December 21, 2020 | Local, Naval
The Canadian Surface Combatant project is moored in layers of unnecessary secrecy. Information that has trickled out has been fragmented and contradictory. This suggests anything but smooth sailing.
Author of the article:
Editorial Board
Perhaps, one day, Canada will have 15 splendid new warships, outfitted with cutting-edge technology, that boost our naval security, create thousands of high-quality jobs and offer myriad industrial benefits.
But meanwhile, the project to build the Canadian Surface Combatant vessels remains moored in layers of unnecessary secrecy. The information journalists and the Parliamentary Budget Officer have gleaned to-date has been fragmented and contradictory. This suggests anything but smooth sailing.
For one thing, there is the issue of cost. The plan to construct the warships has navigated its way through federal governments since the 1990s, but won't start until 2023. It has been delayed time and again; project requirements have changed; and most significantly, the price estimate has soared.
Let's start there. The original $14-billion estimate for these ships is now around $70 billion, according to experts. And, as explained by the Citizen's David Pugliese, officials have done everything possible to keep these swelling costs under wraps. While MPs focus on scandals such as the WE Charity debacle (which involved just under $1 billion in grants), there's been little serious parliamentary scrutiny of the spiralling costs of our new-age warships.
Next came allegations of bid-rigging (strenuously denied by the government) from some potential contractors, after the procurement rules were changed. In one legal filing, a company noted the parameters of the CSC project has been altered 88 times during the process.
Third, while politicians and bureaucrats have argued there will be thousands of high-paying jobs and other industrial benefits, insiders are more dubious. There are no consequences to contractors who don't meet job targets.
What is truly scandalous about the shipbuilding affair, however, is the blind insistence on secrecy from all levels of government. Canadian taxpayers will be on the hook for $70 billion (and perhaps more, by the time the first ship sails). Yet journalists from this news organization and others have seen straightforward questions go unanswered; have been threatened with lawsuits; or have had access-to-information queries (that's the law designed to get answers out of government) stalled for years. The Parliamentary Budget Officer has been refused information that was nonetheless shared by government with lobbyists and potential contractors.
Project defenders may deride those who raise problems. Yet with so much secrecy, it is impossible for a thinking voter to feel full confidence that the government is competently steering one of its most important files: the nation's defence. Such stonewalling reeks of confusion or incompetence. It's unacceptable in a liberal democracy, and must change.
https://ottawacitizen.com/opinion/editorial-choppy-waters-for-canadas-warship-program
October 29, 2023 | Local, Naval, Security
A keel-laying is a significant milestone in a ship’s construction, where a newly minted coin is placed near the keel, which traditionally runs along the length of the ship.
July 6, 2021 | Local, Aerospace, Naval, Land, C4ISR, Security
July 06, 2021 08:00 AM Eastern Daylight Time ST. LOUIS & MONTREAL--(BUSINESS WIRE)--Electrical Components International, Inc. (“ECI”), a leading global supplier of wire harnesses, electrical components, and sub-assemblies for diversified industrial markets, today announced the acquisition of Promark Electronics Inc. (“Promark Electronics”). Founded in 1987 by Syd Knecht, Promark Electronics is a manufacturer of wire harnesses and cable and electromechanical assemblies utilized by commercial electric vehicles and other technically-complex, mission-critical products. With the growing demand for commercial electric vehicles, Promark Electronics has developed high-voltage cable and assemblies as part of its ProEV™ platform, which has made it a trusted partner to leading commercial electric vehicle manufacturers. The company will continue and expand its manufacturing operations in its Montreal, Quebec, Canada facilities. “We are excited to partner with Promark Electronics and establish ECI as the high-voltage harness supplier of choice in high-value, high-growth markets,” said Mike Balsei, Chief Executive Officer of ECI. “With ECI's global scale and Promark Electronics' proprietary solutions, we will be able to help manufacturers meet the increasing demand for commercial electric vehicles as well as in adjacent e-mobility verticals.” The Knecht Family will continue to lead the Promark Electronics team. In a joint statement, Jarred, Brandon, and Robert Knecht commented: “We are incredibly proud of the business and reputation that our family has built over the past three decades. We are thrilled to have found an industry-leading partner to help us further accelerate our growth, particularly in the e-mobility space. We are excited to join the ECI family, deepen our customer relationships, and continue our long track record of innovation and excellence.” ECI is a portfolio company of Cerberus Capital Management, L.P. (“Cerberus”), a global leader in alternative investing. Earlier this year, ECI acquired Omni Connection International, a manufacturer of wire harnesses and connection systems for leading tier one automotive suppliers. Michael Sanford, Senior Managing Director at Cerberus, added: “Promark Electronics adds a highly complementary platform serving a rapidly growing market. We remain excited about the strategic opportunities for ECI and look forward to supporting the business' continued growth.” Barclays served as financial advisor and Blake, Cassels & Graydon LLP and Debevoise & Plimpton LLP served as legal counsel to ECI and Cerberus. Lincoln International LLC, Crowe BGK, and EY served as financial advisors to Promark Electronics and Osler, Hoskin & Harcourt LLP acted as legal counsel. About ECI Founded in 1953, Electrical Components International, Inc. (ECI) is one of the world's leading wire harness, electrical components, and sub-assembly suppliers for diversified industrial markets. With nearly 22,000 employees in 31 facilities spanning eight countries and four continents, ECI's “blue-chip” customer base includes many firms in the Fortune 500 across the appliance, HVAC, construction, agriculture, transportation, and critical infrastructure sectors. For more information about ECI, visit www.ecintl.com. About Promark Electronics Founded in 1987 by Syd Knecht and headquartered in Montreal, Quebec, Canada, Promark Electronics is a state-of-the-art electronics manufacturer, serving OEMs in industries with complex production processes and applications, including e-mobility, industrial technology, medical, mining, aerospace, space, and defense industries. For more information, visit www.PMK.com. About Cerberus Founded in 1992, Cerberus is a global leader in alternative investing with over $55 billion in assets across complementary credit, private equity, and real estate strategies. We invest across the capital structure where our integrated investment platforms and proprietary operating capabilities create an edge to improve performance and drive long-term value. Our tenured teams have experience working collaboratively across asset classes, sectors, and geographies to seek strong risk-adjusted returns for our investors. For more information about our people and platforms, visit us at www.cerberus.com. Contacts ECI Julie Mottershead julie.mottershead@ecintl.com (314) 261-7774 Cerberus Akash Lodh Sard Verbinnen & Co. Cerberus-SVC@sardverb.com (202) 758-4263
January 4, 2019 | Local, Aerospace
David Pugliese, Ottawa Citizen Eighteen of the Australian F-18 aircraft will eventually be flying for the Canadian Forces, while another seven will be used for testing and spare parts Canada has finalized a deal to buy 25 used fighter jets from Australia, the first of which are expected to be operating by this summer, says the top procurement official at the Department of National Defence. “The first two aircraft will be here this spring,” Pat Finn, assistant deputy minister for materiel at DND, told Postmedia in an interview. “I would say it could be by the summer the first couple are on the flight line and painted with the maple leaf.” A second group of planes would arrive later this year. Eighteen of the Australian F-18 aircraft will eventually be flying for the Canadian Forces, while another seven will be used for testing and spare parts. Canada is paying Australia $90 million for the aircraft. The federal government originally estimated the purchase of the Australian jets would cost around $500 million, but Finn said that price reflected every aspect of the associated deal, not just the cost of purchasing the jets. Canada is also acquiring extra spare parts, the Australian jets will have to be outfitted with specific Canadian equipment and software and testing will be needed. The $500-million project estimate also included $50 million in contingency funds to cover any problems and another $35 million for the salaries of all civilian and military personnel involved over the life of the project. An additional $30 million will be spent on new infrastructure needed to accommodate the aircraft. Those costs add up to $360 million, Finn said. But DND also plans to upgrade its existing fleet of CF-18s with new communications gear and equipment required to meet regulations to operate in civilian airspace, improvements which the Australian jets will also eventually receive at a cost of around $110 million, an amount that brought the original estimate to nearly $500 million. The Liberal government had planned to buy 18 new Super Hornet fighter jets from U.S. aerospace giant Boeing to augment the Royal Canadian Air Force's CF-18s until new aircraft can be purchased in the coming years. But in 2017 Boeing complained to the U.S. Commerce Department that Canadian subsidies for Quebec-based Bombardier allowed it to sell its C-series civilian passenger aircraft in the U.S. at cut-rate prices. As a result, the administration of U.S. President Donald Trump enacted a tariff of almost 300 per cent against the Bombardier aircraft sold in the U.S. In retaliation, Canada cancelled the deal to buy the 18 Super Hornets, which would have cost more than US$5 billion. Instead of buying the new Super Hornets, the Liberals decided to acquire the used Australian jets. Defence Minister Harjit Sajjan has said the extra jets are needed to deal with a “capability gap,” as Canada does not have enough fighters to handle its commitments to NATO as well as protecting North America. But Conservative MPs say the capability gap doesn't exist and was concocted by the government to delay a larger project to buy new jets, a competition that might end up selecting the F-35 stealth fighter that during the 2015 election campaign the Liberals vowed never to purchase. In the fall of 2016, then-Royal Canadian Air Force commander Lt.-Gen. Mike Hood told senators that the Liberal government brought in a policy change which required the RCAF to be able to meet both its NATO and North American air defence commitments at the same time. That, in turn, created the capability gap, he said. Hood said he was not told about the reasons for the policy change. In November 2018 Auditor General Michael Ferguson issued a report noting that the purchase of the extra aircraft would not fix the fundamental weaknesses with the CF-18 fleet which is the aircraft's declining combat capability and a shortage of pilots and maintenance personnel. “The Australian F/A-18s will need modifications and upgrades to allow them to fly until 2032,” the report said. “These modifications will bring the F/A-18s to the same level as the CF-18s but will not improve the CF-18's combat capability.” “In our opinion, purchasing interim aircraft does not bring National Defence closer to consistently meeting the new operational requirement introduced in 2016,” Ferguson's report added. The Canadian Forces says it is bringing in new initiatives to boost the numbers of pilots and maintenance staff. https://nationalpost.com/news/canada/deal-to-buy-used-australian-fighter-jets-finalized-with-canadian-forces-set-to-be-flying-them-by-summer