Government of Canada invests in the modernization of the Royal Canadian Air Force’s CH-146 Griffon

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  February 8, 2021 | Local, Aerospace, C4ISR, Security

  For CAE the future means expansion in cyber, space and more defense acquisitions

  By: Aaron Mehta WASHINGTON — With defense budgets around the globe expected to fall, simulation and training firm CAE is moving to diversify its defense and security portfolio, with an emphasis on space and cyber capabilities. Dan Gelston, who took over CAE's defense and security business unit in August 2020, told Defense News that his team is also looking to partner with defense primes during the early stages of new competitions, a shift which could require CAE investing in research and engineering efforts. Over the last two decades, CAE was “very focused” on traditional platforms, particularly planes and unmanned aerial vehicles, Gelston said. Now, he expects the future of the company to involve “a real focus on space and cyber, not only for that customer, but also for CAE. And those are areas that we need to augment our capabilities to make sure that we're providing the best product, the best service to help our customers.” The full interview will air as part of CAE's OneWorld event Feb. 9. CAE reported just over $1 billion in defense revenues in 2019, which made it the highest-ranked Canadian company on the annual Defense News Top 100 list. Currently, Gelston's unit makes up about 40 percent of the company's overall business, but he sees a chance to hit a “much larger” market going forward. Gelston's plan includes increasing the “security” part of the company's “defense and security” portfolio by aggressively pursuing contracts for government agencies such as the Department of Homeland Security and Transportation Security Administration. This would competing for what he describes as a “multi-hundred-million dollar opportunity with TSA here in the next few months” for training security forces for airports. “With space assets ability to target, with cyber assets ability to attack anywhere and everywhere, it's not just the Pentagon, it's critical infrastructure, it's a lot of what we traditionally have separated into DHS. So that security element is crucial,” he said. “We could really bring a lot of our research and development, our capabilities in machine learning and AI and virtual reality and augmented learning management systems” to DHS, which “you could categorize a little more of a traditional time phased approach to training.” As the company seeks to expand into the non-defense security realm, Gelston said the company is keeping an eye out for potential merger and acquisition options, saying “I certainly would like to think in the next 18 to 24 months a property would come along, that's particularly attractive to me.” 2020 was a rocky year for CAE, which was hit particularly hard given its ties to the commercial aviation space. But the company worked quickly to shave costs, and toward the end of the year issued a public offering, with the goal of raising roughly $2 billion Canadian ($1.56 bn American). The plan, as Gelston said, was to have enough “dry powder to make sure that we're coming out leaning forward out of the COVID crisis. We don't want to be hunkering down just trying to survive. We want to take advantage of this.” While not discussing specifics, Gelston emphasized that “I'd love to get a little more robust training capability in the cyber realm... that's an area that that I can certainly see augmenting with potential acquisition here in the next 18 to 24 months if the right property comes along, I think we would be positioned to potentially pursue that.” Teaming with defense manufacturers That focus on new areas doesn't mean the company is turning away from traditional defense projects, but it does come with a greater focus on teaming up with prime contractors early in the process to offer the DoD and other customers a package solution from the start, as opposed to bidding on training and simulation contracts after a design has been selected. He pointed to the surprise rapid test-flight of the Next Generation Air Dominance (NGAD) demonstrator from last September as an example of how defense acquisition is speeding up. “Our defense acquisition officials are really looking for skin in the game from industry” early on, he said. “We don't have the time for the classic cost-plus development work, years and years and multiple phases” of a project. “No company, even the big OEMs, have unlimited research and development budgets. No company, even Lockheed Martin, has unlimited engineering assets,” he continued. “So if I can partner with these OEMs on these major next generation platforms now and start co developing as they develop the platform, I'm codeveloping the training in the simulation experience, and sharing some of that burden, adding skin into the game for research and development engineering — It's not just money, it's also time, and time, arguably right now is our is our biggest enemy — I can really help those OEMs and give them a true discriminator in their offering.” “And certainly at the end, that international or us customer is going to be much better off as they've got a fully baked, fully integrated training and simulation solution with that new platform.” In addition to looking into NGAD, Gelston said the company plans to pursue nearer-term contracts related to the F-35 joint strike fighter, MQ-9B drone, and the Army's Future Vertical Lift competition, while also continuing ongoing efforts like its C-130H business, which was awarded in 2018. https://www.defensenews.com/training-sim/2021/02/08/for-cae-the-future-means-expansion-in-cyber-space-and-more-defense-acquisitions

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  June 25, 2024 | Local, Land

  Title Publication Date Department News type Teaser Minister Blair to visit Halifax, Nova Scotia to discuss Our North, Strong and Free and launch construction on the Canadian Surface Combatant fleet

  The Honourable Bill Blair, Minister of National Defence, will visit Halifax from June 27 to June 28, 2024 to discuss Canada’s defence policy update, Our North, Strong and Free, launch construction on the Canadian Surface Combatant project

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  May 10, 2019 | Local, Aerospace

  Feds look to ease requirements for fighter-jet makers after U.S. complaints

  By Lee Berthiaume, The Canadian Press OTTAWA — The federal government is planning to loosen its industrial requirements for fighter-jet makers in the $19-billion competition to replace Canada's aging CF-18s. The planned modification follows recent U.S. complaints that the previous criteria violated Canada's obligations as one of nine partner countries in the development of the F-35, one of the small handful of planes expected in the competition. Yet the proposed change has sparked complaints from some of the companies whose planes will be competing against the F-35, who say the new approach goes too far in the other direction. Canada has long required companies bidding on major defence contracts to commit to re-investing back into the country, with those unable to make such a contractual commitment seeing their bids tossed out. But in a presentation to companies on Thursday, the government said it plans to allow bids missing such a commitment in the fighter-jet competition — they will be just docked points in the assessment. The plan is intended to maximize the number of bids in the competition to buy 88 new jets while still aiming for the largest-possible economic spinoffs, a senior government official told The Canadian Press. The U.S. had threatened not to enter the F-35 into the competition if the requirement wasn't changed, noting that under the partnership agreement signed in 2006, companies in each member country instead compete for work. The threat was contained in a letter sent to the government from the head of the Pentagon's F-35 office in December and published in a report from the Macdonald-Laurier Institute think tank on Monday. Canada has contributed roughly $500 million over the past 20 years toward developing the F-35, while Canadian companies have won nearly $1.5 billion in contracts associated with the stealth fighter. Canada will also be able to buy the plane for less than non-members. The proposed new process will see the government evaluate bids on a scale, with 60 per cent of the points based on the plane's capability, 20 per cent on its full lifetime costs and the remaining 20 per cent on industrial benefits to Canada. Bidders can still guarantee that they will re-invest back into Canada if their jet wins the competition and get all 20 points - which is the likely approach for Boeing's Super Hornet, Eurofighter's Typhoon and Saab's Gripen. But those that can't make such a commitment will be asked to establish "industrial targets," lay out a plan for achieving those targets and sign a non-binding agreement promising to make all efforts to achieve them. The government will study those plans and assign points based on risk. This is the likely approach for Lockheed Martin and the F-35, which the U.S. has said could provide Canadian companies with billions in work over the next 50 years. The planned new approach has already stirred complaints from some of Lockheed Martin's competitors, who question why the F-35 should get points if the company can't guarantee re-investment back into Canada. There are also concerns about how the government will decide how risky plans to achieve "industrial targets" actually are, with one industry source saying that question is entirely subjective. Bidders were also told Thursday that the actual launch of the competition has been delayed until mid-July. Government officials had previously said they hoped the starting gun would be fired by the end of the month. Lee Berthiaume, The Canadian Press https://www.nationalnewswatch.com/2019/05/09/feds-ease-industrial-requirements-for-fighter-jet-makers-after-u-s-complaints/