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  November 19, 2018 | Local, Aerospace, Naval, Land, C4ISR, Security

  Calian Re-Wins Significant Defence Training Contract Valued at up to $170 Million

  OTTAWA -- Calian Group Ltd. (TSX: CGY) is pleased to announce that it has been selected to deliver a significant training contract for the Department of National Defence (DND) and the Canadian Army Simulation Centre (CASC). The initial term of the Training and Support Services Contract is valued at $93 million over five years. With two optional extension periods of two years each, the aggregate contract value over the full nine-year period is approximately $170 million. The current Training and Support Services Contract expires March 31, 2019 and management expects demand on the new contract will continue to run at current levels. Through CASC, a Center of Excellence for Constructive Simulation, the Canadian Army accepts training projects on behalf of its own members as well as other branches of the Canadian Armed Forces and federal government departments. For these training exercises, Calian's expert team of some 600 full- and part-time resources apply their substantial experience, knowledge and passion to create realistic and cost-effective synthetic training environments. Calian Training ensures maximum value from the training delivered through CASC while preparing future military leaders and security authorities for events in which failure is unacceptable. Through CASC, Calian Training also designs and delivers complex, multi-agency, multi-jurisdictional emergency management exercises to help ensure safety and security readiness for major events. These exercises have supported the Vancouver Olympics and G7, G8 and G20 world leader summits in Canada. Calian, an award-winning veteran friendly employer, has proudly supported military training and Canadian Armed Forces (CAF) operational readiness through this contract for over 20 years. Calian and CASC have developed tools and a framework and methodology supporting a wide range of military and emergency management training exercises for government and military clients, nationally and internationally. In partnership with CASC, Calian's skilled exercise design experts have integrated custom 2D/3D software for virtual and constructive simulation exercises, tailored to specified training objectives. The result is a total immersive training experience that replicates the operational environment that the CAF or customer may face. “Our innovative technology solutions allow the training audience to be immersed into complex environments, complete with real-world considerations such as simulated social media channels. These tools, combined with our passionate, expert employees, put us in a position to offer these complex exercises and training programs,” said Donald Whitty, Vice President, Calian Training. “We're seeing increased demand for the expertise we bring to CASC, particularly in the field of emergency management. There's no company quite like Calian to deliver these specialized, innovative and scalable services.” “This contract supports the CAF and the customer retention pillar of our four pillar growth framework. For Calian, supporting the operational readiness of the Canadian Forces is more than just a commitment – it's a passion and a privilege. I'm proud of our delivery of state-of-the-art, realistic learning and training exercises that help keep soldiers and all Canadians safe,” added Kevin Ford, President and CEO, Calian. “The innovation happening at Calian Training, and with CASC, is very exciting. Calian's advanced toolset is integrated with those of the Canadian Armed Forces, demonstrating our focus on continuous process improvement both at Calian and in the work we do with our customers.” To see exclusive footage from inside a CFB Kingston training facility, watch Calian's three-minute video on CASC here. About the Canadian Army Simulation Centre The Canadian Army Simulation Centre provides training capabilities in support of land operations and concept development. This world-class training organization provides support to the Canadian Army, RCAF, CJOC, CAF, and other government departments. Calian designs, develops and delivers training services for CASC under the Training and Support Services Contract. CASC is located in Kingston with Divisional Simulation Centres in Edmonton, Petawawa, Valcartier and Gagetown. About Calian Training For more than 20 years Calian Training has been providing a full-suite of specialized training services to both public and private sector organizations, including the Canadian Armed Forces and nuclear power operators. We help customers in both the emergency management and military domains validate their plans and team performances. Calian's training experts help large and small organizations prepare for events in which the consequences of failure are unacceptable. About Calian Calian employs over 3,000 people with offices and projects that span Canada, U.S. and international markets. The company's capabilities are diverse with services delivered through two divisions. The Business and Technology Services (BTS) Division is headquartered in Ottawa and includes the provision of business and technology services and solutions to industry, public and government in the health, training, engineering and IT services domains. Calian's Systems Engineering Division (SED) located in Saskatoon provides the world's leading space technology companies with innovative solutions for testing, operating and managing their satellite networks. SED provides leading-edge communications products for terrestrial and satellite networks, as well as providing commercial (including agriculture) and defence customers with superior electronics engineering, manufacturing and test services for both private sector and military customers in North America. For investor information, please visit our website at www.calian.com or contact us at ir@calian.com https://www.calian.com/en/calian-rewins-defence-training-contract-valued-170-million

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  September 25, 2018 | Local, Naval

  Feds closing in on winning bidder for $60-billion warship project

  By BEATRICE PAEZ Some industry observers say there are rumblings that the multibillion-dollar announcement on the Canadian Surface Combatant could happen in a few weeks' time, but Defence Minister Harjit Sajjan says he hopes a decision will be announced on the design by 'the end of the year.' Ottawa could be close to settling on the winning bid for the $60-billion procurement of multi-purpose vessels that will form the backbone of the Canadian Navy, with rumours swirling that a decision could come in a few weeks' time, although Defence Minister Harjit Sajjan says the government will announce it by the end of the year. Some industry observers have heard rumblings that the multibillion-dollar announcement on the Canadian Surface Combatant (CSC) project, the biggest procurement in the federal government's history, could happen as early as the upcoming defence and aerospace convention in Halifax, otherwise known as DefSec, slated for Oct. 2-4. Asked if the government plans to announce the winner in Halifax, Byrne Furlong, press secretary to Mr. Sajjan (Vancouver South, B.C.) said, the minister would be attending the convention as he does every year. Mr. Sajjan, in an interview with The Hill Times earlier this month said, the preferred bidder will be named by the end of the year. “We wanted to make sure that we gave industry enough time so that the right bid process is done correctly and we're hoping that by the end of this year, we will be able to make the announcement and a selection will be made on the design,” Mr. Sajjan said in a phone interview on Aug. 29. Three companies are competing to help deliver 15 warships over the next 25 years. Those ships will eventually replace Canada's aging fleet, namely, the 12 Halifax-class frigates and the four Iroquois-class destroyers, which have been decommissioned. In its entirety, the CSC project is estimated to cost between $56-billion and $60-billion. The cure process—a chance for the contenders to adjust their bids to fit the government's criteria—wrapped up in July. “I don't expect there to be another cure process. I think they've got a decision ready to go,” said Brian Botting, principal at Earnscliffe Strategy Group. He added there are rumours suggesting the “evaluation has been completed, and it's a matter of getting the right announcement put together,” while noting that the chance of there being an announcement is 50-50. Mr. Botting is a defence-industry consultant, whose client, Naval Group, submitted a bid outside the competitive process. The bid was rejected. DefSec is a major attraction in defence circles, and unveiling the winner in that venue would be a good play, from a communications perspective, Mr. Botting said. Still, one observer said that Mr. Sajjan's noncommittal response on the precise timing of the announcement leaves the department some wiggle room. Dave Perry, vice-president and senior analyst at the Canadian Global Affairs Institute, said he'd be surprised if the government had chosen a winner by then. The preferred bidder will work with Irving Shipbuilding, which won a separate competition to build the 15 ships in the company's Halifax shipyard. Three vessels in the running Three bidders are competing to supply the ships' design: a coalition that includes shipbuilder BAE Systems, Lockheed Martin, and L3 Technologies; Alion Science and Technology; and Navantia, a state-owned corporation in Spain. Mr. Botting said that BAE Systems' Type 26 frigate appears to have an edge over the other two companies, thanks to the support it enjoys in the navy ranks, “There's a lot of supporters of Type 26 in the navy. It's not that much different than what the royal navy operates on. ... We tend to have a strong focus on submarine warfare, which this ship operates as.” Type 26 is under construction in the U.K. for its navy and would be the first of its class. Construction under the CSC program is expected to start in the mid-2020s. That the navies of Canada and the U.K. face similar environments and needs makes for a compelling case in Type 26's favour, even in the face of criticism that BAE and Lockheed Martin's offer is still a design on paper, according to Mr. Botting. In addition to landing a contract with the U.K., BAE was also selected by Australia to build a new generation of warships. Multiple requests for an interview with Lockheed Martin's executive were declined. A company spokesperson touched base with The Hill Times briefly on background. In contrast, one of Alion's biggest selling points, as characterized by the company's chief operating officer, Bruce Samuelson, is that the company's offer is a “proven, off-the-shelf design” and does not carry the risks of going with a new design. Unlike its competitors, Alion is not in the business of making products, but rather it takes a “vendor-agnostic” approach as an integrator. That means that, as the designer and engineering firm, Alion works to select the different components, from the sensors to the combat-management system, which make up the ship through what's available in the marketplace. “The reason you'd buy straight off the shelf is like going to a car lot and buying a car. You know exactly what you're getting,” said Mr. Samuelsen. “Why do you change it a little bit? Because you have slightly different needs, but you really want to take advantage of what everyone else has done for that car.” The anchor to its overall design is the De Zeven Provinciën-class frigate, which has been in service in the Dutch navy for more than a decade. Damen Schelde Naval Shipbuilding, the Netherlands-based company, has had experience tucking under another shipyard to produce its design, said Mr. Samuelsen. The winning subcontractor will have to work with Irving. When the warship is eventually built it will resemble a mini-city. The ship has to have the trappings of a town: there has to be a functional sewage system, provide food, shelter, medical care, and at the same time, it has to be built to respond to the hostile environment that is the ocean, said Mr. Samuelsen. Navantia's proposal, which is a partnership with Saab Australia and CEA Technologies, is also based on an existing model, the F-105 frigate. Seven are in service with the Spanish and Australian navy, and there are five “smaller variants” in the Norwegian navy, according to the company. In an email response to The Hill Times, Emiliano Matesanz Sanz, the company's business development manager, said Navantia is in the “best position to face the challenging task of working with the local industry,” given that it has operated in a similar scenario as the one set up under the CSC project. Its ship was built in a new shipyard in Australia, by ASC. Two frigates have, so far, been delivered, Mr. Matesanz Sanz said. (Navantia initially agreed to a phone interview, but said due to the sensitivity of the file, an email Q&A was the only possible option.) The government had initially stated a preference for a mature design—one that was already in operation in a NATO country, for example—to mitigate the risks of cost overruns that could, for example, tie up production. But the government appeared to have been convinced by the team behind Type 26 to consider its bid because it changed the parameters for considering bids, said Mr. Botting. Due to inflation, for every year of delay, the program is projected to cost $3-billion or more, according to the Parliamentary Budget Officer. If going with an untested design carries more risks, why would Canada potentially sweep those concerns aside? Part of the answer lies in the argument that while there isn't a “physical ship in the water” yet, Type 26 stands to have “some of the most modern technology,” said Mr. Perry. The chance to hold the intellectual property rights to the design is also cited as a possible point in its favour. “People would make the argument that if you have a ship that hasn't sailed and been tested yet, you can offer up the IP, because you don't have an understanding of what its full value is. Whereas if you have something that's more of a known quantity, you can put whatever premium you want on it,” he added. Conflict-of-interest concerns flared up in late 2016 when it was announced that Irving Shipbuilding planned to work with BAE Systems to bid on a $5-billion contract to provide maintenance and support for Arctic patrol vessels and resupply ships, according to a CBC report, while BAE was pursuing the CSC project that Irving is involved in overseeing. Both Irving and Ottawa said at the time that they have taken steps to ensure the process is fair. Mr. Perry dismissed conjectures that suggest changes to the bidding process have been made with the “explicit goal” of giving Type 26 the upper hand. “I don't think that's accurate. Because that's not the way the procurement system is set up. What the government has done is to try and make this environment as competitive as possible,” he said. “But you can never totally level the playing field. ... Some bids are always gonna be better than others in different respects.” Billed as the most-complex, most-expensive procurement on record in Canadian history, CSC, and more broadly, Canada's shipbuilding strategy, has raised questions about whether the country has chosen the right approach in preserving its shipbuilding culture over working to develop the high-tech side of the business. “We protected the lower-tech end of the business and not the higher-tech [end]. All the missile systems, sensors, all that stuff is being imported and assembled at the Irving yard,” Mr Botting said. “It's a different way of approaching it. The U.K. is slowly getting out of that business, but it's painful when you close down a yard.” https://www.hilltimes.com/2018/09/24/feds-closing-winning-bidder-60-billion-warship-project/169844

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  May 14, 2020 | Local, Aerospace, Naval, Land, C4ISR, Security

  RIP SSE: What the COVID-19 Pandemic Means for Defence Funding