Bombardier teams with Ottawa firm to offer RCAF new surveillance aircraft

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  December 27, 2018 | Local, Naval

  Feds, Irving ask trade tribunal to toss challenge to warship contract

  By Lee Berthiaume, The Canadian Press — Dec 25 2018 OTTAWA — The federal government and Halifax-based Irving Shipbuilding are asking a trade tribunal to throw out a challenge to their handling of a high-stakes competition to design the navy's new $60-billion fleet of warships. In separate submissions to the Canadian International Trade Tribunal, the federal procurement department and Irving say the challenge filed by Alion Science and Technology of Virginia does not meet the requirements for a tribunal hearing. Alion was one of three companies, along with U.S. defence giant Lockheed Martin and Spanish firm Navantia, vying to design the new warships, which are to be built by Irving and serve as the navy's backbone for most of this century. While Lockheed was selected as the preferred bidder and is negotiating a final design contract with the government and Irving, Alion alleges the company's design did not meet the navy's requirements and should have been disqualified. Two of those requirements related to the ship's speed, Alion alleged, while the third related to the number of crew berths. Alion has asked both the trade tribunal and the Federal Court to stop any deal with Lockheed. But the government and Irving say the contract is exempt from normal trade laws, which the tribunal is charged with enforcing, because of a special "national security exception," meaning there is "no jurisdiction for the tribunal to conduct an inquiry." Another reason the challenge should be quashed, they argue, is that Alion is not a Canadian company, which is a requirement for being able to ask the tribunal to consider a complaint. Alion's challenge has been formally filed by its Canadian subsidiary, but the government and Irving say that subsidiary was never actually qualified to be a bidder in the competition — only its American parent. The responses from the government and Irving are the latest twist in the largest military purchase in Canadian history, which will see 15 new warships built to replace the navy's 12 aging Halifax-class frigates and three already-retired Iroquois-class destroyers. The trade tribunal ordered the government last month not to award a final contract to Lockheed until it had investigated Alion's complaint, but rescinded the order after a senior procurement official warned that the deal was "urgent." The procurement department has not explained why the deal is urgent. Lockheed's bid was contentious from the moment the design competition was launched in October 2016. The federal government had originally said it wanted a "mature design" for its new warship fleet, which was widely interpreted as meaning a vessel that has already been built and used by another navy. But the first Type 26 frigates, upon which Lockheed's proposal was based, are only now being built by the British government and the design has not yet been tested in full operation. There were also complaints from industry that the deck was stacked in the Type 26's favour because of Irving's connections with British shipbuilder BAE, which originally designed the Type 26 and partnered with Lockheed to offer the ship to Canada. Irving, which worked with the federal government to pick the top design, also partnered with BAE in 2016 on an ultimately unsuccessful bid to maintain the navy's new Arctic patrol vessels and supply ships. That 35-year contract ended up going to another company. Irving and the federal government have repeatedly rejected such complaints, saying they conducted numerous consultations with industry and used a variety of firewalls and safeguards to ensure the choice was completely fair. But industry insiders had long warned that Lockheed's selection as the top bidder, combined with numerous changes to the requirements and competition terms after it was launched — including a number of deadline extensions — would spark lawsuits. Government officials acknowledged last month the threat of legal action, which has become a favourite tactic for companies that lose defence contracts, but expressed confidence that they would be able to defend against such an attack. —Follow @leeberthiaume on Twitter. Lee Berthiaume, The Canadian Press https://www.nationalnewswatch.com/2018/12/25/feds-irving-ask-trade-tribunal-to-toss-challenge-to-warship-contract-2/#.XCT7OFxKjIU

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  December 18, 2018 | Local, Land

  Saudi arms deal: London area suppliers foresee job losses if cancelled

  NORMAN DE BONO If the contract to supply Saudi Arabia with London-built military vehicles were cancelled, the impact would also be deeply felt in the hundreds of suppliers that feed General Dynamics and its Oxford Street East factory. Armatec Survivabilty in Dorchester supplies most of the seats to the General Dynamics Land Systems Canada armoured vehicles going to the Middle East, and a “substantial number” of its workers would lose their jobs if it's cancelled, said Rod Flick, manager of business development at Armatec. “We're putting seats in those vehicles. It would have a big impact,” said Flick, adding it now employs just over 100. GDLS has said its suppliers nationwide — including 240 in the London region alone — employ 13,500 people directly or indirectly. “There are other ways Canada can exert pressure than to cancel this. The Saudis will just go and buy vehicles from somewhere else,” Flick said. Flick will be in Ottawa this week pressing Global Affairs Canada not to cancel the deal, he added. Flick has also met with several MPs and MPPs, making the case to defend the agreement. At Abuma Manufacturing on Admiral Drive in London, about half its business is tied to General Dynamics and cancelling the contract would be “a real blow” to its 26 employees, said president Ben Whitney, who is also head of its sister plant, Armo-Tool. Abuma makes parts for GDLS's light armoured vehicles. “I am extremely concerned., It would make things very difficult for us. It would put us in a difficult position,” said Whitney. “It would be a blow, a real blow.” Armo-Tool bought Abuma in May and would keep it afloat by sharing work, but without that partnership, Abuma would shut down if the Saudi deal is cancelled, he added. “When this deal was struck, it was because the Saudis were seen as a stable partner in that region. If we want to engage in that region, there is no perfect democracy there. We can engage and build relationships or we can cancel deals and be seen as not reliable,” said Whitney. “It is tough. Last week, we made a donation to the Salvation Army and now about half our people may need them. It is a tough situation.” CANADA'S SAUDI ARMS DEAL: A CHRONOLOGY February 2014: The federal government under the Stephen Harper-led Conservatives announce the deal to supply light armoured military vehicles to Saudi Arabia, with London defence giant General Dynamics Land Systems Canada building the vehicles for a federal crown corporation, the Canadian Commercial Corp., selling the equipment to the desert kingdom. October 2015: The Conservatives, under fire from human rights critics for selling arms to Saudi Arabia despite its human rights abuses, lose the general election to Justin Trudeau's Liberals. The Liberals green-light the deal, despite growing calls to rescind it in light of Saudi Arabian political and human rights abuses, including in neighbouring Yemen. 2016: Foreign Affairs Minister Stephane Dion quietly approves export permits covering most of the deal, as criticism mounts of Canada doing arms business with Saudi Arabia. October 2018: Saudi dissident Jamal Khashoggi, a Washington Post journalist, is killed at the Saudi consulate in Turkey. Suspicion instantly rises that the killing was ordered by Saudi Crown Prince Mohammed bin Salman. The killing increases heat on Ottawa over its Saudi arms deal. After first denying Khashoggi was killed, Saudi Arabia admits his slaying was “premeditated” and orders an investigation. Trudeau, facing new pressure to scuttle the Saudi deal in light of Khashoggi's murder, says it would cost $1 billion to scrap the deal. The Liberals say they're reviewing the export permits for the deal. December 2018: Trudeau says publicly for the first time that the Liberals are looking for a way out of the Saudi deal, prompting heightened worry and alarm in London. GDLS: BY THE NUMBERS 1,850: Employees in London 13,500: Jobs supported among its suppliers 500: Suppliers nationwide 240: Suppliers in London region https://lfpress.com/news/local-news/saudi-arms-deal-supplier-says-80-of-employees-jobs-at-risk-if-cancelled

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  December 17, 2018 | Local, Land

  Trudeau says Canada wants out of $13 billion deal to sell armored vehicles to Saudi Arabia

  Bloomberg News, Natalie Obiko Pearson Canada was looking for a way out of a US$13 billion deal to export armored vehicles to Saudi Arabia, Prime Minister Justin Trudeau said in a televised interview Sunday. “We are engaged with the export permits to try and see if there is a way of no longer exporting these vehicles to Saudi Arabia,” Trudeau told CTV on Sunday, without elaborating. Amid growing international outrage over the murder of Saudi journalist Jamal Khashoggi, the government has been reviewing the planned sale of the armored vehicles made by London, Ontario-based General Dynamics Land Systems, a unit of U.S.-based General Dynamics Corp. Trudeau's administration has said it wouldn't issue new export permits during its review of the deal, which was signed by the previous government. The Canadian leader had indicated previously that his government's hands were somewhat tied by the contract, saying it could cost $1 billion to cancel it. “The murder of a journalist is absolutely unacceptable and that's why Canada from the very beginning had been demanding answers and solutions on that,” Trudeau told CTV. https://business.financialpost.com/news/economy/trudeau-says-canada-wants-out-of-saudi-vehicle-export-deal