August 28, 2018 | Local, Aerospace

Airbus aggressively sourcing more Canadian content

When Tom Enders, then the chief executive officer of Airbus, announced in October 2017 that Canada would become the company's fifth home country and first outside of Europe, following a deal with Bombardier to acquire a majority stake in the C Series passenger jet, small- and medium-sized Canadian aerospace companies had reason to be optimistic.

Canada has typically ranked eighth or ninth among Airbus suppliers. But with the C Series now firmly under the Airbus tent (it was renamed the A220 in July), a contract award in 2016 to provide the Royal Canadian Air Force with 16 C295W fixed-wing search and rescue (FWSAR) aircraft, and looming competitions for a future fighter jet and strategic tanker and transport aircraft, Airbus is aggressively sourcing more Canadian content.

Before you make your pitch, however, Ruben Tauste Caro, responsible for Airbus's strategic procurement in North America, has a few words of advice: no bashing the competition, no me-too products, and go easy on the wonders of your new shop floor machinery.

“I want you to tell me that you work in a very, very dedicated frequency. And in that frequency, I want you to tell me that you are the expert in a very specific niche. Then you've got me,” he told the Abbotsford Aerospace, Defence and Security Expo in August.

Airbus routinely conducts in-person assessments of its prospective suppliers and, while cost, quality, and on-time production are obvious baseline requirements, what interests Tauste Caro are signs of continuous improvement and true innovation. He said companies that claim to build a better mouse trap or be a one-stop shop for all his supply needs are quickly dismissed.

“Tell me what you are really, really good at, and if I have an opportunity in the future, that will be yours,” he said.

Continuous improvement need not involve large investments. A dashboard with measurable targets will suffice if it clearly shows progress, said Tauste Caro. “Show me your KPIs [key performance indicators]. If you don't [meet] a target that month, do you have an action behind it?”

A clear ability to set and reach targets is important, he emphasized, because if there is ever an issue with product quality, “The question is, will you overcome that issue? Do you have the right procedures, the right way of working? Is your workforce engaged?”

That's why he also asks questions about innovation. Most companies have a tendency to highlight their shop floor. While new machines and robotics are important, he always looks beyond to the people operating them.

“Innovation is people,” he said. “{They] are the key parameters in the innovation equation...[D]on't waste time on machines, tell me your way of working.” In particular, how do ideas move from the shop floor to the C-suite?

For suppliers eyeing opportunities with Airbus's commercial aircraft production, an ability to ramp up production and deliver at high rates is critical. “This is extremely important,” he stressed. “We cannot afford to have one aircraft system stopped in the warehouse.”

Tauste Caro heads a small four-person team responsible for supplier identification and development throughout North America, so he encouraged companies to call or “knock on the door,” to keep him apprised of product changes, expansion plans, new strategies, and contract awards.

“Feed me with that information. That is the daily bread and butter of my job within strategic procurement,” he said, explaining that if he's asked to recommend a supplier, “I have to be able to answer right away.”

While ramp-up of A220 production this year and delivery of the first FWSAR aircraft in 2019 might mean more opportunities for Canadian suppliers, Airbus is particularly focused on the value proposition it can offer in a future fighter jet and air-to-air refuelling aircraft competition.

“We need to work with you right now,” he told executives at the Abbotsford trade show, to identify industrial and technological benefits (ITBs) proposals for both programs and meet FWSAR obligations.

There is a “huge requirement” for ITBs within the fighter jet program, he noted. “We need to be creative, we need the suppliers.”

https://www.skiesmag.com/news/airbus-aggressively-sourcing-more-canadian-content

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October 4, 2018 | Local, Aerospace

Sea King disposal underway
by Lisa Gordon The 55-year reign of the Canadian Sea King is coming to a close. In December, a crew from 443 Maritime Helicopter Squadron in Patricia Bay, B.C., will fly the CH-124 Sea King on its last flight for the Royal Canadian Air Force (RCAF). Earlier this year, their counterparts at 423 Maritime Helicopter Squadron in Shearwater, N.S., marked the aircraft's final East Coast mission on Jan. 26, 2018. While five helicopters are still operational until the end of the year in B.C., Canada's remaining 23 Sea Kings have been retired and are currently making their way through the fleet disposal process. Administered by the Department of National Defence (DND) and Public Services and Procurement Canada (PSPC), this process aims to repurpose, sell or otherwise dispose of the old helicopters in a safe and environmentally responsible manner. While final arrangements for the aircraft are subject to change, DND told Skies on Oct. 2 that eight of the 28 remaining aircraft will be publicly displayed by the Canadian Armed Forces at various military bases and museums across the country. Another airframe will be retained by the Royal Canadian Air Force (RCAF) as a training aid, and one will be displayed at the Canada Aviation and Space Museum in Ottawa. Three aircraft were demilitarized and scrapped due to their poor condition, with components being recycled where possible. The remaining 15 Sea Kings and their associated parts — 12 are currently located at 12 Wing Shearwater and three are at Patricia Bay — are now for sale, a process that is being administered by PSPC. “Essentially, we have a website that is used to source interest for controlled and sensitive assets that are for sale,” explained Josée Doucet, manager of the GCMil group at PSPC, which deals with the disposal of surplus Canadian military goods. “In this case, we put the Sea Kings up for sale. Once we had expressions of interest, we held a bidders' conference on Sept. 26 in Shearwater, to showcase those aircraft. It gave bidders the chance to look at them, ask questions regarding the assets, and gave them an idea of what they are bidding on.” The helicopters are being sold in “as is, where is” condition. Doucet said she was very pleased by the number of potential bidders who attended the Shearwater event. “Now, the interested parties will receive a package from my office and be invited to submit a bid. There will be a timeline as to when we will start reviewing offers.” While Doucet said that timeline has not yet been finalized with DND, she indicated the goal would be to have a purchase agreement in place by the time the Sea Kings cease flying on Dec. 31. “It's a very aggressive timeline, so the offer to purchase dates will respect that.” Preparing for Sale Before the Sea Kings went on the market, controlled goods and military equipment were removed from the airframes wherever possible. Doucet said all Canadian bidders must be registered in the Controlled Goods Program. Interested foreign purchasers must be enrolled in their nation's equivalent program, which allows them to view military assets. “We have a number of processes. We only deal with registered Canadian companies, pre-approved foreign governments or authorized representatives of original equipment manufacturers. Only then would they be allowed to bid.” While Doucet declined to estimate the Sea Kings' worth, she said a myriad of factors are considered when selecting the winning bid. These include single-asset or full-lot bids, depreciation, condition of the fleet, and the costs to DND to maintain the helicopters as they await sale. “We also look to see if a bidder has an approved clear end use for the helicopters. What is the likelihood of obtaining export approval, as well as third-party approval from the country of acquisition — in this case the United States. We look at all that, because we don't want to exert efforts in an area that would not be fruitful.” Ultimately, she said fleet value will be driven by market demand. “I would have to say that from a commercial application perspective, the Sea King fleet has a lot of life left in it. Whether the fleet will be used as a gap measure, or to refurbish and resell, or to convert to commercial applications, the value will be subject to its intended end use.” A Lasting Legacy Canada accepted its first CH-124 Sea King at the Sikorsky plant in Connecticut on May 24, 1963. Since then, the maritime helicopter has earned its legendary status in the Canadian Armed Forces, serving with distinction on Her Majesty's Canadian Ship Bonaventure (the country's last aircraft carrier, retired in 1970), as well as on St. Laurent-class destroyer escorts, Iroquois-class destroyers, auxiliary oiler replenishment ships, and Halifax-class frigates. No other aircraft in Canadian service has ever commanded such a lasting multi-generational legacy. While 15 Sea Kings are destined for new homes, nine will remain on public display to ensure its story will never be forgotten. It's a fitting tribute to a King that ruled the waves for more than half a century. https://www.skiesmag.com/news/sea-king-disposal-underway
October 30, 2018 | Local, Aerospace

Ottawa releases draft tender on purchase of new fighter jets
Murray Brewster · CBC News It's the first sign of movement on the file since the competition was launched almost a year ago The effort to replace the air force's aging fleet of CF-18 fighters took a small step forward Monday when Public Services and Procurement Canada released a draft tender and asked for feedback from the makers of new jets. There are five companies in the running: France's Dassault Aviation; Saab of Sweden; Airbus Defence and Space out of Britain; and Boeing and Lockheed Martin in the U.S. The manufacturers will have about eight weeks to comment on various aspects of the proposed tender before the government finalizes the document. A full-fledged request for proposals is not expected to be released until the new year. The department said input from the manufacturers "is critical to the overall success of this procurement and for selecting the right fighter aircraft to meet Canada's needs." A slow process It has been almost a year since Defence Minister Harjit Sajjan formally "launched" competition to replace the CF-18s, which were originally purchased in the 1980s but have received significant upgrades in the decades since. At the same time, Sajjan also announced the federal government would buy used Australian F-18s of the same vintage as Canada's current fighter fleet. That purchase is meant to serve as a stopgap to ensure the air force can meet its NATO and NORAD commitments at the same time. The Liberal government is looking to buy 88 new jets, but the first ones aren't likely to arrive until the mid-2020s. The competition among manufacturers for Canada's business is expected to be fierce. Lockheed Martin will pitch its F-35 stealth fighter, which the former Conservative government was prepared to buy until the auditor general criticized both Public Works and National Defence in 2012. The AG said, among other things, that the departments had not done enough homework to justify the multi-billion-dollar purchase. Boeing is in line to offer the Super Hornet — a larger, more advanced version of the F-18 — but the Chicago, IL.-based company and the Liberal government traded blows last year in a dispute over passenger jets and Bombardier. The Liberals initially had planned to buy Super Hornets as a stopgap instead of the Australian fighters, but cancelled the purchase because of the dispute. Advantage: Europe? Airbus plans to offer its Eurofighter Typhoon. Saab will pitch the latest version of its Gripen, while Dassault has the Rafale. The European aircraft-makers all privately expressed optimism about the competition last spring at an Ottawa defence industry trade show. For years, Canada has been seen as favouring U.S. manufacturers because of what the military called "interoperability issues." But recent trade disputes and political tensions between Ottawa and Washington have given contractors outside of North America a morale boost. https://www.cbc.ca/news/politics/ottawa-releases-draft-tender-on-purchase-of-new-fighter-jets-1.4882570
June 18, 2020 | Local, Aerospace

Canada to buy more than $1 billion of missiles, related equipment from U.S. for CF-18 fighters
David Pugliese • Ottawa Citizen The U.S. government has cleared the way for Canada to buy more than $1 billion worth of new missiles and related equipment for the Royal Canadian Air Force's CF-18 fighter jet fleet. The U.S. State Department approved the proposed sale to Canada for the 50 Sidewinder AIM-9X Block II Tactical missiles, radars and other various equipment for an estimated cost of $862.3 million U.S. ($1.1 billion Canadian). U.S. Congress was informed of the deal on Monday. The Defense Security Cooperation Agency in the U.S. announced the news on Tuesday. The companies involved in the sale are U.S. firms, Raytheon, General Dynamics, Boeing and Collins Aerospace. “This proposed sale will support the foreign policy and national security objectives of the United States by helping to improve the military capability of Canada, a NATO ally that is an important force for ensuring political stability and economic progress and a contributor to military, peacekeeping and humanitarian operations around the world,” the Defense Security Cooperation Agency stated in its announcement. ”This sale will provide Canada a 2-squadron bridge of enhanced F/A-18A aircraft to continue meeting NORAD and NATO commitments while it gradually introduces new advanced aircraft via the Future Fighter Capability Program between 2025 and 2035.” Besides the 50 Sidewinder missiles, the deal will include training missiles, guidance systems, 38 specialized radar units, 20 Joint Standoff Weapons as well as support equipment. In an email the Department of National Defence stated that the U.S. approval for the missiles and related equipment is part of the “Hornet Extension Project” or HEP. That is part of the overall $1.3 billion project cost and fleet maintenance costs, it added. “HEP will also provide upgrades to sensors, weapons, and survivability, as well as security enhancements,” the DND noted. https://ottawacitizen.com/news/national/defence-watch/canada-to-buy-more-than-1-billion-of-missiles-related-equipment-from-u-s-for-cf-18-fighters

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