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December 3, 2020 | Local, Aerospace, Naval, Land, C4ISR, Security

After agreeing to $2B in deals with U.S.-based defence companies, Liberals ask DND for list of Canadian firms to quickly buy from

David Pugliese • Ottawa Citizen

Dec 03, 2020

Companies must be based in Canada and the work has to be completed relatively quickly, creating or maintaining domestic jobs.

After committing to spend more than $2 billion with American companies, the Liberal government wants to give a major boost to homegrown defence firms by moving ahead on projects that can purchase equipment for the Canadian military quickly from domestic companies to either create or shore up jobs.

Department of National Defence officials began looking in late April at options to provide support to the defence industry as the new coronavirus pandemic rocked the economy. DND and the government hoped the fast-tracked purchases would help Canada's economic recovery.

But so far, the four major purchases over the last several months for the Canadian military saw the Liberal government make major commitments with U.S.-based companies for work that will be done almost entirely in America and create or support hundreds of U.S. jobs. That includes the acquisition of new surveillance aircraft for Canadian special forces, the purchase of new systems and missiles for the air force's CF-18s, missiles for the navy and parts and equipment for C-17 transport planes.

The particular equipment ordered isn't built in Canada. In some cases, the U.S. firms receiving the work are exempt from the government's requirement to match the value of the contracts with the reciprocal purchasing of services or supplies from Canadian companies.

Now, the government has ordered DND officials to draw up lists of equipment that can be bought from Canadian firms. Companies must be based in Canada and the work has to be completed relatively quickly, creating or maintaining domestic jobs.

DND spokesman Dan Le Bouthillier confirmed options are being examined to help minimize the impact of COVID-19 on the defence industry. “We are looking at ongoing procurement projects to determine what we may be able to prioritize in order to ensure our defence industry partners are supported,” he said. “This is ongoing at this time, though no decisions have been made at this point.”

But Tamara Lorincz, a peace activist and PhD candidate in Global Governance at the Balsillie School for International Affairs, says many more jobs could be created in Canada if the money was directed into non-defence sectors of the economy.

She pointed to the 2009 U.S. study by University of Massachusetts, which examined the impact of spending $1 billion on both military and non-military areas. The non-military areas included clean energy, health care, and education, as well as for tax cuts which produce increased levels of personal consumption. The study concluded substantially more jobs were created by non-military sectors.

Lorincz noted that there were no comparable independent studies which have looked at the Canadian situation.

Lorincz and various peace groups are also questioning the Liberal government's plans to spend $19 billion on new fighter jets in the coming years. The money should instead go towards programs like national pharmacare or child care, she added.

Lorincz noted it costs $40,000 an hour to operate a F-35, one of the fighter jets being considered by the Liberals. That amount is close to the yearly salary of a long-term care facility employee, she added.

Christyn Cianfarani, president of the Canadian Association of Defence and Security Industries, said the country's defence industry can play an important role in the federal government's COVID-19 economic recovery plan.

The association has recommended to government that it accelerate military equipment project approvals, favour domestic firms as much as possible for future work, as well as focus on Canadian-based cyber firms for associated purchases as the government moves its employees to more remote work. Construction projects on bases could also provide local contractors with work, she added.

Canada's defence industry actually fared better than other economic sectors during the pandemic, Cianfarani noted. There were no significant layoffs and most firms have been able to continue operations and production. In addition, some companies switched to producing medical equipment or protective gear for use by hospital staff during the pandemic.

The Liberal government announced Monday it wants to spend up to $100 billion between 2021 and 2024 to help the economy recover from COVID-19.

https://ottawacitizen.com/news/national/defence-watch/after-agreeing-to-2b-in-deals-with-u-s-based-defence-companies-liberals-ask-dnd-for-list-of-canadian-firms-to-quickly-buy-from

On the same subject

  • Remplacement des CF-18: une occasion d’économiser et de répondre aux Américains

    August 27, 2020 | Local, Aerospace

    Remplacement des CF-18: une occasion d’économiser et de répondre aux Américains

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Par contre, son rayon d'action sur réservoirs intérieurs est limité et avec des réservoirs extérieurs, il perd beaucoup de sa furtivité. Étant l'appareil le plus récent, c'est celui qui dispose des systèmes électroniques les plus modernes. En fait, la principale faiblesse du F-35 réside dans le fait qu'il s'agit d'un avion extrêmement capricieux, qui est affecté par un nombre incroyable de problèmes techniques, dont plusieurs sont toujours non résolus à ce jour. Il en résulte qu'en moyenne, au moins 50 % des F-35 livrés ne peuvent voler, étant en révision/réparation. Ce taux de non-disponibilité est l'un des plus élevés de tous les avions militaires existants et on questionne fortement la capacité réelle de cet avion à livrer ses performances théoriques. Un bon exemple de cela est que, lors du dernier spectacle aérien de Bagotville, un des deux F-35 américains (qui n'ont pourtant présenté que deux courtes démonstrations de 15 minutes) est tombé... en panne ! Au niveau des performances/caractéristiques, le Super Hornet est supérieur à nos CF-18 actuels, mais inférieur au Gripen, qui est plus fiable que les deux autres. Cet appareil est aussi le plus rapide des trois, le plus maniable, celui qui a le meilleur rayon d'action et est le meilleur en termes de combat aérien. Par contre, la capacité du Gripen d'opérer avec les autres avions américains est questionnée. Pourtant, cet avion effectue régulièrement des missions conjointes avec ceux des autres pays de l'OTAN et il a été déclaré admissible à tous les appels d'offres de remplacement des CF-18. De plus, comme son coût d'acquisition/utilisation est de loin le plus bas des trois avions en lice, cela permet d'envisager que même en y ajoutant des frais d'adaptation au système d'interopérabilité du NORAD, il demeurera bien plus abordable que les deux autres. Au niveau financier, voici le coût total, par heure de vol, des trois appareils en dollars canadiens : le F-35, 58 300 $, le Super Hornet, 17 800 $ et le Gripen, 10 500 $ (source Aviatia). L'avion suédois est donc près de six fois moins coûteux que le F-35... Au niveau des retombées économiques au pays, le Canada est déjà un « partenaire industriel » du programme F-35. Cela signifie que plusieurs entreprises canadiennes (et québécoises) sont qualifiées comme fournisseur, à raison d'environ 2,6 millions $ par appareil. Au total, il a été estimé que 325 emplois seront ainsi créés au Canada (soit 9500 personnes/années en 30 ans). Le ministère de la Défense du Canada a affirmé à plusieurs reprises que faire partie du programme industriel F-35 ne nous oblige pas à acquérir obligatoirement cet avion. Cependant, en termes de retombées économiques canadiennes, il est utile de rappeler que depuis 2009, le F-35 est considéré par les Américains comme un appareil à technologie « sensible ». Cela signifie qu'une bonne partie de l'entretien qui est actuellement réalisé par nos militaires à Bagotville et à Cold Lake, ainsi que par l'entreprise qui a pris la suite de Bombardier à Montréal pour les CF-18 actuels, sera réalisé aux États-Unis dans le cas du F-35. Environ 2500 militaires et civils sont actuellement employés au Canada à l'entretien des avions de chasse. Combien perdront leurs emplois, notamment ici dans la région, si le F-35 est choisi ? De plus, durant les 30 ou 40 ans où nous utiliserons le F-35, les Américains ne pourraient-ils par augmenter sensiblement ces coûts d'entretien une fois que nous serons dépendants d'eux ? Pour le Super Hornet, le même niveau de retombées économiques qu'avec l'actuel CF-18 est à prévoir, alors que le fabricant du Gripen a déjà annoncé que, contrairement au F-35 ou au Super Hornet, il s'engage à le produire dans une nouvelle usine au Canada. Bien que théoriquement supérieur, le F-35 est donc un choix prohibitif en termes de coûts et hasardeux au niveau de la fiabilité ou du nombre d'emplois en entretien qui seront perdus au Canada. Le Super Hornet est un choix performant, beaucoup moins cher et plus fiable que le F-35. Le Gripen est de loin l'avion qui répond le mieux à nos besoins, au moindre coût et avec la fiabilité maximale. En terminant, souvenons-nous que le Super Hornet est fabriqué par Boeing, la même compagnie qui a réussi à faire imposer des droits compensatoires de 219 % aux Série C de Bombardier destinées aux États-Unis. Cela a précipité la chute de la division aéronautique du fleuron québécois, tout en lui faisant perdre sept milliards $ (dont deux provenaient du gouvernement du Québec). Le Gripen de SAAB est d'origine européenne. Ne pas toujours être dépendant des Américains, ça aussi, c'est défendre la souveraineté du Canada! Roger Boivin Président de Groupe Performance Stratégique https://www.lequotidien.com/opinions/carrefour-des-lecteurs/remplacement-des-cf-18-une-occasion-deconomiser-et-de-repondre-aux-americains-7015f0786a4fb446a03530adab548da5

  • New Classified Stream of IDEaS

    February 16, 2021 | Local, C4ISR, Security

    New Classified Stream of IDEaS

    Hello, The Department of National Defence (DND) and the Canadian Armed Forces (CAF) recognize that some of the largest and most challenging defence and security issues are classified in nature, and that defence technologies will increasingly be needed from sectors dealing with information and communication, cyber, and other emerging sensory and data processing technologies and software. DND/CAF are seeking innovative science and technology (S&T) solutions to Canada's classified defence and security Challenges through a classified Call for Proposals process. Classified challenges will have a Secret security designation. DND/CAF will support Challenges under the Classified Stream to increase the base of suppliers with classified capabilities to DND, and to address topics specifically linked to the mission of DND/CAF. The Classified Stream will enable the possibility to share secure information about classified Challenges so that tailored solutions may be proposed. The seven domains currently under consideration are as follows: Underwater Warfare Cloud-based Data Fusion and Automation Space Sensor Payloads Counter Explosive Threat (CET) Defeating Radio Controlled Improvised Explosive Devices (RC-IED) Counter-Uninhabited Aerial Systems (C-UAS) Soldier Systems Integration Public Works and Government Services Canada (PWGSC) is issuing this Request for Information (RFI) on behalf of the DND/CAF IDEaS program, to seek industry feedback on the potential development of a classified stream Call for Proposals (CFP). To view the RFI, please visit: https://buyandsell.gc.ca/procurement-data/tender-notice/PW-21-00945859 We welcome your input and look forward to launching the new Classified Stream of IDEaS soon! Thank you, Eric Fournier Director General Innovation Innovation for Defence Excellence and Security (IDEaS)

  • NORAD modernization to dominate agenda of Canada-U.S. defence relations, experts say

    February 8, 2021 | Local, Aerospace, Naval, Land, C4ISR, Security

    NORAD modernization to dominate agenda of Canada-U.S. defence relations, experts say

    Levon Sevunts, Radio Canada International The modernization of the North American Aerospace Defence Command (NORAD) will dominate the agenda of Canada-U.S. defence relations as the Biden administration gears up to repair relations with old allies and face emerging threats from resurgent Russia and ascending China, Canadian defence experts say. The continued modernization of the binational command created in 1957 was on the agenda of the first phone call between President Joe Biden and Prime Minister Justin Trudeau last month, and during the first calls of Canadiand and U.S. defence ministers, said Andrea Charron, head of the Centre for Defence and Security Studies at the University of Manitoba. “This is at the highest levels. When the U.S. is concerned about the homeland defence and they feel vulnerable, it's something that Canada has to take very-very seriously and I think that is what's happening,” Charron told Eye on the Arctic. Canadian defence expert Nancy Teeple said she expects the Biden administration to ask Canada to contribute more to continental defence. “It opens up the question of whether Canada will participate in missile defence, it's going to push Canada towards that new fighter capability,” said Teeple, who teaches at the Royal Military College of Canada and is Postdoctoral Fellow at the North American Defence and Security Network (NAADSN). The need for NORAD modernization is driven by changes in the strategic and the global geopolitical environment, Charron said. “Where as before the primary threat during the Cold War was one peer competitor, who wasn't using greyzone tactics, or at least not to the same extent as now, we now have two peer competitors to the U.S. – China and Russia – and they are using greyzone tactics, and they're developing more sophisticated weapons like hypersonic glide vehicle weapons,” Charron said. A new generation of threats The urgency of the NORAD modernization and the paths towards that goal were outlined last fall in a paper written for the Wilson Center's Canada Institute by the former U.S. NORAD commander, retired Gen. Terrence O'Shaughnessy, and U.S. Air Force Brig.-Gen. Peter Fesler, the current deputy director of operations at the U.S. air defence headquarters. In the paper, titled Hardening the Shield: A Credible Deterrent & Capable Defense for North America, O'Shaughnessy and Fesler argue that “with innovations in long range missiles and foreign missile defense systems as well as a changing Arctic landscape, threats to U.S. national security are closer and less deterred than ever from attacking the U.S. Homeland.” O'Shaughnessy and Fesler argue that both China and Russia have developed capabilities to target North America with a new generation of long-range and high-precision conventional weapons. They say that while the U.S. has invested billions of dollars into building ballistic missile defences to protect against strikes by rogue nations such as North Korea, Washington and Ottawa have neglected investments and upgrades of the continental defensive systems “designed to defend against the range of threats presented by peer competitors.” Moreover, the various systems in place in many cases simply can't automatically share information, they say. “The radars used by NORAD to warn of Russian or Chinese ballistic missile attack, for example, are not integrated with those used by Northern Command to engage missiles launched by North Korea,” O'Shaughnessy and Fesler write. “Even if the ballistic missile defense architecture were to detect a launch from China, it would not directly share that information with NORAD's missile warning systems. “The watch standers in the consolidated NORAD and Northern Command headquarters are forced to verbally pass information displayed on independent systems.” Putting up a SHIELD O'Shaughnessy and Fesler call for a “more holistic modernization effort” for NORAD. Northern Command and NORAD have collectively developed a modernization strategy for defence referred to as the Strategic Homeland Integrated Ecosystem for Layered Defence, or SHIELD, they write. “SHIELD is not a system, or even a system of systems, it is an ecosystem,” O'Shaughnessy and Fesler write. “It is a fundamentally new approach to defending North America.” SHIELD takes advantage of the data provided by traditional and non-traditional sources to provide a layered ability to detect any threat approaching the continent, from the seafloor to on orbit, in what NORAD and Northern Command refer to as “all domain awareness,” they write. “It pools this data and fuses it into a common operational picture. Then, using the latest advances in machine learning and data analysis, it scans the data for patterns that are not visible to human eyes, helping decision-makers understand adversary potential courses of action before they are executed.” ‘It's many things and they are already happening' Experts say figuring out Canada's role in this new “ecosystem” will be tricky politically and likely to come at a steep financial cost just as both Ottawa and Washington are deep in the red because of the economic fallout of the COVID-19 pandemic. “It's everything from, for example, the runways at Inuvik being extended because right now only the CF-18 Hornets can land there and we need to make it longer,” Charron said. “It's things like better communication in the Arctic because there seems to be the potential for more activity there.” Or it could be something like coming up with a new Combined Forces Air Component Commander to change the command and control structure and allow the NORAD commander to think more strategically rather than to be bogged down by the day-to-day tasks, Charron said. In addition, upgrades to NORAD capabilities also have to be guided by the need for information dominance, Charron said. “So it's many things and they are already happening,” Charron said. “For example there is a new program called Pathfinder, which is helping feeds from the North Warning System through artificial intelligence to glean more information that the North Warning System is actually picking up but current algorithms and analysts aren't able to see.” Teeple said Canada can also benefit from Washington's interest in developing continental defence, including the Arctic by developing infrastructure that has dual military-civilian use. “This provides incredible benefits if Canada can collaborate,” Teeple said. “And those benefits would be obviously involving collaboration, involving input from Northern Indigenous communities and developing systems that can enhance things like communications and other types of infrastructure in the North that would enhance their quality of life.” Canadian policy-makers should also think about some of the niche areas where Canada can contribute to the NORAD modernization and the continental defence, Teeple said. “So enhancing its sensor capabilities for early warning, obviously that involves the upgrading of the North Warning System,” Teeple said. Other roles for Canada could include non-kinetic disruptive capabilities, such as cyber capabilities, Teeple said. This could give Canada a more offensive role in the new SHIELD ecosystem that would be more palatable politically than hosting ballistic missile interceptors on its territory, she added. https://www.rcinet.ca/eye-on-the-arctic/2021/02/05/norad-modernization-to-dominate-agenda-of-canada-u-s-defence-relations-experts-say/

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