Federal budget shores up cyber defences but is silent on new jets and warships

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  December 31, 2018 | Local, Aerospace

  Criteria for “Boeing clause” in fighter jet competition to be outlined in the new year

  DAVID PUGLIESE, OTTAWA CITIZEN In October, the Canadian government sent out its draft request for proposals to aerospace firms expected to bid on replacing the CF-18 fighter jets. The aircraft that are being considered in this competition are Lockheed Martin's F-35, the Eurofighter Typhoon, Saab's Gripen and the Boeing Super Hornet. The aerospace companies will provide feedback on the draft request for proposals and after that is received the final RFP will be issued and bids required by May 2019. Industry is expected to provide feedback on a number of issues, including the so-called “Boeing clause.” The Canadian government has introduced the change to the standard procurement process with a new provision that defence analysts say was aimed directly at Boeing. The move came after the U.S. firm complained to the Trump administration that its Quebec-based competitor Bombardier was receiving unfair Canadian government subsidies on the production of its C-Series civilian passenger aircraft. The U.S. ruled in favour of Boeing, resulting in Bombardier facing duties of almost 300 per cent on sales of its C-Series planes in America. The Liberal government retaliated against Boeing's complaint by cancelling plans to buy 18 of the company's Super Hornet fighter jets at a cost of around $6 billion. In addition, as part of the competition for the new fighter jets, Canada announced it would assess a company's “economic behavior” in the years leading up to the competition. Navdeep Bains, the Minister of Innovation, Science and Economic Development, said if a firm has caused economic harm to Canada that would be at a distinct disadvantage in the fighter jet competition. But the Canadian government hasn't yet outlined its criteria for the controversial clause. Jeff Waring, director general for industrial benefits policy at Innovation, Science and Economic Development Canada recently told Esprit de Corps military magazine that the federal government is “still finalizing the assessment tool” for that clause and will continue to discuss the issue with industry. The details for the clause will be outlined before the final request for proposals is issued, he added. https://ottawacitizen.com/news/national/defence-watch/criteria-for-boeing-clause-in-fighter-jet-competition-to-be-outlined-in-the-new-year

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  January 16, 2019 | Local, Naval

  Business group wants National Shipbuilding Strategy reopened for Quebec shipyard

  Murray Brewster · CBC News Association puts pressure on Liberals to direct new projects to Davie yard A Quebec-based business association claiming to represent over 1,000 companies inside and outside the province is launching a high-profile campaign to convince the Liberal government to reopen the oft-maligned National Shipbuilding Strategy. The group is demanding the federal government include the Davie shipyard, in Levis, Que., in the policy and plans to make it a major issue in the October federal election. The Association of Davie Shipbuilding Suppliers, which has been around for about a year, represents companies that do business with the shipyard. It plans an online campaign, beginning Thursday, and will lobby chambers of commerce as well as federal and provincial politicians. It is hoping to use its extensive membership and thousands of associated jobs to put pressure on the government in an election year to direct the building of additional coast guard ships exclusively to the Quebec yard, one of the oldest in the country. The shipbuilding strategy, conceived under the previous Conservative government but embraced by the Liberals, has turned into a giant sinkhole for federal cash with little to show for it, Simon Maltais, the association's vice-president, told CBC News. "We can call it a boondoggle," he said. "It has been seven years in the making. At the moment, there is absolutely no operational ship afloat and working for Canada." The Conservatives under former prime minister Stephen Harper chose two shipyards — Irving Shipbuilding of Halifax and Seaspan in Vancouver — as the government's go-to companies for the construction of new warships and civilian vessels. The Davie shipyard was, at the time, emerging from bankruptcy, and under the strategy it only became eligible for repair and refit work on existing vessels and perhaps the construction of smaller vessels. Delays and cost overruns Irving and Seaspan have invested hundreds of millions of dollars in modernizing their yards and have just begun to produce new vessels. The first Arctic offshore patrol ship for the navy is being outfitted in Halifax and others are in various stages of construction. Three offshore fisheries science vessels, constructed in Vancouver for the coast guard, are undergoing repairs after defective welds were discovered last year. The entire program has been beset with delays and rising cost estimates. Last year, Public Services and Procurement Canada refused to release a revised timeline for the delivery of ships from Seaspan, including construction of a heavy icebreaker and the navy's two joint support ships. Politics and shipbuilding Maltais said it makes no sense to keep excluding Davie from full-fledged ship construction work when much of the coast fleet is over three decades old and in dire need of replacement. Refreshing the strategy would insure the federal government gets the ships it needs and Quebec companies "get their fair share" of the program. "We know it's an electoral year and, yes, we want the federal government and the people in the election to talk about it," he said. Maltais clams members of his association have been talking to federal politicians on both sides of the aisle in the province and they support the idea. "They seem to be on the same page as us," he said. Defence analyst Dave Perry, an expert in procurement and the shipbuilding program, said the political campaign has the potential to make the federal government uncomfortable, but he doubts it will achieve the objective of reopening the strategy to add a third shipyard. "That would certainly be a major change in the strategy," he said. "There had been a view of doing something less than that." The proposal being put forward by the association would not take any work from Halifax or Vancouver, but instead direct all new work, on additional icebreakers for example, to the Quebec yard. Just recently, Davie was awarded a contract to convert three civilian icebreakers for coast guard use, but the association argues the need is greater. The federal government did debate an overhaul of the strategy, according to documents obtained and published by CBC News last summer. The size and scope of the "policy refresh" was not made clear in a heavily redacted memo, dated Jan. 23, 2018. So far, nothing has taken place and government officials have insisted they were still committed to the two-yard strategy. During the last election campaign, the Liberals pledged to fix the "broken" procurement system and invest heavily in the navy. https://www.cbc.ca/news/politics/business-group-wants-national-shipbuilding-strategy-reopened-for-quebec-shipyard-1.4979592

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  November 21, 2018 | Local, Aerospace

  Auditor general trashes Liberal plan to keep CF-18s flying until 2032

  Murray Brewster · CBC News Fighter pilots, technicians are in short supply for Canada's fighter jets Canada's auditor general has shot down the Liberal government's handling of the air force's aging CF-18s in a blistering report that raises questions about national security, and even long-term safety, regarding the viability of the country's frontline fighter jets. Auditor General Michael Ferguson's fall report, tabled Tuesday, methodically picks apart the recent policy change at the Department of National Defence, which requires the military to have enough warplanes to meet Canada's commitments to both NORAD and NATO at the same time. From the get-go the policy was a non-starter, and the federal government knew it, said Ferguson. "The fighter force could not meet the requirement because National Defence was already experiencing a shortage in personnel, and the CF-18 was old and increasingly hard to maintain," said the audit. As of April 2018, the air force's CF-18 squadrons faced a 22 per cent shortage in technical positions — and a startling number of technicians were not fully qualified to do maintenance. Fighter pilots are also in short supply. The air force is losing more of them than it is training each year; among those who do remain, almost one third do not get the required 140 hours of flying time per year. At a news conference following the release of the report, Defence Minister Harjit Sajjan conceded that personnel shortages were identified "early on" after the Liberals took over in 2015. "This is a problem we knew we had," he said, pointing the finger at budget cuts made by the previous Conservative government. "This is what happens when you don't put enough resources into the military." The extent of Liberals' own efforts to boost recruiting and retention of pilots and technicians in the three years since the election was the subject of some confusion Tuesday. A written statement from Sajjan said the government "will launch new efforts to recruit and retain pilots and technicians." During the news conference, the minister said the military's top commander had been directed to deal with the problem and that recruiting pilots is "a priority." Pressed for specifics on recruitment, Sajjan said he's "going to leave it to the experts to figure out." Proposed solution 'will not help solve' issues The auditor's report took issue with the Liberal government's strategy to fill the so-called capability gap by buying additional interim aircraft. The current proposal is to buy used Australian F-18s — of approximately the same vintage as Canada's CF-18s — and convert them for further use until the federal government completes the purchase of brand-new aircraft. This plan, the auditor's report said, "will not help solve either the personnel shortage or the aging fleet." Ferguson said an earlier, $6.3 billion plan to buy 18 brand new Super Hornet fighter jets on an interim basis would have been even worse — and the government was told so in no uncertain terms by the air force. "National Defence's analysis showed that buying the Super Hornet alone would not allow the department to meet the new operational requirement," said the audit. "The department stated that the Super Hornet would initially decrease, not increase, the daily number of aircraft available because technicians and pilots would have to be pulled away from the CF-18s to train on the new aircraft." The proposal to buy Super Hornets was scrapped last spring after the manufacturer, Chicago-based Boeing, angered the Trudeau government in a separate trade dispute involving the sale of Bombardier passenger jets. The Opposition Conservatives have long claimed the 'capability gap' was concocted by the Liberals as a way to push off a decision on a permanent replacement for the CF-18s. In the last election, Prime Minister Justin Trudeau pledged not to buy the F-35 stealth fighter, the preferred option of the Harper government. Sparring in the House The report led to sparring in the House of Commons, with the Conservatives seeing the auditor general's assessment as vindication. "Today's report confirms what we have been saying all along," said James Bezan, the defence critic. "Justin Trudeau deliberately misled Canadians by manufacturing a 'capability gap' to fulfil a misguided campaign promise, and in the process has put the safety and security of Canadians at risk." Sajjan, however, believed the report supported the government's position. "The report confirms what we have always known: The Harper Conservatives mismanaged the fighter jet files and misled Canadians for over a decade," he said. "The report confirms a capability gap exists, and started under the Conservatives." In fact, what the report said was that "Canada's fighter force could not meet the government's new operational requirement." It contained objective analysis of how many aircraft would be required to meet various contingencies. Fleet 'will become more vulnerable' Meanwhile, the auditor is warning that the Liberal government has no plan to upgrade the combat capabilities of the CF-18s to keep them current over the next decade while the air force waits for replacements. The last major refurbishment of the war-fighting equipment on the jets happened in 2008, and Department of National Defence planners have done little since because they had been expecting new planes by 2020. National Defence did not have a plan to upgrade the combat capability of the CF-18 even though it will now have to fly until 2032," said the audit. "Without these upgrades, according to the department, the CF-18 will become more vulnerable as advanced combat aircraft and air defence systems continue to be developed and used by other nations." The fact that the CF-18s are not up to date means they will not be able to operate in certain environments where the risk of surface-to-air missiles or advanced enemy planes is great. That, in turn, "would limit Canada's contribution to NORAD and NATO operations," Ferguson said. Sajjan said the department is looking at an upgrade to the combat systems. "We would love to be able to solve this problem immediately," he said. https://www.cbc.ca/news/politics/auditor-general-trashes-liberal-plan-to-keep-cf-18s-flying-until-2032-1.4912813