On the same subject

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  February 4, 2019 | Local, Naval

  Trade tribunal rejects rival's bid to block warship contract

  Murray Brewster · CBC News The Canadian International Trade Tribunal has dismissed a complaint by one of the companies that was competing for the job of designing and helping to build the navy's next generation of warships. Alion Science and Technology Corp. and its subsidiary, Alion Canada, filed the complaint in November and asked that the signing of the contract with the preferred bidder be postponed until the matter could be heard. The trade tribunal, in a decision rendered late Thursday, said the company did not "have standing to file a complaint" before the agency. Last fall, the Liberal government announced plans to award the design contract to a group of companies led by Lockheed Martin Canada and opened negotiations with the intention of completing a full contract this winter. Alion, Lockheed Martin Canada and the Spanish company Navantia were all in the running for the Canadian Surface Combatant project, which will be built at Irving Shipbuilding in Halifax. The federal government issued a statement Friday and indicated progress towards a final contract was ongoing. "Public Services and Procurement Canada is pleased with the CITT's ruling," said department spokesman Pierre-Alain Bujold. "We have full confidence in our process, and continue to work toward awarding a contract for the design and design team for the future Canadian Surface Combatants." Alion had pitched its De Zeven Provinciën Air Defence and Command (LCF) frigate, a Dutch-designed warship, for the Canadian competition and has pointed out that the warship is already in service in other countries. The company had asked the CITT to investigate the procurement deal, saying the preferred warship design — the British-built Type 26 — would need substantial changes and and further claimed it doesn't meet the navy's requirements as outlined in the government tender. Alion also had filed a Federal Court challenge of the project last fall. The design competition went on for almost two years as Public Services officials and executives at Irving worked with bidders to ensure a fair competition and to avoid post-decision court fights. The first of the new warships, intended to replace the navy's frigates, are not expected to be in the water until the mid-2020s, at the earliest. https://www.cbc.ca/news/politics/trade-tribunal-warship-alion-1.5002298

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  April 22, 2020 | Local, Aerospace

  COVID-19 latest hurdle in Canada's long road to buying new fighter jets

  OTTAWA — COVID-19 is presenting another challenge to Canada's long-running and tumultuous effort to buy new fighter jets. The federal government last summer launched a long-awaited competition to replace the Royal Canadian Air Force's aging CF-18s with 88 new fighter jets at an estimated cost of $19 billion. The move followed a decade of controversy and mismanagement by various governments. The three companies still in the running are supposed to submit their bids at the end of June and, despite the pandemic, the federal procurement department insisted in an email to The Canadian Press that it still expects them to meet that deadline. The three companies vying for the lucrative contract are Lockheed Martin and Boeing from the U.S. and Sweden's Saab. Lockheed Martin builds the F-35 while Boeing is pitching its Super Hornet and Saab is offering its Gripen jet. Yet while representatives for the three companies say they are likewise plugging away at their respective proposals, a senior Boeing executive left the door open to asking the government for an extension as COVID-19 forces the company to adjust how it does business. "It's challenging, there's no question about it," Jim Barnes, the Boeing executive responsible for trying to sell the company's Super Hornet jet to Canada, said in an interview on Tuesday. "We want to make sure we put the most competitive offer on the table for the government of Canada to evaluate and we feel like we can put a very compelling offer. If we feel like we don't have time to finalize that competitive offer ... we would certainly ask for an extension." The government has already approved one extension to the competition since it was launched last July. Companies were supposed to submit their final bids at the end of March, but were given three more months after Saab asked for more time. Boeing continues to work closely with the U.S. government and navy on its bid and hopes to meet the current deadline, but Barnes said the pandemic has slowed things down as many staff work from home on a complex project with significant security considerations. "Then you have to take into consideration the health of your subject-matter experts in those areas where there are just a few people that can really work up those responses," he said. "Those kinds of things we're dealing with. I'm not sure if the other teams are dealing with that, but we are monitoring that and if we feel like we can't meet the deadline, we'll certainly consider an extension request as an option." Representatives for Lockheed Martin and Saab were more confident in being able to meet the current deadline. "Lockheed Martin remains prepared to provide a comprehensive proposal for Canada's future fighter capability project competition," Lockheed Martin Canada chief executive Lorraine Ben said in a statement. "We have not requested an extension of delivery for the FFCP preliminary proposal and we are excited to share more about the F-35's ability to strengthen and modernize defence, enhance ally partnerships and contribute to economic growth in Canada." Saab Canada president Simon Carroll expressed similar sentiments, saying in an interview that while there some challenges in preparing a bid during a pandemic, "we're certainly working towards that and are planning at this point in time to submit in accordance with that deadline." Yet there are also questions about the government's ability to move ahead on the project even if the companies do get their bids in on time, given the majority of federal employees are working at home. "Those submissions are going to have a combination of sensitive and classified information, and handling all that with a workforce, the majority of which is working from home, is going to be more difficult," said defence analyst David Perry of the Canadian Global Affairs Institute. "I think as a basic bottom line, it is completely illogical to think that the impacts of COVID-19 won't be running through the entire suite of defence procurements because you can't work as efficiently with a huge chunk of your workforce at home." This report by The Canadian Press was first published April 21, 2020. https://www.richmond-news.com/covid-19-latest-hurdle-in-canada-s-long-road-to-buying-new-fighter-jets-1.24121637

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  December 29, 2020 | Local, Naval

  Battle of the budget: DND gears up to defend cost of new warships in the new year

  Murray Brewster · CBC News No matter which way they are going to be sliced, the numbers will be jaw-dropping. The Parliamentary Budget Officer (PBO) is set, early in 2021, to deliver an assessment of the Royal Canadian Navy's long-anticipated frigate replacement program, a review that will give the public perhaps the clearest view yet of the kind of investment taxpayers will be asked to make in the future fleet. A respected former senior defence official, writing in the military magazine Esprit de Corps this fall, took a stab at running the numbers and they are eye-watering, especially in a post-pandemic world. Alan Williams estimated that when construction and lifetime operating and maintenance expenses are included the new fleet of 15 warships could cost between $213 billion and $219 billion. Circulating within the defence community for weeks, his scathing assessment has apparently caught the attention of the House of Commons government operations and estimates committee, which has requested a copy of the research. Between Williams' biting criticism, the budget officer's anticipated take and a planned auditor general review of the national shipbuilding program, the ground is set in 2021 for a major political battle over defence spending, the likes of which haven't been seen in almost a decade. Back to the future The last time that kind of watchdog firepower was assembled, the former Conservative government's plan to buy the F-35 was blown back to the drawing board, where the fighter jet replacement program remained for years. Back then, the fight was all over numbers and transparency and whether former prime minister Stephen Harper's government was levelling with taxpayers, and just as importantly, whether bureaucrats had done enough homework to justify their choice of the stealth fighter. https://www.cbc.ca/news/politics/navy-frigates-cost-1.5851912