Major defence procurements and Phoenix pay fiasco will keep rookie MP busy

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  July 31, 2020 | Local, Aerospace

  Companies highlight jobs, economic spinoffs as fighter-jet competition closes

  OTTAWA — Fighter-jet makers are leading with promises of jobs and other economic spinoffs as they make their final pitches for why Canada should buy their planes to replace the military's aging CF-18 fleet. Friday marks the deadline for U.S. aerospace companies Lockheed Martin and Boeing, as well as Swedish firm Saab, to submit their bids in the current fighter-jet competition, which will see Canada spend up to $19 billion on 88 new planes. The closing of the competition marks a major milestone in Canada's decade-long effort to buy new fighter jets for the Royal Canadian Air Force, which has been plagued by government mismanagement and political controversy. While the combat capability of each of the three competing planes — Lockheed Martin's F-35, Boeing's Super Hornet and Saab's Gripen — will be the main focus as the government evaluates each bid, there will also be a lot of focus on the economic benefits of buying each plane. To that end, Lockheed Martin commissioned a report in February that found up to 4,200 jobs will be created or sustained each year if Canada buys its F-35 stealth fighter, which the company equated to more than 150,000 new jobs over the life of the plane. The analysis provided to The Canadian Press, which was compiled by Toronto-based OMX, also predicted the Canadian economy will see roughly $15 billion in additional activity between now and 2058 if the F-35 is selected to succeed the CF-18 as Canada's primary fighter jet. That is in addition to the $2 billion in economic benefits that Canada has already received since 2007 as one of nine partner countries in the development of the F-35, which lets Canadian companies compete for work associated with the stealth fighter. Canada has contributed US$541 million since 1997 to be a partner in the F-35 program. "Lockheed Martin has prepared a comprehensive proposal," the company said in a statement on Thursday. "The F-35 is the most capable, best-value fighter to strengthen defence, enhance ally partnerships and contribute to economic growth in Canada with significant, long-term industrial opportunities." Lockheed Martin isn't the first to toot its own horn on the potential economic benefits of its fighter. Boeing last month released its own commissioned report showing its existing operations in Canada created $5.3 billion in economic spinoffs last year and supported 20,000 jobs. Boeing says the numbers will go up if the Super Hornet wins, though it has not revealed its exact estimates. The emphasis on jobs and money — rather than combat capability — comes as Canada's economy has been battered by the COVID-19 pandemic, forcing the federal government to spend tens of billions in financial support for Canadians. Defence analyst David Perry of the Canadian Global Affairs Institute said it makes sense for companies to highlight the potential economic benefits of their bids. He said it helps to make the cost more palatable to the public and is also important in determining the winner. "In any competition like this, you're always looking for any potential partial point that you can get," Perry said. "Companies, if they're going to invest this significant time and significant amount of money preparing a bid like this, then they don't leave anything to chance. You make sure you try to wring every single last partial point you can get out of your proposal." This report by The Canadian Press was first published July 30, 2020. Lee Berthiaume, The Canadian Press

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  June 11, 2019 | Local, Aerospace, Security

  Bidding criteria for Canada's $19B fighter jet competition will emphasize strategic attack and ground-strike capabilities — seeming to favour the F-35

  David Pugliese The criteria that will govern the selection of the winning bid to provide Canada's next fleet of fighter jets will prioritize strategic attack and foreign ground-strike capabilities, according to government documents obtained by Postmedia — guidelines that are seen to favour Lockheed Martin's controversial F-35. In 2010 the Conservative government under Prime Minister Stephen Harper selected the F-35 to replace the Canadian Forces' aging CF-18s, but later abandoned the plan after concerns about the technology used for the plane and its growing cost. During the 2015 election campaign Justin Trudeau promised that a Liberal government would not purchase the F-35, at the same time vowing to hold an open competition for the purchase of the country's new jet. Once in office, however, the Liberals backed away from their promise to freeze out the F-35 and the aircraft is now seen as a front-runner in the upcoming competition, with many supporters in the Royal Canadian Air Force. Though the Liberal government has highlighted the need to buy new jets to protect Canadian airspace and meet the country's commitments to NORAD, the procurement criteria obtained by Postmedia, currently in draft form, indicate the bidding process will assign additional weight to aircraft that excel at ground attack for overseas operations. Those criteria are seen to favour Lockheed Martin's F-35 stealth jet, say industry representatives allied with Lockheed's rivals in the upcoming $19-billion competition. The evaluation criteria also place less emphasis on sustainability — something else that may play to the advantage of the F-35, which has been dogged by high maintenance bills. But Pat Finn, the Department of National Defence's procurement chief, says there is such a wide variety of requirements to meet in the competition that while some aircraft might be seen to do well in some areas, they may not excel in others. “Somebody may be better in a high-end scenario but they're worst for cost,” Finn explained. “That's why we say it's the whole piece” that will be considered in the competition. At this point four aircraft are expected to be considered: two U.S.-built aircraft, the F-35, and the Super Hornet, and two European planes, the Eurofighter Typhoon and the Gripen. Finn said bidding companies must meet mandatory requirements when it comes to long-term sustainment of the planes. But industry representatives, both from Lockheed Martin rivals and those not directly involved in the competition, point out that beyond the mandatory requirements there is little emphasis on the important area of long-term maintenance and sutainability. So a company with an aircraft that costs relatively little to maintain won't get that recognition in the competition, they claimed. Finn said discussions are still ongoing with various companies and their feedback is being assessed. The request for proposals, which will outlined the final requirements for the aircraft, is expected to be released around mid-July, he added. Royal Canadian Air force commander Lt.-Gen. Al Meinzinger said key capabilities for a new plane are survivability and having an operational advantage. “We are very confident we are actually meeting the requirements of NATO and NORAD,” he said, pointing to the requirements for the new aircraft. “Both of those missions are well represented.” Canada already changed some of the industrial benefits criteria of the competition in May to satisfy concerns from the U.S. government that the F-35 would be penalized or couldn't be considered because of how that program was set up. U.S. officials had warned that the F-35 development agreement Canada signed years ago prohibits partner nations from imposing requirements for industrial benefits. Under the F-35 agreement, partner nations such as Canada are prohibited from demanding domestic companies receive contracts for work on the fighter jet, those companies instead having to compete for work. Over the last 12 years, Canadian firms have earned more than $1.3 billion in contracts to build F-35 parts. The changes made in May would now allow some of those F-35 contracts to be considered when weighing the industrial benefits offered by the planes. The winning bidder will build 88 jets for Canada, and the first delivery is expected in the mid-2020s with the full capability available in the early 2030s, according to documents produced by the Department of National Defence. https://nationalpost.com/news/bidding-criteria-for-canadas-19b-fighter-jet-competition-will-emphasize-strategic-attack-and-ground-strike-capabilities-seeming-to-favour-the-f-35

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  January 14, 2019 | Local, Land

  Fires and rollovers plague Canadian Army's $600 million fleet of new armoured vehicles

  David Pugliese, Ottawa Citizen he Canadian Army's new armoured vehicles have been plagued by rollovers and fires, the latest in a series of problems to affect the $600-million fleet. Since April 2014, there have been 10 incidents when Tactical Armoured Patrol Vehicles have tipped on to their sides, six where they have rolled over completely, and four where they have caught fire. Pat Finn, the assistant deputy minister in charge of procurement at the Department of National Defence, told Postmedia there have been no serious injuries as a result of the incidents. But the problems are not the first to hit the Tactical Armoured Patrol Vehicles or TAPVs. The TAPV program has “experienced a number of significant technical issues, particularly affecting vehicle mobility,” then-defence minister Rob Nicholson was told in August 2014. There have been problems with the suspension, steering and other items on the vehicle, according to a briefing document released under the Access to Information law. The technical issues significantly delayed the test program for the vehicles, the document added. “These accumulating incidents, which relate to the vehicle's ability to travel distances on medium cross country terrain, led the project office to conclude the existing testing could no longer continue.” The Conservative government announced the TAPV contract in 2012 as part of its re-equipping of the Canadian Army. Canada bought 500 TAPVs from Textron, a U.S.-based defence firm, at a cost of $603 million. The TAPV is a wheeled combat vehicle that will conduct reconnaissance and surveillance, security, command and control, and armoured transport of personnel and equipment. Finn said as a result of the various incidents further quality assurance tests are being done. “It's kind of high off the ground so it can be more agile,” he explained about the vehicle. “(But) it brings with it a high centre of gravity.” “It may be it's about training and understanding the vehicle,” Finn added. None of the vehicles have been written off because of the incidents, according to the Canadian Army. “Upon review of the major TAPV incidents, it has been identified that the most common contributing factors of these incidents tends to be human error due to limited familiarity time operating the vehicles,” the army noted in an emailed statement to Postmedia. The army pointed out that investigations into the incidents did not reveal any design or mechanical faults. “Primary reports on the majority of these incidents (rollover and tip-overs) were attributed to a combination of factors, such as operator experience, the vehicle's high centre of gravity, weather conditions, and/or vehicle speed,” the email noted. The army did not provide any explanation for the four fires on the TAPVs. The army noted that it is considering limits on the speeds the vehicles can operate at as well as “rollover hazard mitigations” and “recommendations such as the use of new technology to enhance experience for new drivers and crew.” The army did not provide further details on those new technologies or initiatives. The TAPV project will cost taxpayers a total of $1.2 billion, which not only includes the vehicles but also includes the building of infrastructure to house them, as well as the purchase of ammunition and service support for the equipment. The initial problems with steering and other issues delayed the delivery of the vehicles. After those were dealt with, the army had to contend last year with concerns about brakes and the distance the vehicles needed to stop. The TAPV is a heavy vehicle and requires longer stopping distances at higher speeds than most new drivers are familiar with, noted DND spokesman Dan Le Bouthillier in July 2018. The fleet of TAPVs have been distributed across seven bases and 24 units throughout Canada. The Canadian army has said it expects to declare full operational capability by mid-2020, following training of all operators. TAPVs were first deployed in spring 2017 to assist communities affected by the flooding in Quebec. dpugliese@postmedia.com Twitter.com/davidpugliese https://nationalpost.com/news/canada/fires-and-rollovers-plague-canadian-armys-600-million-fleet-of-new-armoured-vehicles