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  November 28, 2018 | Local, Naval

  Tribunal orders feds to postpone contract in $60B warship project

  The Canadian Press, Lee Berthiaume OTTAWA — The $60-billion effort to build new warships for Canada's navy is facing another delay after a trade tribunal ordered the federal government to postpone a final contract for the vessels' design. The federal government announced last month that U.S. defence giant Lockheed Martin beat out two rivals in the long and extremely sensitive competition to design replacements for the navy's frigates and destroyers. Lockheed's design was based on a brand-new class of frigates for the British navy called the Type 26. The company is now negotiating a final contract with the government and Halifax-based Irving Shipbuilding, which will build the ships. But one of the other two bidders, Alion Science and Technology of Virginia, has asked the Canadian International Trade Tribunal and the Federal Court to quash the government's decision. It says Lockheed's design did not meet the navy's stated requirements and should have been disqualified. Two of those requirements related to the ship's speed, Alion alleged, while the third related to the number of crew berths Late Tuesday, the tribunal released a one-page statement ordering the government to “postpone the awarding of any contract ... until the Tribunal determines the validity of the herein complaint.” Alion has argued that the rules of the competition required the federal procurement department and Irving, which helped evaluate the bids, to reject Lockheed's bid because of its non-compliance. Instead, they selected it as the preferred design. The company also maintains that its own proposed design, which is based on a Dutch frigate, met the navy's requirements. It has said that it has received no information about why Lockheed's bid was selected over its own, despite requests for answers. Lockheed Martin and Public Services and Procurement Canada declined to comment because the matter is before the tribunal and federal court. The third company in the competition, Spanish firm Navantia, has remained largely silent on Lockheed's successful bid. The government is planning to build 15 new warships starting in the next three or four years, which will replace Canada's aging Halifax-class frigates and retired Iroquois-class destroyers. They're to be the navy's backbone for most of the century. The bid by Lockheed, which also builds the F-35 stealth fighter and other military equipment, was contentious from the moment the design competition was launched in October 2016. The federal government had originally said it wanted a “mature design” for its new warship fleet, which was widely interpreted as meaning a vessel that has already been built and used by another navy. But the first Type 26 frigates are only now being built by the British government and the design has not yet been tested in full operation. There were also complaints from industry that the deck was stacked in the Type 26's favour because of Irving's connections with British shipbuilder BAE, which originally designed the Type 26 and partnered with Lockheed to offer the ship to Canada. Irving also worked with BAE in 2016 on an ultimately unsuccessful bid to maintain the Canadian navy's new Arctic patrol vessels and supply ships. Irving and the federal government have repeatedly rejected such complaints, saying they conducted numerous consultations with industry and used a variety of firewalls and safeguards to ensure the choice was completely fair. But industry insiders had long warned that Lockheed's selection as the top bidder, combined with numerous changes to the requirements and competition terms after it was launched — including a number of deadline extensions — would spark lawsuits. Government officials acknowledged last month the threat of legal action, which has become a favourite tactic for companies that lose defence contracts, but expressed confidence that they would be able to defend against such an attack. https://nationalpost.com/pmn/news-pmn/canada-news-pmn/tribunal-orders-feds-to-postpone-contract-in-60b-warship-project

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  July 23, 2019 | Local, Aerospace

  Feds officially launch contract to supply 88 new fighter jets

  The 88 jets are to replace the country's aging CF-18s, which have been in service for more than 35 years. After years of stop-and-start work on replacing them, the government launched the current procurement in 2016 and has been working on the details for nearly three years. Public Services and Procurement Canada says Saab, Airbus, Lockheed Martin and Boeing have until this fall to demonstrate that they can meet requirements for security and interoperability with allied countries' forces, and until 2020 to make what the government calls “initial proposals.” In announcing the call, the government points out that the bidders will have to show that they have plans to invest as much in economic benefits for Canada as the eventual contract is worth. A winning bidder is to be chosen in 2022 and the first planes are to arrive in 2025. https://ottawacitizen.com/pmn/news-pmn/canada-news-pmn/feds-officially-launch-contract-to-supply-88-new-fighter-jets/wcm/10762f5a-0cdb-4c70-9081-5311b2bf49a7

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  May 13, 2020 | Local, Aerospace, Naval, Land, C4ISR, Security

  ‘Hard decisions are going to have to be made’: can vital defence procurements survive in a post-pandemic world?

  By NEIL MOSS MAY. 13, 2020 'When you are trying to fix a fiscal problem, inevitably national defence is part of the way governments have tended to try and fix that,' says defence procurement expert David Perry. In the midst of critical procurements that will set the framework for the Canadian military for years to come, questions remain on how the COVID-19 pandemic will affect the oft-delayed projects. The pandemic has already impacted the two most high-profile defence procurement projects with another delay in the replacement of Canada's fighter fleet as well as a reduced capability at the shipyard that will be building the 15 new warships that will serve as the backbone of the Canadian Navy for decades to come. “Companies and government are always generally working hard trying to meet [the] schedule, and make up time wherever they can afterwards, but there's a limit what you can do to replace a few lost weeks of work,” said David Perry, a defence procurement expert and vice-president of the Canadian Global Affairs Institute. “The impacts are going to be tangible,” Mr. Perry said, adding that the picture is still murky about the final impact on the current procurements as defence companies are still trying to get a handle on the pandemic. The high-profile $19-billion project to replace Canada's fleet of CF-18 fighter jets was delayed a second time in 100 days last week, over a bidder's concern over completing its bid on time, according to a Canadian Press report. Irving Shipbuilding's Halifax shipyard, which has been tasked to build two central pieces for the future of the Canadian Navy in six Arctic and Offshore Patrol Ships and 15 Canadian Surface Combatants, is running at half capacity with around 650 people working at the shipyard and 300 remotely, according to a CTV report. The two projects are projected to cost upwards of $4.3-billion and $60-billion, respectively. Mr. Perry also said the impact on the procurements will depend on what stage the project is in, with less effect for those still in design and requirement phases and more impact on projects in the midst of construction. He added that the impact will also depend on where the facilities are located, as the Irving shipyard in Nova Scotia faced a three-week shutdown, opposed to the Seaspan shipyards in B.C., which has continued relatively normal operations. A spokesperson for the Department of National Defence told The Hill Times that progress is still being made “where possible” on current and future equipment for the Canadian Forces. “While our focus must be on responding to the COVID-19 pandemic, we remain committed to the National Shipbuilding Strategy and other defence projects under Strong, Secure, Engaged,” the spokesperson said in an email. “We continue to meet regularly with PSPC [Public Services and Procurement Canada] to address the delivery of ongoing and future major procurement projects, and to assess and address the impact of the pandemic on these projects. However, given that the extent of COVID-19, or how long this situation will last, cannot be assessed at this time, it is not yet possible to determine the impact this situation will have on our projects,” the statement read, adding that the focus remains on continuing essential services, which include “domestic operations and search and rescue.” Former Air Force pilot Alan Stephenson said that there is “no doubt” that there will be “a huge impact” to defence procurement caused by the pandemic, pointing to the government's ballooning spending. Mr. Stephenson, a retired colonel who is now a senior associate at David Pratt and Associates, said the problem with the fighter jet procurement is being compounded by successive governments' use of military spending to solve other problems. “Now we find ourselves with ... fighters that will be over 50 years old,” he said. “And we'll be flying [the CF-18s] into the future.” “COVID has changed the game,” Mr. Stephenson said, adding that the focus on the Liberals' 2017 defence policy, Strong, Secure, Engaged, will still be present, but there will be fiscal questions of its feasibility. “Hard decisions are going to have to be made,” he said, as the government will balance military requirements with economic needs. Mr. Perry said historically when the government has needed to slash spending, it has looked at the military. “When you are trying to fix a fiscal problem, inevitably national defence is part of the way governments have tended to try and fix that,” he said, adding that given the size of the defence budget, it is “virtually impossible” to address an economic situation without making some fiscal changes at the Department of National Defence. But he said that historical pattern may not continue as it's a different kind of fiscal problem for the government. “In a dynamic where you have real big impacts on consumer confidence and there's also, I think, fairly serious concerns about the availability of financing and liquidity in the civilian economy, potentially there's more of a room for DND and the Government of Canada writ large to be part of the economic solution here and not just part of the fiscal problem,” Mr. Perry said. Former naval officer Norman Jolin, who served in the Canadian Navy for 37 years and commanded the Halifax-class HMCS Montréal, said the last thing the government will want to do is cancel projects that it has already announced at the expense of Canadian workers. “The last thing [the government] would want to do in a world where we've lost so many jobs is to cause more people not to have jobs by cutting things,” he said. Mr. Jolin compared the National Shipbuilding Strategy to the construction of a trans-Canada railway in the 19th century. “This is jobs across Canada,” he said, adding that it is not just jobs at shipyards but throughout the supply chain including manufacturing jobs in southern Ontario. Mr. Jolin said with the procurements under the National Shipbuilding Strategy, the lengthy timeline will mitigate the pandemic's impact. For the Canadian Surface Combatant procurement, the first ship isn't projected to be completed until the mid-2020s and the final delivery date for the entire fleet is in the late 2040s. He said while there may be minor delays in the short term, it shouldn't have much impact on when the ships are delivered in the end. But he said there is still much unknown about how the pandemic has affected the procurement process. Charles Davies, a retired colonel in the Armed Forces who spent time as the senior director responsible for procurement and equipment management policy at the Department of National Defence, also said the long timeline on projects should reduce the impact of any delay. “In the inherently long gestation periods of the major programs, the net impact should be limited,” he said. Mr. Davies, a CDA Institute fellow, said now can be a time for the government to look to make key investments in capabilities that will be needed in the future to defend its borders while at the same time keeping the economy afloat. He said unlike in the mid-1990s during the budget cuts under then-prime minister Jean Chrétien, Canada is not in the geopolitical position to allow its defence budget to dissipate. “We're in a different world now,” he said, citing the “strategic environment” with more aggressive behaviour being seen from the Chinese and Russian governments. https://www.hilltimes.com/2020/05/13/hard-decisions-are-going-to-have-to-be-made-can-vital-defence-procurements-survive-in-a-post-pandemic-world/247826