August 30, 2019 | Local, Aerospace
by Murray Brewster
One of the companies in the race to replace Canada's aging fleet of CF-18 jet fighters has dropped out of the competition.
Airbus Defence and Space, which was pitching the Eurofighter Typhoon, notified the Liberal government Friday that it was not going to bid.
The decision was made after a detailed review of the tender issued by the federal government in mid-July.
The move leaves only three companies in the contest: Lockheed Martin Canada with its F-35; Boeing with the Super Hornet; and Saab, which is offering an updated version of its Gripen fighter.
Simon Jacques, president of Airbus Defence and Space Canada, made a point of saying the company appreciated the professional dealings it had with defence and procurement officials.
"Airbus Defence and Space is proud of our longstanding partnership with the Government of Canada, and of serving our fifth home country's aerospace priorities for over three decades," Jacques said in a statement. "Together we continue in our focus of supporting the men and women of the Canadian Armed Forces, growing skilled aerospace jobs across the country and spurring innovation in the Canadian aerospace sector."
Airbus decided to withdraw after looking at the NORAD security requirements and the cost it imposes on companies outside of North America.
It also said it was convinced that the industrial benefits regime, as written in the tender, "does not sufficiently value the binding commitments the Typhoon Canada package was willing to make."
A controversial evaluation process
After complaints from the Trump administration, the Liberal government revised the industrial benefits portion of the tender to make it more fair to Lockheed Martin.
The changes to the evaluation process irked some competitors.
Under long-established military procurement policy, the federal government demands companies spend the equivalent of a contract's value in Canada as a way to bolster industry in this country.
The F-35 program is not structured that way. It allows Canadian companies to bid on the aircraft's global supply chain contracts.
There is, however, no guarantee that they'll get any of those contracts.
The recent revision ensures that Lockheed Martin will not be severely penalized for having a different system.
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Airbus, Boeing may pull out of fighter jet race they say is rigged for F-35
Last spring, Boeing executives voiced their concerns publicly during a defence trade show in Ottawa.
"I was surprised by the recommended changes," said Jim Barnes, the director of business development in Canada for Boeing Defence, Space & Security. "We believe we can put a really compelling offer on the table.
"You have a policy that's been in place for decades that has been very successful. The minister has mentioned this is a once-in-a-generation opportunity, so why would you deviate from a policy that has been so successful to accommodate a competitor?"
https://www.cbc.ca/news/politics/airbus-canada-fighters-1.5265665
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June 25, 2019 | Local, Aerospace
DAVID PUGLIESE The three Beechcraft King Air planes, to be based at CFB Trenton in Ontario, will be outfitted with sensors and equipment to intercept cell phone and other electronic transmissions. Canadian special forces and, potentially, other government departments will use them for missions overseas and in Canada. The agreement for the aircraft was finalized on April 26 with the U.S. government. Three aircraft and equipment will be delivered in the spring of 2022, the Canadian Forces noted. The federal government is also setting up a competitive process to select a company to maintain the aircraft and related systems for a potential period of 20 years. A Request for Proposals is expected sometime this summer. The agreement signed with the U.S. government is for $188 million (CAN). The value of the project is estimated at $247 million. The funding includes the acquisition of the aircraft and prime mission equipment from the U.S. and an initial portion of the associated in-service support of the aircraft. The main contractor is Beechcraft in Wichita, Kan. Canadian companies had wanted to provide the aircraft and on-board equipment, and several have formed alliances with U.S. firms who supply the Pentagon with the same or similar aircraft. But the Canadian military decided it needed the planes more quickly than they believed Canadian companies could deliver, and that U.S. security regulations governing the on-board sensor equipment might cause delays. As a result, it determined the U.S. government was the only supplier capable of providing the planes. DND has declined to provide an estimate of what that long-term support would cost taxpayers. RCAF pilots will fly the aircraft but members of the Canadian Special Operations Forces Command will operate the specialized equipment in the planes. The planes will be outfitted with electro-optical sensors that would allow the aircraft to track the movement of individuals and vehicles on the ground. Canadian special forces had access to similar aircraft in Afghanistan to track and target insurgents. https://ottawacitizen.com/news/national/defence-watch/canadian-special-forces-will-receive-three-new-surveillance-aircraft-aircraft-expected-2022