Canadian Surface Combatant cost may rise 9% with delays, inflation

On the same subject

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  December 8, 2017 | Local, Naval

  French and Italian governments endorse long-shot bid for 15 new ships for Canada's navy

  DANIEL LEBLANC OTTAWA PUBLISHED DECEMBER 8, 2017UPDATED 3 DAYS AGO The French and Italian governments are officially backing an unsolicited proposal to supply 15 military vessels to the Royal Canadian Navy outside of the ongoing competition for the $60-billion contract, documents show. The French and Italian ministers of defence submitted a letter last month to their Canadian counterpart, Harjit Sajjan, stating that they "fully support" the joint bid by Naval Group and Fincantieri to replace the RCN's existing frigates and retired destroyers. The support from the French and Italian governments could give additional weight to the long-shot proposal, which aims to bypass the official procurement process for new Canadian Surface Combatants. "Under the umbrella of an intergovernmental agreement, we will provide project management support so that the Royal Canadian Navy can operate the purchased warships, sustain their operational capabilities and manage their evolving capabilities throughout their entire lifecycle," said the letter from French Defence Minister Florence Parly and Italian Defence Minister Roberta Pinotti. The submission from Naval and Fincantieri has shaken up the process put in place by the federal government to acquire 15 new vessels. Halifax-based Irving Shipbuilding Inc. is the government's prime contractor, with a competition under way to select a warship design. Defence-industry sources said the leading contender in the process is a joint bid by U.S.-based Lockheed Martin and British-based BAE Systems. The same sources said only three of the 12 prequalified bidders submitted a formal proposal by the Nov. 30 deadline, a number the federal government will not confirm. Under Canada's defence policy unveiled earlier this year, the federal government is planning to get its first Canadian Surface Combatant in 2026, with the entire project costing between $56-billion and $60-billion. Under the Franco-Italian proposal, the 15 vessels would also be built at the Irving shipyard. Based on production costs in Europe, the two companies said they could provide the vessels to the Canadian government for $20.9-billion (€13.8-billion), with construction starting in late 2019. The bid from Naval and Fincantieri was unsolicited, essentially relying on the possibility that none of the bidders under the existing process will be deemed compliant. The defence-industry sources described the offer as a "Hail Mary" that could succeed if the ongoing process unravels, like many previous military procurements. "Everything depends with what happens with the process that is under way right now," said David Perry, senior analyst at the Canadian Global Affairs Institute. "If they can get two compliant bids or ideally all three ... I wouldn't see a need to go back and do a comparison with the [Naval/Fincantieri] bid." The federal government said this week that it will not even analyze the unsolicited bid. "To be clear, any proposals submitted outside of the established competitive process will not be considered," Public Services and Procurement Canada (PSPC) said in a statement. "The submission of an unsolicited proposal at the final hour undermines the fair and competitive nature of this procurement suggesting a sole-source contracting arrangement. Acceptance of such a proposal would break faith with the bidders who invested time and effort to participate in the competitive process, put at risk the government's ability to properly equip the Royal Canadian Navy and would establish a harmful precedent for future competitive procurements," the statement said. In addition, the government rejected the notion that the Franco-Italian bid could generate significant savings, stating that the acquisition of the ships accounts for only about half of the price tag. "It is important to note that a warship project budget must cover more than just delivering the ships. It must also include the costs associated with design and definition work, infrastructure, spare parts, training, ammunition, contingencies and project management," PSPC said. The Naval/Fincantieri proposal is based on the European multimission frigate program, under which the two firms are supplying 18 ships to the French and Italian navies. The two companies said their "off-the-shelf solution" is less risky than other projects still in development. https://www.theglobeandmail.com/news/politics/french-and-italian-governments-endorse-long-shot-bid-for-15-new-military-ships/article37275099/ CSC

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  October 21, 2020 | Local, Naval, C4ISR

  Canada ensures continued support for Halifax-class radar systems

  From: National Defence Canada's Halifax-class multi-role patrol frigates are the backbone of the Royal Canadian Navy (RCN). Making sure that these ships have and maintain modern equipment is key to ensuring our navy can continue its important work. Canada's Halifax-class multi-role patrol frigates are the backbone of the Royal Canadian Navy (RCN). Making sure that these ships have and maintain modern equipment is key to ensuring our navy can continue its important work. Today, Defence Minister Harjit S. Sajjan announced an in-service support contract with Thales Canada, of Ottawa, Ontario, to support the SMART-S MK2 radar system used on Canada's Halifax-class frigates, starting in fall 2020. Valued at $4.6 million (including taxes), this contract will provide critical engineering, in-service support, and repair and overhaul services to ensure the radar remains operationally capable of detecting the location and range of possible air and surface threats up to 250 km away. The SMART-S MK2 radar is the primary tactical radar used on the Halifax-class frigates, and was installed as part of the Halifax-class Modernization Project. It is a medium-to-long-range 3-D radar that provides air and surface surveillance capabilities to the RCN's Halifax-class frigates. Keeping our Halifax-class frigates operational and at the height of modern technology is critical for maintaining the combat readiness of the RCN until the arrival of the Canadian Surface Combatant ships. Quotes “The continued support of the Royal Canadian Navy's Halifax-class frigates is an important aspect of Canada's defence policy, Strong, Secure, Engaged. The Halifax-class frigates are considered to be the backbone of the RCN. As maritime threats continue to evolve, this investment in equipment will provide our people in uniform with the tools they need, to continue protecting Canadians and supporting peace and security missions at home and abroad.” “We are providing the members in uniform with the equipment they need to carry out their important work. This in-service support contract is another example of our commitment to provide the Royal Canadian Navy with the technology it needs to continue protecting and serving Canadians.” The Honourable Anita Anand, Minister of Public Services and Procurement “Investing in our local industry is now more important than ever with the COVID-19 pandemic. By supporting companies like Thales here in the National Capital Region, our government is continuing to grow local Ottawa-based industry, while also providing the women and men of the Canadian Armed Forces with the resources they need.” Anita Vandenbeld, Parliamentary Secretary to the Minister of National Defence Quick facts Halifax-class frigates monitor and control Canadian waters, defend Canada's sovereignty, facilitate large-scale search and rescue activities, and provide emergency assistance when needed. The frigates operate with and integrate into the United Nations, the North Atlantic Treaty Organization and coalitions of allied states in support of international peace and security operations. Introduced into service in the 1990s, the Canadian-built Halifax-class frigates were recently modernized to remain operationally effective and relevant until the Canadian Surface Combatants enter into service. This contract will provide in-service support and repair and will overhaul parts for the SMART-S MK2 radar for one year, beginning this fall. There is also an option for an additional four, one-year extensions, in order to maintain support during the transition to future in-service support contracts. Should all options be exercised, the entire contract has a potential value of up to $19 million (including taxes). This contract is fully compliant with the Government of Canada's Sustainment Initiative, which helps us ensure performance, value for money, flexibility, and economic benefits. This in-service support contract for the radar is an interim measure that will ensure services until a new contract for the Halifax-class Combat System has been awarded and a transition has been completed in 2021. This future in-service support contract will combine five current contracts for the frigate's combat systems under one long-term contract managed by a single prime contractor, helping to ensure continued service and best value. Through the Halifax-class Modernization Project, the Government of Canada successfully modernized the RCN's fleet of 12 frigates to ensure they continue to meet evolving operational needs. Valued at $4.3 billion, this project provided state-of-the-art upgrades, including a new combat management system, new radar capability, new electronic warfare systems, and upgraded communications and missile systems. Final delivery was on November 30, 2016, with full operational capability achieved by January 31, 2018. https://www.miragenews.com/canada-ensures-continued-support-for-halifax-class-radar-systems/

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  July 22, 2019 | Local, Aerospace

  Fighter jet firms mull pullout from Canadian competition – F-35 could be last plane standing

  DAVID PUGLIESE, OTTAWA CITIZEN Airbus and Boeing may pull out of a bidding process to supply Canada with new fighter jets because they say the contest is unfairly tilted toward Lockheed Martin's F-35, Reuters has reported. Officials with Saab have expressed similar concerns. The news comes as the request for proposals (bids) is expected to be released soon. Boeing and Airbus have now formally written to the federal government expressing concerns about the current requirements, according to Reuters. Pat Finn, the Assistant Deputy Minister for Materiel at the Department of National Defence, has confirmed one of the companies sent a formal letter but he didn't provide details. It's no secret Saab, Airbus and Boeing are upset with the changes made to the competition after the Pentagon threatened to pull the F-35 out of the $19 billion competition. Officials with Lockheed Martin's three competitors say the Canadian government went overboard to please the Pentagon and the bid package is now designed so the F-35 would emerge as the clear winner. That would make the Royal Canadian Air Force happy since it has always wanted the F-35 stealth fighter. The Liberal government has committed to purchasing 88 new fighter jets. The competition was launched on Dec. 12, 2017. Four fighter jets are to be considered. Those include the F-35, the Super Hornet, the Eurofighter Typhoon and the Gripen. In the fall of 2018 Dassault Aviation pulled out as a potential bidder. The company had planned to offer the Rafale but decided against competing the aircraft because of the extensive requirements for interoperability with the U.S. military. The first delivery of the jets is expected in the mid-2020s with the full capability available in the early 2030s, according to the DND document. The requirements for a new Canadian fighter jet put emphasis on strategic attack and striking at ground targets during foreign missions, according to federal government procurement documents obtained by Postmedia. While the Liberal government has been highlighting the need to buy the jets to protect Canadian airspace and meet the country's commitments to the U.S.-Canadian North American Aerospace Defence Command, the procurement criteria, currently in draft form, provides additional weight to those aircraft that can excel at ground attack for overseas operations. That criteria is seen to favour Lockheed Martin's F-35 stealth jet, say those industry representatives allied with Lockheed's rivals. But Finn, the Department of National Defence's procurement chief, says there is such a wide variety of requirements to meet that while some aircraft might be seen to do well in some areas, they may not excel in others. “Somebody may be better in a high-end scenario but they're worst for cost,” Finn explained in a recent interview. “That's why we say it's the whole piece” that will be considered in the competition. Some will dismiss the latest news about companies threatening to pullout of the competition as a bluff or a last-ditch effort to force changes on the request for proposal package, which is expected to be released in a week or so. That is one scenario. The other scenario is this: the effort to prepare a bid is expected to cost each firm about $15 million and involve up to 30 staff members. It is an extensive process. If Canada's request for proposals is so tilted towards the F-35 – or seen to be tilted – then companies will think twice about committing to that process. (Analysis) https://ottawacitizen.com/news/national/defence-watch/fighter-jet-firms-mull-pullout-from-canadian-competition-f-35-could-be-last-plane-standing