DND's R&D branch plans to increase capacity with special operating status

Laboratories of the Department of National Defence (DND) are aiming to exploit their increased operating flexibility, and generate an additional $40 million in annual R&D capacity through greater collaboration and additional contract work. The push for increased R&D capacity comes as the R&D branch - Defence Research and Development Canada (DRDC) - is transformed into a special operating agency (SOA), and sets the stage for a renewal of DND's R&D muscle after years of debilitating budget cuts.

"The strategy is to increase the capacity of the department by $40 million - about $10 million through fees for services, $12-15 million through enhanced leverage with industry and $7 million through international leverage," says Dr John Leggat, assistant DM for science and technology and DRDC's CEO. "SOA status also puts us on an equal footing with our military customers, the army, navy and air force, and gives us the ability to function more freely."

The new status will also help raise the profile of the organization, allowing it to work more closely with the private sector and other government departments, thereby attracting more funding and more effectively leveraging its intellectual property. Instead of funding 100% of R&D projects conducted by industry, DRDC will now seek cost-sharing arrangements, with the private sector contributing 10-50% of applicable costs.

The introduction of risk-sharing accompanies the prospect of greater revenue generation, which the former CRAD (Chief Research and Development )could only do to a limited extent. DRDC's budget this year is approximately $190 million, with $15 million derived from fees for services and $5 million contributed by the three branches of the armed forces.

The ultimate goal, says Leggat is to contribute to Canada's innovative capacity by more effectively partnering with outside organizations and moving technology more quickly into the field.

A key element of the new strategy is the Technology Demonstration Program (TDP), a new program designed to accelerate the adoption of leading edge technology in the field and counter the rapidly changing mission requirements of the armed forces. Pegged at $30 million annually, the TDP is described as "an evolutionary refinement" of the Defence R&D Program, which has been terminated. Leggat says the funding will be used to pay for seven or eight projects each year, all in collaboration with industry, but does not include the cost of DND staff and personnel assigned to the projects.

"Technology can take eight to 12 years to move from the laboratories to the forces and we want to reduce that to five to eight years. We can do this through technology demonstration and it reduces risk before technology is introduced," says Leggat.

DRDC is also in the process of introducing a Technology Watch Program (TWP) to monitor the evolution of technology globally, particularly in the information technology and communications sectors. Designed to be a collaborative venture with other nations, the TWP will gauge the impact of new technologies on military affairs and operations.

"Many new technologies are being driven by the non-defence sector and we're worried that we won't have sufficient understanding of those technologies and where the next breakthroughs might be," says Leggat.

DRDC has long collaborated with universities across Canada and Leggat says this will continue, with the branch seeking ways to gain access to new funding sources such as the Canada Foundation for Innovation, the Canada Research Chairs Program and the Canadian Institutes of Health Research.

"We'll try and use facilities that may already be installed and piggyback and link with federal and provincial programs," he says.

The approval of SOA status by Treasury Board (TB) in late July completes a two-step process which saw DRDC replace the CRAD branch earlier this year. The charter for the new operational entity is jointly shared by DND and TB, meaning any changes must be approved by both parties.

SOA status also coincides with promotion of sorts for DRDC, which will now report directly to the DM instead of the ADM material. Leggat says that gives the DM delegated authority and a greater degree of autonomy, particularly in the area of human resources, and will also facilitate the integration S&T into departmental decision-making more effectively.

The granting of SOA status doesn't come with any increase in DRDC's R&D budget, however, but Leggat says he is optimistic additional funding will be forthcoming in the near future.

"DND and the Canadian forces will need more S&T and R&D as time goes on to modernize equipment and operations," he says. "We're talking to the department (DND) about R&D funding for new programs."

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