Rappel : Journée de l'industrie du programme STTC

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  December 3, 2020 | Local, Aerospace, Naval, Land, C4ISR, Security

  After agreeing to $2B in deals with U.S.-based defence companies, Liberals ask DND for list of Canadian firms to quickly buy from

  David Pugliese • Ottawa Citizen Dec 03, 2020 Companies must be based in Canada and the work has to be completed relatively quickly, creating or maintaining domestic jobs. After committing to spend more than $2 billion with American companies, the Liberal government wants to give a major boost to homegrown defence firms by moving ahead on projects that can purchase equipment for the Canadian military quickly from domestic companies to either create or shore up jobs. Department of National Defence officials began looking in late April at options to provide support to the defence industry as the new coronavirus pandemic rocked the economy. DND and the government hoped the fast-tracked purchases would help Canada's economic recovery. But so far, the four major purchases over the last several months for the Canadian military saw the Liberal government make major commitments with U.S.-based companies for work that will be done almost entirely in America and create or support hundreds of U.S. jobs. That includes the acquisition of new surveillance aircraft for Canadian special forces, the purchase of new systems and missiles for the air force's CF-18s, missiles for the navy and parts and equipment for C-17 transport planes. The particular equipment ordered isn't built in Canada. In some cases, the U.S. firms receiving the work are exempt from the government's requirement to match the value of the contracts with the reciprocal purchasing of services or supplies from Canadian companies. Now, the government has ordered DND officials to draw up lists of equipment that can be bought from Canadian firms. Companies must be based in Canada and the work has to be completed relatively quickly, creating or maintaining domestic jobs. DND spokesman Dan Le Bouthillier confirmed options are being examined to help minimize the impact of COVID-19 on the defence industry. “We are looking at ongoing procurement projects to determine what we may be able to prioritize in order to ensure our defence industry partners are supported,” he said. “This is ongoing at this time, though no decisions have been made at this point.” But Tamara Lorincz, a peace activist and PhD candidate in Global Governance at the Balsillie School for International Affairs, says many more jobs could be created in Canada if the money was directed into non-defence sectors of the economy. She pointed to the 2009 U.S. study by University of Massachusetts, which examined the impact of spending $1 billion on both military and non-military areas. The non-military areas included clean energy, health care, and education, as well as for tax cuts which produce increased levels of personal consumption. The study concluded substantially more jobs were created by non-military sectors. Lorincz noted that there were no comparable independent studies which have looked at the Canadian situation. Lorincz and various peace groups are also questioning the Liberal government's plans to spend $19 billion on new fighter jets in the coming years. The money should instead go towards programs like national pharmacare or child care, she added. Lorincz noted it costs $40,000 an hour to operate a F-35, one of the fighter jets being considered by the Liberals. That amount is close to the yearly salary of a long-term care facility employee, she added. Christyn Cianfarani, president of the Canadian Association of Defence and Security Industries, said the country's defence industry can play an important role in the federal government's COVID-19 economic recovery plan. The association has recommended to government that it accelerate military equipment project approvals, favour domestic firms as much as possible for future work, as well as focus on Canadian-based cyber firms for associated purchases as the government moves its employees to more remote work. Construction projects on bases could also provide local contractors with work, she added. Canada's defence industry actually fared better than other economic sectors during the pandemic, Cianfarani noted. There were no significant layoffs and most firms have been able to continue operations and production. In addition, some companies switched to producing medical equipment or protective gear for use by hospital staff during the pandemic. The Liberal government announced Monday it wants to spend up to $100 billion between 2021 and 2024 to help the economy recover from COVID-19. https://ottawacitizen.com/news/national/defence-watch/after-agreeing-to-2b-in-deals-with-u-s-based-defence-companies-liberals-ask-dnd-for-list-of-canadian-firms-to-quickly-buy-from

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  May 7, 2020 | Local, Land

  General Dynamics saw $1 billion bump after Canada-Saudi accord

  By: Joe Gould   1 day ago WASHINGTON ― General Dynamics has received $1 billion since the renegotiation of a $10 billion contract for Canada to sell light armored vehicles to Saudi Arabia, company officials said on its first quarter earnings call. In a deal last month, Canada lifted its ban on arms sales to Saudi Arabia, which in turn agreed to a speedier payment schedule for the LAVs. Canada had the vehicles on hold since 2018, following the death of Saudi journalist Jamal Khashoggi; and by October, Saudi Arabia had racked up $1.5 billion in back payments to General Dynamics. Amid news on the April 29 call that the company's revenue fell $512 million in connection with the coronavirus pandemic, General Dynamics Chief Financial Officer Jason Aiken highlighted “the formal signing of the restructured contract on the Canadian international program, which settled all issues to the satisfaction of the parties.” “With respect to our standing receivable you may recall that we received $500 million early in the first quarter and we received another $500 million this month. This will be very helpful to free cash flow in the second quarter,” Aiken said. “We will begin a regular cadence of scheduled payments in 2021 consistent with deliveries and making further progress in the scheduled amortization of the arrearage.” The company's Combat Systems division had revenue of $1.7 billion, up 4.4 percent over the same quarter last year, and sales to the U.S. government were up 12 percent. The firm's aerospace business segment also had revenue of $1.7 billion, but that represented a 23 percent fall from the same quarter last year. On April 9, Canada's foreign affairs minister, François-Philippe Champagne, announced Ottawa was “able to secure significant improvements” to the LAV contract, including more latitude for the Canadian government to speak about it. Under the new terms, Canada could also delay or deny export permits without penalty if it learned Saudi Arabia was not using the vehicles for their stated purpose. Ottawa would also be reviewing permit applications on a case-by-case basis to ensure they meet Canadian law and the U.N. Arms Trade Treaty. Though the Trudeau government has been under political pressure to scrap the LAV deal over human rights concerns, Champagne said its cancellation would have “resulted in billions of dollars in damages” and risked thousands of Canadian jobs across the defense supply chain. The vehicles are made by the General Dynamics Land Systems subsidiary in London, Ontario. https://www.defensenews.com/congress/2020/05/07/general-dynamics-saw-1-billion-bump-after-canada-saudi-accord

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  January 4, 2019 | Local, Aerospace

  AETE must move to make room for new fighters says commanding officer

  Kelly-Anne Riess ADJUSTCOMMENTPRINT Moving the Canadian military's Aerospace Engineering Test Establishment out of Cold Lake to Ottawa is the only way 4 Wing can grow to accommodate new fighters, says AETE commanding officer Col. Eric Grandmont, referring to feasibility studies conducted by the Air Force. He said the loss of AETE will be offset by a gain for 4 Wing. “We are planning ahead for the long-term future of Canada's fighters,” he said. “The RCAF is committed to Cold Lake and Bagotville as our fighter bases, and there will be significant investment in these areas to prepare for the arrival of the future fighters.” The new aircraft will require an expansion of 4 Wing. Facilities will need to be updated and the current AETE building, which is the newest and second largest hanger on the base, will need to be repurposed. Canada is currently in the process of purchasing 25 used fighter aircraft from Australia and buying another 88 new jets to replace the existing fleet of CF-18s. The costs for relocating AETE are included in the $470 million the Liberal government has set aside for buying the used Australian F-18 fighter jets. Grandmont said he is hoping the transition plan for AETE will be approved by this spring. The move, which would not take place before the summer of 2021, could affect one-third of AETE, which employs 166 military personnel and 22 public servants. The remainder would be reassigned elsewhere in the air force, either in Cold Lake or other military bases. “We are trying to minimize the impact on the city,” said Grandmont, adding the current plan is to stagger his staff's moves to Ottawa. He said some of the positions in question are currently vacant and, if filled, those employees would start their jobs immediately in the nation's capital instead of coming to Cold Lake in the interim. Also, some public servants currently working for AETE in Cold Lake are close to retirement and would likely choose to end their careers and stay in Alberta's north instead of moving to Ottawa. Grandmont says once the unit relocates it will augment its staff with civilian test pilots. “We are hoping to recruit retired members back to the unit once it's in Ottawa,” said Grandmont, adding that moving AETE would put the unit in a central position to service all Canadian Forces aircraft, many of which are in Eastern Canada. “Our people spend a lot of time on the road. They can be away for five or six months a year,” said Grandmont. Recently, some AETE personnel spent seven months in Petawawa, Ont. doing the work necessary to have two Chinooks available to send to Mali, where Canada has been providing emergency medical evacuation for the United Nations peacekeeping mission going on in that country. There are 19 fleets in the Canadian Air Force and only two of them are in Cold Lake—the CF-18 and the Griffon helicopters, said Grandmont. Other aircraft, like the CC-130J Hercules, CC-17 Globemaster and CC-150 Polaris are all based in Trenton, Ont. The CC-144 Challengers are in Ottawa. The CP-140 Aurora and the CH-149 Cormorants are in Greenwood, NS. The CH-148 Cyclones are in Shearwater, NS, The CH-147F Chinooks are in Petawawa, Ont. There are CC-138 Twin Otters are in Yellowknife. AETE, like all units in the Air Force, is facing a shortage of pilots. Recruiting multiengine pilots from Eastern Canada is a challenge for AETE, and a CC-130H Hercules pilot based in Winnipeg does not necessarily want to uproot his or her family to Cold Lake where his or her spouse would have limited options for employment, as well as restricted access to health care. “Although once people get to Cold Lake, they usually enjoy their time here,” said Grandmont. “It is a beautiful area.” AETE has also been losing personnel to private industry, which can offer better working conditions for experienced testers. Postmedia first revealed the proposal to move AETE in 2016. The plan first started under the Conservative government, but the Liberals continued with the relocation initiative. -With files from David Pugliese (Disclosure: The editor of the Cold Lake Sun is married to a member of AETE.) https://www.pinchercreekecho.com/news/local-news/aete-must-move-to-make-room-for-new-fighters-says-commanding-officer