February 17, 2021 | Local, Naval

DND unable to say exactly when delays in $70-billion warship program began

David Pugliese, Ottawa Citizen, Postmedia News (dpugliese@ottawacitizen.com)

Published: a day ago

Updated: a day ago

National defence says it doesn't know when it determined that a $70-billion project to buy new warships had fallen five years behind schedule, adding billions of dollars to the cost.

That lack of knowledge about a massive mega-project is unprecedented, according to the department's former top procurement official, and is further proof the Canadian Surface Combatant project has gone off the rails.

The Department of National Defence revealed Feb. 1 that the delivery of the first surface combatant ship would be delayed until 2030 or 2031. The first ship was to have been delivered in 2025, according to DND documents.

The five-year delay will cost taxpayers billions of dollars, but the specific amount has yet to be determined.

DND now acknowledges that while there were indications in early 2020 the project schedule was slipping, it doesn't actually know when it was determined the Canadian Surface Combatant program was facing significant delays. “There was no specific month/year,” DND spokesperson Jessica Lamirande wrote in an email to this newspaper. “It was an evolving schedule that continued to shift.”

But Alan Williams, the former assistant deputy minister in charge of procurement at DND, said that lack of insight by DND staff is dangerous. On major equipment procurements, every step should be documented, as bureaucrats could be called on to justify future spending decisions and overall management of a project, he said.

“It's totally absurd they can't even say when they first determined this project would be delayed by five years,” said Williams. “Is that not the definition of a total loss of accountability and control?”

The Canadian Surface Combatant (CSC) project would see the construction of 15 warships for the Royal Canadian Navy at Irving Shipbuilding on the east coast. The vessels will replace the current Halifax-class frigate fleet. However, the project has already faced delays and significant increases in cost, as the price tag climbed from an original $14-billion estimate to $26 billion and then to $70 billion.

The parliamentary budget officer is working on a new report on the CSC cost, to be finished by the end of February. Each year of delay could cost taxpayers more than $2 billion, the PBO warned previously.

Although the DND has a new delivery date for the initial ship in the fleet, that doesn't mean that the vessel will be ready for operations at that time. “We expect delivery of the first ship in 2030/2031, followed by an extensive sea trials period that will include weapons certification and the corresponding training of RCN sailors, leading to final acceptance,” Lamirande said. No dates, however, were provided on when that final acceptance of the first ship would happen.

Troy Crosby, the assistant deputy minister of materiel at the DND, denied the CSC project is in trouble. “I wouldn't call it trouble,” he said in an interview with this newspaper in November. “Is it hard? Is it challenging work? Absolutely. But I wouldn't say we're in trouble.”

Other defence analysts are arguing the CSC program is salvageable with better governance and oversight.

But Williams said the CSC is like a train rolling down a hill without brakes. “You're heading for disaster and people are talking about improving governance,” he said. “That won't save this project.”

Canada has yet to sign a contract to build the Type 26 ship proposed by the consortium of Lockheed Martin and BAE for the CSC. So far, taxpayers have spent $739 million preparing for the eventual construction, according to figures tabled with parliament.

Australia and the United Kingdom also plan to purchase the Type 26. But the first ship, destined for the U.K., has yet to be completed.

The Canadian government originally said it would only accept a winning bid based on a mature existing ship design or a ship already in service with other navies. That would eliminate technical risk, as the design would be a known and tested commodity.

The Type 26 carries extra risk as its design has not yet been proven.

Williams said Canada could build an initial three Type 26 ships and then purchase other warships based on a proven design at a much reduced cost.

https://www.thechronicleherald.ca/news/canada/dnd-unable-to-say-exactly-when-delays-in-70-billion-warship-program-began-552869/

On the same subject

December 17, 2020 | Local, Aerospace

Saab offers two aerospace centres in Gripen E proposal for Canada’s Future Fighter
By Garrett Reim14 December 2020 Saab is offering to open two new aerospace centres as part of its Gripen E proposal for Canada's Future Fighter Capability Project. The aerospace facilities, the Gripen Centre and the Aerospace Research & Development Centre, would be based in the greater Montreal region, the company announced at Aero Montreal's International Aerospace Innovation Forum 2020 on 14 December. Mission system software and hardware development, as well as integration, for the proposed Royal Canadian Air Force (RCAF) Gripen E would be done at the Gripen Centre. The Aerospace Research & Development Centre would focus on a variety of aerospace technologies, including automation, artificial intelligence and “greening” technologies. That work may or may not be directly related to the Gripen E. Rather, the research and development would focus on next-generation aerospace technologies more generally. Saab is also in talks with undisclosed local universities about partnerships related to the aerospace centres, it says. Saab has only about 50 people working in Canada currently, across various businesses such as maritime traffic management and army training and simulation work. However, between the two aerospace centres, the company anticipates at least 3,000 people being directly employed. The RCAF is looking to buy 88 advanced fighters to replace its fleet of Boeing CF-18 Hornets. Canada's Department of National Defence estimates acquisition of the aircraft, related equipment and entry into service will cost C$15-19 billion ($11.8-14.9 billion). A contract is scheduled to be awarded in 2022 after evaluation by the RCAF. The air force wants the first jets received as soon as 2025. The new fleet is expected to fly beyond 2060. In addition to Saab, the RCAF received bids in July from Boeing, which is offering its F/A-18E/F Super Hornet, and Lockheed Martin, which is offering F-35 Lightning II stealth fighters. Canada is also part of the F-35 Joint Strike Fighter programme, spending more than $500 million on the effort since 1997, an investment that has allowed Canadian companies to secure C$1.8 billion in contracts from the project. However, Ottawa has not yet committed to buying F-35s, hence the acquisition competition. Politicians objected to F-35s in part due to the high cost of early examples of the stealth fighter. The cost of the F-35A has fallen to $77.9 million per unit, though operating costs remains high, at $35,000 hourly. Lockheed has promised to lower that figure to $25,000 hourly by 2025. For its part, Saab has proposed that Canada's IMP Aerospace & Defence would handle in-country production of the Gripen E, and provide support over the lifetime of the fleet. The company says initial aircraft would be produced in Sweden to meet Ottawa's goal of first fighter delivery in 2025. It is still evaluating how many aircraft could be made in Canada, but says it aims to “maximise” the number. The rest of the Saab Gripen for Canada team would include CAE, which is to provide training and mission systems; Peraton Canada, which is to supply avionic and test equipment, as well as component maintenance, repair and overhaul, and material management; and GE Aviation, which is set to provide and sustain the fighters' turbine engines. https://www.flightglobal.com/fixed-wing/saab-offers-two-aerospace-centres-in-gripen-e-proposal-for-canadas-future-fighter/141602.article
December 26, 2019 | Local, Aerospace

Deal allows Canada to continue operating aging RCAF VIP aircraft in U.S. airspace
DAVID PUGLIESE, OTTAWA CITIZEN Two RCAF Challenger aircraft are too old to be upgraded with the modern systems required to meet new regulations for civilian airspace. Canada has cut a deal with the United States to allow two of the military's aging Challenger jets to continue to operate in American airspace despite not having the required new air traffic control equipment on board. The two Royal Canadian Air Force Challenger aircraft, used for VIP transportation and other military duties, are too old to be upgraded with the modern systems required to meet new flight regulations for civilian airspace. The new rules come into effect for the U.S., Mexico, Columbia, Saudi Arabia and the United Arab Emirates on Jan. 1. For most of Europe, those rules will apply starting June 7. In Canada, the rules are being phased in between Jan. 1, 2021, and Jan. 1, 2023. The aviation rules call for increased reliance on data links, new air traffic control surveillance technologies and satellite-based navigation. The regulatory changes are being implemented worldwide and are commonly referred to as ADS-B. Canada had been in ongoing negotiations with the U.S. government and its Federal Aviation Administration (FAA) over the continued use of the Challengers in U.S. airspace. “The RCAF has confirmed with the United States Department of Defense and the FAA that we will continue to operate our aircraft in U.S. airspace under a Memorandum of Understanding,” Department of National Defence spokesman Dan Le Bouthillier said. “This interim measure will allow the RCAF to continue operating its Challenger aircraft in U.S. airspace with established processes and is a reflection of our strong relationship with our American partners.” The memorandum covers a five-year period. “Since two of our Challenger aircraft are not ADS-B compliant, they may still be subject to suboptimal flight routings in parts of the U.S., depending on location, density of air traffic and other factors,” Le Bouthillier added. That could mean, for instance, that the Canadian aircraft might need to be rerouted or take a different flight path if the level of air traffic in an area is high. The RCAF operates four Challenger jets, with the two more modern aircraft already outfitted with the new equipment. The Liberal government has been reluctant to buy new aircraft since it is expected Conservative MPs will try to score political points about planes being purchased for VIPs such as the prime minister before new fighter jets are bought for the RCAF. When the Liberals were in opposition, they criticized the Conservative government's use of VIP aircraft. Some within the RCAF support either replacing the two older Challenger jets or purchasing a new fleet of four aircraft, noting the planes are also used for military missions such as medical transportation of injured personnel. The older Challenger planes are not the only aircraft in the VIP fleet that have faced problems. The RCAF's specialized VIP aircraft used by the prime minister won't be flying until August 2020 because of an accident this fall. On Oct. 19, while being towed into a hangar at 8 Wing Trenton by contracted maintenance personnel, the Polaris aircraft was significantly damaged when it rolled into the back wall of a hangar. Engineering teams from Airbus, the original manufacturer of the aircraft, and General Electric, which made the engines, assessed the damages and have provided an initial repair plan. “We do not have sufficient detail about potential costs, or the attribution of those costs, to provide any detail at this time,” RCAF spokesman Lt.-Col. Steve Neta stated in an earlier email. Neta said the RCAF was confident it could meet travel needs of the prime minister and other VIPs. The RCAF has other aircraft that can be used for VIP transport, including other Polaris planes and as the CC-144 Challenger fleet, depending on the requirements, Neta added. In early December, Prime Minister Justin Trudeau used another Polaris aircraft to fly to a NATO summit in the United Kingdom. After that plane arrived, though, problems were discovered in one engine and the aircraft was deemed temporarily “unserviceable” while it was repaired. Another RCAF Polaris, which had taken Governor General Julie Payette to Europe for a tour, was instead used to transpot Trudeau and government officials back to Canada. https://ottawacitizen.com/news/national/defence-watch/deal-allows-canada-to-continue-operating-aging-rcaf-vip-aircraft-in-u-s-airspace
January 30, 2019 | Local, C4ISR

Government of Canada announces information technology investment for Canada's military
Three contracts to enhance the Canadian Armed Forces' integrated IT systems OTTAWA, Jan. 30, 2019 /CNW/ - The Government of Canada is providing its women and men in uniform with the equipment they need to do their jobs and protect Canadians, while maximizing economic benefits to Canadians. Public Services and Procurement Canada, on behalf of National Defence, has awarded three contracts, with a combined value of $621.5 million, to General Dynamics Mission Systems–Canada. The contracts will provide support over five years for the Land Command, Control, Communications, Computers, Intelligence, Surveillance and Reconnaissance (LC4ISR) system. The Canadian Army depends on these communications and information systems to inform and direct land operations. This includes: Cyber Security Engineering Support: contract valued at up to $56.5 million to support the protection of data information systems from theft and damage to the information they contain Engineering and Integration Support: contract valued at up to $367.25 million to fully integrate the LC4ISR system Transition Software Support: contract valued at up to $197.75 million to provide software support that helps integrate various data points, such as GPS-based position reporting, into a single system to allow for timely and informed decision-making The three contracts combined will help sustain approximately 494 highly skilled jobs in Ottawa, Ontario, and Calgary, Alberta. Quotes "These contracts are yet another example of how our government is building a more agile, better-equipped military, while providing meaningful economic opportunities for Canadian businesses. The Canadian Armed Forces carry out important missions on behalf of all Canadians and require the latest technologies to better understand their operating environment and to detect incoming threats." The Honourable Carla Qualtrough Minister of Public Services and Procurement and Accessibility "Through our defence policy, Strong, Secure, Engaged, we are ensuring that our women and men in uniform are well equipped to do the important work we ask of them. The LC4ISR system is a foundational component by which Canadian Army troops stay in touch with each other, our allies and headquarters. These contracts are about ensuring the Canadian Army has what it needs to successfully carry out operations both now and into the future." The Honourable Harjit S. Sajjan Minister of National Defence "These defence contracts will bring highly skilled jobs and foster economic benefits to Canadians while supporting the operations of the Canadian Army. These investments exemplify our commitment to deliver on the vital goals set out in Strong, Secure, Engaged." Chandra Arya Member of Parliament for Nepean "Our government is ensuring that Canadians have the support they need to access highly skilled jobs and to benefit from a prosperous economy. These contracts will enhance equipment for the Canadian Armed Forces, increase skills development and grow Key Industrial Capabilities in cyber resilience." The Honourable Navdeep Bains Minister of Innovation, Science and Economic Development Quick facts The Canadian Army's LC4ISR capability is a highly integrated tactical system comprised of interconnected networks of digital communications and information systems that primarily support the Land Forces in operations. These contracts were awarded through fair, open and transparent procurement processes. The Industrial and Technological Benefits Policy applies to these projects, creating jobs and supporting key industrial capabilities in Canada. Related products National Defence's Defence Capabilities Blueprint website Tender notice – LC4ISR – Cyber Security Engineering Support Tender notice – LC4ISR – Engineering and Integration Support Tender notice – LC4ISR – Transition Software Support Defence Procurement Strategy Investing in the Canadian Armed Forces Follow us on Twitter Follow us on Facebook SOURCE Public Services and Procurement Canada https://www.newswire.ca/news-releases/government-of-canada-announces-information-technology-investment-for-canada-s-military-816325030.html

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