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December 18, 2018 | Local, Land

General Dynamics Warns Trudeau Over Exit Penalties in Saudi Deal

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Canada is looking for a way out of a $13 billion deal to export armored vehicles to Saudi Arabia -- a move the company warns could leave the government liable for billions.

In a television interview Sunday, Canadian Prime Minister Justin Trudeau said the government was looking for a way to halt the sale of armored vehicles manufactured by a unit of U.S.-based General Dynamics Corp. “We are engaged with the export permits to try and see if there is a way of no longer exporting these vehicles to Saudi Arabia,” Trudeau told CTV, without elaborating.

Full article: https://www.bloomberg.com/news/articles/2018-12-17/trudeau-says-canada-wants-out-of-saudi-vehicle-export-deal

On the same subject

  • Canada gets green light to buy King Air surveillance aircraft

    October 12, 2018 | Local, Aerospace, C4ISR

    Canada gets green light to buy King Air surveillance aircraft

    by Chris Thatcher The U.S. State Department has approved the possible sale of three King Air 350ER aircraft to meet a Canadian requirement for a manned airborne intelligence, surveillance and reconnaissance (MAISR) platform. Airborne ISR systems were one of five investments specifically identified in the government's 2017 defence policy for Canadian special operations forces. The foreign military sale would provide a capability that special forces' command (CANSOFCOM) has been seeking for several years, but it could come with a high price tag. The Defense Security Cooperation Agency (DSCA) announced on Oct. 4 approval for the sale of three extended range King Air 350 twin-turboprops from Wichita, Kansas-based Beechcraft, part of Textron Aviation. With Canadian modifications for some of the ISR systems, the estimated cost was pegged at $300 million, the agency said. A spokesperson for National Defence noted in an email that the cited cost “is not the final price; it is the full and all-inclusive value of every aspect of the aircraft, their supporting systems, and all potentially related costs, including contingency and risk. The final cost is anticipated to be much lower.” Ashley Lemire said the Canadian and U.S. governments would work to more clearly define the requirements in the coming months and “negotiate an acceptable price.” According to DSCA, the proposed sale would include the three aircraft fitted with WESCAM MX-15D electro-optical and infrared imaging sensors, AN/AAR-47B(V)2 missile and laser warning systems, AN/ALE-47 countermeasure dispenser systems, KIV-77 Mode 4/5 crypto applique computers for friend and foe identification, plus various advanced receivers and transponders and network encryptors. It would also include mission equipment, communication and navigation equipment, special tools and test equipment, ground support equipment, airframe and engine spare parts, as well as training. “This proposed sale will support the foreign policy and national security objectives of the United States by helping to improve the military capability of Canada,” DSCA said in a statement. “The proposed sale improves Canada's capability to meet current and future threats; strengthen its homeland defence and the combined defence of North America; and supports coalition partners overseas. This proposed sale will improve interoperability with U.S. forces and other regional allies.” Though CANSOFCOM had been looking at options from a number of potential suppliers, including Canadian manufacturers, a DND spokesperson told ***Skies*** in May that the U.S. government was “identified as the only source of supply capable of providing the fully-integrated solution.” “Aircraft such as these will help enhance the ability of our Special Operations Forces to improve their understanding of the operational environment,” said Jessica Lamirande. “MAISR will have the capacity to be deployed on short notice and will provide the [Canadian Armed Forces] with better situational awareness on the ground and thus positively affecting the ability of CAF leaders to make decisions leading to mission success.” Though the aircraft will be a special forces asset, the King Airs will be operated and maintained by the Royal Canadian Air Force. “The RCAF is the lead force generator for the actual capability,” BGen Michel Lalumiere, director general of Air Force Development, told ***Skies***. “This is a sophisticated system, so there's a lot of integration” for near-real data transfer and ensuring interoperability with allies. ‪ “We will be in contested areas with this aircraft and sometimes adversaries have a vote,” he said. “This aircraft needs to bring, definitely, a set of capabilities to be able to operate in those types of environments.” In addition to modifying the aircraft with ISR equipment, the Canadian government will also seek to procure in-service support (ISS) through a competitive process. On Oct. 4, Public Services and Procurement Canada issued a letter of interest inviting industry to attend a presentation from CANSOFCOM and procurement officials on the sustainment requirements, which have national security implications. A letter of interest for feedback on MAISR in-service support was issued in April and over 15 companies registered to attend an ISS industry day in June. Further industry engagement activities are expected to continue until the spring of 2019. Delivery of the first King Air is expected by 2020. https://www.skiesmag.com/news/canada-gets-green-light-to-buy-king-air-surveillance-aircraft

  • Canada to accept bids for new fighter jet in May — here are the potential competitors

    November 2, 2018 | Local, Aerospace

    Canada to accept bids for new fighter jet in May — here are the potential competitors

    By: David Pugliese VICTORIA, British Columbia — Canada expects to accept formal bids for a new fighter jet in May, with the first aircraft delivered by 2025, according to Canadian government procurement officials. A draft bid package for 88 fighters was issued to companies for their feedback by the end of this year, said Pat Finn, assistant deputy minister for materiel at the Department of National Defence. From there, the final bidding instructions for the CA$16 billion (U.S. $12 billion) procurement will be issued and bids required by May 2019, he added. The aircraft will replace Canada's current fleet of CF-18 fighter jets. The aircraft expected to be considered include Lockheed Martin's F-35, the Eurofighter Typhoon, the Dassault Rafale, Saab's Gripen and the Boeing Super Hornet. The Canadian government will require a robust package of guaranteed industrial benefits or offsets from the winning bidder, government officials said. But that could be a problem for the F-35, as Canada is still a partner in that program, which does not guarantee participating-nations contracts. Work on the F-35 program is based on best value and price. Canadian industrial participation in the F-35 program has reached $1 billion, as more than 110 Canadian firms have landed contracts related to the aircraft program. Jeff Waring, director general for industrial benefits policy at the federal Innovation, Science and Economic Development Canada, said the country sees the fighter jet program as a “once-in-a-generation opportunity for the Canadian economy.” But he noted the industrial benefits policy is flexible. “It is a market-driven approach,” he said. “It encourages suppliers to make investments that make sense to them.” The issue of industrial benefits has already been discussed with companies interested in bidding on the project, and those talks will continue as feedback is received on the draft bid package, government officials said. Email: dpugliese@defensenews.com https://www.defensenews.com/global/the-americas/2018/10/30/canada-to-accept-bids-for-new-fighter-jet-in-may-here-are-the-potential-competitors

  • Airbus reports strong progress in generating FWSAR work in Canada

    December 7, 2018 | Local, Aerospace

    Airbus reports strong progress in generating FWSAR work in Canada

    Airbus reports it is on track to provide Canadian industry with the required level of high-value work associated with the fixed-wing search and rescue (FWSAR) aircraft replacement in-service support (ISS) program. In its first FWSAR Value Proposition ISS annual report to the Government of Canada, submitted earlier this year and covering 2017, the company declared that more than 80 per cent of the ISS work was already being performed by Canadian industry in Canada. That data has now been validated and accepted by Canada. The activity, led by Airbus and its Canadian ISS integration partner AirPro – a joint venture with PAL Aerospace – is rapidly generating work and employment at partners such as CAE and Accenture. AirPro itself has already recruited nearly 20 highly qualified full-time staff to work on FWSAR ISS, and is adding resources in fields such as aeronautical engineering, architecture, construction, information technology and project management. More than 125,000 Canadian labour hours of work were performed by five companies in 2017 and the figure will grow more rapidly as many other companies begin their supply roles further into the program. The AirPro activity in particular will markedly increase as the Airbus CC-295 aircraft enters service and day-to-day ISS activities such as maintenance begin. Simon Jacques, president of Airbus Defence and Space in Canada, said: “We are proud of having made such a successful start to the development and transfer of capability to Canada with all the associated high value work that it brings. Ensuring an active role for AirPro in this set-up phase will ensure that it has a solid preparation for its ISS role in the operational phase. And this new expertise has the potential to be reused in other Canadian programs.” Canada's Industrial and Technological Benefits (ITB) Policy applies to the FWSAR contract and ensures that the total value of the contract is leveraged resulting in high-value jobs in the Canadian economy. The FWSAR program is supporting some $2.5 billion in Industrial and Technological Benefits to Canada, through high-value, long-term partnerships with Canadian industry. “The work done in Canada as part of the fixed-wing search and rescue project demonstrates the tangible benefits of our Industrial and Technological Benefits Policy for Canadian industry,” said the Honourable Navdeep Bains, minister of Innovation, Science and Economic Development. “This project will provide the Canadian Armed Forces with the equipment and services they need to keep Canada safe, and the Industrial and Technological Benefits Policy ensures Canadians have access to middle-class jobs, growing our economy along the way.” https://www.skiesmag.com/press-releases/airbus-reports-strong-progress-in-generating-fwsar-work-in-canada

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