Back to news

December 12, 2017 | Local, Aerospace

Government launches open and transparent competition to replace Canada’s fighter aircraft

News Release

From Public Services and Procurement Canada

December 12, 2017 - Ottawa, Ontario - Government of Canada

Acquiring the aircraft that Canada's military needs to help ensure the safety and security of Canadians, while ensuring economic benefits for Canada, is a top priority for the Government of Canada. The government is delivering on its promise to hold an open and transparent competition to permanently replace Canada's fighter fleet.

As outlined in the Strong, Secure, Engaged defence policy, Canada will purchase 88 advanced fighter aircraft. This is the most significant investment in the Royal Canadian Air Force in more than 30 years, and is essential for protecting the safety and security of Canadians, and meeting international defence obligations.

Through this competition, the Government of Canada will ensure it gets the right aircraft at the right price, and maximizes economic benefits for Canadians. The government will ensure that the Canadian aerospace and defence industries and manufacturers are consulted and engaged in this process.

Proposals will be rigorously assessed on cost, technical requirements and industrial, technological and economic benefits. As it is important to do business with trusted partners, the evaluation of bids will also include an assessment of bidders' impact on Canada's economic interests.

When bids are assessed, any bidder responsible for harm to Canada's economic interests will be at a distinct disadvantage. This new assessment, as well as guidelines for its application as an ongoing procurement tool, will be developed through appropriate consultations.

In addition, the Industrial and Technological Benefits Policy will apply to this procurement, requiring the winning supplier to make investments in Canada equal to the value of the contract.

Until permanent replacement aircraft are in place and fully operational, Canada must ensure that the Canadian Armed Forces has the equipment it needs to continue to deliver its missions, and meet its international obligations. As such, the Government of Canada will pursue the purchase of 18 supplemental jets from the Australian Government.

Quotes

“As we promised, our government is launching an open and transparent competition to replace our fighter fleet with 88 advanced jets. We are also supplementing our CF-18 fleet by pursuing the purchase of jets from Australia while we complete this important and complex procurement. Today's announcement is about ensuring that our women and men in uniform continue to have the equipment they need to protect Canadians. At the same time, we will use this procurement to strengthen our aerospace and defence industries, create good middle-class jobs and support our economic interests.”

The Honourable Carla Qualtrough
Minister of Public Services and Procurement

“Our women and men in uniform are entrusted with the enormous responsibility of ensuring the safety of Canadians every day. Today's announcement is a key step toward making sure that they have the equipment they need to fulfill this responsibility and meet our commitments to our partners and allies around the world.”

The Honourable Harjit S. Sajjan
Minister of National Defence

“This project represents a significant opportunity to support the long-term competitiveness of Canada's aerospace and defence industries, which together contribute more than 240,000 jobs to the Canadian economy. We are committed to leveraging the procurement of the future fleet to support innovation, promote the growth of Canadian suppliers, including small and medium-sized businesses, and create middle-class jobs for Canadians.”

The Honourable Navdeep Bains
Minister of Innovation, Science and Economic Development

Quick Facts

  • Today's announcement marks the official launch of the open, competitive process to replace Canada's fighter jet fleet.

  • The government will begin by establishing a list of suppliers, comprised of foreign governments and fighter aircraft manufacturers that have demonstrated their ability to meet Canada's needs, as defined in the Suppliers List invitation. All companies are welcome to participate in the process.

  • Extensive planning and stakeholder engagement will take place throughout 2018 and 2019.

  • A contract award is anticipated in 2022 and the first replacement aircraft delivered in 2025.

  • The government will engage with foreign governments, fighter aircraft manufacturers and the Canadian aerospace and defence industries to ensure they are well-positioned to participate.

  • The purchase of 88 aircraft represents an increase in fleet size of more than a third of what was planned prior to the Strong, Secure, Engaged defence policy (65 aircraft).

  • Together, Canada's aerospace and defence industries contribute over 240,000 quality jobs.

  • Aerospace is one of the most innovative and export-driven industries in Canada and adds $28 billion annually in gross domestic product to Canada's economy.

  • The Canadian defence sector includes over 650 firms employing highly skilled workers in high-quality jobs.

Associated Links

https://www.canada.ca/en/public-services-procurement/news/2017/12/government_launchesopenandtransparentcompetitiontoreplacecanadas.html

On the same subject

  • Ottawa pushes navy's planned supply ships to the front of the construction queue

    February 6, 2019 | Local, Naval

    Ottawa pushes navy's planned supply ships to the front of the construction queue

    Murray Brewster · CBC News The Liberal government has decided to pull out all the stops on the construction of the navy's planned permanent supply ships — a move that's raised questions about how quickly the Canadian Coast Guard will get a critical oceanographic science vessel. Public Services and Procurement Canada (PSPC) issued a statement Tuesday that announced the re-sequencing of the construction schedules for vessels being built at the Vancouver Shipyard, which is owned by Seaspan. The company has already started preliminary construction work on the first of the navy's long-awaited Joint Support Ships and the federal government says the work will continue until the vessel is completed. Under the National Shipbuilding Strategy, Seaspan was suppose to first construct three small fisheries research ships and a larger oceanographic vessel before working on the navy's long-awaited supply ships. Adhering to that plan in the face of repeated organizational delays meant delivery of those supply ships — which are considered critical to allowing the navy to operate beyond Canadian shores — would not happen until 2023 at the earliest. The PSPC statement said that once the first supply ship is finished, Seaspan will turn its attention to the coast guard oceanographic ship and then build the last planned naval supply ship. "Given the complexity of this build, this change in sequencing will ensure focused engineering resources on each of the projects, while allowing for time between construction of the first and second [Joint Support Ship] to incorporate lessons learned," said PSPC spokesman Pierre-Alain Bujold in a statement. "Moreover, this allows for uninterrupted work at the shipyard, mitigating the risk of potential layoffs and production gaps between builds." Bujold said additional details on the construction schedule will be released at a later date. The change to the schedule was, according to sources in the defence industry, agreed upon at the recent Trudeau government cabinet retreat in Sherbrooke, Que. Rob Huebert, a defence expert at the University of Calgary, said the decision "leaves most people scratching their heads" because of the difficulty involved in getting a shipyard to switch up construction between different types of vessels. "Why you would interrupt the building of ships by putting another style and class of vessel in the middle completely boggles my mind," said Huebert, a noted expert on the Arctic. "I don't know why you would do it." If anything, he said, the federal government should simply build both naval ships and then move on the coast guard ship. The re-sequencing means the navy could be waiting until the late 2020s for its second supply vessel, which would make the program a multi-decade odyssey. The Liberal government of former prime minister Paul Martin originally ordered the replacement of the auxiliary ships in 2004, but the program was cancelled in 2008 by the Conservatives when cost estimates exceeded the budget envelope. Huebert said Tuesday's announcement also raises questions about when Canadians will see the heavy icebreaker that Seaspan is also slated to build. The PSPC website says the program is under review and "no activities are planned until work on other projects has advanced." The federal government apparently has not yet formally notified Seaspan of the schedule change, although the shipyard has awarded a series of sub-contracts to companies such as INDAL in Mississauga, Ont., and L3 MAPPS in Montreal, for supply ship components. Seaspan is expected to announce another contract on Wednesday with Lockheed Martin Canada related to the supply ships. Ever since the Conservatives cancelled the first iteration of the supply ship project, the federal government has struggled to get it back on track, setting and missing several deadlines. The supply ships were supposed to arrive in 2017. The date was pushed back to 2019, and then to 2022. The absence of a supply ship prompted the Davie shipyard, in Levis, Que., to pitch a converted civilian cargo ship for navy use. That $668 million lease deal is at the centre of the breach-of-trust case against Vice-Admiral Mark Norman. Davie is pitching the federal government on leasing another cargo ship. A spokesman for Davie, Frederik Boisvert, called Tuesday's decision "an insult to taxpayers" and claimed that Seaspan has failed to deliver on the supply ship project and "should be blacklisted by the government and not rewarded for failure." The effect of switching up the schedule means the navy might not need a second supply ship leasing deal. Sources within the coast guard and the defence industry have said that the design and project coordination for the fisheries science vessel is not as far advanced as the navy supply ship program and that is an important factor in the federal government's timing decision. https://www.cbc.ca/news/politics/ottawa-pushes-navy-s-planned-supply-ships-to-the-front-of-the-construction-queue-1.5006785

  • Feds aiming to select preferred design for $60B warships by end of month

    October 18, 2018 | Local, Naval

    Feds aiming to select preferred design for $60B warships by end of month

    OTTAWA — Canada's most expensive military project is entering a critical new phase as the government is on the verge of picking its top design for the country's $60-billion fleet of new warships. Defence insiders say the government wants to select a design by the end of the month from among three options submitted by several of the largest defence and shipbuilding companies in the world. After that the government and Halifax-based Irving Shipbuilding, which will actually build the 15 new warships, will sit down with the selected bidder to hammer out the final cost and other details. The stakes will be high for both sides, with hundreds of millions of dollars in play. There will also be pressure to make up for lost time on a project already running behind schedule even though whatever decisions are taken could have ramifications on the navy — and taxpayers — for decades to come. "That's part of the tension between moving quickly and making the right choice," said defence analyst David Perry of the Canadian Global Affairs Institute. The new warships will replace the navy's 12 frigates and three destroyers, the latter of which have already been retired. They will be used for most of this century. Launched in late 2016, the design competition has been the subject of rampant lobbying and complaints by defence industry players, with numerous revisions to the original request for bids and several deadline extensions. That was despite defence officials and Irving having previously warned that time is of the essence when it comes to starting construction, and that they want to shave 18 to 24 months off the project. There have also been questions about Irving's role in the competition, and anger from some companies that British firm BAE was allowed to enter its Type 26 vessel despite the ship having never been built. BAE and U.S.-based defence giant Lockheed Martin partnered together to propose the Type 26 for the design competition, which is up against separate proposals from Dutch firm Alion and Spanish shipbuilder Navantia. A joint French-Italian design was disqualified because Paris-based Naval Group and Italian firm Fincantieri, who promised to build the warships faster and for less than anyone else, did not follow the established process for submitting proposals. One of the big questions heading into the negotiations will be how much the selected design needs to be changed to reflect the navy's needs and how much the navy will have to shift its requirements because changing the design will take more time and money. Irving has warned that it could be forced to lay off hundreds of employees because of a production gap if work on the warships isn't ready to start by the time it finishes building the navy's new Arctic patrol ships in 2021 or 2022. Government negotiators are also facing a battle over the amount of intellectual property that the top bidder will be required to hand over, which Ottawa wants so it can operate and maintain the vessels on its own after they are built. Companies had originally been told that the winner would be required to turn over the full blueprints, but after significant resistance, the two sides agreed that the matter would be negotiated before a contract is awarded. The government however warned that if the winning ship designer drives too hard a bargain on the intellectual property front they face the risk of officials pulling the plug on talks and moving on to the next company. Perry said that while there are many challenges ahead before a deal for a design is signed — and before any of the new warships actually get into the water — this is a critical step forward. "You can't dance until you pick a dance partner," he said. — Follow @leeberthiaume on Twitter. Lee Berthiaume, The Canadian Press https://www.thechronicleherald.ca/news/canada/feds-aiming-to-select-preferred-design-for-60b-warships-by-end-of-month-250594/

  • Ottawa firm to support Royal Canadian Navy, local robotics company joins Rheinmetall

    September 11, 2019 | Local, Naval

    Ottawa firm to support Royal Canadian Navy, local robotics company joins Rheinmetall

    DAVID PUGLIESE, OTTAWA CITIZEN BMT Canada Ltd. was recently awarded a $77.8 million contract to provide engineering, logistics, management, and support services to the Royal Canadian Navy's fleet. The contract initially runs for five years but there are options to extend that, according to the latest industry roundup in this month's Esprit de Corps defence magazine. The Ottawa-based company will provide a wide variety of work such as standards development and logistics services for equipment sustainment, according to the Department of National Defence. This contract will support the RCN's current and future fleet in instances where DND does not have the capacity to perform all of this work in-house, the department noted. The contract is known as Engineering, Logistics, and Management Support 2 (ELMS2) and the company's services will directly support the Director General Maritime Equipment Program Management (DGMEPM) and the Director General Major Project Delivery (DGMPD) (Sea) at the DND. Darcy Byrtus, President of BMT Canada, noted that the firm has been handling the ELMS contract since 2009. “Our experience in supporting complex programs positions us uniquely to assist Canada and the Royal Canadian Navy in successful delivery of its acquisition and support mandates,” he added in a news release. Under ELMS, BMT and their Tier 1 subcontractor Fleetway Inc., will provide a highly diverse range of services including the review of deliverables DND receives from capital acquisition projects, such as the Canadian Surface Combatant. The work also entails engineering expertise, technical investigations and program support. Rheinmetall Canada has taken over Provectus, an Ottawa-based firm specializing in the development of advanced robotics systems and software. Though now owned by Rheinmetall Canada, Provectus will continue to operate under its previous managing director, Paul Rocco. In recent product presentations, Rheinmetall has generated great interest with its Mission Master unmanned multi-mission vehicle, which is based on Provectus technology, modified for military use by Rheinmetall Canada. The firm sees unmanned ground vehicles playing an increasingly important role in future military operations on land, much like unmanned air vehicles do in an aviation context. Some will serve in an unarmed logistic or reconnaissance role; others will function as mobile weapon platforms. “We have already been working closely with Provectus in our unmanned ground vehicle project,” Stéphane Oehrli, president and CEO of Rheinmetall Canada, noted in a statement. “This vertical integration gives us a decisive advantage in the field of autonomous mobility technology.” Rheinmetall says it wants to apply expertise from Provectus Robotics Solutions in implementing the Canadian military's ISTAR (Intelligence, Surveillance, Target Acquisition and Reconnaissance) project. Maerospace Corporation has signed of a global license agreement with Raytheon Canada Limited to support the Defence Research and Development Canada by assuming responsibility for the maintenance, design, engineering, manufacturing and international promotion, sales and deployment of the third generation High Frequency Surface Wave Radar (HFSWR) systems. This Canadian system is one of the few operationally deployed HFSWR land-based radars capable of 200-mile, persistent coverage of a country's Exclusive Economic Zone. HFSWR systems have been successfully deployed in Asia and Europe with the most advanced, 3rd Generation system installed in Canada. Maerospace plans to extend the HFSWR system's functionality by integrating its TimeCaster proprietary technology that would add target identification, anomaly detection, and other capabilities, allowing coast guards, navies and maritime authorities to improve their ability to interdict vessels and plan traffic throughout their EEZ. The Canadian government will launch a new satellite in 2022 to demonstrate the use of quantum technology for protecting commercial and national communication networks. Honeywell has received a $30 million contract from the Canadian Space Agency for the design and implementation phases of agency's Quantum EncrYption and Science Satellite or QEYSSat. Under the contract, Honeywell will build, test, deliver, provide training for and commission the QEYSSat satellite, which will create a link between ground and space to transmit encryption keys. The microsatellite is expected to be completed in early 2022. QEYSSat's mission is to test quantum technology with an aim to develop a system to protect both commercial and national communications infrastructure. Longview Aviation Capital and its subsidiary Viking Air Limited announced a seven aircraft sales contract for six new-production CL-515 aircraft and one CL-415EAF. The CL-515 is a newly developed, technically advanced multi-mission aerial firefighting aircraft – the next generation of the CANADAIR CL-415, an amphibious aircraft and used extensively around the world in firefighting missions. The Republic of Indonesia's Ministry of Defense has agreed to purchase six all-new CL-515 aircraft, four of which will be delivered in “First Responder” multi-mission configuration, and two delivered in optimized aerial firefighter configuration, according to Viking. The purchase agreement also includes one CANADAIR CL-415EAF “Enhanced Aerial Firefighter” aircraft. The CL-515 is capable of up to 15 per cent better aerial firefighting productivity, including increased tank capacity and ability to refill in 14 seconds. It has a state-of-the-art Collins Pro Line Fusion digital avionics suite for advanced situational awareness. https://ottawacitizen.com/news/national/defence-watch/ottawa-firm-to-support-royal-canadian-navy-local-robotics-company-joins-rheinmetall

All news