May 31, 2019 | Local, Aerospace
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.”
May 14, 2024 | Local, Land
Today, the Honourable Bill Blair, Minister of National Defence, concluded a productive two-day visit to Washington, D.C., where he discussed Canada’s defence policy update, Our North, Strong and Free, with our American allies and partners.
August 13, 2024 | Local, Naval, C4ISR
News release Digital Harbour Phase 2 and new vessel tracking challenge support innovation in maritime technology August 12, 2024 · Dartmouth, Nova Scotia · Atlantic Canada Opportunities Agency (ACOA) / National Defence High quality data, and the platforms necessary to collect and analyze that data, are key to enabling public and private organizations in the marine sector to make informed decisions. The Government of Canada is investing to support innovation, research and commercialization across marine sectors. Support for marine sector innovation Today, Darren Fisher, Member of Parliament for Dartmouth – Cole Harbour, announced a total Government of Canada investment of $3,196,647 for two data-related projects at COVE. The announcement was made on behalf of the Honourable Gudie Hutchings, Minister of Rural Economic Development and Minister responsible for ACOA, and the Honourable Bill Blair, Minister of National Defence. A non-repayable contribution of $586,807 through ACOA’s Regional Economic Growth through Innovation (REGI) program will help COVE design, implement and launch phase two of its Digital Harbour Initiative. Digital Harbour uses an integrated system of sensors to collect and analyze marine data to help users make important operational, logistical, security and lifesaving decisions in real time. Phase two will develop the necessary digital infrastucture to collect data on a larger scale. An additional $2,609,840 in federal support through Defence Research and Development Canada (DRDC) and ACOA will support the launch of a vessel tracking challenge in partersnhip with COVE. This two-year challenge will give small- to medium-size businesses access to DRDC underwater acoustic sensors in the Halifax Harbour to help them develop innovative solutions to detect, classify and track vessels under a variety of conditions. Today’s announcement further demonstrates the Government of Canada’s commitment to drive innovation, create jobs and strengthen the region’s growing ocean economy. Quotes “We are leading the way in marine research and tech here in Atlantic Canada. Through great partnerships between ACOA, Defence Research and Development Canada and COVE, we are helping companies access the tools they need to make breakthroughs and create jobs and opportunities for people in our region.” - The Honourable Gudie Hutchings, Minister of Rural Economic Development and Minister responsible for ACOA "Improving maritime surveillance is a key priority under Canada’s updated defence policy, Our North Strong and Free. Today’s announcement will strengthen COVE’s ability to find innovative solutions to the security challenges faced by Canada and its Allies. We are pleased to partner with COVE – a valuable partner to Defence Research and Development Canada, and a member of the NATO Defence Innovation Accelerator for the North Atlantic (DIANA) network.” - The Honourable Bill Blair, Minister of National Defence “Big things are happening in Dartmouth—Cole Harbour, and COVE, a one-of-kind innovation hub in the marine tech sector is playing a significant role in our region’s success. A real jewel in Halifax Harbour, COVE is helping start-ups, companies of all sizes, research institutions, and government work together to expedite innovation, competitiveness, and development of various ocean technologies. By investing in projects like the Digital Harbour Initiative and the vessel tracking challenge, we are helping develop talent, improve supply chain opportunities, and build the entrepreneurial ecosystems needed to foster more ocean start-ups.” -Darren Fisher, Member of Parliament for Dartmouth – Cole Harbour “Our partnership with ACOA is a testament to the power of collaboration in driving marine innovation. Together, along with partners like Defence Research and Development Canada, we are building a robust ecosystem that leverages cutting-edge data technology to advance the marine sector. This support not only enhances our ability to innovate but also strengthens the global competitiveness and sustainability of Canadian small and medium enterprises.” -Melanie Nadeau, Chief Executive Officer, COVE Quick facts COVE is an innovation hub and home to more than 60 marine tech companies and organizations that are creating the world’s next practical, commercial and revolutionary marine tech advances and more than 350 through its programs. The Digital Harbour Initiative, launched in January 2023, provides data collection, storage and transmission infrastructure, insights related to collected data, infrastructure for testing of products and other services, and access to real-time and historical data to support research and industry activities. In June, at the 2024 H2O Home To Overseas Conference in Halifax, DRDC challenged small- to medium-size companies to take on the vessel tracking challenge. Innovators will be able to apply to join this challenge through Innovative Solutions Canada this fall. DRDC is funding the vessel tracking program at $2,381,634 (non-repayable), through ACOA. This vessel tracking challenge is part of DRDC’s future Maritime Surveillance program, to support NORAD modernization through science and technology. ACOA is providing an additional $228,206 non-repayable contribution to the challenge through the Regional Economic Growth through Innovation (REGI) program. Associated links COVE COVE partners with CarteNav to digitalize Halifax Harbour - COVE (coveocean.com) Digital Harbour Initiative Our North, Strong and Free: A Renewed Vision for Canada’s Defence Funding for Continental Defence and NORAD Modernization Defence Research and Development Canada Regional Economic Growth through Innovation https://www.canada.ca/en/atlantic-canada-opportunities/news/2024/08/investment-in-real-time-data-propels-marine-research.html
April 6, 2020 | Local, Aerospace, Naval, Land, C4ISR, Security
We have funding opportunities for Canadian innovators who can help fight the COVID-19 pandemic. The Public Health Agency of Canada and the National Research Council of Canada are looking for a Point of Care and Home Diagnostic Kit. The National Research Council of Canada has also modified their Low Cost Sensor System challenge to address needs for COVID-19. Think you can solve one of these challenges? Compete for funding to prove your feasibility and develop a solution! COVID-19 Funding Opportunities COVID-19 Challenge - Point of Care and Home Diagnostic Kit for COVID-19 Défi COVID-19 - Trousse de diagnostic au point de service et à domicile pour le COVID-19 COVID-19 Challenge - Low-cost sensor system for COVID-19 patient monitoring Défi COVID-19 – Système de capteurs peu coûteux surveiller l'état des patients atteints de la COVID-19 Nous avons des opportunités de financement pour les innovateurs canadiens qui peuvent aider à lutter contre la pandémie COVID-19. L'Agence de santé publique du Canada et le Conseil national de recherches du Canada sont à la recherche d'un kit de diagnostic aux points de service et à domicile. Le Conseil national de recherches du Canada a également modifié son Défi du système de capteurs peu coûteux pour surveiller l'état des patients pour répondre aux besoins de COVID-19. Vous pensez pouvoir résoudre l'un de ces défis ? Participez pour avoir la chance de recevoir du financement pour prouver votre faisabilité de votre solution et la développer ! Possibilités de financement liées à la COVID-19 Want to change how you receive these emails? You can update your preferences or unsubscribe from this list. Vous souhaitez changer la façon dont vous recevez ces courriels? Vous pouvez mettre à jour vos préférences ou retirer votre nom de la liste de distribution.