December 8, 2017 | Local, Naval
OTTAWA
PUBLISHED DECEMBER 8, 2017UPDATED 3 DAYS AGO
The French and Italian governments are officially backing an unsolicited proposal to supply 15 military vessels to the Royal Canadian Navy outside of the ongoing competition for the $60-billion contract, documents show.
The French and Italian ministers of defence submitted a letter last month to their Canadian counterpart, Harjit Sajjan, stating that they "fully support" the joint bid by Naval Group and Fincantieri to replace the RCN's existing frigates and retired destroyers. The support from the French and Italian governments could give additional weight to the long-shot proposal, which aims to bypass the official procurement process for new Canadian Surface Combatants.
"Under the umbrella of an intergovernmental agreement, we will provide project management support so that the Royal Canadian Navy can operate the purchased warships, sustain their operational capabilities and manage their evolving capabilities throughout their entire lifecycle," said the letter from French Defence Minister Florence Parly and Italian Defence Minister Roberta Pinotti.
The submission from Naval and Fincantieri has shaken up the process put in place by the federal government to acquire 15 new vessels. Halifax-based Irving Shipbuilding Inc. is the government's prime contractor, with a competition under way to select a warship design.
Defence-industry sources said the leading contender in the process is a joint bid by U.S.-based Lockheed Martin and British-based BAE Systems. The same sources said only three of the 12 prequalified bidders submitted a formal proposal by the Nov. 30 deadline, a number the federal government will not confirm.
Under Canada's defence policy unveiled earlier this year, the federal government is planning to get its first Canadian Surface Combatant in 2026, with the entire project costing between $56-billion and $60-billion.
Under the Franco-Italian proposal, the 15 vessels would also be built at the Irving shipyard. Based on production costs in Europe, the two companies said they could provide the vessels to the Canadian government for $20.9-billion (€13.8-billion), with construction starting in late 2019.
The bid from Naval and Fincantieri was unsolicited, essentially relying on the possibility that none of the bidders under the existing process will be deemed compliant. The defence-industry sources described the offer as a "Hail Mary" that could succeed if the ongoing process unravels, like many previous military procurements.
"Everything depends with what happens with the process that is under way right now," said David Perry, senior analyst at the Canadian Global Affairs Institute. "If they can get two compliant bids or ideally all three ... I wouldn't see a need to go back and do a comparison with the [Naval/Fincantieri] bid."
The federal government said this week that it will not even analyze the unsolicited bid.
"To be clear, any proposals submitted outside of the established competitive process will not be considered," Public Services and Procurement Canada (PSPC) said in a statement.
"The submission of an unsolicited proposal at the final hour undermines the fair and competitive nature of this procurement suggesting a sole-source contracting arrangement. Acceptance of such a proposal would break faith with the bidders who invested time and effort to participate in the competitive process, put at risk the government's ability to properly equip the Royal Canadian Navy and would establish a harmful precedent for future competitive procurements," the statement said.
In addition, the government rejected the notion that the Franco-Italian bid could generate significant savings, stating that the acquisition of the ships accounts for only about half of the price tag.
"It is important to note that a warship project budget must cover more than just delivering the ships. It must also include the costs associated with design and definition work, infrastructure, spare parts, training, ammunition, contingencies and project management," PSPC said.
The Naval/Fincantieri proposal is based on the European multimission frigate program, under which the two firms are supplying 18 ships to the French and Italian navies. The two companies said their "off-the-shelf solution" is less risky than other projects still in development.
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August 25, 2022 | Local, Aerospace, Naval, Land, C4ISR, Security, Other Defence
NATO’s secretary general is getting an up-close look at Canada’s northern defences Thursday as he visits the Arctic, a region of escalating geopolitical competition.
October 31, 2018 | Local, Aerospace
DANIEL LEBLANC Canada has modified the mandatory specifications for its next fleet of fighter jets to make it easier for European manufacturers to qualify for the $26-billion contract and foster more competition among five qualified bidders, federal officials said. Under the previous Conservative government, the requirements for the fighter jets could be met only by the Lockheed-Martin F-35 fighter jet, a stealth aircraft developed by an international coalition of countries including the United States, Britain and Canada. To allow for a competition, the current Liberal government asked National Defence to revise the requirements to allow more companies to qualify for the contract. In a briefing this week, federal officials said the government will give bidders additional leeway to meet the requirements, including those related to Canada's obligations with the United States as part of the North American Aerospace Defence Command (NORAD). In particular, the requirements for secure communications between Canadian and American aircraft and other military assets were modified to give all potential bidders additional time to meet them. The changes are especially useful to European bidders (Dassault Aviation of France, Sweden's SAAB Aeronautics and British-based Airbus Defence), given that U.S.-based Lockheed-Martin and Boeing already play key roles in the U.S. military. “We obviously have NATO and NORAD commitments, with NORAD probably being the bigger one, which means we have significant security requirements that are Canada-U.S.,” said Pat Finn, the assistant deputy minister in charge of procurement at National Defence. When federal officials will analyze the various bids, he said, they will not automatically disqualify an aircraft that is unable to immediately meet the security requirements. “We can't have an aircraft that doesn't meet it, but what we've done is we've created the test in a different way ... If your proposal, your aircraft, cannot meet [a requirement] today, we are not saying automatically that you're out; but you have to tell us what is your solution to meet it, at what price and what schedule,” he said on Monday. The federal government said on Monday it was giving six weeks to interested bidders to provide comment on the draft request for proposals (RFP), which lays out all federal requirements for the fighter jets. The formal RFP is scheduled to be released in May, which will mark the launch of the official competition. One expert said American companies still have an advantage over their European rivals. “Whatever aircraft we obtain has to be fully, seamlessly interoperable at the highest levels with the American Air Force and the rest of the U.S. defence establishment, which is going to be tougher for Europeans to do than it would be for the Americans,” said Dave Perry, vice-president of the Canadian Global Affairs Institute. “There's way to do that, but it would also imply additional cost and integration risk." Mr. Perry added he is puzzled by the federal government's assertion that Canada can remain a member of the F-35 development program, while insisting that Lockheed-Martin abide by the federal policy that calls on the winner of the competition to provide regional benefits equal to the full value of the contract. “The most economically efficient way to buy the [F-35] Joint Strike Fighter is to do so as a member of the partnership,” he said. “However, as a condition of being a member, you have to say that you won't apply offsets. I don't really know how the government is squaring those circles at all.” Conservative MP Rob Nicholson said the acquisition process for the new aircraft remains confusing more than three years after the Liberal took office. “The bottom line should be what is best for our Air Force and get on with it,” he said. https://www.theglobeandmail.com/politics/article-ottawa-changes-requirements-for-new-fighter-jets-to-help-european/
July 8, 2019 | Local, Aerospace
Airbus Press Release The first Airbus C295, purchased by the Government of Canada for the Royal Canadian Air Force (RCAF) fixed-wing search and rescue (FWSAR) aircraft replacement program, has completed its maiden flight, marking a key milestone towards delivery by the end of 2019 to begin operational testing by the RCAF. The aircraft, designated CC-295 for the Canadian customer, took off from Seville, Spain, on July 4 at 8:20 p.m. local time and landed back on site one hour and 27 minutes later. “On these types of flights, pilots and flight engineers test the aircraft's flight controls, hydraulics and electrical systems,” an Airbus spokesperson told Skies. “All systems performed effectively, as expected.” FWSAR program facts and figures The contract, awarded in December 2016, includes 16 CC-295 aircraft and all in-service support elements including, training and engineering services, the construction of a new training centre in Comox, B.C., and maintenance and support services. The aircraft will be based where search and rescue squadrons are currently located: Comox, B.C.; Winnipeg, Man.; Trenton, Ont.; and Greenwood, N.S. Considerable progress has been made since the FWSAR program was announced two-and-a-half years ago: the first aircraft will now begin flight testing; another five aircraft are in various stages of assembly; and seven simulator and training devices are in various testing stages. In addition, the first RCAF crews will begin training in late summer 2019 at Airbus's International Training Centre in Seville. The FWSAR program is supporting some $2.5 billion in Industrial and Technological Benefits (ITB) to Canada through high-value, long-term partnerships with Canadian industry. As of January 2019, 86 per cent of key Canadian In-Service Support (ISS) tasks have been performed in-country by Canadian companies in relation to establishing the FWSAR ISS system. Airbus is thus on track in providing high value work to Canadian industry and has demonstrated a successful start to the development and transfer of capability to Canadian enterprises for the support of the FWSAR aircraft. Beyond direct program participation, Airbus is generating indirect business across Canadian military, aeronautical and space industry including small and medium businesses in support of the ITB program. https://www.skiesmag.com/press-releases/first-royal-canadian-air-force-c295-makes-maiden-flight/