Feds, Irving ask trade tribunal to toss challenge to warship contract

On the same subject

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  May 7, 2020 | Local, Land

  General Dynamics saw $1 billion bump after Canada-Saudi accord

  By: Joe Gould   1 day ago WASHINGTON ― General Dynamics has received $1 billion since the renegotiation of a $10 billion contract for Canada to sell light armored vehicles to Saudi Arabia, company officials said on its first quarter earnings call. In a deal last month, Canada lifted its ban on arms sales to Saudi Arabia, which in turn agreed to a speedier payment schedule for the LAVs. Canada had the vehicles on hold since 2018, following the death of Saudi journalist Jamal Khashoggi; and by October, Saudi Arabia had racked up $1.5 billion in back payments to General Dynamics. Amid news on the April 29 call that the company's revenue fell $512 million in connection with the coronavirus pandemic, General Dynamics Chief Financial Officer Jason Aiken highlighted “the formal signing of the restructured contract on the Canadian international program, which settled all issues to the satisfaction of the parties.” “With respect to our standing receivable you may recall that we received $500 million early in the first quarter and we received another $500 million this month. This will be very helpful to free cash flow in the second quarter,” Aiken said. “We will begin a regular cadence of scheduled payments in 2021 consistent with deliveries and making further progress in the scheduled amortization of the arrearage.” The company's Combat Systems division had revenue of $1.7 billion, up 4.4 percent over the same quarter last year, and sales to the U.S. government were up 12 percent. The firm's aerospace business segment also had revenue of $1.7 billion, but that represented a 23 percent fall from the same quarter last year. On April 9, Canada's foreign affairs minister, François-Philippe Champagne, announced Ottawa was “able to secure significant improvements” to the LAV contract, including more latitude for the Canadian government to speak about it. Under the new terms, Canada could also delay or deny export permits without penalty if it learned Saudi Arabia was not using the vehicles for their stated purpose. Ottawa would also be reviewing permit applications on a case-by-case basis to ensure they meet Canadian law and the U.N. Arms Trade Treaty. Though the Trudeau government has been under political pressure to scrap the LAV deal over human rights concerns, Champagne said its cancellation would have “resulted in billions of dollars in damages” and risked thousands of Canadian jobs across the defense supply chain. The vehicles are made by the General Dynamics Land Systems subsidiary in London, Ontario. https://www.defensenews.com/congress/2020/05/07/general-dynamics-saw-1-billion-bump-after-canada-saudi-accord

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  May 6, 2020 | Local, Aerospace

  Federal government considering delaying acceptance of bids for new fighter jets

  David Pugliese • Ottawa Citizen Publishing date: 21 hours ago • 3 minute read The federal government is looking at once again delaying acceptance of bids on new fighter jets. The bids were originally supposed to be submitted in May 2019 but that was pushed back to March 30 this year. That deadline, in turn, was pushed back to June 30 at the request of the aerospace industry, Public Services and Procurement Canada announced in February. But now the department is once again evaluating a request from industry to further extend that deadline for the proposals, Procurement Canada spokesman Marc-André Charbonneau confirmed in an email to this newspaper. “We remain 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,” he added. “This procurement is a once in a generation opportunity to support the growth of Canada's aerospace and defence industries for decades to come.” If that happens it is unclear on how the current timetable for buying the fighter jets, to replace the CF-18 aircraft, might be affected. A winning bidder was to have been chosen in 2022. The first aircraft would have been delivered by 2025, according to the government's schedule. Industry representatives say they expect the bid submissions to be pushed back at least until the end of the summer. The federal government is focused on dealing with its response to the novel coronavirus pandemic and Public Services and Procurement Canada is deeply involved in setting up procurements of protective gear and medical supplies. It has also been difficult for companies to collect and provide the necessary classified information to the federal government that is needed for the bids. Much of that has to be delivered directly to government officials and cannot be transmitted over the internet because of the sensitivity of the information. The fighter jet competition was launched on Dec. 12, 2017 and at this point three aircraft are to be considered. Those include the F-35, the Super Hornet, and the Gripen. The program is expected to cost around $19 billion and will see the purchase of 88 new jets. Information about how Canada intends to evaluate the jets is limited. But Public Services and Procurement Canada has noted that technical merit will make up the bulk of the assessment at 60 per cent. Cost and economic benefits companies can provide to Canada will each be worth 20 per cent. But Canada won't conduct a fly-off between fighter jets competing to become the country's new warplane nor conduct testing to see how such aircraft perform under cold weather conditions, Public Services and Procurement Canada confirmed earlier this year. Concerns have been raised by Lockheed Martin's rivals that the competition has been designed to favour the F-35. This newspaper reported last year the requirements for the new jets put emphasis on strategic attack and striking at ground targets during foreign missions. That criteria is seen to benefit the F-35. In addition, the federal government changed criteria on how it would assess industrial benefits after the U.S. government threatened to pull the F-35 from the competition. The Conservative government had previously selected the F-35 as the air force's new jet but backed away from that plan after concerns about the technology and growing cost. During the 2015 election campaign, Justin Trudeau vowed that his government would not purchase the F-35. But at the same time, Trudeau stated his government would hold an open competition for the fighter purchase. The Liberal government backed away from its promise to freeze out the F-35 and the aircraft is now seen as a front-runner in the competition as it has many supporters in the Royal Canadian Air Force. Many of Canada's allies plan to operate the plane. Canada is a partner in the F-35 program and has contributed funding for the aircraft's development over the years. It has already made its latest payment on that program. https://ottawacitizen.com/news/national/defence-watch/federal-government-considering-delaying-acceptance-of-bids-for-new-fighter-jets/wcm/2c331c83-e437-45d8-8d1c-9be59ccb7dc3/

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  March 4, 2020 | Local, Aerospace, Naval, Land, C4ISR, Security

  La France espère pénétrer le marché canadien de l’aéronautique et de la défense

  « En ce moment tout le monde regarde [...] le passage du CSeries à l'A220 chez Airbus », a déclaré, le 2 mars, le président du GIFAS, Éric Trappier, lors d'un point de presse en marge d'un événement réunissant 250 représentants du secteur des deux pays, France et Canada, qui se tenait à Montréal, dans le cadre de la mission industrielle du GIFAS au Canada. « C'est un métier difficile [où il faut savoir concilier les facteurs] techniques, commerciaux et financiers, a-t-il poursuivi. Ce n'est pas tout d'avoir des succès techniques. Il faut aussi pouvoir les financer. Et pour les financer, il faut pouvoir les vendre. » La mission du GIFAS espère notamment convaincre le gouvernement fédéral de ne pas toujours seulement regarder du côté des États-Unis lorsque vient le temps de faire ses dépenses militaires.