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November 28, 2019 | International, Other Defence

Canada has plenty to gain from upping its defence spending


COLIN ROBERTSON

Colin Robertson, vice-president and fellow, Canadian Global Affairs Institute

If we thought passage of the new North American free-trade agreement would get Donald Trump off our back, think again. We've been served notice that Canada has got to pony up more on defence and security. We should do so, not because the U.S. wants us to, but because it serves Canadian interests, especially in exercising Canadian sovereignty in our North.

The Trump administration is close to a deal with Speaker Nancy Pelosi on congressional ratification of the United States-Mexico-Canada Agreement (USMCA) on trade. The possible changes to the agreement signed last November will not trouble Canada. Tougher labour and environmental standards enforcement – “trust but verify” – are aimed at Mexico. Another change would shorten the patent-protection period for new pharmaceutical drugs.

The USMCA could pass through Congress before Christmas. But even if the deal gets stuck, Mr. Trump's threat to rescind NAFTA is increasingly remote. The more Americans learned about NAFTA, the more they liked it, especially in the farming community and Mr. Trump needs their votes if he is to be re-elected next year.

A new trade agreement does not mean complacency about trade.

We're still paying tariffs on our lumber exports. Protectionism, especially in procurement, is endemic. We need to sustain the Team Canada effort with Congress, governors and state legislators. Rather than blame Ottawa, provincial premiers need to remind their neighbouring states why trade and investment is mutually beneficial. Premiers and governors should strive for a reciprocity agreement on procurement.

But if our trading relationship is shifting out of crisis mode, defence and security will take that space. Continued free riding by the allies, as the Trump administration sees it, is not an option.

With the end of the Cold War, Canada took the peace dividend and then coasted in our defence spending. But today's world is meaner with a rising China and revanchist Russia.

The Trudeau Government thought its defence policy – titled Strong, Secure, Engaged – and its promise of new warships, fighter jets and active missions in Latvia and Iraq, would suffice. Wrong. For Mr. Trump, the bottom line is the 2014 commitment by the governments of North Atlantic Treaty Organization member-countries to achieve spending of 2 per cent of gross domestic product on defence by 2024. Canadian spending, according to NATO, is currently 1.27 per cent. It is scheduled to rise to around 1.4 per cent by 2026-27, well short of the allies' pledge.

If we are going to spend more, then let's invest in northern sovereignty.

Brian Mulroney persuaded Ronald Reagan to tacitly acknowledge Canadian sovereignty through Arctic waters. Since then, the Americans have pressed us to exercise that sovereignty. Stephen Harper instituted Operation Nanook and he made annual summer visits to the North. But the promised Arctic base in Nanisivik, Nunavut, has never materialized. The promised icebreakers are still to be built.

In contrast to the American, Chinese and Russian policies, Canada's long-delayed Arctic policy framework, finally released in September, is sophomoric. It ignores both defence and security.

The Americans want us to collaborate in updating the postwar North Warning System. Jointly managed as part of our NORAD alliance, its replacement will be expensive. But it's also an opportunity for us to lead in the development of innovative space and underwater applications that would buttress our Arctic sovereignty. We can take inspiration from HMCS Harry DeWolf, the first of our offshore patrol ships. The largest Canadian warship built in 50 years, it is now afloat in Halifax harbour.

We are also an Indo-Pacific country. The almost year-old Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP) gives us first-mover advantage over the U.S. in places such as Japan. But our Pacific partners expect us to demonstrate greater commitment to their security. This means more navy and air reach. Is our Pacific posture adequate? Does our capability, including our bases, meet the new threat assessments?

Managing the trade relationship with the Trump administration is hard. David McNaughton was the right ambassador for the Trudeau government's first term and its focus on trade. Mr. MacNaughton's outreach strategy needs to become a permanent campaign.

Our next ambassador will need demonstrated security chops in addition to political savvy. Handling defence and security is going to be really hard. But as a friendly ambassador, whose country faces the same challenge, observed at the recent Halifax International Security Forum, we Canadians are going to have to toughen up.

https://www.theglobeandmail.com/business/commentary/article-canada-has-plenty-to-gain-from-upping-its-defence-spending/

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    NAVY General Dynamics Electric Boat Corp. (GDEB), Groton, Connecticut, is awarded a $22,209,893,409 fixed-price-incentive, multi-year modification to previously-awarded contract N00024-17-C-2100 for construction of nine Virginia-class submarines, eight with Virginia Payload Module (VPM), from fiscal 2019 to fiscal 2023. The contract modification includes spare material and an option for one additional submarine with VPM. If the option is exercised, the cumulative value of this contract will increase to $24,097,439,556. The awarded amounts include previously-announced material awards (including long-lead-time material and economic ordering quantity material) totaling $3,197,633,908. This contract modification is for the construction of the fifth block of Virginia-class submarines by GDEB and major subcontractor Huntington Ingalls Industries' Newport News Shipbuilding division, inclusive of design support and all efforts necessary to test and deliver each submarine. 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Kellogg Brown and Root Services Inc., Houston, Texas, is awarded a $14,070,093 for modification of the second option under an indefinite-delivery/indefinite-quantity contract for base operations support services at Naval Support Activity (NSA) Kingdom of Bahrain. After award of this option, the total cumulative contract value will be $44,363,284. The work to be performed provides for, but is not limited to, all management, supervision, tools, materials, supplies, labor and transportation services necessary to perform security operations, galley services, unaccompanied housing, facility management, emergency service requests, urgent service, routing service, facilities investment, custodial, pest control service, integrated solid waste, grounds maintenance, utility management, wastewater, operate reverse osmosis water treatment system, chiller and transportation at NSA Kingdom of Bahrain. Work will be performed in NSA Kingdom of Bahrain. This option period is from December 2019 to November 2020. No funds will be obligated at time of award. Fiscal 2020 operation and maintenance (Navy) contract funds for $4,159,063 for non-recurring work will be obligated on individual task orders issued during the option period. Naval Facilities Engineering Command Europe Africa Central, Naples, Italy, is the contracting activity (N62470-17-D-4007). L-3 Technologies Inc., Salt Lake City, Utah, is awarded a $9,999,144 firm-fixed-price modification (P00012) to a previously-awarded firm-fixed-price, cost-plus-fixed-fee contract (N00019-18-C-1030) to procure eight Common Data Link Hawklink AN/SRQ-4 systems for the MH-60R aircraft. Work will be performed in Salt Lake City, Utah, and is expected to be completed in December 2022. Fiscal 2020 other procurement (Navy) funds in the amount of $9,999,144 will be obligated at time of award, none of which will expire at the end of the fiscal year. 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GTA Containers Inc., South Bend, Indiana, has been awarded a $9,404,953 delivery order (FA8534-20-F-0003) against previously-awarded contract FA8533-16-D-0001 for collapsible fuel tank production. Work will be performed at South Bend, Indiana, and is expected to be completed by Jan. 31, 2022. The total cumulative face value of the contract is $24,507,563. Fiscal 2019 other procurement funds in the amount of $9,404,953 are being obligated at the time of award. The Air Force Life Cycle Management Center, Robins Air Force Base, Georgia, is the contracting activity. ARMY Fisher Sand and Gravel Co., Dickinson, North Dakota, was awarded a $399,962,000 firm-fixed-price contract to design-build border infrastructure along the southern perimeter of the Cabeza Prieta National Wildlife Refuge in Yuma County, Arizona. Five bids were solicited with three bids received. Work will be performed in Yuma, Arizona, with an estimated completion date of Dec. 30, 2020. Fiscal 2018 military construction, defense-wide funds in the amount of $268,072,900 were obligated at the time of the award. U.S. Army Corps of Engineers, Portland District, Portland, Oregon, is the contracting activity (W912PL-20-C-0004). InSap Services Inc.,* Marlton, New Jersey, was awarded a $41,636,459 modification (BA02 44) to contract W91QUZ-11-D-0017 to provide personnel with technical experience to sustain the Army's Logistics Modernization Program. Work will be performed at Picatinny Arsenal, New Jersey, with an estimated completion date of Dec. 31, 2020. Fiscal 2020 other procurement, Army funds in the amount of $7,961,225 were obligated at the time of the award. U.S. Army Contracting Command, Rock Island, Illinois, is the contracting activity. DEFENSE INFORMATION SYSTEMS AGENCY Unisys Corp., Reston, Virginia, was awarded a single award indefinite-delivery/indefinite-quantity firm-fixed-price contract for Unisys Operating System 2200 capacity services. The place of performance will be at current Defense Information Systems Agency data centers. The contract ceiling is $80,457,160. The solicitation was issued as an other-than-full-and-open-competition action pursuant to the authority of 10 U.S. Code §2304(c)(1) and Federal Acquisition Regulation 6.302-1, with only one responsible source and no other supplies or services will satisfy agency requirements. Proposals were solicited via the Federal Business Opportunities website (www.fbo.gov), now known as beta.SAM.gov website (www.beta.sam.gov). Only one proposal was received. The period of performance (PoP) consists of a one-year base period and two one-year options. The PoP for the base year is Dec. 1, 2019, through Nov. 30, 2020, and the option years follow consecutively through Nov. 30, 2022. The Defense Information Technology Contracting Organization, Scott Air Force Base, Illinois, is the contracting activity (HC1084-20-D-0002). (Awarded Dec. 1, 2019) DEFENSE LOGISTICS AGENCY AvKare Inc., Pulaski, Tennessee, has been awarded a maximum $11,727,127 firm-fixed-price requirements contract for potassium chloride tablets. This was a competitive acquisition with one response received. This is a one-year base contract with four one-year option periods. Locations of performance are Tennessee and Minnesota with a Dec. 1, 2020, performance completion date. Using customers are Department of Defense, Department of Veterans Affairs, Indian Health Services and Federal Bureau of Prisons. Type of appropriation is fiscal 2020 through 2021 defense working capital funds. The contracting activity is the Defense Logistics Agency Troop Support, Philadelphia, Pennsylvania (SPE2D2-20-D-0081). UPDATE: ADS Inc.,* Virginia Beach, Virginia (SPE8EH-20-D-0001), has been added as an awardee to the multiple award contract for fire and emergency services equipment, issued against solicitation SPE8EH-16-R-0001, and announced March 21, 2019. *Small Business https://www.defense.gov/Newsroom/Contracts/Contract/Article/2030017/source/GovDelivery/

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