits, Industrial Participation, or both
- commitment to provide industrial benefits by generating high value-added business activity and whether proposed approach to engage industry to pursue potential benefits in Canada is acceptably comprehensive, complete and credible
Industrial Benefits Questionnaire - Assessment Guidelines
- Is the response sufficiently broad in scope and inclusive of key Canadian stakeholders?
- Are the activities identified to engage Canadian stakeholders sufficiently broad in scope?
- Are the stakeholders and activities identified appropriate?
- Does the proposed approach demonstrate the companies' understanding of Canadian aerospace and defence industrial capabilities and the characteristics of the sector?
- Does the proposed approach include a plan to identify, understand, and consider stakeholder aspirations, in the implementation of industrial benefits in Canada?
- Is the proposed engagement strategy to explore industrial benefits in Canada realistic and achievable, such that the probability of failure is low?
- Does the company's experience with offsets, both in Canada and abroad, suggest a likelihood of success in implementing an industrial benefits strategy in Canada?
- The Terms of Reference state that the public report will:
- Remain unclassified
- Be guided by the Seven-Point Plan principles of openness and transparency
- Respect applicable disclosure agreements with other governments and industry
- Will not contain any analysis that would reveal commercially protected or sensitive information
- Classified information will be contained in annexes available only to those with appropriate clearances
- Provide final Industrial Benefits Questionnaire to companies which reflects comments
- Bilateral meetings on June 11th, 12th and 13th with follow up clarifications as required
- Receive input for Pricing Questionnaire on July 5th, 2013
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