Back to news

May 31, 2019 | Local, Aerospace

Boeing surprised Canada changed rules of jet competition to allow Lockheed Martin bid

David Ljunggren

OTTAWA (Reuters) - Boeing Co is surprised Canada softened the rules of a competition for new fighters to allow Lockheed Martin Corp to submit a bid, but is still confident it has a chance, a top executive said on Wednesday.

Following a U.S. complaint, Ottawa this month said it planned to drop a clause stipulating that bidders in the multibillion dollar race to supply 88 jets must offer a legally binding guarantee to give Canadian businesses 100% of the value of the deal in economic benefits.

The original clause would have excluded Lockheed Martin's F-35 fighter, the plane the Canadian air force wants. The contract is worth between C$15 billion and C$19 billion ($11.1 billion to $14.1 billion).

“I was surprised by the recommended change ... why would you deviate from a policy that's been so successful to accommodate a competitor?” said Jim Barnes, the Boeing official in charge of trying to sell the company's F-18 Super Hornet jet to Canada.

The change in the rules around economic benefits was the latest wrinkle in a decade-long troubled-plagued effort to replace Canada's CF-18 jets, some of which are 40 years old.

The final list of requirements for the new fleet of jets is due to be issued in July.

“Right now we feel like we can put a very compelling offer on the table even with this change,” Barnes told reporters on the margins of a defense and security conference in Ottawa.

Innovation Minister Navdeep Bains - in overall charge of the benefits aspect of procurement - said in response to Barnes's comment that Ottawa would ensure the competition was fair.

Compelling bidders to offer watertight guarantees of economic benefits contradicts rules of the consortium that developed the F-35, a group to which Canada belongs.

Boeing is offering a binding commitment and Barnes said the firm would stress to Canadian officials the potential economic disadvantages of entertaining a non-binding bid.

An official from Sweden's Saab AB, another contender, told reporters that Canadians could lose out by ignoring contenders that had made firm investment commitments.

“I am concerned that the ability to respond to a non-binding environment may not necessarily give Canadians the best value at the end of the day,” said Patrick Palmer, head of sales and marketing for Saab Canada.

Airbus SE, the fourth firm in the race, declined to comment.

Reporting by David Ljunggren; Editing by Susan Thomas

https://www.reuters.com/article/us-canada-fighterjets/boeing-surprised-canada-changed-rules-of-jet-competition-to-allow-lockheed-martin-bid-idUSKCN1SZ2AA

On the same subject

  • Assessing the costs and benefits of Canada's 12-year F-35 odyssey

    March 30, 2022 | Local, Aerospace

    Assessing the costs and benefits of Canada's 12-year F-35 odyssey

    There was no fake cockpit, no smiles or thumbs up as Procurement Minister Filomena Tassi and Defence Minister Anita Anand made the announcement that Canada was going with the F-35.

  • Minister Sajjan marks the start of construction for the fourth Arctic and Offshore Patrol Ship

    May 3, 2019 | Local, Naval

    Minister Sajjan marks the start of construction for the fourth Arctic and Offshore Patrol Ship

    May 3, 2019 – Halifax (N.S.) – National Defence / Canadian Armed Forces Another important milestone of the National Shipbuilding Strategy was reached today as the Honourable Harjit S. Sajjan, Minister of National Defence, participated in a ceremony at Irving Shipbuilding highlighting the start of construction for the fourth Arctic and Offshore Patrol Ship (AOPS), the future HMCS William Hall. This is the fourth of six such ships to be built at the Halifax Shipyard for the Royal Canadian Navy (RCN) as articulated in Canada's defence policy, Strong, Secure, Engaged. Security in the Arctic is complicated by the region's geography and harsh climate. This new class of vessel was specifically designed to patrol Canada's waters and northernmost regions. It will have the versatility to navigate abroad and contribute to international operations. The Harry DeWolf-class will significantly enhance the CAF's capabilities and presence in the Arctic, better enabling the RCN to assert Arctic sovereignty for years to come. Since the start of construction for the first AOPS in 2015, the project has progressed well. The first vessel is expected to join the RCN's fleet this summer. Quotes “We are making significant progress on the Arctic and Offshore Patrol Ships as Canadian workers start the construction of the fourth ship, here in Halifax. These vessels will be critical assets to the RCN, enhancing our Arctic capability and greatly contributing to the future success of our operations in the most isolated regions of Canada. As outlined in Strong, Secure, Engaged, our government is delivering modern and versatile equipment to our women and men in uniform so they can successfully accomplish the work we ask of them.” The Honourable Harjit S. Sajjan, Minister of National Defence “Today's ceremony for Canada's fourth Arctic and Offshore Patrol Ship marks an important milestone. It provides ongoing evidence that the National Shipbuilding Strategy is revitalizing our world-class marine industry, supporting Canadian innovation, creating good middle class jobs, stabilizing employment and generating economic benefits across Canada. We remain firmly committed to the Strategy, and will continue to work closely with our shipbuilding partners to position it for success now and into the future.” The Honourable Carla Qualtrough, Minister of Public Services and Procurement and Accessibility “I am delighted to see so much progress on the Arctic and Offshore Patrol Ships this year, and look forward to seeing it continue in the years to come. Through this partnership with Irving Shipbuilding, we will sustain over 4,000 highly skilled jobs and create opportunities right here at the Halifax Shipyard and throughout Nova Scotia.” The Honourable Bernadette Jordan, Minister of Rural Economic Development Quick facts The AOPS project is part of Canada's renewed focus on surveillance of Canadian territory, particularly our Arctic regions. As the security dynamics in the Arctic evolve due to such factors as climate change, we will continue to work to secure our northern air and maritime approaches, in coordination with our allies and partners. William Hall received the Victoria Cross in 1859 for heroism and support of the British Army during the relief of Lucknow (1857). Son of freed African-American slaves living in Nova Scotia, he is the first black person, first Nova Scotian, and third Canadian to have been awarded this honour. Four AOPS are now in production, with the construction of the fifth ship expected to begin later in 2019. AOPS 4 is expected to join the RCN fleet in 2022. The AOPS are highly versatile platforms that can be used on a variety of missions at home and abroad, such as coastal surveillance, search and rescue, drug interdiction, support to international partners, humanitarian aid, and disaster relief. Work is ongoing to complete the Nanisivik Naval Facility, which will support operations of the new Arctic Offshore Patrol Ships and other government maritime vessels. This new facility is expected to be complete later this year. Associated links Strong, Secure, Engaged Arctic and offshore patrol ships William Hall National Shipbuilding Strategy Contacts Todd Lane Press Secretary Office of the Minister of National Defence Phone: 613-996-3100 Media Relations Department of National Defence Phone: 613-996-2353 Email: mlo-blm@forces.gc.ca https://www.canada.ca/en/department-national-defence/news/2019/05/minister-sajjan-marks-the-start-of-construction-for-the-fourth-arctic-and-offshore-patrol-ship.html

  • Remote GeoSystems and North Shore Rescue Announce Successful Deployment of geoDVR and FLIR gimbal for SAR Missions with Talon Helicopters, LineVision Software Donation

    November 20, 2017 | Local, Aerospace, C4ISR

    Remote GeoSystems and North Shore Rescue Announce Successful Deployment of geoDVR and FLIR gimbal for SAR Missions with Talon Helicopters, LineVision Software Donation

    FORT COLLINS, Colorado/VANCOUVER, British Columbia – Remote GeoSystems, North Shore Rescue and Talon Helicopters are pleased to announce the successful deployment of a geoDVR™ Gen2 with a FLIR daylight EO/IR gyro-stabilized video camera on an Airbus TwinStar (AS355) for Search and Rescue (SAR) missions. The geoDVR Gen2 is an advanced mil-spec DVR for recording multiple channels of HD & Standard-Definition geospatial full motion video in airborne and rugged vehicle environments. The geoDVR's ability to reliably record HD color and IR, along with continuous GPS data and Live Moving Maps, makes it ideally suited for professional airborne search & rescue, law enforcement and infrastructure inspection applications that utilize multi-sensor gimbal video cameras. “Remote Geo has a reputation for building one of the industry's most dependable and user-friendly airborne geospatial video recorders, complete with flexible post-flight mapping tools. So the geoDVR Gen2 was an obvious choice when we were asked to fly the FLIR on the TwinStar for mountain search and rescue,” says Peter Murray, Founder/Operations Manager at Talon Helicopters. North Shore Rescue and Talon Helicopters team operate the geoDVR and FLIR during ground training in October 2017 “Adding the FLIR camera to North Shore Rescue's toolbox has been a great enhancement to NSR's capabilities. Having the ability to record and geo-track the location of the video seemed essential to maximizing the full potential of the FLIR camera. The geoDVR allows searchers to review recorded video for clues that may or may not have been observed during the flight,” says Jim Loree, North Shore Rescue SAR Manager and Air Operations Coordinator. According to Loree, “This feature could also be highly valuable in a large-scale disaster such as an earthquake where widespread areas are surveyed for damage. Emergency Operation Centers would be able to use the data to help them make decisions on where and how to deploy resources based on the exact location and extent of damages provided by the video recording.” North Shore Rescue and Talon Helicopters will use the geoDVR with a FLIR generously donated by Port of Vancouver to perform helicopter-based SAR operations with color and infrared. Then, using LineVision™ software post-flight, North Shore Rescue will review the geoDVR videos and flight tracks overlaid on Google Earth and Esri maps for training mission planning and recovery operations. Since North Shore Rescue is an all volunteer organization, Remote GeoSystems donated 18 LineVision Esri Maps and LineVision Google Earth licenses as part of the implementation. ### About North Shore Rescue North Shore Rescue (North Shore Search and Rescue) is a volunteer community-based Mountain Search and Rescue Team based in Vancouver, BC and performs approximately 130 rescue calls a year. The team consists of approximately 45 volunteers skilled in search and rescue operations in mountain, canyon and urban settings. The team has existed for 50 years, making it one of the oldest SAR teams in Canada. During this time the number of calls each year has gradually increased. Over the past 50 years the team has been involved in more than 2500 search and rescue operations volunteering over 200,000 hours of effort. These calls have involved over 2000 subjects, and approximately 25% of the calls have involved subject injuries or death. Learn more by visiting http://www.northshorerescue.com/ About Talon Helicopters Talon is Vancouver's number one supplier of helicopter services, and the region's largest supplier of intermediate helicopters. Talon is locally owned and operated, and provides exceptional customer service with 20 years of incident and accident free operations. Specialized mission services include search & rescue, broadcast and film, wildfire suppression and utility patrols/operations. Learn more by visiting http://www.taloncopters.com/ https://www.remotegeo.com/north-shore-rescue-talon-helicopters-geodvr-flir-sar/

All news