Numerous defence industry officials, who asked not to be named, say the problem with the military procurement system is that the Defence Department and Public Works expect top-of-the-line equipment for relatively modest budgets.
In some cases, the government expects custom changes to existing equipment that are unreasonable because Canada is buying such a small amount of gear, according to industry officials. In other cases, procurement budgets are unrealistic. For instance, in the case of the supply ships, industry officials say the military did not take into consideration that the price of steel has risen 40 per cent in the last several years.
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