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.
October 15, 2024 | Local, Land
The Honourable Bill Blair, Minister of National Defence, will travel to Europe from October 17-20 to meet with Allies and partners to discuss issues of shared interest and ways to strengthen defence relationships.
December 21, 2020 | Local, Naval
The Canadian Surface Combatant project is moored in layers of unnecessary secrecy. Information that has trickled out has been fragmented and contradictory. This suggests anything but smooth sailing. Author of the article: Editorial Board Perhaps, one day, Canada will have 15 splendid new warships, outfitted with cutting-edge technology, that boost our naval security, create thousands of high-quality jobs and offer myriad industrial benefits. But meanwhile, the project to build the Canadian Surface Combatant vessels remains moored in layers of unnecessary secrecy. The information journalists and the Parliamentary Budget Officer have gleaned to-date has been fragmented and contradictory. This suggests anything but smooth sailing. For one thing, there is the issue of cost. The plan to construct the warships has navigated its way through federal governments since the 1990s, but won't start until 2023. It has been delayed time and again; project requirements have changed; and most significantly, the price estimate has soared. Let's start there. The original $14-billion estimate for these ships is now around $70 billion, according to experts. And, as explained by the Citizen's David Pugliese, officials have done everything possible to keep these swelling costs under wraps. While MPs focus on scandals such as the WE Charity debacle (which involved just under $1 billion in grants), there's been little serious parliamentary scrutiny of the spiralling costs of our new-age warships. Next came allegations of bid-rigging (strenuously denied by the government) from some potential contractors, after the procurement rules were changed. In one legal filing, a company noted the parameters of the CSC project has been altered 88 times during the process. Third, while politicians and bureaucrats have argued there will be thousands of high-paying jobs and other industrial benefits, insiders are more dubious. There are no consequences to contractors who don't meet job targets. What is truly scandalous about the shipbuilding affair, however, is the blind insistence on secrecy from all levels of government. Canadian taxpayers will be on the hook for $70 billion (and perhaps more, by the time the first ship sails). Yet journalists from this news organization and others have seen straightforward questions go unanswered; have been threatened with lawsuits; or have had access-to-information queries (that's the law designed to get answers out of government) stalled for years. The Parliamentary Budget Officer has been refused information that was nonetheless shared by government with lobbyists and potential contractors. Project defenders may deride those who raise problems. Yet with so much secrecy, it is impossible for a thinking voter to feel full confidence that the government is competently steering one of its most important files: the nation's defence. Such stonewalling reeks of confusion or incompetence. It's unacceptable in a liberal democracy, and must change. https://ottawacitizen.com/opinion/editorial-choppy-waters-for-canadas-warship-program
April 6, 2021 | Local, Aerospace
Similar to IDEaS, the NATO Innovation Hub is a community where experts from around the world collaborate to tackle NATO challenges and design solutions. The Hub has recently launched a challenge seeking innovative solutions that address ways to improve space domain awareness. Solutions will collect and analyze relevant open source information contributing to space domain awareness, assess and prevent disruption or denial of space based capabilities, or visualize and present space domain information in order to facilitate quick and efficient decision making. Compete for an $8,500 prize, stage-time to pitch your idea, and the opportunity to have your solution developed. Register before May 22, 2021. Abstract submissions due May 23, 2021. More info: https://www.innovationhub-act.org/challenge-intro If you have questions, contact the NATO Innovation Hub by email: contact@InnovationHub-act.org Semblable à IDEeS, le Centre d'innovation de l'OTAN est une communauté où des experts du monde entier collaborent pour relever les défis de l'OTAN et élaborer des solutions. Le Centre a récemment lancé un défi recherchant des solutions innovantes qui abordent les moyens d'améliorer la connaissance dans le domaine spatial. Les solutions collecteront et analyseront les informations de sources ouvertes pertinentes contribuant à la connaissance du domaine spatial, évalueront et empêcheront les perturbations ou le déni des capacités spatiales, ou visualiseront et présenteront les informations du domaine spatial afin de faciliter une prise de décision rapide et efficace. Rivalisez pour un prix de 8 500 $, le temps de présenter votre idée et l'opportunité de développer votre solution. Inscrivez-vous avant le 22 mai 2021. Soumission des résumés le 23 mai 2021. Plus d'informations: https://www.innovationhub-act.org/challenge-intro Si vous avez des questions, contactez le Centre d'innovation de l'OTAN par courriel : contact@InnovationHub-act.org