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January 17, 2020 | Local, Aerospace

Maxar selling MDA to NPC

Maxar announced it signed a definitive agreement to sell its Canadian business, MDA, to Northern Private Capital (NPC). You can read the details in our press release.

I would like to assure you that MDA is committed to continuously delivering the high-quality of service that our customers expect. Maxar and MDA will continue normal operations through the expected close of the transaction, which we believe will happen within 12 months, after the standard U.S. and Canadian regulatory approval.

After the close, the MDA team will operate as a private, stand-alone company within NPC's portfolio, retaining its name and standing as the leading space and defence company in Canada. MDA will remain an important business partner and supplier to Maxar, and Maxar will be MDA's largest customer. Additionally, the companies will continue to sell each other's complementary satellite data.

NPC is a Toronto-based investment firm led by John Risley and Andrew Lapham. It has created a Canadian investment fund to finance this transaction. NPC views Canada's renewed commitment to utilizing space for its civil and defence needs as a strong opportunity to bring MDA home to Canada. MDA will remain dedicated to its work for the Canadian government and as a merchant supplier to the international community.

Maxar's leadership team and Board of Directors believe this transaction best positions Maxar for growth in the future. Once closed, it will enable Maxar to reduce its debt load and focus on substantial growth opportunities in its core markets of Earth Intelligence and Space Infrastructure. And likewise, MDA will be able to focus on capturing large, Canadian programs in the future, in addition to addressing commercial and export markets.

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  • Minister Sajjan marks the start of construction for the fourth Arctic and Offshore Patrol Ship

    May 3, 2019 | Local, Naval

    Minister Sajjan marks the start of construction for the fourth Arctic and Offshore Patrol Ship

    May 3, 2019 – Halifax (N.S.) – National Defence / Canadian Armed Forces Another important milestone of the National Shipbuilding Strategy was reached today as the Honourable Harjit S. Sajjan, Minister of National Defence, participated in a ceremony at Irving Shipbuilding highlighting the start of construction for the fourth Arctic and Offshore Patrol Ship (AOPS), the future HMCS William Hall. This is the fourth of six such ships to be built at the Halifax Shipyard for the Royal Canadian Navy (RCN) as articulated in Canada's defence policy, Strong, Secure, Engaged. Security in the Arctic is complicated by the region's geography and harsh climate. This new class of vessel was specifically designed to patrol Canada's waters and northernmost regions. It will have the versatility to navigate abroad and contribute to international operations. The Harry DeWolf-class will significantly enhance the CAF's capabilities and presence in the Arctic, better enabling the RCN to assert Arctic sovereignty for years to come. Since the start of construction for the first AOPS in 2015, the project has progressed well. The first vessel is expected to join the RCN's fleet this summer. Quotes “We are making significant progress on the Arctic and Offshore Patrol Ships as Canadian workers start the construction of the fourth ship, here in Halifax. These vessels will be critical assets to the RCN, enhancing our Arctic capability and greatly contributing to the future success of our operations in the most isolated regions of Canada. As outlined in Strong, Secure, Engaged, our government is delivering modern and versatile equipment to our women and men in uniform so they can successfully accomplish the work we ask of them.” The Honourable Harjit S. Sajjan, Minister of National Defence “Today's ceremony for Canada's fourth Arctic and Offshore Patrol Ship marks an important milestone. It provides ongoing evidence that the National Shipbuilding Strategy is revitalizing our world-class marine industry, supporting Canadian innovation, creating good middle class jobs, stabilizing employment and generating economic benefits across Canada. We remain firmly committed to the Strategy, and will continue to work closely with our shipbuilding partners to position it for success now and into the future.” The Honourable Carla Qualtrough, Minister of Public Services and Procurement and Accessibility “I am delighted to see so much progress on the Arctic and Offshore Patrol Ships this year, and look forward to seeing it continue in the years to come. Through this partnership with Irving Shipbuilding, we will sustain over 4,000 highly skilled jobs and create opportunities right here at the Halifax Shipyard and throughout Nova Scotia.” The Honourable Bernadette Jordan, Minister of Rural Economic Development Quick facts The AOPS project is part of Canada's renewed focus on surveillance of Canadian territory, particularly our Arctic regions. As the security dynamics in the Arctic evolve due to such factors as climate change, we will continue to work to secure our northern air and maritime approaches, in coordination with our allies and partners. William Hall received the Victoria Cross in 1859 for heroism and support of the British Army during the relief of Lucknow (1857). Son of freed African-American slaves living in Nova Scotia, he is the first black person, first Nova Scotian, and third Canadian to have been awarded this honour. Four AOPS are now in production, with the construction of the fifth ship expected to begin later in 2019. AOPS 4 is expected to join the RCN fleet in 2022. The AOPS are highly versatile platforms that can be used on a variety of missions at home and abroad, such as coastal surveillance, search and rescue, drug interdiction, support to international partners, humanitarian aid, and disaster relief. Work is ongoing to complete the Nanisivik Naval Facility, which will support operations of the new Arctic Offshore Patrol Ships and other government maritime vessels. This new facility is expected to be complete later this year. Associated links Strong, Secure, Engaged Arctic and offshore patrol ships William Hall National Shipbuilding Strategy Contacts Todd Lane Press Secretary Office of the Minister of National Defence Phone: 613-996-3100 Media Relations Department of National Defence Phone: 613-996-2353 Email: mlo-blm@forces.gc.ca https://www.canada.ca/en/department-national-defence/news/2019/05/minister-sajjan-marks-the-start-of-construction-for-the-fourth-arctic-and-offshore-patrol-ship.html

  • A new life for the CT-155 Hawk - Skies Mag

    May 28, 2024 | Local, Aerospace

    A new life for the CT-155 Hawk - Skies Mag

    Formerly the RCAF’s fighter lead-in advanced jet trainer, the Hawk is finding new life as a maintenance trainer for aircraft technicians in training.

  • With billions of dollars at stake, all parties promise to fix defence purchases

    October 7, 2019 | Local, Aerospace, Naval, Land, C4ISR, Security

    With billions of dollars at stake, all parties promise to fix defence purchases

    Every election, would-be prime ministers promise to cancel bad military purchases or processes, hurry along good ones, fix the mess once and for all OTTAWA — The seemingly endless effort to replace Canada's CF-18s fighter jets passed a tiny milestone Friday: fighter-jet makers participating in the $19-billion competition were required to explain how they planned to make their aircraft compliant with U.S. intelligence systems. For nearly a decade, Canadians have been inundated with talk of fighter jets without Canada ever buying them, an ever-worsening symbol of the failures of Canada's military procurement system. Every election, would-be prime ministers promise to cancel bad purchases or processes, hurry along good ones, fix the mess once and for all. Conservative Leader Andrew Scheer this week promised to “de-politicize” military procurement with new oversight bodies in cabinet and the Privy Council Office while working toward multi-partisan consensus on procurement projects in Parliament. The Liberals promise to establish a new agency called Defence Procurement Canada, which suggests taking the entire function away from the four departments that now share responsibility for buying military kit. The New Democrats and Greens promise, without detail, that they will ensure Canada's military gets the equipment it needs. The origins of what we face today can be traced back to the end of the Cold War when Canada and its allies began to cut defence spending after a decades-long arms race with the Soviet Union. There were concerns about whether or not you're getting the right kind of economic benefits “We deferred purchasing new fighter planes and did the same thing with our frigate fleet,” says David Perry, vice-president of the Canadian Global Affairs Institute and one of Canada's foremost experts on defence spending and procurement. “We just kicked the can down the road on fixed-wing search-and-rescue aircraft. There was a bunch of other projects that fit the same vein.” The military had to use equipment for years longer than it was supposed to and the Department of National Defence lost most of its procurement experts. But in the mid-2000s, the Forces' equipment problems were revealed in Kandahar: the military lacked transport aircraft to resupply its Afghanistan mission, artillery and tanks to support troops on the ground and helicopters to move them around. Ottawa rushed into gear, purchasing transport planes, howitzers, helicopters and tanks in short order — in most cases without competitions. New equipment flooded in but there were some big failures, starting with accusations defence officials rigged the requirements for a new search-and-rescue plane to select a specific U.S. plane. There was also a failed effort to buy new supply ships for the navy and, most explosively, a plan to buy new fighter jets, Lockheed Martin's F-35s, without a competition. In 2012, auditor general Michael Ferguson blasted the Defence Department for failing to communicate the stealth fighter's risks, including escalating costs and schedule delays, to Parliament and decision-makers. Dan Ross, who was the department's head of military procurement at the time, would later say defence officials had all the information and were willing to share it — the Harper government just wouldn't let them. Either way, the public's confidence in the system and the government's ability to manage it were shaken. The F-35 purchase was scrapped. The Tories imposed new constraints to keep costs under control and ensure Canadian industry and communities benefit from defence contracts. “There were concerns about whether or not you're getting the right kind of economic benefits, some significant concerns about whether or not process was being adhered to until you had this system recalibration where you had an injection of additional rules and governance,” Perry says. That recalibration imposed a fundamental tension on the system: the need to get the best equipment possible, with the most benefit to the economy or local industry, at the lowest cost. Every big procurement is partly about the military's needs and partly about national industrial policy — and, that means, partly about politics. Most procurements are still completed with minimal fuss. The problems largely lie with big, once-in-a-lifetime contracts like fighters and warships that are worth billions of dollars and are not only essential for the military to operate, but have the potential to benefit Canadian businesses and communities for years. The ones that involve billions of public dollars. “You're trying to get the best bang for the buck for as little buck as possible,” says Queen's University professor Kim Nossal, who wrote a book entitled “Charlie Foxtrot: Fixing Defence Procurement in Canada” in 2016. “The one comforting thing is that very few countries have got the balance right. All industrial countries, all of our allies, faces these kinds of pressures. They worry about jobs and costs and capability.” Efforts to combine the three competing priorities can lead to bickering among federal departments, lawsuits from companies and politicians sticking their fingers in things. Seconds after saying he would de-politicize the military procurement system this week, Scheer promised to negotiate the purchase of an interim naval supply ship from Quebec's Chantier Davie shipyard, which lobbied the Liberal government for years to ink such a contract without success. Davie is one of Canada's big players in shipbuilding — and it's in much-contested political territory just outside Quebec City. Alan Williams, who was the Defence Department's head of procurement from 1999 to 2005 and now advises companies on procurement matters, compares Scheer's promise on Davie to Justin Trudeau's promise in 2015 not to buy the F-35. That's because while a government can decide to purchase a piece of military equipment, procurement laws — and Canada's international trade obligations — forbid it from choosing or excluding a specific product or supplier except under extreme circumstances. Upon taking office, the Liberals twisted themselves in pretzels to get around the legal implications of their promise. That twisting led to a plan to buy Super Hornets from a competing vendor. When that fell through, four years passed before an actual competition was launched — with the F-35 now one of three planes still in contention. In the meantime, the CF-18s will fly until 2032, reinforced with second-hand Australian F-18s to buy time. https://nationalpost.com/news/politics/election-2019/with-billions-of-dollars-at-stake-all-parties-promise-to-fix-defence-purchases

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