May 6, 2020 | Local, Aerospace
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.
August 29, 2023 | Local, Aerospace
The Department of National Defence’s Airworthiness Investigative Authority has issued the preliminary report From the Investigator in relation to the CH-147F Chinook accident on June 20, 2023.
October 25, 2019 | Local, Naval
Summary The global naval vessels and surface combatants market is valued at US$36. 7 billion in 2019, and will grow at a CAGR of 1. 97%, to reach a value of US$44. 6 billion by 2029. New York, Oct. 22, 2019 (GLOBE NEWSWIRE) -- Reportlinker.com announces the release of the report "The Global Naval Vessels And Surface Combatants Market 2019-2029" - https://www.reportlinker.com/p02275942/?utm_source=GNW The cumulative market for global naval vessels and surface combatants is anticipated to value US$429.8 billion over the forecast period. The demand for naval vessels is anticipated to be driven by high levels of expenditure by emerging economies in the Asia-Pacific region including India and China. The North American region supported by US Navy's multi-year procurement programs, is expected to maintain its leading position globally, exhibiting a steady pace of growth over the forecast period. The global naval vessels and surface combatants market is expected to be led by North America with revenue share of 41.9%. Cumulatively, North America is projected to spend US$180.3 billion on naval vessels and surface combatants over the forecast period. In 2019, regional expenditure is expected to value US$15.1 billion and increase to US$19.0 billion by 2029, growing at a CAGR of 2.32%. Asia-Pacific will follow North America and is expected to account for 26.2% revenue share of the global naval vessels and surface combatants market over the forecast period. Europe is anticipated to be the third-largest market globally with a revenue share of 22.2% over the forecast period, driven by the naval expansion and capability enhancement initiatives undertaken by various countries in the region. With a share of 5.5%, the market for naval vessels and surface combatants in the Middle East is projected to be the fourth largest globally. Frigates is expected to be the largest segment in the naval vessels and surface combatants market during the forecast period. Driven by several high-value procurement programs worldwide including the US Navy's FFG(X) program, Canadian Navy's ‘Canadian Surface Combatant' program, Saudi Navy's Multi-Mission Surface Combatant program, Australian Navy's SEA 5000 (Hunter-class) program and French Navy's Intermediate Frigate (FTI) program among others; the Frigates segment is expected to account for a 28.7% revenue share of the total market over the forecast period. Destroyers segment will follow Frigates segment with 19.6% market share. With 15.1% share, Amphibious Ships segment is anticipated to hold the third position in the global market. The growing demand for Amphibious Ships is primarily attributed to the ongoing initiatives of naval forces to develop relevant sealift capabilities. Light Combat Vessels and Corvettes segments to account for respective shares of 11.8% and 9.3%. Aircraft Carriers will account for a decent share of 8.6% over the next decade. The remaining share of 6.9% will be held by Auxiliary Vessels segment. The report "The Global Naval Vessels And Surface Combatants Market 2019-2029", offers a detailed analysis of the industry, with market size forecasts covering the next ten years. This report will also analyze factors that influence demand for naval vessels, key market trends, and challenges faced by industry participants. In-depth analysis provides - - Market size and drivers: detailed analysis during 2019-2029, including highlights of the demand drivers and growth stimulators.It also provides a snapshot of the spending and modernization patterns of different regions around the world - Recent developments and industry challenges: insights into technological developments and a detailed analysis of the changing preferences of naval vessels and surface combatants segments around the world. It also provides trends of the changing industry structure and the challenges faced by industry participants - Regional highlights: study of the key markets in each region, providing an analysis of the key segments of the market that are expected to be in demand - Major programs: details of the key programs in each segment, which are expected to be executed during 2019-2029 - Competitive landscape and strategic insights: analysis of the competitive landscape of the global market. It provides an overview of key players, together with information regarding key alliances, strategic initiatives and financial analysis Companies mentioned: General Dynamics, Huntington Ingalls Industries, Austal, Naval Group, Larsen & Toubro Limited (L&T), Lockheed Martin, Fincantieri SpA, BAE Systems, Hyundai Heavy Industries, Daewoo Shipbuilding & Marine Engineering Co., Ltd and Abu Dhabi Shipbuilding Scope - The global naval vessels and surface combatants market is expected to grow at a CAGR of 1.97% over the forecast period. - The market consists of seven categories: frigates, destroyers, amphibious ships, light combat vessels, corvettes, aircraft carriers, and auxiliary vessels. - North America will dominate the sector with a share of 26%, followed by Asia-Pacific and Europe. The frigates segment is expected to be the leading segment during the forecast period. Reasons to buy - Determine prospective investment areas based on a detailed trend analysis of the global naval vessels and surface combatants market over the next ten years - Gain in-depth understanding about the underlying factors driving demand for different naval vessels and surface combatants segments in the top spending countries across the world and identify the opportunities offered by each of them - Strengthen your understanding of the market in terms of demand drivers, industry trends, and the latest technological developments, among others - Identify the major channels that are driving the global naval vessels and surface combatants market, providing a clear picture about future opportunities that can be tapped, resulting in revenue expansion - Channelize resources by focusing on the ongoing programs that are being undertaken by the defense ministries of different countries within the global naval vessels and surface combatants market - Make correct business decisions based on thorough analysis of the total competitive landscape of the sector with detailed profiles of the top naval vessels and surface combatants providers around the world which include information about their products, alliances, recent contract wins and financial analysis wherever available. Read the full report: https://www.reportlinker.com/p02275942/?utm_source=GNW https://finance.yahoo.com/news/global-naval-vessels-surface-combatants-134956689.html
June 11, 2018 | Local, Naval
DAVID PUGLIESE, OTTAWA CITIZEN Taxpayers will have to spend $1.1 billion extra on new navy supply ships that are going to be built starting this summer, the Liberal government now acknowledges. Previously the cost of building the two ships at Seaspan shipyards in Vancouver, BC had been pegged at $2.3 billion. But the government ordered a review of that cost figure and in an email to Postmedia, Procurement Minister Carla Qualtrough's office now confirms the cost for the Joint Support Ships, or JSS, is set at $3.4 billion. Pat Finn, the head of procurement at the Department of National Defence, said the new price tag came as the government decided to do an additional analysis of the project and include other items it had not previously included. In some cases equipment for the ship has been purchased so there are better costs available on those items, Finn said in an interview Monday. Also taken into account was new infrastructure and the delays with the program, which, in turn, drove up the price as the cost of material increased over the years. “The build period has changed quite dramatically,” Finn acknowledged. At one point, the first ship was supposed to arrive in 2012. That has been changed a number of times with the government later hoping for a 2018 delivery and then a 2019 arrival for the first vessel. The Department of National Defence is now hoping for the delivery of the first ship in 2022 or 2023. Construction will begin at Seaspan this summer of some initial portions of the vessels, Finn said. The government hopes starting construction on the supply ships in the summer will head off any potential layoffs of skilled employees at Seaspan. Finn said of the $3.4 billion figure, the actual cost of building the two ships accounts for a little more than 60 per cent. Finn said the new costing model for the JSS is more akin to the one used by the parliamentary budget office. That office had an even higher estimate for JSS when it concluded in 2013 that the final tally for taxpayers would be $4.13 billion. The Joint Support Ships are critical for the navy as they provide fuel and supplies for warships at sea. But the Royal Canadian Navy retired its last two aging supply ships years ago. One was damaged beyond repair in a fire. The other was removed from service because of excessive corrosion. The Canadian military had been relying on the Spanish and Chilean navies to provide supply vessels for short periods of time to help fuel up Canadian warships at sea. Because of the delays in the JSS program, the previous Conservative government entered into agreement with Davie Shipyards in Quebec to lease a commercial vessel that had been converted into a refueling and supply ship. That ship, the MV Asterix, is at the heart of federal government's case against Vice Admiral Mark Norman. Norman has been accused by the RCMP of warning Davie in the fall of 2015 that Liberal cabinet ministers wanted to derail the Asterix project. Word of the Liberal plan leaked out to the news media and the resulting embarrassment forced the Trudeau government to back down on its plans and the conversion of Asterix proceeded. Norman was put under investigation and Prime Minister Justin Trudeau predicted on two occasions the officer would ultimately end up in court. In March, the RCMP charged Norman with a single count of breach of trust. A date for the trial has not yet been set. Norman denies the charge and has said he looks forward to clearing his name. Asterix is considered a rare achievement in Canadian military procurement in that it was delivered on time and on budget. The supply ship is now at sea with Royal Canadian Navy and is headed to a major military exercise to begin later this month. http://ottawacitizen.com/news/national/defence-watch/joint-support-ship-cost-up-by-1-1-billion-taxpayers-will-now-spend-3-4-billion-on-project