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June 26, 2023 | Local, Aerospace

Retombées économiques des F-35  | Beaucoup de latitude pour calculer les promesses

Il y aura beaucoup de latitude pour calculer les retombées économiques découlant de l’achat des 88 avions de chasse F-35 par Ottawa pour 19 milliards. Selon une présentation gouvernementale consultée par La Presse, les ententes entre le Canada et les constructeurs des avions de combat sont « non contractuelles », donc pas régies par un contrat.

https://www.lapresse.ca/affaires/2023-06-24/retombees-economiques-des-f-35/beaucoup-de-latitude-pour-calculer-les-promesses.php

On the same subject

  • Sole source armoured vehicle deal with General Dynamics costs double original estimates

    August 20, 2019 | Local, Land

    Sole source armoured vehicle deal with General Dynamics costs double original estimates

    DAVID PUGLIESE, OTTAWA CITIZEN The Liberal government is buying new armoured vehicles for the Canadian Forces but the sole source deal will cost taxpayers double what was originally estimated. Defence Minister Harjit Sajjan announced Friday that the government would buy 360 combat support Light Armoured Vehicles from General Dynamics Land Systems-Canada, with the project costing $3 billion. The project was originally announced by the Liberal government with an estimated cost between $500 million and $1.5 billion. The plan was to award the contract in 2023 after a competition. But with the federal election looming the deal was fast-tracked by the Liberals, joining a series of recent defence-related funding announcements. A competition was jettisoned, replaced with a sole-source deal with General Dynamics, based in London, Ont. The deal includes a $650 million repayable loan, but the Department of National Defence said it had no details on that arrangement. It referred questions to Global Affairs Canada, which noted in an emailed statement that the federal government is “willing to provide a loan to General Dynamics Land Systems Canada to ensure the timely delivery of the Light Armoured Vehicles for our men and women in uniform. The Government of Canada is providing a loan to GDLS-C to support jobs and suppliers as GDLS-C navigates a challenging and dynamic international defence market.” The terms of the loan would be negotiated over the coming weeks, Global Affairs Canada added. The DND noted that the project costs include not only the vehicles but logistics support and new infrastructure to house and maintain the equipment. General Dynamics will provide the new vehicles in eight variants. They will be used as ambulances and in other roles such as vehicle recovery, engineering, mobile repair, electronic warfare and as command posts. The current fleet of armoured support vehicles is comprised of the LAV II Bison and the M113 tracked vehicle. The federal government said it is in the final stages of contract negotiations with General Dynamics. The contract is expected in the coming weeks. It noted in a news release that fast-tracking the deal would allow the Department of National Defence to save costs associated with maintaining or extending the life of the current fleet. The DND stated the contract was sole-sourced to General Dynamics as the firm builds most other armoured vehicles for the Canadian Forces and having a vehicle based on the same chassis allows for savings in maintenance and training. The company's light armoured vehicle is the core of the Canadian Forces armoured vehicle fleet. In addition, as the company has recently completed the conversion of the light armoured vehicle fleet to a new configuration so it has the skilled workforce in place, according to the DND. That would reduce the risk of delays in delivery of the new vehicles, stated the DND in an email. “For these reasons, we believe it would not be in the public interest to solicit bids,” it added in an email. General Dynamics Land Systems – Canada is also building similar light armoured vehicles for Saudi Arabia in a deal worth $15 billion. The Liberal government launched a review of that controversial contract after the murder of journalist Jamal Khashoggi inside the Saudi consulate in Turkey. Earlier this year a United Nations report determined that Saudi Arabia was responsible for the killing of Khashoggi who was a critic of that country's regime. Saudi Arabia has also faced severe criticism for its role in the ongoing war in Yemen, with allegations it has conducted unlawful airstrikes on civilians. A dozen organizations sent Prime Minister Justin Trudeau a letter earlier in August, questioning the status of the review and pointing out that no updates on progress have been provided. The lack of such information has brought “the sincerity of the effort into question,” according to the letter endorsed by organizations such as Oxfam Canada and Amnesty International. Various groups have demanded the Liberals cancel the Saudi deal, which was negotiated by the previous Conservative government. https://ottawacitizen.com/news/national/defence-watch/sole-source-armoured-vehicle-deal-with-general-dynamics-costs-double-original-estimates

  • No timeline set for development of promised defence procurement agency

    January 6, 2020 | Local, Aerospace, Naval, Land, C4ISR, Security

    No timeline set for development of promised defence procurement agency

    By Charlie Pinkerton; iPolitics Published on Jan 2, 2020 3:02pm Although Canada's defence minister has been tasked with working toward creating a new defence procurement agency to improve the country's often slow-moving system for purchasing military equipment, there's no clear timeline for when the new body will be put in place. In the mandate letter addressed to him by Prime Minister Justin Trudeau and published last month, Harjit Sajjan was told that part of his job in this Parliament will be to “bring forward analyses and options for the creation of Defence Procurement Canada,” which the Liberals promised to advance toward in this mandate while they campaigned in the fall's election. “A lot of work has already started on (Defence Procurement Canada) and the goal of this is to make sure that we get the procurement projects done as quickly as possible to make sure the Canadian Armed Forces has what they need,” Sajjan told iPolitics the day before his mandate letter was released. Sajjan also said the Department of National Defence (DND), Innovation, Science and Economic Development Canada and Public Services and Procurement Canada still need to complete “more work” before a timeline for the creation of the new procurement agency would be set. Some of the first steps of the Trudeau government to improve Canada's military procurement system was in transferring the responsibility of military procurements to being managed internally at DND. When the Liberals published its overhauled defence policy in June 2017, DND said that 70 per cent of procured projects were being delivered past their deadlines. “Cumbersome decision making and approval processes have introduced undue delays. Accountability among departments has been diffuse and at times unclear,” says the Liberals' defence policy (it's titled Strong, Secure, Engaged). As a response, the defence policy declared that DND would internally manage the contracts of all projects of under $5 million — an initiative which it said would reduce departmental approval times by 50 per cent for 80 per cent of all contracts. The defence policy is intended to lead how Canada's military operates beyond this decade. At the same time as developing the new agency for military procurement projects, Sajjan has also been tasked with choosing which company the government will choose to pay almost $20 billion to build Canada's next generation fleet of fighter jets. According to the current timeline laid out by the Canadian Armed Forces, the government will receive the final bid proposals from the three companies it deemed in 2018 as being capable of meeting Canada's needs (which includes Saab, Lockheed Martin and Boeing) early in 2020. If it sticks to its timeline, the government will pick which company will be its fighter jet provider by next year and will receive the first next generation jet as early as 2025. Sajjan's mandate letter includes another procurement-related list item; he's also tasked with advancing the renewal of Canada's naval fleet. There are four major navy procurement projects that are nearing their conclusion. Canada is buying new surface combatants, new Arctic and offshore patrol ships, new joint patrol ships and retrofitting its 12 frigates. The combined cost of these projects is expected to cost taxpayers more than $83 billion. Investments in procured projects account for a large portion of the $32 billion jump in annual defence spending that Canada is planning for by 2027. If achieved in that year, Canada's defence spending as it relates to a portion of the country's gross domestic product (GDP) would equal about 1.4 per cent. Canada currently spends just over 1.3 per cent of its GDP on its military two years ago. It has pledged to NATO to work toward spending two per cent of its GDP on its military, which is a common goal amongst allied countries. Over the past few years, U.S. President Donald Trump has repeatedly called on Canada to increase its military spending to surpass two per cent of GDP. Global News reported less than a month ago that Canada had multibillion-dollar discrepancies in the last two years in how much it planned to spend on its military and how much it actually spent. According to documents obtained by the publication, it had a discrepancy of $2.29 billion in military spending in 2017-2018 and a shortfall of $4.45 billion in spending last year, compared to what it outlined in its defence policy.

  • Driving job creation and innovation in Canada through defence spending

    April 23, 2018 | Local, Aerospace, Naval, Land, C4ISR, Security

    Driving job creation and innovation in Canada through defence spending

    Canada positioned to lead globally in five emerging technology areas while building on its strengths April 23, 2018, Ottawa Canada has a strong and innovative defence industry with over 650 companies that employ more than 60,000 Canadians. One way the Government of Canada supports this industry is the Industrial and Technological Benefits (ITB) Policy, which requires that for every dollar it spends on big defence purchases, the winning contractor must put a dollar back into Canada's economy. In the past 30 years, the ITB Policy has generated investments of $30 billion in Canada's economy, and generates around 40,000 jobs annually. Through Canada's defence policy, Strong Secure, Engaged, defence purchases are being used to unlock billions of dollars in economic benefits and create middle-class jobs. To maximize these opportunities, the Honourable Navdeep Bains, Minister of Innovation, Science and Economic Development, today announced that the government will use the ITB Policy to motivate defence contractors to invest in Key Industrial Capabilities (KIC). These are five areas of Canadian industrial strength in emerging technologies, which have the potential to grow quickly, and 11 established industrial capabilities where Canada is globally competitive or where domestic capacity is essential to national security: Emerging technologies Advanced materials Artificial intelligence Cyber resilience Remotely piloted systems and autonomous technologies Space systems Leading competencies and critical industrial services Aerospace systems and components Armour Defence systems integration Electro-optical and infrared systems Ground vehicle solutions In-service support Marine ship-borne mission and platform systems Munitions Shipbuilding, design and engineering services Sonar and acoustic systems Training and simulation Key Industrial Capabilities align with the government's Innovation and Skills Plan by supporting the development of skills and fostering innovation in Canada's defence sector. Quotes “Our defence industry asked for a list of Key Industrial Capabilities, and we delivered. As a result of promoting investment in areas with potential for rapid growth, our armed forces will be better equipped, we will have a stronger economy and we will create thousands of middle-class jobs.” – The Honourable Navdeep Bains, Minister of Innovation, Science and Economic Development “Canada's defence industry welcomes Key Industrial Capabilities as an important policy tool to strengthen our government-industry partnership. KICs will incentivize strategic investments in existing and emerging defence and security capability where Canada has leading-edge and globally competitive technologies. The capabilities identified today demonstrate the world-class, innovation-led nature of the defence and security industry here in Canada.” – Christyn Cianfarani, President and CEO, Canadian Association of Defence and Security Industries “By defining its Key Industrial Capabilities, the government has provided another significant instrument for leveraging public procurements to increase investment in areas of Canadian industrial strength and opportunity. The strong aerospace presence in the KICs identified by the government today illustrates the strength of our industry, as well as its potential to continue building its competitive advantage in the years ahead. We are very pleased that the government has identified its KICs, and congratulate Minister Bains on the successful launch of this important procurement tool.” – Jim Quick, President and CEO, Aerospace Industries Association of Canada Quick facts The list of Key Industrial Capabilities will evolve over time to reflect technological advances and changing defence requirements and will be reviewed and updated on a regular basis. Adoption of these Key Industrial Capabilities was first recommended in the 2013 report, Canada First: Leveraging Defence Procurement Through Key Industrial Capabilities (also known as “The Jenkins Report”). The defence industry is both innovative, with an R&D intensity 4.5 times the Canadian manufacturing average, and export-oriented, with 60 percent of its sales in 2016 taking place in the global market. From 1986 to 2016, the overall portfolio of ITB obligations included 137 contracts valued at $41.5 billion, with $28.3 billion in business activities already completed, $9.4 billion of activities in progress and $3.8 billion in unidentified future work opportunities. Associated links Industrial and Technological Benefits Policy Key Industrial Capabilities Defence Acquisition Guide 2016 Strong Secure, Engaged Innovation and Skills Plan Canada First: Leveraging Defence Procurement Through Key Industrial Capabilities Contacts Follow the department on Twitter: @ISED_CA Karl W. Sasseville Press Secretary Office of the Minister of Innovation, Science and Economic Development 343-291-2500 Media Relations Innovation, Science and Economic Development Canada 343-291-1777 ic.mediarelations-mediasrelations.ic@canada.ca https://www.canada.ca/en/innovation-science-economic-development/news/2018/04/driving-job-creation-and-innovation-in-canada-through-defence-spending.html

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