French firm Dassault pulls out of fighter-jet competition: Sources

On the same subject

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  September 15, 2017 | Local, Naval

  QinetiQ Target Systems to supply over 40 Hammerhead targets to Canadian Navy

  QinetiQ Target Systems has received a new order from the Royal Canadian Navy (RCN) to deliver more than 40 units of Hammerhead unmanned surface vehicle (USV) targets and several payloads. The latest C$4.7m ($3.86m) order is part of an existing C$35m ($28.75m) framework contract with the Canadian Department of National Defence. http://www.naval-technology.com/news/newsqinetiq-target-systems-to-supply-over-40-hammerhead-targets-to-canadian-navy-5925606

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  November 2, 2018 | Local, Naval

  Canada's Halifax-class frigates: Ready for duty, now and in the future

  GATINEAU, QC, Nov. 1, 2018 /CNW/ - Through the National Shipbuilding Strategy (NSS), the Government of Canada is providing the women and men of the Royal Canadian Navy (RCN) with safe and effective vessels required to protect Canadians and Canadian interests. Public Services and Procurement Canada, on behalf of National Defence, has issued Advance Contract Award Notices (ACANs) to Irving Shipbuilding Inc., of Halifax, Nova Scotia, Chantier Davie Canada Inc., of Lévis, Quebec, and Seaspan Victoria Shipyards, of Victoria, British Columbia, for maintenance support services for Canada's 12 Halifax-class frigates. The combined value of the three contracts will be approximately $7 billion (including taxes). These contracts will be awarded under the repair, refit and maintenance component of the NSS and will ensure that maintenance and engineering work continue on the 12 Halifax-class frigates until the replacement Canadian Surface Combatant ships are delivered. These notices follow extensive industry engagement, which began in December 2016. Based on these consultations, it was determined that these three Canadian shipyards possess the required workforce and infrastructure necessary to conduct the work on the Halifax-class frigates. The ACANs confirm Canada's intention to enter into a contract with each of the three identified Canadian shipyards. Other interested suppliers have 15 calendar days to signal their interest in bidding for this contract, by submitting a "statement of capabilities" that meets the requirements laid out in the ACANs. Quotes "Through the National Shipbuilding Strategy, the process of renewing fleets for the Royal Canadian Navy over the next 30 years is underway across the country. Our Government's long-term commitment to maintaining an agile and responsive naval force will provide the Royal Canadian Navy and its sailors with the reliable ships they need to do their jobs while protecting the interests of all Canadians." The Honourable Carla Qualtrough Minister of Public Services and Procurement and Accessibility "As outlined in our defence policy, Strong, Secure, Engaged, we are ensuring that the women and men of our Royal Canadian Navy are equipped with the ships they need to serve Canadians. Our Government is taking measures to ensure that our modernized Halifax-class frigates are able to continue to protect Canadian waters and contribute significantly to international operations. These contracts will ensure that our frigates remain operationally ready while increasing the number of jobs and strengthening the ship maintenance capacity in Canada as outlined in our National Shipbuilding Strategy." The Honourable Harjit S. Sajjan Minister of National Defence Quick facts The Industrial and Technological Benefits Policy, including Value Proposition, will be applied to this procurement. Periodic docking maintenance work periods are essential to ensure the Halifax-class frigates are available and reliable during their operational cycle and deployments. The RCN has 12 Halifax-class frigates; seven are stationed in Halifax, Nova Scotia, while the five are stationed in Esquimalt, British Columbia. The RCN requires that at least eight of 12 frigates are able to deploy at all times to meet the Navy's commitment to the Government of Canada. The ships require a wide range of engineering change work, equipment installations, docking work and corrective maintenance activities to ensure that they remain operationally available and relevant through to end of life. SOURCE Public Services and Procurement Canada https://www.newswire.ca/news-releases/canadas-halifax-class-frigates-ready-for-duty-now-and-in-the-future-699259681.html

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  September 25, 2019 | Local, Aerospace, Naval, Land, C4ISR, Security

  Opinion: After Major Mergers, What’s Next For Defense Market?

  By Byron Callan This year has shaped up as a record one in terms of the volume of major defense transactions so far announced. Considering deals of $100 million or more in announced value where defense is the primary factor, the 2019 total exceeds $61 billion. Of course, the largest single example is the Raytheon-United Technologies Corp. (UTC) merger. There are reasons to expect heightened activity in 2019 and 2020. Some reasons are known and others can be assessed, but one that does not appear to be affecting market expectations is the Raytheon-UTC deal. Since it was announced on June 9, the companies' share prices have declined from the June 7, close: Raytheon's by 4% and UTC's by 5.7%. The S&P 500 has been flat. However, share prices of peers have risen—General Dynamics is up 5.4%, L3Harris Technologies has increased 6.2%, Lockheed Martin and Leidos have climbed 7% and Northrop Grumman is up 14.4%. These price moves may be attributable to safe-haven seeking by investors who were spooked by global economic concerns and trade wars, but the budget deal reached by Congress also was a factor, as were July earnings reports. The price reactions, however, do not suggest that investors are particularly concerned about the impact of the competitive strength of the Raytheon-UTC union and its ability to take market share away from peers. Nor do they suggest that the deal will trigger a rush by defense-focused companies to merge with commercial ones. Were the latter to be the case, the price reactions may have been similar to Raytheon and United Technologies'. There have been other known developments that raise the question of what is next. Kaman Corp. sold its industrial distribution business for $700 million and will seek to redeploy that capital into engineering products businesses, some of which could involve defense. L3Harris signaled in June that it is undertaking a portfolio cleanup after the completion of the merger, and so there should be divestitures from that company. Textron announced in August that it was reviewing “strategic alternatives” for Kautex, which makes blow-molded fuel systems and other parts primarily for the automotive industry. Presuming that it leads to a sale of that business, Textron will have cash, some of which might be spent on defense. There are general factors as well that could spawn sector merger and acquisition activity in 2019-20. One of the biggest is the potential uncertainty surrounding the outcome of the 2020 U.S. elections. Buyers and sellers have to weigh a number of variables. If the current administration is reelected and control of Congress remains split at least through 2022, then it may be safe to assume that the status quo will continue. One variable within the status quo is how contractor portfolios could be affected by the ongoing efforts of the Pentagon to better align its programs with the National Defense Strategy. Like the Army's “night court” process, this may yet spawn a reassessment of specific programs and their future growth outlook. But if the status quo does not prevail, defense contractors could face a wall of uncertainties in 2020 and may choose to act before rather than after these uncertainties are clarified. First, they will have to assess which Democratic candidate could win the primary cycle and then the nomination. If it is a centrist candidate, the Defense Department spending outlook might not change all that much, although exports to some countries might be curtailed and there could be changes in some Pentagon budget priorities, particularly for nuclear forces modernization. A more progressive-leaning candidate might raise the risk of a more subdued defense budget outlook, particularly if fiscal resources are instead directed toward health care, infrastructure, student debt and other nondefense priorities. Second, there will have to be an assessment of whether a Democratic win of the White House could also flip control of the Senate to the Democrats. If there is a Democrat in the White House but a Republican majority in the Senate, the Senate could still check budgets or policies that may be detrimental to defense. It might also block efforts to roll back changes to tax laws made in 2017. A third variable to be assessed is the attitude of a new administration toward defense mergers and acquisitions, contractor financing and risk. A more progressive administration could look very differently at the structure and financial status of contractors. All these variables will lead to different analyses of current and future value in defense. Is it a good time to hunker down and wait to see what happens or to act in the time that remains in 2019-20 before investors and creditors draw their own conclusions? These uncertainties alone suggest that some will act in anticipation of a change rather than just wait and see. https://aviationweek.com/defense/opinion-after-major-mergers-what-s-next-defense-market