Back to news

October 21, 2018 | Local, Naval

Lockheed Martin selected as preferred designer for Canada's next generation of warships

Murray Brewster · CBC News

A group of companies led by multinational defence giant Lockheed Martin has been selected as the preferred designer for Canada's next generation of warships, the Liberal government said Friday.

The announcement that the group's BAE Type 26 design won the design competition represents a significant step forward for the long-anticipated $60-billion program to replace the navy's aging fleet of frigates.

"The Canadian Surface Combatant project is the largest, most complex procurement ever undertaken by the Government of Canada. These ships will form the backbone of our Royal Canadian Navy and will be Canada's major surface component of maritime combat power for decades to come," Public Services and Procurement Canada said in a press release.

Procurement and defence officials say this is not the final step; they will now enter into negotiations with the winning bidder to confirm it can deliver everything promised in the complex proposal. (Some observers have compared the process to placing a conditional offer on a home.)

The evaluation, which will take place over the winter, involves verifying the winning company's financial wherewithal to complete the project, confirming that the proposal meets the military's combat requirements and hammering down aspects of intellectual property licences.

Cindy Tessier, head of communications for Lockheed Martin Canada, said today the company is "confident that our proposed solution meets the requirements established, offering the best ship for Canada, with the world's most advanced warship design ...

"Our proposal is a true industry team effort, and we look forward to providing any additional information to the Government of Canada and Irving Shipbuilding. We are ready on Day 1."

The federal government now says it expects to award the final design contract sometime over the winter.

It could be 2023 before construction actually gets underway at the go-to yard for warships — Irving Shipbuilding of Halifax.

But finally pulling the trigger on a designer is a "huge step," Dave Perry, an Ottawa-based procurement specialist at the Canadian Global Affairs Institute, said in an interview with CBC's Power & Politics. "There's a huge degree of interest in having this done by the spring, and certainly before the next election."

Perry said the importance of this order should not be underestimated, as the new ships will provide the navy with the bulk of its ocean-going fleet — vessels that can be used in war, to protect trade routes or to deliver humanitarian aid.

"They can basically do anything the government wants them to do," he said.

Perry said the $60-billion contract to build the frigates will be a major boon for the Halifax shipyard in particular. "When the economic impact starts spinning, it's really going to be meaningful," he said.

André Fillion, the assistant deputy minister of defence and marine procurement at Public Services and Procurement Canada, said if the federal government is not satisfied that the top bidder can deliver, it will open negotiations with the second-place team of companies.

Alion Science and Technology, along with its subsidiary Alion Canada, had submitted their proposal based on the Dutch De Zeven Provinciën Air Defence and Command (LCF) frigate.

Navantia, a Spanish-based company, headed a team that included Saab and CEA Technologies.

Its proposal was based on the F-105 frigate design, a ship in service with the Spanish navy.

"The former naval officer in me is very excited," said Pat Finn, a retired rear admiral who heads up the Department of National Defence's material branch. "I've been around this for a long time."

Fillion would not say which aspect of the "due diligence assessment" will be the toughest to overcome.

Prior to asking for ship design bids, federal procurement officials spent a lot of time dealing with issues related to intellectual property on the complex systems that will be put into the new warships. Obtaining the necessary clearances is essential in order for the federal government to be able to maintain the vessels in the future.

Failure to do so could cost taxpayers untold tens of millions of dollars — perhaps hundreds of millions — over the five decades the ships are expected to be in service.

Some design changes are expected after the federal government selects an official winner and a contract is in place.

How many changes will be required is a critical question; Finn would only say he doesn't anticipate cutting steel on the new warships for up to four years.

That fuzzy timeline means the program is already months behind schedule. The design competition was launched almost two years ago, when the Liberal government said selecting a foreign, off-the-shelf design would be cheaper and faster than building a warship from scratch.

Finn acknowledged there will be a production gap at the Irving yard in Halifax of about 18 months between construction of the navy's Arctic offshore patrol ships and the frigate replacements.

He added, however, that the federal government is looking at a variety of options to keep the yard humming, including refit work on the existing frigates and possibly building an additional patrol ship, or ships.

https://www.cbc.ca/news/politics/lockheed-martin-selected-as-preferred-designer-for-canada-s-next-generation-of-warships-1.4869268

On the same subject

  • Maxar's Radiant Solutions Awarded $92 Million Small Business Innovation Research Phase III contract by the National Geospatial-Intelligence Agency

    October 18, 2018 | Local, Aerospace

    Maxar's Radiant Solutions Awarded $92 Million Small Business Innovation Research Phase III contract by the National Geospatial-Intelligence Agency

    Expands development of machine learning and crowdsourcing capabilities to augment global GEOINT missions HERNDON, VA, Oct. 18, 2018 /CNW/ - Radiant Solutions, a Maxar Technologies company (NYSE: MAXR) (TSX: MAXR), today announced a $92 million contract award on a Small Business Innovation Research (SBIR) Phase III contract with the National Geospatial- Intelligence Agency (NGA) to rapidly develop, prototype, and deploy machine learning and crowdsourcing capabilities to augment a wide variety of NGA missions. NGA exercised the 2019 contract option year and expanded the value over a three year period of performance. The SBIR Phase III program incents commercial firms to apply innovative solutions to pressing national security problems. As outlined in NGA's recently updated commercial GEOINT strategy, the agency is employing a variety of contracting methods to leverage commercial automation capabilities to augment conventional analysis, giving analysts more time to focus on more challenging, mission-critical problems. Through SBIR Phase III awards, the U.S. government can fund logical extensions of SBIR Data and receive a royalty-free license to that technology while protecting commercial industry's ability to make these offerings available to the global marketplace. Radiant Solutions participates in the SBIR Phase III program through its ongoing investment in Signature Analyst™, a predictive modeling engine that applies machine learning to massive amounts of geospatial data to help analysts quickly search broad geographic areas. Since 2006, Radiant Solutions and its subsidiary companies have been awarded eight SBIR Phase III contracts across multiple agencies. Radiant Solutions will advance development of machine learning capabilities, such as its DeepCore Computer Vision SDK and crowdsourcing capabilities, such as Tomnod, to help analysts quickly process large volumes of remote sensing data, understand global patterns of life and enable broad area search. The award also expands support for the NSG Open Mapping Enclave (NOME), a volunteered geographic information operational prototype that enables trusted users on multiple domains to easily create or modify foundation GEOINT to create living maps and enable timely analysis. These capabilities will be available for broad use across the U.S. Government and its global mission partners. "We are excited to expand our SBIR Phase III partnership with NGA and apply commercial innovation in machine learning and crowdsourcing to difficult national security problems," said Tony Frazier, President of Radiant Solutions. "We are fully committed to helping the NGA harness the massive potential of Commercial GEOINT to reveal insights where and when it matters to build a better world." Radiant Solutions has made several recent announcements that reveal how the company is applying Machine Learning and Crowdsourcing to Global GEOINT Missions: Maxar Technologies' Radiant Solutions Awarded Janus Geography Prime Contract by the National Geospatial-Intelligence Agency Maxar Technologies' Radiant Solutions Partners with NGA to Accelerate Innovation in Machine Learning Technologies Applied to Satellite Imagery SpaceNet™ Team Earns the 2018 USGIF Industry Achievement Award The company will be showcasing a number of these capabilities at the NVIDIA GTC DC event Oct. 22-24. About Radiant Solutions Radiant Solutions provides highly specialized, innovative geospatial multisource data, analytics, software, and services to deliver critical insights and intelligence where and when it matters. Poised to transform how customers support global mapping and intelligence missions at scale, Radiant Solutions harnesses the proliferation of pervasive information-gathering sensors, open-source software, cloud computing, machine learning, and big data analytics. Our combined team of over 1,000 sensor and spacecraft engineers, geospatial analysts, developers, data scientists, and DevOps engineers delivers innovative geospatial solutions that keep our nation safe, protect critical infrastructure, and preserve scarce natural resources. Building on the legacy of MDA Information Systems, RadiantBlue, DigitalGlobe Intelligence Solutions, and HumanGeo, the newly combined Radiant Solutions has a strong track record with its advanced capabilities, open approach, and experience supporting missions that helps customers in the GEOINT community reach critical decisions faster and with greater accuracy. Radiant Solutions is based in Herndon, VA with major offices across Virginia, Maryland, Florida, Michigan, and Colorado. Radiant Solutions is a Maxar Technologies company (NYSE: MAXR; TSX: MAXR). For more information visit: www.RadiantSolutions.com. About Maxar As a global leader of advanced space technology solutions, Maxar Technologies (formerly MacDonald, Dettwiler and Associates) is at the nexus of the new space economy, developing and sustaining the infrastructure and delivering the information, services, systems that unlock the promise of space for commercial and government markets. As a trusted partner, Maxar Technologies provides vertically-integrated capabilities and expertise including satellites, Earth imagery, robotics, geospatial data and analytics to help customers anticipate and address their most complex mission-critical challenges with confidence. With more than 6,500 employees in over 30 global locations, the Maxar Technologies portfolio of commercial space brands includes MDA, SSL, DigitalGlobe and Radiant Solutions. Every day, billions of people rely on Maxar to communicate, share information and data, and deliver insights that Build a Better World. Maxar trades on the Toronto Stock Exchange and New York Stock Exchange as MAXR. For more information, visit www.maxar.com. Forward-Looking Statements Certain statements and other information included in this release constitute "forward-looking information" or "forward-looking statements" (collectively, "forward-looking statements") under applicable securities laws. Statements including words such as "may", "will", "could", "should", "would", "plan", "potential", "intend", "anticipate", "believe", "estimate" or "expect" and other words, terms and phrases of similar meaning are often intended to identify forward-looking statements, although not all forward-looking statements contain these identifying words. Forward-looking statements involve estimates, expectations, projections, goals, forecasts, assumptions, risks and uncertainties, as well as other statements referring to or including forward-looking information included in this release. Forward-looking statements are subject to various risks and uncertainties which could cause actual results to differ materially from the anticipated results or expectations expressed in this release. As a result, although management of the Company believes that the expectations and assumptions on which such forward-looking statements are based are reasonable, undue reliance should not be placed on the forward-looking statements because the Company can give no assurance that they will prove to be correct. The risks that could cause actual results to differ materially from current expectations include, but are not limited to, the risk factors and other disclosures about the Company and its business included in the Company's continuous disclosure materials filed from time to time with Canadian and U.S. securities regulatory authorities, which are available online under the Company's SEDAR profile at www.sedar.com, under the Company's EDGAR profile at www.sec.gov or on the Company's website at www.maxar.com. The forward-looking statements contained in this release are expressly qualified in their entirety by the foregoing cautionary statements. All such forward-looking statements are based upon data available as of the date of this release or other specified date and speak only as of such date. The Company disclaims any intention or obligation to update or revise any forward-looking statements in this release as a result of new information or future events, except as may be required under applicable securities legislation. Investor Relations Contact Jason Gursky Maxar Technologies 1-303-684-2207 jason.gursky@maxar.com Media Contact Andre Kearns Radiant Solutions 1-703-480-6290 andre.kearns@radiantsolutions.com SOURCE Maxar Technologies Ltd. https://www.newswire.ca/news-releases/maxars-radiant-solutions-awarded-92-million-small-business-innovation-research-phase-iii-contract-by-the-national-geospatial-intelligence-agency-697898421.html

  • DND denies misjudging supply ship cost even though price tag jumped to $4.1 billion

    July 6, 2020 | Local, Naval

    DND denies misjudging supply ship cost even though price tag jumped to $4.1 billion

    DAVID PUGLIESE, OTTAWA CITIZEN Updated: July 2, 2020 The defence department denies it ever misjudged the cost of a project to buy new naval ships even though the price tag jumped from $2.3 billion to $4.1 billion in less than two years. And DND admits the cost to taxpayers for the vessels could rise even more in the coming years. The Liberal government acknowledged on June 15 that the cost of the project to buy two Joint Support Ships has increased to $4.1 billion. The vessels are needed by the Royal Canadian Navy as they would provide fuel, ammunition and other supplies to warships at sea. But the $4.1 billion price tag is just the latest in a series of steadily increasing cost figures. In June 2018, the government acknowledged the cost of the ship project had, at that time, jumped from $2.3 billion to $3.4 billion. But Seaspan, the Vancouver shipyard that is to build the vessels, provided a new set of numbers in October 2019 and by February 2020 government approval was received for a new budget of $4.1 billion, DND confirmed in an email to this newspaper. “As with any large-scale procurement project, all project values are best estimates that are based on the data and figures available at the time,” the email added. There has been no misjudging of costs on the JSS project, the department noted. In 2013, the Parliamentary Budget Officer questioned DND's JSS cost estimates and warned that the project would require $4.13 billion. DND stated in its email to this newspaper that taxpayers can be assured they are getting value for money on JSS and that those working on the shipbuilding project in both the department and Public Services and Procurement Canada are top notch. “The Department of National Defence and the Canadian Armed Forces, along with our counterparts at PSPC, have a first-rate cadre of experienced, professional procurement officers, subject matter experts and financial administrators who take great pride in their work and in their accomplishments,” DND said in an email. “Our team has – and will continue to – ensure that Canadians get value from their investments in the Armed Forces.” But DND also acknowledged costs could continue to rise. “While the total project budget includes contingency funding for these types of reasons, some events may happen unexpectedly and thus excel what the contingency funding allowed for,” the DND email noted. “As a result, it's possible that cost estimates may change for a variety of reasons that can't be controlled or predicted.” Conservative MP Kelly McCauley said DND's claim that project costs weren't misjudged is “BS.” “I don't even have faith in their latest cost of $4.1 billion,” added McCauley, who is behind the effort to get the Parliamentary Budget Officer to do a new report looking at JSS. “It's going to go up.” McCauley said the JSS design is based on the Berlin-class, an existing and proven German Navy ship. But he noted that DND and PSPC keep making changes to the ship, driving up costs and adding delays. DND noted that, “it's not uncommon for the cost estimate to change throughout the duration of a project, especially for a first-of-class ship.” DND also pointed out the construction contract with Seaspan may be changed throughout the duration of the project but added that does not necessarily mean the project budget will increase. The Standing Committee on Government Operations and Estimates recently passed McCauley's motion to request the Office of the Parliamentary Budget Officer undertake a costing analysis of building the JSS in Canada as well as the leasing of Asterix, a commercial ship converted into a supply vessel for the Royal Canadian Navy to use. The PBO report will be presented to the committee by Oct. 15. The Asterix, converted by Davie shipyards in Quebec, was at the centre of the two-year legal battle Vice Adm. Mark Norman found himself in when the RCMP charged him with breach of trust. The police force alleged Norman had tipped off Davie that the Liberal government was planning to delay its Asterix deal. The legal case against Norman collapsed in 2019, forcing the federal government to pay the naval officer an undisclosed financial settlement as well as prompting questions about whether the charge had been politically motivated. The Asterix turned out to be a procurement success and since 2018 has been used to refuel and resupply Royal Canadian Navy and allied warships. The Liberal government tried to derail the Asterix project shortly after being elected in the fall of 2015. The move came after cabinet ministers, including Scott Brison and defence minister Harjit Sajjan, received a letter from the Irving family with a complaint that the Irving proposal for a similar supply ship was not examined properly. Irving has denied any suggestion it was involved in political meddling. But after receiving the letter from the Irvings, the Liberals decided to put Asterix on hold. The government, however, had to back off that plan after news of its decision leaked out to the news media. Shortly after, the RCMP began investigating Norman. https://o.canada.com/news/national/defence-watch/dnd-denies-misjudging-supply-ship-cost-even-though-price-tag-jumped-to-4-1-billion/wcm/6743dc85-efb0-457c-90b9-be1b2d204868

  • These three companies submitted bids for Canada’s fighter competition

    August 3, 2020 | Local, Aerospace

    These three companies submitted bids for Canada’s fighter competition

    By: Valerie Insinna WASHINGTON — The bids are in for Canada's fighter competition, and three companies will go head-to-head for the chance to build 88 new jets. The Canadian government on Friday confirmed that the field is down to two American entrants — Lockheed Martin's F-35 Joint Strike Fighter and Boeing's F/A-18E/F Super Hornet — as well as Swedish aerospace manufacturer Saab's Gripen E. All companies submitted proposals before the July 31 deadline. The contest is scheduled to be decided in 2022, with the first aircraft delivery projected in 2025. Up to CA$19 billion (U.S. $14 billion) is up for grabs. “Our government committed to purchasing a full fleet of 88 aircraft to be able to meet our NORAD [North American Aerospace Defense Command] and NATO obligations simultaneously,” Canadian Defence Minister Harjit Sajjan said in a statement. “Efficient and modern fighter jets are an integral part of any air force and we continue to work diligently to make sure that we provide the members of the Royal Canadian Air Force the tools they need to protect Canada, both at home and abroad.” Canada could downselect to two bidders in spring 2021 after an initial evaluation of proposals, though it could keep all three companies as options until the final selection of a single bidder in 2022, the Canadian government said in statement. The competing companies must submit proposals that offer economic benefits to Canadian defense contractors and other businesses, as industrial incentives and offsets make up 20 percent of the criteria under evaluation. The proposals will also be evaluated on each aircraft's capability and cost, which will be weighed at 60 percent and 20 percent respectively. The new fighter will replace the Royal Canadian Air Force's fleet of aging CF-18s. For its proposal, Saab will partner with Canadian defense firms IMP Aerospace & Defence, CAE, and Peraton Canada, and will offer a competitive package of industrial and technological benefits, the company announced. “Saab's Gripen fighter is designed to operate in harsh environments and defeat the most advanced global threats. The system meets all of Canada's specific defence requirements, offering exceptional performance and advanced technical capabilities,” said Jonas Hjelm, who heads Saab's aeronautics business. As a partner nation of the F-35 program, Canada has contributed funding for the development of the Joint Strike Fighter and is involved in the production of the jet. In Lockheed's statement confirming the bid, the firm said the F-35 program would support an estimated 150,000 jobs in Canada over its life span. “The 5th Generation F-35 would transform the Royal Canadian Air Force fleet and deliver the capabilities necessary to safeguard Canadian skies,” said Greg Ulmer, Lockheed's F-35 program executive vice president. “The F-35′s unique mix of stealth and sensor technology will enable the Royal Canadian Air Force to modernize their contribution to NORAD operations, ensure Arctic sovereignty and meet increasingly sophisticated global threats.” Boeing's argument for its Super Hornet Block III was simple: The Royal Canadian Air Force already operates F/A-18s, and buying the latest version of the Super Hornet is a proven, affordable option that will allow the service to reuse existing infrastructure and reduce sustainment costs. “We have a partnership with Canada that spans more than 100 years. We don't take that lightly. The response we submitted today builds upon that great legacy and allows us to continue to bring the best of Boeing to Canada and the best of Canada to Boeing,” said Jim Barnes, Boeing's director of Canada fighter sales. “Our proven, two-engine design can operate in the harshest environments and provide support no matter where the mission takes its pilots. That, coupled with Boeing's 100% guaranteed industrial plan, will also deliver long term, well-paying jobs.” https://www.defensenews.com/global/the-americas/2020/07/31/these-three-companies-submitted-bids-for-canadas-fighter-competition/

All news