April 26, 2019 | Local, Aerospace

Government expects to award contract for new fighter jet fleet in 2022 (but admits it could face delays)

Though the federal government expects to award a contract for a new fleet of fighter jets in 2022, it admits that schedule is aggressive and could yet face further delays.

A request for bids to provide 88 new jets to the Royal Canadian Air Force will be released next month, according to a new update on major Department of National Defence projects released Wednesday, with the proposals to be evaluated by 2021 and a contract to be awarded a year later.

But in the update DND also admits that timeline is tenuous. “The approved schedule is considered very aggressive,” it said. “The project team is managing a number of risks which have the potential to impact schedule.”

The document doesn't outline the specific risks but DND officials have acknowledged that government negotiations with private contractors on the industrial benefits that are to be linked to the project could cause delays.

The Liberals have committed to purchasing the new jets in a program expected to cost up to $19 billion. The competition was launched on Dec. 12, 2017, and Canada expects to examine four different fighter jets as candidates for the RCAF's new fleet.

The project team is managing a number of risks which have the potential to impact schedule

The first of the jets is expected to be delivered in the mid-2020s, with the full capability available in the early 2030s, according to the DND document.

The document also outlines the plan to purchase used Australian F-18s in the interim, which the RACF will use to boost the capability of its current fleet of CF-18s until the new generation aircraft are in service. The first of the Australian jets has already been delivered, with final delivery set for the end of 2021, according to the update. However, the parliamentary budget officer has found this interim solution could cost more than $1 billion, and the auditor general's office has pointed out that the air force is lacking pilots and maintenance crews for the planes it already operates.

Wednesday's DND update points out success stories as well as challenges with some of DND's multi-billion dollar projects.

Some programs, such as the purchase of Chinook helicopters and tactical armoured patrol vehicles, are completed or are nearing completion with few problems.

A new $2-billion program to buy heavy trucks is among those expected to be proceed without issues.

Canada also expects to award a contact next year for a mid-life upgrade of the fleet of Cormorant search-and-rescue helicopters, and the conversion of former U.S. presidential helicopters so they can join the flight line for rescue operations.

But the report warns there could be problems with other upcoming projects such as the purchase of a fleet of drones.

It noted that there might not be enough procurement staff with the required expertise to move that program forward on schedule. The department hopes to deal with the problem by hiring contractors. A draft invitation to qualify for that project was released April 5 and a contact is expected to be awarded in 2022, the document said.

The first of a fleet of new fixed-wing search-and-rescue aircraft, meanwhile, are to be delivered in December. The first plane will be sent to 19 Wing Comox, B.C. in the spring of 2020. The 16 new planes will be phased in between 2020 and 2022.

But DND acknowledged it is keeping an eye on the potential that schedule could be affected because of the “complexities associated with transitioning to the new fleet while maintaining the current search and rescue posture.”

In addition, DND is keeping watch on problems with its new upgraded light armoured vehicles. Though the vehicles have been delivered on time, some technical issues will be fixed through a retrofit program. There have also been problems with software design and qualification of components in another new fleet of armoured vehicles that will be used for battlefield surveillance, the first of which is to be delivered next year.

The first new supply ship for the Royal Canadian Navy, being built in Vancouver, is expected in 2023 but won't be ready for operations until a year later. The delivery of the second supply ship “is currently under review,” the update added.

In the meantime, the navy has access to MV Asterix, the supply ship at the heart of the court case involving Vice-Admiral Mark Norman.

That ship, currently being leased to the navy by Quebec firm Davie Shipbuilding, was delivered on time and on budget and is considered a procurement success story.

https://ottawacitizen.com/news/canada/government-expects-to-award-contract-for-new-fighter-jet-fleet-in-2022-but-admits-it-could-face-delays/wcm/a34c8b83-3838-4ff9-87ac-1741fd434059

On the same subject

August 10, 2018 | Local, Land

Saudis would only hurt themselves by cancelling Light Armoured Vehicle contract
DAVID PUGLIESE, OTTAWA CITIZEN Saudi Arabia is expecting a full apology from Canada for a tweet that raised questions about human rights issues in the Middle East country. It is unlikely that would be coming anytime soon. So the dispute between Saudi Arabia and Canada continues. In recent days, Riyadh suspended diplomatic ties with Canada, expelled the Canadian ambassador and recalled its own envoy to Ottawa after Foreign Affairs Minister Chrystia Freeland and her department criticized the regime on Twitter for its arrest of social activists, demanding their immediate release. Angered by the condemnation, Saudi Arabia has also tried to sting Canada's economy by halting future trade and investment deals and by cancelling lucrative scholarships that would have seen 15,000 of its citizens study in Canada. One media report said Saudi banks and pension funds were ordered to sell off their Canadian assets, although that report remains unconfirmed. Bloomberg News has reported that any move by Saudi Arabia to stop new investments and unload assets in Canada is likely to have limited impact. Saudi assets in Canada are confined mainly to stakes in upscale hotel operators, some small stock holdings in companies like Canadian National Railway and grain facilities, Bloomberg noted. What is interesting is what Saudi Arabia hasn't done. It is still willing to sell oil to Canada and has not put any roadblocks on that money-making venture. The Saudi Press Agency confirmed Thursday that the “diplomatic crisis” wouldn't affect the kingdom's petroleum sales to Canada. But that has also raised questions in Canada about why we are buying oil from Saudi Arabia when we have such large reserves ourselves? The big question is whether the Saudis will withdraw from its $15 billion deal to buy Light Armoured Vehicles from General Dynamics Land Systems of London, Ont.? It could happen but such a move would likely only hurt the Saudis. They need the vehicles and to negotiate a new contract with another arms supplier, plus get delivery of that equipment, could take years. Then there is the supply of parts and other support for the existing LAVs that the Saudis previously purchased from General Dynamics. Would shutting down all links to the LAV supply chain make sense for the Saudis? Finance Minister Bill Morneau said Thursday he was still unsure if the General Dynamics contract would be affected. Defence Watch submitted a series of questions to General Dynamics asking whether it would be halting production of LAVs destined for Saudi Arabia and would GD continue to provide spare parts for LAVs already delivered? “General Dynamics Land Systems-Canada declines to comment,” spokesman Doug Wilson-Hodge stated in an email. Full article: https://ottawacitizen.com/news/national/defence-watch/saudis-would-only-hurt-themselves-by-cancelling-light-armoured-vehicle-contract
October 22, 2019 | Local, Aerospace

Canada Refining Requirements for New UAV Fleet; Request for Proposals Expected Next Year
Canada Refining Requirements for New UAV Fleet; Request for Proposals Expected Next Year October 21, 2019 - by Shaun McDougall The Canadian government is in discussions with a pair of unmanned aerial vehicle manufacturers to refine requirements for a new fleet of armed medium-altitude, long-endurance drones. The new aircraft are being acquired through the Remotely Piloted Aircraft Systems (RPAS) project, previously known as the Joint Unmanned Surveillance and Targeting Acquisition System (JUSTAS). General Atomics has teamed with CAE Canada, MDA, and L3 Wescam to offer the MQ-9B SkyGuardian. L3 MAS is working with Israel Aerospace Industries to bid the Artemis unmanned aircraft system, which is based on IAI's Heron TP. The program officially entered the Refine & Review Requirements phase in July 2019, at which point the government and industry teams began discussions to refine program requirements. These discussions will help inform a formal Request for Proposals, which is expected to be released in fiscal year 2020/2021 (between April 2020 and March 2021). A contract is anticipated in fiscal year 2022/2023, barring any delays. Deliveries could begin in 2024/2025. Canada's desire for a new fleet of UAVs surfaced around 20 years ago, but little progress has been made since then. The Royal Canadian Air Force had been preparing to award a contract to General Atomics for its Predator UAV in 2007, but the program was halted due to concerns about a lack of competition. At one point, the government outlined a new two-phase approach. The first phase would include an armed UAV for overland missions. A second phase would buy a system primarily for maritime surveillance off Canada's coasts, as well as limited Arctic surveillance. This plan was scrapped in 2013 and the program went back to the drawing board. Ultimately, government documents show the Air Force has tried and failed six times since 2005 to acquire a new UAV fleet. Following the initial delays of the JUSTAS program, Ottawa leased Heron UAVs as an interim solution to fulfill an urgent requirement for additional ISR capabilities in Afghanistan. The first system was delivered to Canada in October 2008 and deployed to Afghanistan shortly thereafter. The Herons replaced smaller SPERWER UAVs that were in service since 2003. The value of the RPAS program has not been announced, and Canada has not specified how many aircraft it will buy. The government's Defence Capabilities Blueprint indicates the program will fall within a very broad price range of between CAD1 billion and CAD4.99 billion, one of the preset funding ranges used by the blueprint to categorize programs. https://dsm.forecastinternational.com/wordpress/2019/10/21/canada-refining-requirements-for-new-uav-fleet-request-for-proposals-expected-next-year/
June 22, 2018 | Local, Aerospace

Exclusive: Canada could make it harder for U.S. to win fighter bid - sources
David Ljunggren OTTAWA (Reuters) - Canada is discussing changes to a multibillion-dollar fighter jet procurement process that could make it harder for a U.S. company to win the order as trade relations between the neighbors sour, two sources with direct knowledge of the discussions said. Canada is considering whether to penalize companies from countries that have caused it economic damage, the sources said on Wednesday. While a final decision is not expected before next year and the threat could be posturing, the move shows how the Trump administration's trade disputes are spilling over into other areas. A spokeswoman for federal Procurement Minister Carla Qualtrough - who has overall responsibility for major purchases of military equipment - declined to comment. Sources declined to be identified as the discussions are confidential. Boeing Co's (BA.N) F-18 Super Hornet and Lockheed Martin Corp's (LMT.N) F-35 fighter were among the favorites to capture the contract to supply 88 planes, worth between C$15 billion ($11.3 billion) and C$19 billion. Defense sources have long said the Canadian air force would prefer an American-built jet, citing the importance of operating easily with U.S. armed forces. But a change in procurement terms would give more of a chance to European suppliers: Airbus SE (AIR.PA), which makes the Eurofighter; Saab AB (SAABb.ST), which makes the Gripen; and Dassault Aviation (AVMD.PA), which makes the Rafale. Defense sources, however, say the European jets are likely to become obsolete by around 2040, at which point they could no longer incorporate the latest technologies. Canada has been trying unsuccessfully for almost a decade to buy replacements for its aging F-18 fighters, some of which are 40 years old. The former Conservative administration said in 2010 it would buy 65 F-35 jets but later scrapped the decision, triggering years of delays and reviews. Ottawa has already said bids will be evaluated in part by examining whether firms competing for the order have caused any past economic damage to Canada. Officials said at the time this was aimed at Boeing, which last year launched a trade challenge against Canadian planemaker Bombardier Inc (BBDb.TO). Government officials are now discussing whether Canada should also consider economic damage caused by governments, a clear reference to worsening relations with Washington, said the sources. “Politically it's hard to spend billions of dollars on contracts with a country that's hurting you,” said one of the sources, who asked to remain anonymous given the extreme sensitivity of the situation. However, the sources emphasized that the discussions are at an early stage and Ottawa could eventually decide to drop the proposed language. Canada - which is due to release the exact specifications for the jets next year - has not yet finished work on the clause referring to economic damage caused by a single firm. U.S. President Donald Trump last month slapped tariffs on Canadian steel and aluminum, prompting Canada to announce its own retaliatory measures. Trump has also threatened tariffs on Canadian autos, which could badly hurt the economy. Ottawa froze talks with Boeing about the fighter jet contest but after the company's trade challenge against Bombardier failed, Canadian officials made clear the firm would not be discriminated against if it chose to bid. https://ca.reuters.com/article/businessNews/idCAKBN1JH2IA-OCABS

All news