March 7, 2022 | Local, Aerospace
November 9, 2020 | Local, Naval
Canada spending $650 million on U.S. missiles for new warships
David Pugliese, Ottawa Citizen, Postmedia News (dpugliese@ottawacitizen.com)
Published: Nov 06 at 10:29 a.m.
Updated: Nov 06 at 7:20 p.m.
The Canadian government is spending around $650 million to buy new missiles and launchers from the U.S. for the Royal Canadian Navy.
Canada is buying 100 Standard Missile 2 Block IIIC missiles and 100 MK 13 Vertical Launch Systems.
The total estimated cost of the purchase is $500 million U.S., according to the U.S. government, which posted details of the deal on Thursday.
The U.S. State Department announced it had approved the pending sale and Congress has also been notified. It is expected to proceed but there were no details about when the weapons would be delivered.
The missiles will be installed on the 15 Canadian Surface Combatant ships, according to the U.S.
Raytheon Missiles and Defense of Tucson, Ariz., will build the weapons.
Last year the Liberal government signed a deal that would lead to the eventual construction of 15 Canadian Surface Combatant warships in the largest single government purchase in Canadian history. A final contract, however, has not yet been signed.
Lockheed Martin offered Canada the Type 26 warship designed by BAE in the United Kingdom. Irving is the prime contractor and the vessels will be built at its east coast shipyard.
Construction of the first ship isn't expected to begin until the early 2020s.
But the Canadian Surface Combatant program has already faced rising costs. In 2008 the then-Conservative government estimated the project would cost roughly $26 billion.
The overall project is currently estimated to cost around $60 billion.
The $60 billion price tag is now being examined by the Parliamentary Budget Officer.
That report was supposed to be delivered to the House of Commons government operations committee on Oct. 22 but has been delayed. No new date has been provided on when the report will be delivered.
“Approximately one-half of the CSC build cost is comprised of labour in the (Irving's) Halifax yard and materials,” according to federal government documents obtained by this newspaper through the Access the Information law.
But some members of parliament as well as industry representatives have questioned whether the CSC cost is too high. There have been suggestions that Canada could dump the Type 26 design and go for a cheaper alternative since the project is still in early stages and costs to withdraw could be covered by savings from a less inexpensive ship.
In 2017 then Parliamentary Budget Officer Jean-Denis Fréchette, estimated the CSC program would cost $61.82 billion.
The entry of the BAE Type 26 warship in the Canadian competition was controversial from the start and sparked complaints the procurement process was skewed to favour that vessel. Previously the Liberal government had said only mature existing designs or designs of ships already in service with other navies would be accepted, on the grounds they could be built faster and would be less risky. Unproven designs can face challenges as problems are found once the vessel is in the water and operating.
But the criteria was changed and the government and Irving accepted the BAE design, though at the time it existed only on the drawing board. Construction began on the first Type 26 frigate in the summer of 2017 for Britain's Royal Navy.
Copyright Postmedia Network Inc., 2020
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August 27, 2020 | Local, Aerospace
St. John's tech start-up ready to 'disrupt' the global display industry
Brendan Mccarthy A St. John's-based tech start-up whose aim is to “fundamentally disrupt” a global industry worth $150 billion says it is well on its way to that goal with the release of its first-generation light-field display. Avalon Holographics says the 29-inch development system represents a significant milestone in realizing a fully immersive, natural 3D experience. “Despite the challenges COVID-19 has presented, it's an exciting time for our company,” said president and co-founder Wally Haas in a news release. “Our prototype serves as proof of concept and we're excited to show the world how natural 3D light-field displays will change the way we produce, view and understand visual content. “Our goal is to fundamentally disrupt the $150-B global display industry, and our prototype launch signals that we're well on the way.” The advanced holographic display system is designed to present 3D content without the need for accessories such as glasses or headsets. https://www.journalpioneer.com/business/regional-business/st-johns-tech-start-up-ready-to-disrupt-the-global-display-industry-489168/
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June 16, 2020 | Local, Naval
Canada to pay $4.1B for Navy support ships in latest cost increase
The Canadian Press OTTAWA — Canada's national shipbuilding plan was rocked by yet another cost increase on Monday as the federal government revealed it will pay $4.1 billion for two long-overdue support ships for the navy — an increase of $1.5 billion from initial estimates. The revelation came as Ottawa officially awarded a contract for the full construction of the two new Protecteur-class joint support ships to Vancouver's Seaspan shipyards, which has already started work on the first of the vessels. Seaspan was first tapped to build the two ships and several coast guard vessels in 2011, at which point the supply ships were expected to cost $2.6 billion. The figure was later revised to $3.4 billion before another $700 million was added Monday. The first of the support ships was to have been delivered by 2019. The government says it now doesn't expect the first ship before 2023, with the second due in 2025. Seaspan has been under contract to work on some parts of the first ship since June 2018. The Royal Canadian Navy has been without a full-time support ship since 2014 and is currently relying on a converted civilian vessel that is being leased from Quebec's Chantier Davie shipyard to fill the gap. That ship, the MV Asterix, was at the heart of the failed prosecution of retired vice-admiral Mark Norman. The Liberal government was playing down the cost increase to the support ships on Monday, with senior ministers touting the importance of the vessels to the Royal Canadian Navy and the jobs that the project is creating in Vancouver and elsewhere. "These new ships will provide a necessary capability for our Royal Canadian Navy, while providing significant economic benefits and jobs to Canadians, including thousands of jobs created or sustained," Defence Minister Harjit Sajjan said in a statement. Yet the cost increase is the latest to hit the shipbuilding plan, which has been plagued by delays and budget increases for years. The plan is intended to recapitalize the majority of Canada's naval and coast guard fleets. The entire plan to buy new warships to replace the navy's frigates and destroyers, several Arctic patrol vessels, a polar icebreaker and four science vessels for the Canadian Coast Guard in addition to the two support ships was pegged in 2011 at $35 billion. The warships alone are now expected to cost at least $65 billion while the rest of the projects have either seen similar budget increases or their budgets are under review. The delivery schedules for the projects have also been pushed back numerous times. Defence analyst David Perry of the Canadian Global Affairs Institute noted the new cost for the support ships is almost exactly how much Parliament's budget watchdog estimated following an analysis in 2013. The Conservative government at the time refuted the parliamentary budget officer's estimate, with then-public works minister Rona Ambrose saying appropriate safeguards had been put into place to protect taxpayers. "There's not a lot of detail in this today so it's hard to do a line by line," Perry said. "But superficially at least, the PBO's report from 2013 — which I recall being pooh-poohed pretty extensively — has held up pretty well." Ottawa has in recent years produced update cost estimates for most of the vessels being built through the federal shipbuilding plan. However, budgets for the polar icebreaker and an offshore science vessel for the coast guard are still under review. This report by The Canadian Press was first published June 15, 2020. https://www.kamloopsthisweek.com/news/canada-to-pay-4-1b-for-navy-support-ships-in-latest-cost-increase-1.24153254