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January 31, 2019 | Local, Aerospace

Canada forced to pay bigger share of F-35 fighter jet development costs — even though it may never buy any

OTTAWA — Canada is being forced to shoulder a bigger share of the costs of developing F-35 fighter jets even though it has not decided whether it will actually buy any.

Canada is one of nine partner countries in the F-35 project, each of which is required to cover a portion of the stealth fighter's multibillion-dollar development costs to stay at the table.

Each country pays based on the number of F-35s it's expecting to buy. Canada has pitched in more than half-a-billion dollars over the last 20 years, including $54 million last year.

But that amount was based on the Stephen Harper government's plan to buy 65 new fighter jets to replace Canada's aging CF-18s, which the Trudeau government has since officially increased to 88.

Even though Canada has not committed that those 88 jets will be F-35s, the Department of National Defence says that change means it will have to pay more to remain a partner — including about $72 million this year.

“Canada's costs under the F-35 (partnership agreement) are based on an intended fleet size,” Defence Department spokeswoman Ashley Lemire said in an email.

“Canada changed its fleet size within the F-35 (agreement) from 65 to 88 aircraft to align with government decisions on the size of the intended permanent fighter fleet to be acquired through competition and the payment increased accordingly.”

The F-35's development costs have been a constant source of criticism over the life of the stealth-fighter program, which Canada first joined under the Chretien government in 1997. The entire program is believed to have already cost more than US$1 trillion.

The Trudeau government says it plans to keep Canada in the F-35 development effort until a replacement for the CF-18s is chosen — partners in the development work can buy the planes at a lower price and compete for work associated with their production and long-term maintenance.

Canadian companies have so far won more than $1.2 billion in contracts related to the F-35, according to the government.

The F-35 is one of four planes slated to participate in the $19-billion competition that the government plans to launch this spring, the others being Boeing's Super Hornet, Eurofighter's Typhoon and Saab's Gripen.

The competition isn't scheduled to select a winner until 2021 or 2022, meaning Canada will be on the hook for several more payments. The first new aircraft is expected in 2025 and the last in 2031, when the CF-18s will be phased out.

F-35 maker Lockheed Martin says more than 350 of the stealth fighters have been delivered to different countries, while Israel became the first country to use the plane in combat last year when two of the jets struck targets in neighbouring Syria.

Acting U.S. defence secretary Patrick Shanahan, a former Boeing executive, nonetheless criticized the program on Monday, saying it “has room for a lot more performance.”

“I am biased toward performance,” he was quoted as saying when asked if he is biased toward Boeing. “I am biased toward giving the taxpayer their money's worth. And the F-35, unequivocally, I can say, has a lot of opportunity for more performance.”

https://ottawacitizen.com/news/world/plan-to-buy-more-fighter-jets-puts-canada-on-hook-for-bigger-share-of-f-35-costs/wcm/efec8576-c36f-40cf-922a-2bb324352388

On the same subject

  • European-built fighter aircraft: did they ever stand a chance in Canada’s competition?

    October 11, 2019 | Local, Aerospace

    European-built fighter aircraft: did they ever stand a chance in Canada’s competition?

    DAVID PUGLIESE, OTTAWA CITIZEN Canada's future fighter jet competition has already lost two European competitors. Will it lose a third, the Gripen built by Saab of Sweden? At the end of August, the United Kingdom's Ministry of Defence and Airbus Defence and Space informed the Canadian government of their decision to withdraw from Canada's future fighter competition. Airbus had been offering Canada the Eurofighter Typhoon. Last year the European firm Dassault informed the Canadian government it would not be competing in the competition. It had been planning to offer Canada the Rafale fighter jet. Airbus and the UK Defence Ministry noted that their decision to withdraw was the result of a detailed review of Canada's request for proposals which was released to industry on July 23. Airbus pointed to the changes Canada made to the industrial benefits package to appease Lockheed Martin as well as the excessive costs that U.S.-Canadian security requirements placed on a company based outside North America. “A detailed review has led the parties to conclude that NORAD security requirements continue to place too significant of a cost on platforms whose manufacture and repair chains sit outside the United States-Canada 2-EYES community,” the statement from Airbus and the UK Defence Ministry noted. “Second, both parties concluded that the significant recent revision of industrial technological benefits obligations does not sufficiently value the binding commitments the Typhoon Canada package was willing to make, and which were one of its major points of focus.” The $19 billion competition has been dogged by allegations it is designed to favour Lockheed Martin's F-35 stealth fighter. Take for instance, the response that Defence Minister Harjit Sajjan provided when the Liberal government in November 2016 announced the purchase of 18 interim Boeing Super Hornets. That deal was eventually scuttled after Boeing decided to go after Bombardier in a trade dispute over civilian aircraft. But at the time when the purchase was announced, Sajjan was asked why Canada was buying the Super Hornet and not one of the other fighter jets on the market. “When you look at the various aircraft, we have our NORAD commitment's (which are) extremely important,” the defence minister responded. “There's certainly interoperability issues as well.” Procurement Minister Judy Foote was more blunt. “From our perspective, we're working with the American government, so we have to look at an American plane.” So how is that different from the aircraft to be selected for the future fighter jet competition? Sajjan and Foote were stating in November 2016 that Canada needed to buy American because of its NORAD commitments and other interoperability concerns with the U.S. Nothing appears to have changed in the last three years, at least as far as the federal government and Canadian Forces are concerned. https://ottawacitizen.com/news/national/defence-watch/european-built-fighter-aircraft-did-they-ever-stand-a-chance-in-canadas-competition

  • Government of Canada awards contract for in-service support for Halifax-class combat systems

    November 9, 2020 | Local, Naval

    Government of Canada awards contract for in-service support for Halifax-class combat systems

    NEWS PROVIDED BY Public Services and Procurement Canada Nov 06, 2020, 11:46 ET GATINEAU, QC, Nov. 6, 2020 /CNW/ - The Government of Canada is committed to providing the members of the Royal Canadian Navy (RCN) with safe and effective vessels required to protect Canadian sovereignty, while creating jobs and generating significant economic benefits for communities across Canada. Following an open and competitive process, the Honourable Anita Anand, Minister of Public Services and Procurement, and the Honourable Harjit S. Sajjan, Minister of National Defence, announced that the Government of Canada has awarded a contract to General Dynamics Mission Systems–Canada, from Ottawa, Ontario, for in-service support on 6 Halifax-class combat systems (HCCS). The HCCS are an integral component of the entire fleet of Halifax-class ships and will require in-service support until the arrival of the Canadian Surface Combatants. This initial contract is valued at approximately $182 million (including taxes) over 6 years, and will maintain up to 106 jobs. The Halifax-class frigates monitor and control Canadian waters, defend Canada's sovereignty, facilitate large-scale search and rescue activities, and provide emergency assistance when needed. Introduced into service in the 1990s, the Canadian-built Halifax-class frigates were recently modernized to remain operationally effective and relevant until the Canadian Surface Combatants enter into service. The Canadian Surface Combatants will replace the Halifax-class frigates and the retired Iroquois-class destroyers. With them, the RCN will have modern and capable ships to monitor and defend Canada's waters, to continue to contribute to international naval operations for decades to come and to rapidly deploy credible naval forces worldwide, on short notice. Quotes "The Government of Canada remains firmly committed to continue delivering the modern equipment that the members of the Royal Canadian Navy need when performing their important duty on Canada's waterways. Moreover, this in-service support is another example of how the government helps tomaintain our existing Royal Canadian Navy fleet, while creating jobs, and generating good economic opportunities for businesses and Canadians." The Honourable Anita Anand Minister of Public Services and Procurement "These systems will provide our women and men in uniform with the equipment they need to do the important job we ask of them. The six systems that will be maintained under this contract will help our sailors detect, track, and identify threats to their ship, which will give them greater protection as they conduct their mission in the service of our nation's interests. I am proud to see Canadian companies contributing to our Canadian military excellence at home and abroad." The Honourable Harjit S. Sajjan Minister of National Defence "Through this procurement, our Government is supporting economic growth as we navigate through the COVID-19 pandemic. This contract will lead to opportunities for Canadian suppliers, investments in skills development, training and research, and will generate export opportunities for Canadian businesses." The Honourable Navdeep Bains Minister of Innovation, Science and Industry Quick facts Through the National Shipbuilding Strategy, the Government of Canada successfully modernized the RCN's fleet of 12 Halifax class frigates to ensure they continue to meet evolving operational needs. As part of this modernization project, various combat systems onboard the frigates were retrofitted through the Halifax-Class Modernization/Frigate Life Extension Combat System Integration Design and Build contract. These include, but are not limited to, detection and search radars, navigation radars, fire control systems (targeting radars), and target identification systems. The initial contract is valued at approximately $182 million. Its amount may increase over the next 6 years as work progresses, depending on whether more maintenance is required. The total value for up to 12 years will be determined if and when options to extend the contract are exercised. The Industrial and Technological Benefits Policy, including the Value Proposition, applies to this procurement. The frigates operate with and integrate into the United Nations, the North Atlantic Treaty Organization and coalitions of allied states in support of international peace and security operations. In July and August 2019, Irving Shipbuilding Inc., Seaspan Victoria Shipyards Limited, and Chantier Davie were each awarded a $500-million contract to carry out maintenance work on the first group of Canada's Halifax-class frigates. Associated links Link to Buy and sell Halifax-class Modernization/Frigate Life Extension Halifax-class frigates: Maintaining Canada's federal fleet of combat vessels Industrial and technological benefits Follow us on Twitter Follow us on Facebook SOURCE Public Services and Procurement Canada For further information: Cecely Roy, Press Secretary, Office of the Honourable Anita Anand, 343-549-7293, cecely.roy@canada.ca ; Media Relations, Public Services and Procurement Canada, 819-420-5501, media@pwgsc-tpsgc.gc.ca Related Links www.tpsgc-pwgsc.gc.ca https://www.newswire.ca/news-releases/government-of-canada-awards-contract-for-in-service-support-for-halifax-class-combat-systems-844143601.html

  • Canada, NATO allies discuss COVID-19 response in face of world security issues

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

    Canada, NATO allies discuss COVID-19 response in face of world security issues

    OTTAWA — Canada and its NATO allies wrestled Thursday with responding to the COVID-19 crisis while reining in potential new Russian mayhem-making and helping war-torn Iraq and Afghanistan. The discussion unfolded via secure video links — a first in the alliance's seven decades — among the alliance's foreign ministers, including Canada's Francois-Philippe Champagne, as well as NATO's political and military chiefs. They discussed the need to combat “disinformation” as well as providing support to various partners, including the World Health Organization, the United Nations and the European Union, the alliance said in a post-meeting statement. Canada is leading NATO's military training mission in Iraq and has troops in Latvia as part of the deterrence efforts against Russia, which breached Europe's border by annexing part of Ukraine in 2014. Thursday's meeting was also looking at ways to further support the non-NATO countries of Ukraine and Georgia, the alliance said. A senior Canadian official, speaking on the condition of anonymity because of the sensitivity of the discussions, said despite the COVID-19 pandemic, Canada's priority is for the alliance to keep its eyes on the challenges already on its plate before the outbreak. “The COVID-19 pandemic is a test for all of us and highlights the crucial role NATO continues to play,” Champagne said in a statement. The competing challenges were reflected in the declaration NATO released following the morning talks, which were to include Secretary-General Jens Stoltenberg and NATO's Supreme Allied Commander Europe, Gen. Tod D. Wolters. “Even as we do the absolute maximum to contain and then overcome this challenge, NATO remains active, focused and ready to perform its core tasks: collective defence, crisis management, and co-operative security,” the communique said. David Perry, a defence analyst, said NATO faces some of its own health challenges, among them the fact that the USS Theodore Roosevelt aircraft carrier is out of commission because of a virus outbreak, while Poland's army chief tested positive last month. “How much of the alliance is actually fighting fit is changing pretty fast, negatively,” said Perry, a Canadian Global Affairs Institute vice-president. “It's improbable other ships or assets aren't already impacted.” The NATO communique said the alliance is airlifting medical supplies around the world, providing people and goods and “vital equipment from military and civilian sources, and harnessing our medical, scientific, and technological knowledge” to deal with the pandemic. “Allies are also working together to ensure public access to transparent, timely, and accurate information, which is critical to overcoming this pandemic and to combating disinformation,” it said. The statement made no direct mention of Russia, but it affirmed that the alliance's “ability to conduct our operations and assure deterrence and defence against all the threats we face is unimpaired.” A day earlier, Stoltenberg said in Brussels that the alliance had made the necessary adjustments to address Russian military manoeuvres close to NATO's borders. Russian planes have flown close to Canadian and American airspace in the Arctic recently, for instance. Karlis Eihenbaums, Latvia's ambassador to Canada, said the pandemic has done nothing to stop the “wars and tensions” NATO was already dealing with. “We can even see that there are some who are using this challenging time to play their cynicism in full and to use this pandemic for their spreading of propaganda and disinformation. In essence, they are playing with people's lives because disinformation can kill,” said Eihenbaums. “We are still receiving report after report of a war going on in Europe, as attacks against Ukraine never stopped.” Andriy Shevchenko, Ukraine's ambassador to Canada, said offers by Russia to send medics and supplies to Italy mask a malevolent intent. He said that amounts to “humanitarian wars, or humanitarian special operations” on Russia's part. The Kremlin has denounced criticism that it is using the crisis for political gain. “Russia has the experience of lying on an industrial scale, and also interfering into other nations' lives with their information tools,” said Shevchenko. “It's something we know so well from our Ukrainian experience, and it's something that Canadians should be concerned about as well.” Thursday's meeting also looked at stepping up the NATO training mission in Iraq and strengthening the alliance's partnerships in the Middle East, North Africa and Afghanistan, the alliance said in a statement today. The meeting was the first for the alliance's newest member, North Macedonia, which joined last Friday, expanding NATO's ranks to 30 countries. This report by The Canadian Press was first published April 2, 2020. https://nationalpost.com/pmn/news-pmn/canada-news-pmn/canada-nato-allies-discuss-covid-19-response-in-face-of-world-security-issues

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