October 31, 2018 | Local, Aerospace
Canada is facing a complex challenge as it gets ready to launch a full competition for new fighter jets stemming from its long-standing involvement in the international coalition that is building the Lockheed Martin Corp. F-35 stealth aircraft.
The federal government confirmed on Monday that it will maintain its membership in the F-35 consortium. At the same time, Ottawa is getting ready to send out requests for proposals for new fighter jets to five potential bidders, including Lockheed Martin.
Federal officials insist that all bidders will have to adhere to Canada's Industrial and Technological Benefits policy (ITB), which requires the winning supplier to “make investments in Canada equal to the value of the contract." The cost of replacing the Royal Canadian Air Force's current fleet of CF-18s is estimated at $26-billion.
Under the rules of the F-35 consortium, however, partner countries such as Canada must forego such regional offset programs, which have long been a central element of Canadian military acquisitions. Earlier this year, Canada paid $54-million to remain in the F-35 buyers' pool.
“We're keeping our involvement alive to get access to that product at the best possible terms,” Pat Finn, an assistant deputy minister at the Department of National Defence, said in an interview on Monday. “If the F-35 were to win, the lowest cost access to the aircraft is through the partnership. Having been involved from the outset, we don't want to lose the privilege of that."
Since 1997, Canada has paid nearly half a billion dollars to stay in the F-35 consortium.
Jeff Waring, a director-general at Innovation, Science and Economic Development Canada, said it will be up to Lockheed Martin to determine how it can meet Canada's requirement for regional offsets if it wants to bid on the contract.
“The ITB policy is a market-driven approach; it doesn't prescribe to bidders how they need to invest in Canada,” he said.
The federal government has nearly finalized its request for proposal for the new fighter jets. It is now waiting for industry feedback over the next six weeks before launching the formal competition next year.
Three European companies (Dassault Aviation, Saab Automobile and Airbus) and two American companies (Lockheed Martin and Boeing Co.) have said they intend to bid on the contract.
In the draft request for proposal, the government has laid out new details on its “economic impact test” that will penalize companies that are deemed to have a negative effect on the Canadian economy. When it was announced last year, the test was dubbed the “Boeing clause” because of U.S.-based Boeing's trade dispute with Canada's Bombardier Inc., which Bombardier subsequently won.
The new measure is expected to look at whether companies have launched a trade action in the two previous years against a Canadian company. Given Boeing launched its case against Bombardier in 2017, it will likely be in the clear by the time it would have to submit a final bid in 2020.
The previous Conservative government had committed to buying F-35 fighter jets, which were deemed at the time to be the only aircraft able to meet Canada's requirements, in large part because of their stealth capabilities.
The current Liberal government has modified the requirements to make sure there can be competition between the various manufacturers.
“If your aircraft cannot meet [a requirement] today, we are not saying automatically that you're out; but you have to tell us what is your solution to meet it, at what price and what schedule,” said Mr. Finn.
In the last federal election, the Liberals said in their platform that they would not buy the F-35, promising instead to select “one of the many, lower-priced options that better match Canada's defence needs.”
However, the Liberals also promised to launch an “open and transparent” competition, which is now scheduled to be launched in May.
March 23, 2024 | Local, Land
The Royal Canadian Air Force (RCAF) is thrilled to announce the launch of the 2024 RCAF Run, an exciting event that will see participants from across Canada come together to celebrate fitness, community, and the spirit of aviation. Set against the RCAF's Centennial celebrations, the 2024 RCAF Run promises a memorable and meaningful experience for participants of all fitness levels.
June 13, 2018 | Local, Land
PARIS, France — Rheinmetall lifted a curtain, literally, complete with smoke and 80s rock, on its new Lynx KF41 infantry fighting vehicle at Eurosatory June 12, setting its sights on meeting requirements for both European and U.S. future combat vehicles. “Do current fighting vehicles meet the needs of future forces? This was the question that started Rheinmetall on a journey to develop a Lynx family of vehicles,” Ben Hudson, the head of the company's vehicle systems division, said at Eurosatory just ahead of the unveiling. Hudson said militaries around the world are rethinking requirements and it is clear that in order to meet all the demands of future operations and potential peer-on-peer conflict that a vehicle needs “to provide utility across the spectrum of conflict” and have “the ability to conduct peer-on-peer warfare against emerging battlefield threats.” The U.S. Army has set developing a Next-Generation Combat Vehicle (NGCV) as one of its top six modernization priorities. https://www.defensenews.com/digital-show-dailies/eurosatory/2018/06/12/rheinmetall-lifts-curtain-on-new-next-gen-combat-vehicle-with-hopes-to-spark-us-army-interest/
May 5, 2020 | Local, Aerospace, Naval, Land, C4ISR, Security
MARKHAM, Ontario--(BUSINESS WIRE)--Leading defence and military magazine, CANADIAN DEFENCE REVIEW, has just released its annual survey and ranking of Canada's Top Defence Companies. For 2020, CDR has named Lockheed Martin Canada, its Top Defence Company and it's their third time at the #1 spot over the 16 years the survey has been published. Parent company, Lockheed Martin, is the world's largest defence contractor but the Canadian operation constitutes a tiny sliver of the corporation, however, of particular interest to CDR, is the fact that its cutting edge naval technology is all home-grown! In commenting on the selection, Lorraine Ben, Lockheed Martin Canada Chief Executive, said, “... our success is founded upon long-standing partnerships with Canada, the Canadian Forces, and the country's defence supply sector.” She added, “This recognition by CDR is a true testament to our team and the extraordinary talent and dedication our employees have. And not only for our Lockheed Martin Canada team, but for our vast network of Canadian suppliers and partners – we have a rich history supporting collective success across Canadian industry and we are looking forward to growing this positive impact.” CDR Editor-in-Chief, Peter Kitchen, commented, “Lockheed Martin Canada has proven time and time again that it is a great corporate citizen and we were particularly impressed how the company not only develops its key naval technology in-country, but it also draws on the vast resources of the mother company in a very effective way.” There have been ten new companies added to the CDR survey this year, showing Canada's defence industry is vibrant and growing. An evaluation panel consisting of CDR editorial staff and independent advisors ranked the companies based on factors such as economic impact, innovation, contribution to the nation's security, corporate integrity and support for Canada's military. With the publication of its annual Top 75 Defence Companies Survey & Ranking, CDR's goal is to showcase Canada's defence industry and all that it has to offer. And that's why, in the current challenging environment, CDR is proud to be part of an industry that is fighting valiantly against the Covid-19 pandemic threatening the nation. Contacts Peter A. Kitchen, Editor-in-Chief Telephone: (905) 554-4586 Email: Comments@CanadianDefenceReview.com www.CanadianDefenceReview.com https://www.businesswire.com/news/home/20200504005040/en/CDR-Names-Lockheed-Martin-Canada-Top-Defence