The article discusses the challenges and necessary reforms in Canada's defense technology sector, emphasizing the need for a new operational framework. Key points include:
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Prime-Sub Model: The current system where large primes (major contractors) dominate and subcontract to smaller companies is seen as an obstacle. Founders like Eliot Pence of Dominion Dynamics and Paul Ziadé of North Vector Dynamics advocate breaking out of this model by building their own platforms, controlling intellectual property (IP), and capturing margins.
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Procurement System: The federal procurement system is identified as a significant barrier to innovation and the development of domestic defense industries. It's criticized for being too cautious, leading to costly failures like the ArriveCan app incident where initial estimates were far off from final costs due to lengthy and complex requirements processes.
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Risk Tolerance: There's a need for higher risk tolerance in procurement practices, allowing for smaller, iterative projects that can fail fast and cheaply rather than large-scale procurements that take years and often end up obsolete before completion.
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Disaggregation of Capability: Tovee suggests breaking down capabilities into smaller components to be procured separately, which allows for faster iteration and adaptation to changing requirements.
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**Defense
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