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May 6, 2020 | Local, Aerospace

Canada invests another US$70M in F-35 development despite no commitment to buy

OTTAWA — The federal government has made another multimillion-dollar investment into the development of the F-35 stealth fighter jet, even as it weighs a new extension to the $19-billion competition to replace Canada's aging CF-18s.

Canada made the annual F-35 payment to the U.S. military last week, spending US$70.1 million to remain one of nine partner countries in the fighter-jet project. Each partner is required to cover a portion of the plane's multibillion-dollar development costs to stay at the table.

Staying in the program has advantages, as partners get a discount when purchasing the jets and compete for billions of dollars in contracts associated with building and maintaining them. The F-35 is being built by U.S. defence giant Lockheed Martin.

While the new payment brings Canada's total investment in the F-35 to US$541.3 million since 1997, the government says Canadian companies have also secured US$1.8 billion in work related to the stealth fighter.

“This participation provides Canadian industry with contract opportunities that are only available to program participants,” Defence Department spokesman Daniel Le Bouthillier said in an email.

“Our membership will also allow us preferential pricing and sequencing in the build schedule should the F-35 aircraft be successful in the current future fighter capability program.”

Canada actually started to shoulder more of the development costs last year. That is because the Liberal government increased the number of new fighter jets that Canada plans to buy to 88 from 65, even though it has not committed to buying the F-35.

News of the payment comes as the federal procurement department confirmed it was considering another extension to the $19-billion competition to replace Canada's CF-18s. The F-35 is one of three planes in running along with Boeing's Super Hornet and the Saab Gripen.

The extension was recently requested by one of the three fighter-jet makers. Public Services and Procurement Canada did not confirm which company asked for the extension, but Boeing had previously left the door open to a request because of the COVID-19 pandemic.

“We can confirm that we are currently evaluating a request from industry to extend the deadline for preliminary proposals,” Public Services and Procurement Canada spokeswoman Michele LaRose said in an emailed statement.

“We remain committed to providing members of the Royal Canadian Air Force with the fighter aircraft they need to do their jobs, and ensuring the best possible value for Canadians.”

The three companies were originally supposed to submit their bids at the end of March, but that was pushed back to June 30 following a request by Saab. Despite the pandemic, the federal procurement department insisted last month that it still expected companies to meet that deadline.

This report by The Canadian Press was first published May 6, 2020.

https://nationalpost.com/pmn/news-pmn/canada-news-pmn/canada-invests-another-us70m-in-f-35-development-despite-no-commitment-to-buy

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    LÉVIS, QC, April 30, 2019 /CNW/ - Icebreaking is a key factor in ensuring the safe and efficient movement of people and goods on Canadian waterways, and helps contribute to year-round shipping and economic growth. That is why the Government of Canada is committed to providing the Canadian Coast Guard with the equipment it needs to ensure these waterways are kept safe and open for business. The Minister of Fisheries, Oceans and the Canadian Coast Guard, the Honourable Jonathan Wilkinson, and the Minister of Public Services and Procurement and Accessibility, the Honourable Carla Qualtrough, announced today that Chantier Davie of Lévis, Quebec, was awarded a contract of $7,198,164.30 for the dry-dock refit of the CCGS Louis S. St-Laurent, Canada's largest icebreaker. The scheduled refit of the CCGS Louis S. St-Laurent will ensure the Canadian Coast Guard continues to provide critical icebreaking and other marine services effectively. This contract was awarded on April 15, 2019following an Advanced Contract Award Notice issued on November 16, 2018. Minister Wilkinson also announced the names of the two interim icebreakers currently undergoing conversion work at Chantier Davie; CCGS Jean Goodwill and CCGS Vincent Massey. These ships will be available to support Coast Guard programs by late 2019 and summer 2020, respectively. In December 2018, the Canadian Coast Guard accepted the first of three interim icebreakers which were acquired to supplement its existing fleet during vessel life extension and repair periods. CCGS Jean Goodwill takes its name from one of the founding members of the Aboriginal Nurses Association of Canada and contemporary champion of public health services for Indigenous people. CCGS Vincent Massey, is named after the first Canadian appointed to the post of Governor General, which until then was occupied by British born individuals. The Right Honourable Vincent Massey was appointed Governor General on the recommendation of then Prime Minister Louis St. Laurent. CCGS Jean Goodwill and CCGS Vincent Massey will be part of the national Coast Guard fleet which carries out icebreaking duties in Atlantic Canada, the St. Lawrence and the Great Lakes, and Arctic regions. CCGS Jean Goodwill's homeport will be in Halifax, NS, and CCGS Vincent Massey in Quebec City, QC. Quotes "The refit of CCGS Louis S. St-Laurent is an important part of the planned maintenance of the Coast Guard's icebreaking fleet. Regular maintenance helps ensure our largest vessel is ready to provide essential icebreaking services to Canadians, especially in the Arctic where shipping escorts are essential to resupplying northern communities. Furthermore, we look forward to welcoming CCGS Jean Goodwill and CCGS Vincent Massey to the fleet to help support the Coast Guard with the essential work they do in Canadian waters." The Honourable Jonathan Wilkinson Minister of Fisheries, Oceans and the Canadian Coast Guard "Canadians from coast to coast to coast rely on the Canadian Coast Guard to protect their coastlines and their livelihoods. This contract will ensure the men and women of the Canadian Coast Guard are properly equipped to do their important work, while also helping sustain good middle-class jobs at the Davie Shipyard." The Honourable Carla Qualtrough Minister of Public Services and Procurement and Accessibility "Our government's contract award to Davie Shipyard is a testament to the exceptional expertise of the shipbuilding workers in our region. Their internationally recognized expertise and professionalism will continue to be put to work for the benefit of the Canadian Coast Guard, the safety of our waterways and our economy." The Honourable Jean-Yves Duclos Member of Parliament for Québec Quick Facts The CCGS Louis S. St-Laurent is Canada's largest icebreaker, homeported in St. John's, Newfoundland and Labrador. Icebreakers are crucial to Coast Guard services, vital to the safety of mariners, the protection of coastal waters, resupply of northern communities and the orderly flow of commerce through Canadian waters. The award of this contract follows an Advance Contract Award Notice (ACAN), which was issued on November 16, 2018 and closed on December 4, 2018. The ACAN process helps to ensure a fair, open, and transparent procurement process, by allowing any interested supplier to demonstrate how it could meet the requirements of the ACAN. As of December 2018, the value of the work awarded under the repair, refit and maintenance portion of the National Shipbuilding Strategy (NSS) is now over $4.5B.This includes $1.56B in contracts awarded to Quebec shipyards under the NSS. On December 14, 2018, the Canadian Coast Guard accepted the first of three interim icebreakers being converted by Chantier Davie as part of a $610-million contract awarded in August 2018. The three icebreakers were acquired to supplement the Coast Guard's existing fleet during vessel life extension and repair periods, providing continuous on-water capability during scheduled maintenance periods. In accordance with the Canadian Coast Guard ship naming policy, CCGS Jean Goodwill and CCGS Vincent Massey were named to honour Canadian leaders who made significant contributions to Canada. Associated Links Canadian Coast Guard's new icebreakers National Shipbuilding Strategy Canadian Coast Guard Navigation Officer Program Stay Connected Follow the Canadian Coast Guard on Twitter, Facebook, Instagram and YouTube. Subscribe to receive our news releases and more via RSS feeds. For more information or to subscribe, visit http://www.dfo-mpo.gc.ca/media/rss-eng.htm. SOURCE Fisheries and Oceans (DFO) Canada For further information: Jocelyn Lubczuk, Press Secretary, Office of the Minister of Fisheries, Oceans and the Canadian Coast Guard, 343-548-7863, Jocelyn.lubczuk@dfo-mpo.gc.ca; Media Relations, Fisheries, Oceans and the Canadian Coast Guard, 613-990-7537, Media.xncr@dfo-mpo.gc.ca https://www.newswire.ca/news-releases/government-of-canada-awards-contract-to-chantier-davie-for-refit-of-canadian-coast-guard-icebreaker-and-unveils-names-of-interim-icebreakers-857320833.html

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