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November 3, 2017 | Local, Aerospace, Naval, Land, C4ISR

OEMs will invest in Canadian content if they have procurement program stability

If the Canadian government is to inject billions of dollars into military procurement over the next decade and successfully deliver on dozens of major capital projects, the defence industry must play a critical role.

When the new defence policy was released in June 2017, the Liberal government committed to increase the Department of National Defence (DND) budget from $18.9 billion to $32.7 billion by 2026-27 and provide up to $62 billion for the military over the next 20 years.

Experience has shown, however, that increased spending can strain government and industry capacity to meet the requirements and schedules for multiple projects.

Industry is up for the challenge providing it has predictability in the programs and the process, said Mike Greenley, president of Burlington, Ont.-based L3 WESCAM and a former chair of the board for the Canadian Association of Defence and Security Industries (CADSI).

“Industry capacity to respond and surge is obviously greater the more horizon you can give it,” Greenley said at a recent Ottawa conference, hosted by the Canadian Global Affairs Institute, examining the implications of Canada's Defence Policy: Strong, Secure, Engaged.

Greenley–a former executive with General Dynamics and CAE and a veteran of many procurement programs–said large foreign and Canadian manufacturers would make the necessary investments in smaller Canadian companies and production capacity if they have confidence in the opportunity.

“If we talk about these things far enough ahead of time, I think people will invest and have Canadian content ready,” he added.

MGen Jean-Marc Lanthier, chief of program, said the new policy had generated almost four dozen projects, but he cautioned that the government and military could not succeed if “we don't tap into innovation.”

One way to encourage early industry engagement might be to run competitions at the research and development (R&D) phase of certain projects, rather than waiting until after the statement of requirements (SOR) has been fully defined.

“If [you wait] for the SOR and everyone fights to the death for that thing, then your ability to respond and scale up is obviously diminished because you are not going to believe in it until, for sure, you absolutely have [it],” Greenley stated. “Industry can do a lot more if they are engaged earlier.”

As an example, he pointed to the process to replace the current fleet of CP-140 Aurora aircraft, which is undergoing a series of block upgrades to extend service life into the 2030s. If, as the commander of the Royal Canadian Air Force (RCAF) has suggested, the goal is a Canadian-built maritime patrol platform with Canadian-developed anti-submarine warfare and other capabilities, “while we modernize the CP-140s today, we could run a competition tomorrow [to get] an industrial team together for next generation maritime patrol.”

That would “allow things to happen easier and quicker, engage the whole base sooner, in addition to giving them stability” to survive a change in government or government priorities, he said. “We wouldn't normally do that in Canada. But to [earlier] points about how do you connect industrial capacity with innovation, with trying to get more done with less people with more money, we could [do it].”

Defence policies rarely survive as economic blueprints beyond their first few years. In a panel on framing the government's challenge, several former senior public executives noted how quickly a shift in the domestic financial picture or international circumstances forced previous governments to change course.

Still, current government officials were optimistic about the policy, noting it is still early days. Andre Fillion–chief of staff, Materiel, and a former RCAF officer who led the acquisition programs for the CC-177 Globemaster, CC-130J Hercules, CH-147F Chinook and CH-148 Cyclone–acknowledged that more certified project managers are needed, as are improvements to streamline the procurement process.

An increase in contracting authority to $5 million would allow the Army, Navy, Air Force and special operations forces to directly manage about 80 per cent of DND's procurement projects, freeing up resources and staff for the larger, more challenging and riskier programs.

The department will look more holistically at projects, factoring in infrastructure requirements, like hangars, when it acquires an aircraft, and it will place greater reliance on analytics using data to drive decisions on complex programs, said Jody Thomas, deputy minister of National Defence.

The department also added two new associate deputy ministers with extensive experience in government and procurement. “We are restructuring the department to deliver,” concluded Thomas.

https://www.skiesmag.com/news/oems-will-invest-canadian-content-procurement-program-stability/

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  • Winners of 2019 AIAC awards honoured at Canadian Aerospace Summit

    November 13, 2019 | Local, Aerospace

    Winners of 2019 AIAC awards honoured at Canadian Aerospace Summit

    Industry winners of three annual awards recognizing aerospace achievement, innovation, and excellence were honoured at the Aerospace Industries Association of Canada's Canadian Aerospace Summit. The 2019 winners are: James C. Floyd Award – Marc Parent, CEO of CAE Industry Excellence Award for Lifetime Achievement – John Saabas Industry Excellence Award for Small Business Innovation and Technology – Avior Integrated Products “The winners of this year's awards are champions of Canadian aerospace whose vision and achievements have strengthened the industry, making it more innovative and competitive both in Canada and in the global marketplace,” said Jim Quick, president and CEO of AIAC. “We are proud to celebrate their achievements, and on behalf of AIAC's board of directors and members, I thank them for their leadership and dedication to our industry.” About the Winners: James C. Floyd Award – Marc Parent, CEO of CAE Marc Parent is the CEO of CAE Inc. Under his leadership, CAE went from a company that was heavily in debt and trailing its competitors to one that is today the foremost provider of aviation and healthcare training services in the world. A true Canadian success story on the world stage, CAE has customers in 190 countries and over 10,000 employees around the world (nearly half of them in Canada). Parent is also a passionate champion for Canadian aerospace success. He has served as chair of AIAC and Aero Montreal, and he has participated in numerous government round tables and advisory boards to promote Canadian aerospace growth and achievement. Under his leadership CAE has offered nearly 3,000 co-op and internship positions to Canadian students, and through his efforts as part of the Business-Higher Education Roundtable (BHER), it is estimated that 2,500 students across the country will have access to similar work-integrated learning opportunities. His efforts to create a culture of openness and diversity resulted in Randstad naming CAE Canada's 2nd best employer brand in 2018, and in 2019 CAE launched Women in Flight, a scholarship program that encourages more young women to become pilots. Named after the chief designer of the Avro Arrow, the James C. Floyd Award recognizes visionary individuals or teams whose outstanding achievements have contributed to the success of the Canadian aerospace industry. The 2019 award was sponsored by Bell Helicopter Textron Canada. Industry Excellence Award for Lifetime Achievement – John Saabas Holding a PhD in aerodynamics from McGill University, John Saabas spent 35 years at Pratt & Whitney Canada, including the last ten years as president, until retiring from the company earlier this year. His legacies of innovation, sustainability, and collaboration have had a profound impact on Canada's aerospace industry. Under his leadership, Pratt & Whitney Canada achieved a leadership position in all markets, with a portfolio of more than 64,000 engines in service and 13,000 customers worldwide. It certified over 100 engines during a 25-year period, and it expanded and transformed its global manufacturing capabilities, developing operations in China, Poland, the Mirabel Aerospace Centre, and the advanced manufacturing cells. Over the 10-year period of Saabas' leadership, his visionary commitment to greener, more sustainable aviation industry led to significant reductions by Pratt & Whitney Canada in greenhouse gas emissions and industrial process waste, non-recycled waste and water consumption. The company also launched the PW800 business aviation engine, which achieved double-digit improvements in fuel burn, emissions, and noise. As an industry leader, Saabas sought to leverage innovation and research to advance change in aerospace, and championed collaboration between all players of the Canadian aerospace cluster – including small and medium sized companies and universities — as an essential part of the industry's competitiveness. The Lifetime Achievement award is presented to an individual whose distinguished lifetime achievement through the exploration, development or utilization of aviation, space, or defence have led to their wide recognition as a “champion” of aerospace industry. Winners are celebrated for their outstanding leadership, commitment, promotion and consistent contribution to the continuous development of aerospace in Canada. The 2019 award was sponsored by L3Harris. Industry Excellence Award for Small Business Innovation and Technology – Avior Integrated Products Avior Integrated Products is a full-service manufacturer of lightweight structures and complex mechanical assemblies. The company has leveraged its fabrication capabilities in advanced composite details and complex machined components to become a competitive Tier III/II integrator of aircraft structures. Avior customers include leading aerospace manufacturers including Boeing, Bell Helicopter, Bombardier, Mitsubishi and Viking. In providing a competitive solution for its customers the company has invested significantly in creating a culture of innovation and introducing new technologies. In the last two years Avior commissioned its first robotic machining center, with another to follow shortly; launched its own Business Intelligence software system; converted two of its three business units into paperless production environments; and more recently, installed a collaborative robot to assist with certain shop-floor operations. The company's culture of innovation is supported by a dynamic team focused on execution and providing nimble and effective solutions. The transformation of the business is an on-going process and will include the introduction of AI technology in the administration areas of the company in the coming year. Avior has grown by 35 per cent in 2019 and is forecasting 20 per cent growth in 2020 in large part due to the benefits of transitioning to an Industry 4.0 business. https://www.skiesmag.com/press-releases/winners-of-2019-aiac-awards-honoured-at-canadian-aerospace-summit

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

    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?

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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. 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    November 24, 2022 | Local, Aerospace

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