January 18, 2019 | Local, Naval

Overcoming ‘Boom and Bust’? Analyzing National Shipbuilding Plans in Canada and Australia

Executive Summary

While both Canada and Australia share similar constitutional frameworks and imperial histories, they are also no stranger to procurement challenges. Cost overruns, delays, regionalism, and protracted intellectual property disputes have all been part of major defence acquisition projects in recent decades.

This Policy Paper analyzes the largest and most expensive procurement projects undertaken by either country, Canada's $73 billion (estimated) National Shipbuilding Strategy (NSS), launched in 2010, and Australia's A$90 billion Naval Shipbuilding Plan (NSP), launched in 2017. Each project represents an attempt to implement a rational, multi-decade approach to naval acquisition. Driven by a desire to overcome previous boom-and-bust cycles, the NSS and NSP aim to create a sustainable shipbuilding sector capable of meeting the immediate and future naval demands of Ottawa and Canberra. Neither country has attempted a shipbuilding plan on this scale before.

The NSS and NSP are still in their early stages but some common themes have emerged. On implementation challenges, old problems persist. For one, the rational approach to naval shipbuilding is not devoid of procurement politics and regionalism. Determining which province or state will be home to billions in contracts over many years remains a zero-sum game no matter how arms-length the process of yard selection.

Cost increases also remain a reality. Building domestically can carry a 30 per cent to 40 per cent premium. Project delays increase this premium, something Canada has already experienced when initial NSS acquisition costs, pegged at $37.7 billion nearly a decade ago, jumped to an estimated $73 billion today. Australia's delays in securing an agreement with France's Naval Group on its $A50 billion future submarine project could mean additional cost increases.

In this context, schedule is king and avoiding cost increases requires keeping to planned shipbuilding schedules. Failure to do so opens production gaps and necessitates going with alternative options including building overseas (Australia) or converting commercial vessels for naval and coast guard use (Canada).

Prolonged cost sensitivities raise the consideration of trade-offs on committing more money to continuous shipbuilding at the expense of acquiring other military capabilities. Canada, for instance, will need to make decisions at some point on whether to spend billions on replacing the North Warning System in the country's North. Australia will have to grapple with an Indo-Pacific region proliferating with relatively cheaper but lethal anti-ship missiles. In this context, money spent on surface combatants may be perhaps better spent on other capabilities.

None of this is to say that progress has not occurred in either the NSS or NSP. Ships are getting built, including Arctic Offshore Patrol Ships in Canada, and Offshore Patrol Vessels in Australia.

In 2018, both countries selected the British Type-26 as their preferred design for a new generation of surface combatants. It is very possible that these respective strategies will achieve their goals of bypassing the boom-and-bust eras, but ongoing challenges serve as a reminder that even with the best-laid plans, naval shipbuilding is a complicated affair. 1

https://www.cgai.ca/overcoming_boom_and_bust_analyzing_national_shipbuilding_plans_in_canada_and_australia

On the same subject

November 19, 2019 | Local, Aerospace

RCAF participates in highest-level simulated mission circling the globe
by Bill Brown From Sept. 9 to 20, 2019, personnel from Royal Canadian Air Force's (RCAF) Aurora CP-140 fleet participated Exercise Coalition Virtual Flag (CVF) 19-4, which is led by the United States Air Force (USAF). More than 450 joint and coalition warfighters, located at 23 sites and on three different continents, participated. Canadian participants used the Aurora procedure crew trainer (PCT) mission simulator located in 404 Long Range Patrol and Training Squadron's Thorney Island Simulation Centre at 14 Wing Greenwood, N.S., to participate in the virtual exercise. Using distributed mission training (DMT) architecture, the PCT was connected to dozens of combat missions and flight simulators throughout Canada, the United States, the United Kingdom and Australia. The exercise was hosted by the 705th Combat Training Squadron (CTS) at Kirtland Air Force Base in New Mexico. “Coalition Virtual Flag is an opportunity for our coalition and joint partners to get together. It's a theatre-level exercise that we can practice our tactics, techniques and procedures,” explained the United States Air Force's LCol Angela Messing, commander of 705th CTS. “It takes place in the virtual and simulated world with environment generators that replicate the exact threats that we're facing.” Canadian planning for the annual complex, joint warfare simulation started almost a year ago, with 404 Squadron's modeling and simulation experts working closely with the Royal Canadian Navy's Distributed Mission Operations Centre, the RCAF Aerospace Warfare Centre's modelling and simulation co-ordination team, and modelling and simulation planners Distributed Mission Operations Center at Kirtland Air Force Base. 404 Squadron and 405 Long Range Patrol Squadron provided two crews to complete the five missions. Crew planning took place over several days, and included preparing for authentic anti-surface and anti-submarine warfare tasks. The Aurora crews faced a multi-threat, open conflict simulation scenario, and worked alongside allies from the United States Air Force, the United States Navy, the Royal Australian Air Force and the Royal Air Force. Exercise Coalition Virtual Flag represents the highest level of training that can be achieved through simulation. The crews must fight together or fail together. Miscommunication on and off their own aircraft can have deadly results, with friendly units engaged by opposing force weapons systems. The Aurora is a very capable surveillance and reconnaissance aircraft and, using its advanced sensors, has abundant tactical information to share with supported fighting forces. Adding to the opportunity of exercising in a coalition DMT environment, crews conducted tactics development and confirmation for two tactical electronic warfare instructor course mentors. With the centre of excellence residing in 404 Squadron's Simulation Flight, the CP-140 fleet will continue to advance its simulation training capabilities. Several small-scale monthly DMT exercises are planned with the Navy's Distributed Mission Operations Centre and ships' combat teams over the coming months. https://www.skiesmag.com/news/rcaf-participates-in-highest-level-simulated-mission-circling-the-globe
July 8, 2019 | Local, Aerospace

Canada’s first CC-295 makes maiden flight
Airbus Press Release The first Airbus C295, purchased by the Government of Canada for the Royal Canadian Air Force (RCAF) fixed-wing search and rescue (FWSAR) aircraft replacement program, has completed its maiden flight, marking a key milestone towards delivery by the end of 2019 to begin operational testing by the RCAF. The aircraft, designated CC-295 for the Canadian customer, took off from Seville, Spain, on July 4 at 8:20 p.m. local time and landed back on site one hour and 27 minutes later. “On these types of flights, pilots and flight engineers test the aircraft's flight controls, hydraulics and electrical systems,” an Airbus spokesperson told Skies. “All systems performed effectively, as expected.” FWSAR program facts and figures The contract, awarded in December 2016, includes 16 CC-295 aircraft and all in-service support elements including, training and engineering services, the construction of a new training centre in Comox, B.C., and maintenance and support services. The aircraft will be based where search and rescue squadrons are currently located: Comox, B.C.; Winnipeg, Man.; Trenton, Ont.; and Greenwood, N.S. Considerable progress has been made since the FWSAR program was announced two-and-a-half years ago: the first aircraft will now begin flight testing; another five aircraft are in various stages of assembly; and seven simulator and training devices are in various testing stages. In addition, the first RCAF crews will begin training in late summer 2019 at Airbus's International Training Centre in Seville. The FWSAR program is supporting some $2.5 billion in Industrial and Technological Benefits (ITB) to Canada through high-value, long-term partnerships with Canadian industry. As of January 2019, 86 per cent of key Canadian In-Service Support (ISS) tasks have been performed in-country by Canadian companies in relation to establishing the FWSAR ISS system. Airbus is thus on track in providing high value work to Canadian industry and has demonstrated a successful start to the development and transfer of capability to Canadian enterprises for the support of the FWSAR aircraft. Beyond direct program participation, Airbus is generating indirect business across Canadian military, aeronautical and space industry including small and medium businesses in support of the ITB program. https://www.skiesmag.com/press-releases/first-royal-canadian-air-force-c295-makes-maiden-flight/
July 3, 2018 | Local, Aerospace

2018 RCAF Today Digital Edition Out Now
REELING IN THE YEAR The operational, procurement, training and historical milestones of the past 12 months. By Joanna Calder NORAD AT 60 NORAD AT 60 By Ken Pole SUBMARINE HUNTER The formidable CP-140 Aurora is getting reacquainted with anti-submarine warfare. By Chris Thatcher FUTURE FIGHTERS To manage “interdependencies,” the RCAF placed all fighter projects in one office. By Chris Thatcher YEAR OF THE CYCLONE Declared operationally capable, the CH-148 is embarking on its first deployment. By Lisa Gordon SHAKEDOWN OVER IRAQ The mission in Iraq may have changed, but CH-146 Griffons are still critical support. By Chris Thatcher BIRTH OF SWIFT DEATH In one of many firsts, 401 Tactical Fighter Squadron is marking its 100th anniversary. By Richard Mayne RAM TOUGH After 100 years, 401 Squadron remains on high readiness duty. By Chris Thatcher TROUBLE WITH TRANSITIONS Managing personnel poses a challenge in the transition from old to new fleets. By Chris Thatcher DAWN OF MARITIME AVIATION Formed to counter German submarines, 12 Wing Shearwater celebrates 100 years. By Ernie Cable BOMBER COMMAND Sharing tales of the true nature of courageous fighting spirit. By Richard Mayne CRITICAL SPACE The RCAF has responsibility for the defence Space program. Now comes the hard part. By Ben Forrest AEROMEDICAL EVACUATION Before deploying to Mali, CH-147 Chinooks became forward aeromedical evacuation capable. By Chris Thatcher TECHNICIANS AT WORK Cpl Taylor Hartnell shares a day in the life of maintaining the CH-147 Chinook. By Ken Pole INSIGHT SHOWCASE 2018 supplier capability https://assets.skiesmag.com/digital/2018/RCAF-2018/html5/index.html?page=2:

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