June 2, 2022 | Local, Aerospace, Naval, Land, C4ISR, Security
September 10, 2018 | Local, Land
Canada's arms deal with Saudi Arabia is shrinking
The LAV sale is being scaled back. Critics want it killed completely.
Murray Brewster · CBC News
A Canadian defence contractor will be selling fewer armoured vehicles to Saudi Arabia than originally planned, according to new documents obtained by CBC News.
That could be a mixed blessing in light of the ongoing diplomatic dispute between the two countries, say human rights groups and a defence analyst.
The scaled-back order — implemented before the Riyadh government erupted in fury over Canada's public criticism of Saudi Arabia's arrest of activists and froze new trade with Canada this summer — could make it politically less defensible for the Liberal government, which has argued it's in the country's business and economic interests to uphold the deal.
The documents show General Dynamic Land Systems Canada, the London, Ont.-based manufacturer, was — as of spring last year — going to deliver only 742 of the modern LAV-6s, a reduction from the original 2014 deal.
The initial order from the desert kingdom was for 928 vehicles, including 119 of the heavy assault variety equipped with 105 millimetre cannons.
Details of the agreement have long been kept under a cloak of secrecy. General Dynamic Land Systems, the Canadian Commercial Corporation (the Crown corporation which brokered the deal) and the Saudi government have all refused to acknowledge the specifics, other than the roughly $15 billion price tag.
Last spring, CBC News obtained copies of internal documents and a slide deck presentation from 2014 outlining the original agreement.
The latest internal company documents obtained by CBC News are dated March 29, 2017, and indicate the agreement had been amended a few months prior, perhaps in the latter half of 2016.
The documents also indicate delivery of the vehicles is already underway and has been for months.
CBC News asked for a response from both Foreign Affairs Minister Chrystia Freeland's office and General Dynamics Land Systems Canada. Both declined comment over the weekend..
A cash-strapped kingdom
A defence analyst said the amended order likely has more to do with the current state of Saudi Arabia's finances than its frustration over Canada's human rights criticism.
"Saudi Arabia — in part because of low oil prices and in part because of corruption and mismanagement of its own economy — has a large budget deficit," said Thomas Juneau, a University of Ottawa assistant professor and former National Defence analyst.
"Spending $15 billion over a number of years for armoured vehicles that it doesn't need that much, at least in a pressing sense, is an easier target for budget cuts, for sure."
The kingdom has projected a budget deficit of $52 billion US this year and the country's finance minister said last spring it is on track to cut spending by seven per cent.
When it was signed, the armoured vehicle deal was a way for Canada to cement relations with an important strategic partner in the region, said Juneau.
Should Ottawa cancel the sale?
He said he wonders if it's still worthwhile, in light of the furious diplomatic row that began over the Canadian government's tweeted expressions of concern for jailed activists — and quickly escalated with the expulsion of Canada's ambassador, the freezing of trade, the cancellation of grain shipments and the withdrawal of Saudi medical students from Canadian programs.
"Now, with the dust not really having settled after the dispute from August, is that partnership, in abstract terms, still necessary? I think it is. But is it still possible?" said Juneau.
Human rights groups say they believe there is even more reason for Ottawa to walk away from the deal now, given the events of this summer and the declining economic benefit.
"We're compromising our position on human rights for even less than we thought," said Cesar Jaramillo, the executive director of Project Ploughshares, which has opposed the agreement from the outset.
"Even if it's not a huge decrease, it is still a decrease. It should, at least in political and economic terms, make it easier for the Trudeau government to reconsider this deal, especially in terms of the latest diplomatic spat."
Full article: https://www.cbc.ca/news/politics/canada-s-arms-deal-with-saudi-arabia-is-shrinking-1.4815571
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February 25, 2020 | Local, Aerospace
Canada grants extension to the deadline for preliminary responses to the Future Fighter Capability Project Request for Proposals
News release February 25, 2020 - Gatineau, Quebec - Government of Canada The Government of Canada is 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. At the request of industry, the March 30 deadline for preliminary proposals for the Future Fighter Capability Project has been extended. Eligible suppliers now have until June 30, 2020 to complete and submit their proposals. This extension supports our commitment to conduct an open, fair, and transparent competition. Procurements of this magnitude are complex, and submission of a good proposal is important for suppliers and for Canada. This extension allows eligible suppliers to address recent feedback on their security offers, ensuring that Canada receives competitive proposals that meet its technical, cost and economic benefits requirements. Quotes “The government set out an aggressive timeline to implement this very complex, high-value procurement, and while we understand the importance of this procurement for our women and men in uniform, our focus is on moving the process forward as quickly as we can, while ensuring that all bidders have the time they need to put forward their best proposal.” The Honourable Anita Anand Minister of Public Services and Procurement “Our government is making the necessary decisions to get the best aircraft for the Royal Canadian Air Force and Canada. This extension will allow the eligible suppliers to make their best possible offer to ensure that we are able to provide the equipment our members need at a fair cost to Canadians.” The Honourable Harjit S. Sajjan Minister of National Defence “Canada's Industrial Technological Benefits policy is expected to generate high-value jobs and economic growth for Canadian aerospace and defence businesses for decades. Ensuring that all suppliers have the opportunity to put their best bid forward is important to ensure strong economic benefits are secured for Canadians.” The Honourable Navdeep Bains Minister of Innovation, Science and Industry Quick facts This is the most significant investment in the Royal Canadian Air Force in more than 30 years and is essential for protecting the safety and security of Canadians and meeting international obligations. Officials conducted extensive engagement with Canadian aerospace and defence industries to ensure that they are well positioned to participate in the procurement. Canada is using a phased-bid compliance process, which is an additional measure to ensure that bidders will have an opportunity to address non-compliance in their proposals related to mandatory criteria. Following evaluation of preliminary proposals, a dialogue phase may be conducted with one or more compliant bidders to reduce the risk that a proposal is eliminated due to an error or omission. Proposals will be rigorously assessed on elements of capability (60%), cost (20%) and economic benefits (20%). All proposals will be evaluated according to the same evaluation criteria. Canada's Industrial and Technological Benefits Policy, including a Value Proposition applies to this procurement. This is expected to generate high-value jobs and economic growth for Canadian aerospace and defence businesses for decades. Associated links Future Fighter Capability Project National Defence: Fighter jets Integrating Australian jets into the current Royal Canadian Air Force fighter fleet Contacts Cecely Roy Press Secretary Office of the Honourable Anita Anand 343-549-7293 Media Relations Public Services and Procurement Canada 819-420-5501 media@pwgsc-tpsgc.gc.ca Follow us on Twitter Follow us on Facebook https://www.canada.ca/en/public-services-procurement/news/2020/02/canada-grants-extension-to-the-deadline-for-preliminary-responses-to-the-future-fighter-capability-project-request-for-proposals.html
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October 22, 2019 | Local, Aerospace
JOUER LES MÉCHANTS PROFITE À TOP ACES
JEAN-FRANÇOIS CODÈRE L'armée de l'air américaine a choisi vendredi sept entreprises, dont la montréalaise Top Aces, pour venir « jouer les méchants » lors de ses entraînements. Le contrat pourrait permettre à Top Aces de doubler sa taille et devrait confirmer qu'elle deviendra bientôt le premier opérateur privé au monde d'avions de chasse F-16. Fondée il y a 15 ans par trois anciens pilotes de chasse canadiens, Top Aces offre aujourd'hui aux armées canadienne et allemande des services d'entraînement pour leurs pilotes. Top Aces fournit ses propres pilotes, sélectionnés parmi les meilleurs de leur profession, et ses propres avions afin de servir d'adversaires. Le marché est prometteur. De 100 à 150 millions de dollars qu'il représentait jusqu'à tout récemment à l'échelle mondiale, il pourrait bientôt toucher les 3 milliards, gr'ce notamment à l'entrée en scène des Américains. Eux aussi ont découvert l'intérêt de sous-traiter le rôle de l'ennemi : coûts inférieurs et des heures d'entraînement plus productives pour les pilotes. « Un pilote qui joue à l'adversaire est limité et il n'utilise pas ses heures de vol à son plein potentiel », rappelle Didier Toussaint, cofondateur et chef des opérations de Top Aces. CONTRAT AMÉRICAIN Vendredi, l'armée américaine a retenu sept entreprises à l'occasion d'un appel d'offres pour un contrat-cadre d'une valeur maximale de 6,4 milliards US. Ces sept entreprises seront donc admissibles à participer aux appels d'offres à venir de 12 bases américaines. « Chacune de ces bases représente un contrat plus important que celui que nous avons pour l'ensemble du Canada. » — Didier Toussaint, cofondateur et chef des opérations de Top Aces Avec ses 29 appareils F-16 achetés de l'armée israélienne, Top Aces devrait être l'entreprise la mieux équipée du lot. Elle est déjà la plus importante en matière d'heures de vol effectuées. Elle devrait donc principalement se concentrer sur les bases aux besoins les plus évolués, celles qui abritent des F-35, par exemple. À elle seule, cette expansion américaine représente un investissement de 450 millions US pour Top Aces. En plus des appareils, il faudra embaucher des pilotes, des ingénieurs et des mécaniciens. Une cinquantaine de pilotes américains ont déjà reçu des promesses d'embauche. Un ancien officier américain de haut rang quittait le bureau de M. Toussaint au moment où La Presse y est entrée. Il venait de passer un entretien d'embauche. Top Aces s'apprête à accueillir de nouveaux investisseurs institutionnels, « dont certains québécois », qui lui permettront de franchir cette étape. Clairvest, de Toronto, et JPMorgan ont déjà une place dans son capital. D'autres bonnes nouvelles pourraient aussi survenir au cours de la prochaine année. Le Royaume-Uni est à la recherche de services du même genre, tout comme l'Australie, dont Top Aces a été le fournisseur pendant une période d'essai de deux ans. MOINS COÛTEUX Si les services de Top Aces représentent des économies pour les armées de l'air, ce n'est pas en raison du coût du personnel. Les pilotes sont rares et l'entreprise doit les payer à leur valeur, dit M. Toussaint. L'économie vient plutôt des appareils. En attendant ses F-16, Top Aces fournit ses services à l'armée canadienne avec 16 appareils Alpha Jet, des avions d'abord conçus pour l'entraînement et qui coûtent moins cher à manœuvrer que les F-18 de l'armée. Leurs performances moindres ne sont pas vraiment significatives dans la plupart des contextes, explique M. Toussaint. « On n'est pas à 50 % des F-18, on est plutôt autour de 90 %. C'est le dernier 10 % qui coûte cher. » — Didier Toussaint, cofondateur et chef des opérations de Top Aces Environ 2000 heures de vol sont encore effectuées par des F-18 qui servent d'adversaires dans les contextes où la performance de l'appareil est critique. Top Aces s'occupe du reste. Les jeunes pilotes, moins expérimentés, gagnent à affronter des avions inférieurs dirigés par des pilotes plus expérimentés, indique d'abord M. Toussaint. Les Alpha Jet sont aussi convenables dans des simulations impliquant de nombreux appareils, où la performance de chacun est moins importante. Finalement, l'entreprise fournit aussi des services à la marine, aux forces spéciales et à l'armée de terre. Les soldats s'entraînent à commander des frappes aériennes et la nature de l'appareil qui répond à leurs commandes importe peu. Quant à la marine, elle s'exerce à tirer sur des cibles en forme de missiles traînées par des avions d'affaires Learjet, au bout d'un c'ble. Si l'interminable saga du renouvellement de la flotte d'avions de chasse finit par aboutir, le Canada se retrouvera équipé d'avions encore plus performants que les F-16 que détiendra Top Aces. Encore là, pas de souci, selon M. Toussaint. « Ce qu'on réplique, ce sont des avions ennemis, essentiellement russes ou chinois pour être clair. Nos F-16, qui seront bien équipés, vont faire le travail. » http://plus.lapresse.ca/screens/b56ec892-2a8d-495c-8972-04df52fe2b08__7C___0.html