Development (Capability Development)

Development is the process of creating, improving, or bringing a defence capability, system, platform, or related solution to the required state. In defence procurement the term most often appears as capability development, which covers identifying what a force needs and then building, upgrading, and maintaining the platforms and tools that deliver it.

NATO uses the term in this form, and Canadian defence buyers work within the same logic. Canadian suppliers meet development in Department of National Defence (DND) projects, in research and development (R&D) contracted through Public Services and Procurement Canada (PSPC), and in multinational projects where several Allies develop a capability together.

How NATO describes capability development

NATO states that Allies ensure the Alliance has the capabilities it requires by developing and maintaining platforms and tools. NATO supports this work by assessing Alliance-wide needs, setting development targets, and assisting national, multinational, and collective development of platforms. The full description is on the NATO capability development page.

The NATO Defence Planning Process (NDPP) is the framework behind this activity. It facilitates the identification, development, and delivery of present and future NATO capability requirements. Development, in this sense, is one stage in a planning cycle that starts with a need and ends with a capability in service.

Development compared with procurement

NATO treats development and procurement as related but distinct activities. Development creates or improves the capability. Procurement is the acquisition process. NATO's procurement manual describes procurement as the end-to-end process that begins with an unmet need and ends with contract closeout.

NATO also states that multinational development and procurement can generate economies of scale, reduce costs, and improve interoperability. Its High Visibility Projects allow groups of interested countries to pool resources to jointly procure, develop, and deliver defence capabilities, as set out under multinational capability cooperation.

Where development appears in Canadian defence procurement

NATO states that most systems enabling the Alliance's critical capabilities are nationally owned, procured, and operated by individual Allies. For Canada, that places capability development inside DND's own project process. The defence purchases and upgrades process moves from capability and project planning to implementation. During implementation, the project team ensures that contracted goods or services are delivered as stipulated in the contract and that the project stays within scope, schedule, and budget.

PSPC is the contracting authority for most of this work. The Procurement Branch is identified as the contracting authority for commercial goods, services, and R&D in the defence procurement system overview. Development work that involves research, prototyping, or new system design is therefore typically contracted through PSPC on behalf of DND.

• Capability development: planning and delivering the platforms and tools a force needs.
• Research and development: contracted through PSPC as a distinct category of requirement.
• Major projects: development of defence platforms and systems carried through to delivery.
• Multinational projects: groups of Allies jointly developing capabilities to close an identified gap.

What development means for a supplier

Read the solicitation closely to see what kind of development it describes. The word can point to R&D, a capability-development activity, system or platform development, prototype work, or development followed by production. Each carries different deliverables, schedules, and risks.

The solicitation and the resulting contract set your concrete obligations. Confirm the scope, the schedule, the budget, and whether the work ends at development or continues into production. Defence opportunities are listed on the PSPC defence and security opportunities page. If a requirement links to a multinational project, check for interoperability requirements that apply to your solution.