March 17, 2021 | Local, Aerospace, Naval, Land, C4ISR, Security
May 31, 2019 | Local, Aerospace
Fighter RFP delayed again pending official review of industrial benefits policy
by Ken Pole
Shortly before Defence Minister Harjit Sajjan announced on May 29 that a formal request for proposals (RFP) to supply 88 new Canadian fighter jets would be delayed again — this time to mid-July — two potential contenders said that a proposal to scrap the customary industrial benefits element of the procurement is problematic.
Jim Barnes, director of Business Development in Canada for Boeing Defense, Space & Security and Roger Schallom, the company's St. Louis-based vice-president of International Business Development, along with Patrick Palmer, vice-president and head of Sales at Saab Canada Inc., expressed their common concern during briefings at CANSEC, the annual Ottawa trade show organized by the Canadian Association of Defence and Security Industries (CADSI).
Boeing's contender to replace the RCAF's legacy fleet of CF-188 Hornets is the F/A-18 Super Hornet, while Saab's is the JAS 39 Gripen (the company had a full-scale replica parked front-and-centre outside CANSEC's main entrance). The other contenders are Lockheed Martin's F-35 Lightning II Joint Strike Fighter (JSF) and Airbus Military's Eurofighter Typhoon.
Barring any further hiccups in a program fraught with political indecision and already years behind the original schedule, the RFP process overseen by Public Services and Procurement Canada (PSPC) is expected to lead to two finalists being chosen next year with a view to making a final selection in 2022.
The government had been expected to issue its RFP by May 31 after years of indecision, but that latest deadline in the troubled procurement was postponed as officials at DND, PSPC and Innovation, Science and Economic Development Canada review the industrial benefits element.
“This is proof that your feedback is heard and acted upon,” Sajjan told the CANSEC audience.
The proposed industrial benefits change was disclosed earlier this month by Richard Shimooka, a senior fellow at the Macdonald-Laurier Institute (MLI), an Ottawa-based think tank.
He said in a report published by the MLI (May 6) that the Canadian government was yielding to pressure from the United States by changing the long-established requirement that companies bidding for contracts agree to investing an equivalent amount in Canada. The fighter procurement, including in-service support, is expected to cost at least $18 billion.
Shimooka cited letters from U.S. officials that indicate “resentment and distrust towards the government of Canada had grown, particularly within the U.S. Air Force.” The letters evidently focused on the “significant strategic and economic benefits that have already been accrued from being part of the JSF program.”
However, he added, the letters also contained “an implicit (but clear) threat that Canada could be kicked out of the program if Ottawa continues with its current policy of trying to obtain guaranteed industrial benefits that, by their very nature, are not allowed under the JSF Program. . . . There was a complete lack of logic of Canada's policy, which seemed to ignore basic facts about membership in the JSF program, including clear advantages in cost and capability that the F-35 provided.”
In his CANSEC briefing, Barnes admitted to having been “surprised by the recommended changes” in the shift in the long-standing requirement. “That policy's been in place for decades and it's been very successful for Canadian industry,” he replied, questioning what he called the government's decision to “accommodate a competitor.”
Schallom added that adhering to the historic requirement for direct industrial offsets, rather than simply offering “non-binding” bidding opportunities on future contracts, would be better for Canada's economy over the expected 30 years or more of the new fighter program. “You're probably missing out on $30 billion-plus in guaranteed work.”
Saab's Palmer echoed that position 30 minutes later, saying that he is concerned that the “non-binding requirement may not necessarily give Canadians the best value over the long term,” but, “until we see the final RFP (request for proposals), I'll reserve final judgment.”
However, when asked how Saab had responded formally to the proposed change on industrial benefits, he said, “We've asked them for some more information as it relates to the specifics of how items are going to be measured,” but had “definitely indicated that it doesn't necessarily encourage the best solution for Canada at the end of the day.”
On the same subject
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July 11, 2023 | Local, Other Defence
Roadmap - Scaling the EFP Latvia Battle Group to Brigade
We, the Minister of Defence of the Republic of Latvia and the Minister of National Defence of Canada, recognize our common interests in international peace and security, demonstrating an unwavering commitment to our shared values, the rules-based international order, and international cooperation. Against the backdrop of Russia’s brutal and illegal war in Ukraine and in response to Russia’s continued aggressive and destabilizing actions, Allies agreed at the 2022 Summit in Madrid that a more robust, multi-domain, and scalable force posture was required to deter and defend through a greater military presence in Europe, particularly along NATO’s Eastern Flank. At the Madrid Summit in June 2022, the Ministers of Defence for Canada and Latvia signed a Joint Declaration demonstrating our two countries’ commitment to bolstering the deterrence and defence of NATO’s Eastern Flank, enhancing the greater security of the Euro-Atlantic area. Russia continues to pose the most significant and direct threat to Allies’ security. As such, we acknowledge the importance of NATO’s longer-term posture and are committed to its steadfast and swift implementation. This Roadmap outlines our joint plan to implement the commitments made at the Madrid Summit and through the Joint Declaration signed by Canada and Latvia. The implementation of this Roadmap will further strengthen NATO’s presence in Latvia and our ability, alongside troop-contributing Allies, to deter and respond to threats posed by Russia more rapidly and effectively. It will result in a significant increase in persistently deployed Allied forces in Latvia and will therefore contribute to our shared objective of protecting our populations and defending every inch of Allied territory. The Roadmap outlines Canada’s three-phased approach to scaling the current Canada-led multinational enhanced Forward Presence Battle Group to a combat-capable multinational enhanced Forward Presence Brigade, including a Preparation Phase, a Build Phase, and a Steady State Phase. It also highlights Latvia’s investments in the development of military capabilities to strengthen the defence of NATO’s Eastern Flank. Preparation Phase: The initial Preparation Phase commenced shortly after the NATO Leaders Summit in Madrid in June 2022 and much progress has already been made. Canada hosted the inaugural Multinational enhanced Forward Presence Brigade Force Sensing Conference in October 2022, which will be followed by regular forthcoming iterations; An important initial step for Brigade development, Canada formally affiliated its land-based NATO Response Forces to Latvia; To enable this affiliation, the Canadian Army has realigned its Managed Readiness Plan to assign a single Canadian Mechanized Brigade Group to support deterrence and defence in Latvia, including through forward-deployed forces and Canada-based reinforcements; In addition to the previously announced Urgent Operational Requirement procurements for the enhanced Forward Presence Battle Group, which included Portable Anti-X Missile systems, Counter Uncrewed Aircraft Systems, and Air Defence Systems, Canada will continue to invest in capabilities and infrastructure to support the Brigade, including increasing forward-deployed equipment and materiel within Latvia; In January 2023, Canada deployed the Forward Command Element to Latvia to prepare for integration of a Canadian-led Brigade Headquarters into Multinational Division – North and the future arrival of Brigade capabilities and troops; Latvia has adopted a law regarding the development of the new military training area “Selonia”, 25 000 hectares in size. Latvia has allocated EUR 38 million of national financing for the first phase of the development of “Selonia”; Latvia has allocated financing for the procurement of medium-range air defence systems, rocket artillery systems, and costal defence systems; and Latvia has introduced conscription in order to increase the fighting force of the Latvian National Armed Forces (LNAF). Build Phase: Canada and Allies will flow the bulk of the Brigade’s forces and equipment into Latvia. As the transition to the Build Phase occurs, Brigade build-up and infrastructure development will need to be aligned. The enhanced Forward Presence Brigade will begin reporting directly to the Multinational Division Headquarters – North; Canada will bolster its presence in Latvia by deploying a Canadian Army Tank Squadron of 15 Leopard 2 battle tanks and personnel by the end of 2023; In Fall 2024, the enhanced Forward Presence Brigade will conduct its first Brigade exercise and NATO Combat Readiness Evaluation; The enhanced Forward Presence Battle Group will transition from the Latvian Mechanized Infantry Brigade to the Canada-led enhanced Forward Presence Brigade; Brigade build-up aims to be completed in 2025 with a significant increase in Canadian and multinational Armed Forces soldiers persistently deployed on the ground in Latvia, with additional forces assigned to reinforce Latvia at high readiness from their home country; In Fall 2025, Latvia will finalize construction of the first phase of “Selonia”, including a life support area and shooting ranges, thus providing initial opportunities for military training and exercises in the area. Meanwhile, current and additional new infrastructure will be available to facilitate build-up of the enhanced Forward Presence Brigade; Medium-range air defence systems and coastal defence systems will enter service in LNAF, thus reinforcing enabling capabilities; Conscription system is stabilized and LNAF experiences steady flow of personnel into units; and Latvia, as one of the Multinational Division – North Headquarters Framework Nations, will develop a plan concerning further development of Multinational Division – North. Steady State Phase: The Steady State Phase will see the Canada-led multinational enhanced Forward Presence Brigade in Latvia to consist of a mix of a significant proportion of forward deployed forces, with stocks and equipment prepositioned for the use of rapidly deployable surge forces readied on standby in Canada and across Allied contributing nations. The goal of this phase will be to maintain readiness and demonstrate the Brigade’s capability in order to deter, and if necessary, defend against potential aggression. By 2026, Canada will complete the full implementation of persistently deployed Brigade capabilities to Latvia; The enhanced Forward Presence Brigade will deploy and exercise episodically to maintain readiness and demonstrate the Brigade’s capability; Rocket artillery systems will enter service in LNAF boosting enabling capabilities; Canada will have up to 2 200 persistently deployed Canadian Armed Forces members as part of the enhanced Forward Presence and supporting elements in Latvia, and will be prepared to deploy hundreds more as needed; Latvia will gradually increase capacity of military training area “Selonia” to accommodate Brigade-level exercises; and Latvia, as one of the Multinational Division – North Headquarters Framework Nations, will lead the development of Multinational Division – North as a fully resourced and enabled warfighting division. This Roadmap forms the foundation of a sustainable plan to realize the commitments made at the Madrid Summit in June 2022 and the Joint Declaration signed by Canada and Latvia. This Roadmap further demonstrates Canada’s and Latvia’s commitment to deterrence and defence, to the security of the Euro-Atlantic area, and to the NATO Alliance and its Allies. We will continue to stand together in the face of aggression, and in solidarity against elements that threaten our individual and collective security. Signed at Camp Adazi on the 10th day of July in the year 2023 in three (3) copies in English, French, and Latvian. For the Ministry of Defence of the Republic of Latvia Ināra Mūrniece, Minister of Defence, Republic of Latvia For the Department of National Defence of Canada Anita Anand, Minister of National Defence, Canada https://www.canada.ca/en/department-national-defence/news/2023/07/roadmap---scaling-the-efp-latvia-battle-group-to-brigade.html
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October 30, 2019 | Local, Aerospace, Naval, Land, C4ISR, Security
TRAINING ON THE CANADIAN DEFENCE MARKET
Aéro Montréal tient actuellement une formation de deux jours sur le marché canadien de la défense. Cette formation permet à une trentaine de participants de mieux comprendre les bases du processus d'approvisionnement du gouvernement du Canada et du ministère de la Défense nationale, la stratégie d'approvisionnement en matière de défense, les outils disponibles, les rôles et responsabilités des différents paliers gouvernementaux... Le descriptif des thèmes abordés durant les deux jours est disponible ici https://lnkd.in/gUmQhG8