Back to news

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

On the same subject

  • Why Canadians and Americans are buying guns during the coronavirus pandemic

    April 9, 2020 | Local, Land, Security

    Why Canadians and Americans are buying guns during the coronavirus pandemic

    The COVID-19 pandemic has caused a surge in gun sales. Estimates based on background checks show that an estimated 2.6 million guns were sold in the United States in March. That is an 85 per cent increase over the same period last year. While there are no official numbers, gun stores in Canada have also reported increased sales. This has spurred some news media to draw comparisons between the two nations' gun-sales spikes, potentially stoking the fears of the Canadian public. This angst has been echoed by gun control groups in Canada that have expressed concerns regarding the impact of “increased access to guns” on public health. But few have noted the three key differences between the American and Canadian COVID-19 gun-sales spike. No. 1: Why are they buying? Canadians and Americans buy guns for different reasons. Over the past few decades, the United States has witnessed a transformation in its civilian gun culture. While in the past, gun ownership was mainly related to hunting and sports shooting, changes in laws and gun advertising have led to a rise in gun ownership for self-defence. In the 1970s, only 20 per cent of gun owners indicated self-defence as their primary reason for gun ownership. In the 1990s, following the explosion of laws that allowed Americans to carry guns outside the home, 46 per cent listed self-protection. More recent studies have shown that 76 per cent of gun owners now report protection as their primary motivation for gun ownership. The surge in first-time buyers suggests that many Americans buying guns during the pandemic are doing so due to concerns about self-defence, given fears of looting, violence and the government's capacity to deal with the crisis. With the absence of a gun-carry movement in Canada, this same shift has not taken place. The conditions under which guns can be used for self-defence in Canada are narrow, and the government stringently regulates not only firearms ownership, but the discourse surrounding guns. Self-defence is not a legal reason to acquire a firearm in Canada, and cannot be listed as a reason for firearms ownership on a Possession and Acquisition License (PAL) application. Though no research exists at this time, owners of gun stores who were interviewed by the media noted that Canadians are likely panic-buying due to a fear of shortages rather than a fear of violence, since the Canadian supply chain is heavily dependent on the United States. That means gun owners who might have waited to buy firearms and ammunition for target shooting over the summer or hunting this fall are buying them now. No. 2: How are they buying them? Another key difference between the bump in sales in Canada versus the U.S. is the requirements to purchase guns and ammunition. South of the border, most firearms legislation is made at the state level, with big differences in gun laws across the country. In many states, the only requirement to purchase a firearm from a licensed dealer is a federal background check, though states like California and Massachusetts have much stricter laws. In Canada, the bump in sales is limited to those who have already passed through the RCMP's extensive licensing regime. This process often takes up to six months and includes a weekend-long course, passing a written and practical test and reference checks. Canadian gun owners are subject to continuous automatic background checks as long as they hold the licence. So if somebody is legally purchasing a gun in Canada, it means the RCMP could find “no reasons why, in the interest of public safety, they should not possess a firearm.” No. 3: Who is buying what? Many of the people buying guns in the U.S. during the COVID-19 pandemic reported that it was their first time purchasing a gun. Furthermore, the majority of guns sold during the current boom have been handguns rather than long guns. Though it's a bit early to speculate, this could very well lead to even less support for gun control in the U.S., given that gun owners are unsurprisingly the least likely group to support gun control. In Canada, on the other hand, it is likely that only a small minority of gun purchases during the Canadian spike were first-time buyers given the time frame required to acquire a firearm licence in Canada. Statistics on the breakdown of handguns versus long gun purchases during the Canadian pandemic spike don't exist, but we can guess that most of the new guns purchased in Canada were long guns being used for hunting or sports shooting. That's because gun owners wishing to own handguns must have a special Restricted Possession and Acquisition License (RPAL) and maintain a membership at a shooting club, which can cost hundreds of dollars per year and limits handgun ownership to serious target shooters. Of Canada's 2.2 million licensed gun owners, only about a quarter have licences that allow them to purchase handguns. And so it's clear there are major differences between the gun purchase spikes in Canada and the U.S. during the COVID-19 pandemic. This will hopefully set anxious Canadian minds at ease and let everyone get back to focusing on more pressing problems. https://theconversation.com/why-canadians-and-americans-are-buying-guns-during-the-coronavirus-pandemic-135409

  • ATC returning to Mirabel in January

    November 25, 2019 | Local, Aerospace

    ATC returning to Mirabel in January

    Effective Jan. 30, 2020, air traffic controllers will once again be working at Montreal International (Mirabel) Airport (CYMX). Following the completion of a recent aeronautical study, Nav Canada has decided to reinstate air traffic control (ATC) services at the airport for 16 hours a day, from 1100 to 0300 Coordinated Universal Time (1000 to 0200 UTC during daylight savings time) using the current mandatory frequency 119.1 MHz. While the tower is in operation, the control zone and terminal control area will become Class C airspace. When ATC is closed, the Flight Service Station (FSS) will operate and the airspace will revert to Class E and transponder airspace. Nav Canada said ground control service during ATC operating hours and ground advisory service during FSS operating hours will be provided on VHF frequency 121.8 MHz. Mirabel saw over 69,000 movements in 2017 and exceeded 75,000 in 2018. https://www.skiesmag.com/news/atc-returning-to-mirabel-in-january/

  • Federal budget 2021: defence and security - Open Canada

    April 29, 2021 | Local, Aerospace, Naval, Land, C4ISR, Security

    Federal budget 2021: defence and security - Open Canada

    The world is changing. Trudeau stays the course.

All news