The Increased Costs of Restricting the Procurement of New Capability in Aircraft Modernisation

As an element of the Government of Canada, the Canadian Forces are constrained by many financial and administrative regulations intended to ensure that public funds are expended judiciously. When these regulations restrict the acquisition of an improved capability, they may force program managers to accept a less capable product than could be obtained were only a simple cap on the total program cost imposed.

The CP-140 Aurora Navigation and Flight Instruments Modernisation Project is studied, highlighting specific areas where restrictions upon which capabilities could be improved or added, rather than simply how much money could be spent, resulted in program delays and a less capable final product. Lessons about the problems associated with the acceptance of unsolicited capabilities in the contract proposal, the necessity of applying up-to-date standards when designing for the installation of modern equipment, and the difficulties with the retention and forced integration of old equipment with new, are identified and discussed. Suggestions are made which will allow future aircraft modernisation programs to avoid some of the problems encountered by the Navigation and Flight Instruments Modernisation Project.