STTC Canadian Industry Engagement Feedback Form/ Formulaire de rétroaction sur l'engagement de l'industrie canadienne en matière d'ASTRV

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  October 18, 2018 | Local, Naval

  Davie and Irving shipyards are in the midst of a lobbying blitz in Ottawa

  BY TIM BOUSQUET In recent days, Unifor Marine Workers Federation Local 1, which represents Irving Shipyard workers, has been conducting a “Ships Stay Here” campaign that included getting Halifax council to support its efforts. The union fears that some of the shipbuilding work contracted to Irving will be shifted to Davie Shipyard in Quebec. Alex Cooke of the Canadian Press contacted the federal government to ask about that fear: In an emailed statement to The Canadian Press last week, the Department of National Defence spokeswoman Ashley Lemire said the government intends to announce any changes to planned maintenance on Halifax-class frigates in the coming weeks. “Given the planned work for the Royal Canadian Navy, an option with two maintenance and repair facilities to conduct this work beginning in the 2020 timeframe is being considered,” Lemire said. “Keeping these frigates operational is a priority for us, and being able to ensure all the maintenance is done when required is essential.” Lemire added that Irving is the prime contractor for the Canadian Surface Combatant project, which she said will result in an estimated $30 billion in build contracts for Irving Shipbuilding into the 2040s. However, “a spokesperson for Davie Shipbuilding strongly takes issue with comments that the Quebec company is stealing work from Halifax,” reports Jacob Boon for The Coast: “It's being portrayed as if Quebec will steal jobs, contracts from Irving,” says Fred Boisvert, vice-president of public affairs for Davie. “Where if you look properly, closely, there's nothing like it happening at all.” ... Boisvert says that's all a bit rich. No one in their right mind could believe there are production gaps at Irving, he says, given the sum total of $65 billion in federal contracts the shipyard has secured. “Guys, guys, you got $65 billion,” he says. “I mean, please, you won't get a tear from me. You're flush with contracts. You've got 20 years stability in terms of that shipyard.” Davie has laid off some 1,000 workers itself over the past year due to dwindling federal contracts. “We're bleeding people here,” says Boisvert. Both companies have been on a lobbying blitz in Ottawa. Davie has hired consultant Naresh Raghubeer of Elmvale Strategies Inc. to lobby the federal government with regard to “shipbuilding work for National Defence, Canadian Coast Guard, Transport Canada, as well as exports.” Raghubeer has made 32 reportable lobbying contacts this year, 11 of them in September alone (October reports are not yet published). The September contacts include conversations with multiple lobbyist targets at once (the reports don't say if they were in-person or conference calls), including with MPs Joel Lightbound, Steve MacKinnon, Remi Masse, Michel Picard, Luc Berthold, Steven Blaney, Gerard Deltell, Bernard Genereux, Jacques Gourde, Richard Marte, Alain Rayes, Jean-Yves Duclos (the minister of Employment and Social Development), Marc Garneau (the minister of Transport Canada), and François-Philippe Champagne (the minister of Infrastructure Canada). As well, in September Raghubeer talked with Senators Pierre-Hugues Boisvenu, Claude Carignan, Jean-Guy Dagenais, Larry Smith, Pierre Dalphond, Denis Dawson, Eric Forest, Rosa Galvez, and Andre Pratte. Raghubeer's September lobbyist efforts also including conversations with a range of political functionaries, including (twice with) Martin Belanger, the Policy Advisor to the Office of the Leader of the Official Opposition; Taras Zalusky, the Policy Advisor to Carla Qualtrough, the minister of Public Services and Procurement Canada; Mathieu Bouchard, a Senior Advisor at the Prime Minister's Office (PMO); Dominic Cormier, a Policy Advisor to the PMO; John Ma, a Policy Advisor to Harjit Singh Sajjan, the minister of DND; (twice with) Shane McCloskey, a Policy Advisor to Marc Garneau, the minister of Transport Canada; Christina Rettig, a Policy Advisor at the PMO; George Young, the Chief of Staff to Jonathan Wilkinson, the minister of Fisheries and Oceans Canada (DFO); Marc-Andre Leclerc, the Chief of Staff of the Leader of the Official Opposition; Sriram Raman, a Policy Advisor to François-Philippe Champagne, the minister of Infrastructure Canada; Marc Roy, the Chief of Staff to to Marc Garneau, the minister of Transport Canada; Jenny Demers, a Policy Advisor to Jean-Yves Duclos, the minister at ESDC; and Olivier Duchesneau, Chief of Staff to minister Duclos. For its part, lobbying efforts on behalf of Irving Shipyard are conducted by James Irving, the co-CEO of the shipyard. Irving reported 70 lobbying contacts in 2018, but just six of those were in September. Unlike Raghubeer, who speaks with multiple people at once, Irving tends to speak to one or two people at a time. James Irving's September contacts were with Taras Zalusky, the director of Policy, Procurement and Parliamentary Affairs Public Services and Procurement Canada; John Ma, a Policy Advisor to Harjit Singh Sajjan at DND; Eric Dagenais, the Assistant Deputy Minister at Innovation, Science and Economic Development Canada; John Knubley, the Deputy Minister at Innovation, Science and Economic Development Canada; Elliott Hughes, the Director of Policy at DND; Christina Rettig, a Policy Advisor at the PMO; and Justin To, the Director of Policy at the PMO. https://www.halifaxexaminer.ca/featured/davie-and-irving-shipyards-are-in-the-midst-of-a-lobbying-blitz-in-ottawa

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

  Annex B: Overview of long-term funding commitment to Canadian Armed Forces capabilities

  To ensure that the women and men of the Canadian Armed Forces have the capabilities required for Canada to be Strong at home, Secure in North America and Engaged in the world, this policy commits to significant long-term investment. This includes $33.8 billion for 52 critical new capital projects. In addition, the policy provides $74.2 billion for existing assets and previously planned equipment, infrastructure and information technology projects. As part of Strong, Secure, Engaged, these projects underwent a thorough costing review, which resulted in the provision of an additional $5.9 billion over 20 years on top of what had previously been budgeted for these projects, to better reflect their true costs. In total, this new vision for defence provides $108 billion for the development and acquisition of capital equipment over the next 20 years. All of these projects have been costed and the costing methodologies used were independently verified by five external accounting firms. Throughout the process, Defence also worked with costing experts from Deloitte who brought expertise gained from its involvement in recent defence reviews of close Canadian allies. This rigorous and unprecedented process ensures that the vision laid out in this policy is credible and realistic. Table 1 reflects the planned use of the accrual budget over the 20-year horizon of this policy. It is important to note that this table does not represent the total cost of all planned equipment acquisitions. For example, the first new Canadian Surface Combatant is not scheduled to be delivered until 2026, followed by the remaining 14 ships. As these ships have an expected service life of 30 years, much of the accrual costs will be incurred outside the 20 years reflected in the table. Furthermore, as these are 20-year estimates, there needs to be flexibility to adjust the accrual budget to reflect changes in major capital projects. The process to adjust or re-profile these estimates over time is through the investment planning process. Defence will publish the next Defence Investment Plan in 2018. The Defence Investment Plan will include all approved capital projects under the policy and will be updated every three years. This will help ensure that Parliament and Canadians can clearly understand future changes to the budget, and deliver on the Government's commitment to transparency, results, and accountability. Table 1: 20-year accrual and cash view of planned projects and new investments ($ billions) 20-year - Accrual basis 20-Year - Cash basis Capability Investments to fully fund and complete planned projects table 1 note1 New investment Strong, Secure, Engaged table 1 note2 Total planned projects and new investments Total planned projects and new investments Royal Canadian Navy 14.6 2.9 17.5 53.5 Canadian Army 10.1 8.8 18.9 23.2 Royal Canadian Air Force 26.4 20.1 46.4 64.4 Special Operations Forces 1.2 0.4 1.5 1.2 Joint/Emerging Domains 3.4 1.2 4.6 9.7 Infrastructure 4.5 0.4 4.9 12.0 Total Capabilities 60.1 33.8 93.9 164.0 Accrual Expenditure for Existing Equipment and Infrastructure table 1 note3 14.1 - 14.1 - 20 Year Total table 1 note4 74.2 33.8 108.0 164.0 Table 1 Note 1 Strong, Secure, Engaged commits $74.2 billion over 20 years to fully fund 281 projects that were planned, but for which Defence had insufficient funding to acquire. Adequate funding has now been allocated to deliver these core equipment projects. Return to table 1 note1referrer Table 1 Note 2 Strong, Secure, Engaged commits $33.8 billion over the next 20 years to 52 new equipment, infrastructure, and information technology projects for the Canadian Armed Forces. Return to table 1 note2referrer Table 1 Note 3 This amount ($14.1 billion), on an accrual basis, represents previously acquired equipment and infrastructure. As they are already in service, there is no future cash requirement to purchase these assets. Return to table 1 note3referrer Table 1 Note 4 Totals may not add up due to rounding. Return to table 1 note4referrer Below is an overview of capital funding commitments in Strong, Secure, Engaged, described in terms of investments in the Royal Canadian Navy, Canadian Army, Royal Canadian Air Force, Special Operations Forces, Joint Capabilities and Infrastructure. Investment in the Royal Canadian Navy The Government will provide $17.5 billion to fund equipment projects for the Royal Canadian Navy over the next 20 years. This includes: $2.9 billion over the next 20 years for two new equipment investments in the Royal Canadian Navy to replace obsolete components of current systems and improve the Royal Canadian Navy's ability to meet evolving underwater threats. $14.6 billion over the next 20 years to fully fund planned equipment projects. For example, this policy includes sufficient funding to acquire the full complement of 15 Canadian Surface Combatants. It is important to note that Table 1 only captures a 20-year view of the equipment investments committed to in this policy. As the first ship is not scheduled to be delivered until 2026 and the fleet is expected to be in service for 30 years, there will be significant expenditures outside this timeframe. Investment in the Canadian Army The Government will provide $18.9 billion for Canadian Army equipment projects over the next 20 years. This includes: $8.8 billion over the next 20 years for 20 new equipment projects. As examples, this investment will replace existing light and heavy trucks for use in domestic and expeditionary operations. We will also improve the Canadian Army's ability to operate in Canada's North with a new family of Arctic-capable land vehicles, as well as close critical capability gaps such as the Canadian Army's lack of ground-based air defence equipment, which will allow it to defeat threats posed by airborne weapons such as remotely piloted vehicles and aircraft used by potential adversaries. $10.1 billion over the next 20 years to fully fund planned equipment projects. For example, the upgrade of the Light Armoured Vehicle fleet will improve mobility and survivability. Investment in the Royal Canadian Air Force The Government will provide $46.4 billion to fund equipment projects for the Royal Canadian Air Force over the next 20 years. This includes: $20.1 billion over the next 20 years for 17 new equipment projects for the Royal Canadian Air Force. For example, this will deliver a Canadian Multi-Mission Aircraft to replace the CP-140 Aurora Long Range Patrol Aircraft, allowing us to maintain our technological advantage over potential adversaries. Under the Royal Canadian Air Force's responsibility for space capabilities, portions of new investment will expand the Canadian Armed Forces' ability to use space-based assets in support of operations. This includes projects for enhanced communications in the North. $26.4 billion to fully fund planned equipment projects. The new fighter program has been enhanced to ensure the Royal Canadian Air Force can acquire 88 new advanced fighters, which will allow us to deliver on NORAD and NATO commitments without compromise. Investment in Special Operations Forces The Government will provide $1.5 billion to fund equipment projects for Canada's Special Operations Forces over the next 20 years. This includes: $366 million over the next 20 years for four new projects. For example, integrated soldier system equipment will be modernized to enhance interoperability and maintain technological advantage against potential adversaries. $1.2 billion over the next 20 years to fully fund planned equipment projects. As an example, we will acquire an airborne intelligence surveillance and reconnaissance platform that will enhance the ability of our Special Operations Forces to improve their understanding of the operational environment. Investment in joint capabilities The Government will provide $4.6 billion for joint capability projects in domains such as cyber, intelligence as well as joint command and control over the next 20 years. This includes: $1.2 billion over the next 20 years for five new equipment projects and one information technology project. For example, the Combined Joint Intelligence Modernization project will provide a modern deployable intelligence centre for land-based operations, building on the lessons learned in recent operations. Additionally, the Secure Radio Modernization project will upgrade encryption capability of radios to maintain security and interoperability with our Five-Eyes partners. $3.4 billion over the next 20 years to fully fund planned equipment projects. For example, we will improve the capabilities of the Joint Deployable Headquarters and Signals Regiment. This will include the acquisition of portable structures to house the deployed headquarters and the equipment employed by its staff for command, control and communications. Investment in infrastructure The Government will provide $4.9 billion over the next 20 years to infrastructure projects across Canada in order to maintain the necessary portfolio of real property holdings. This includes: $446 million over the next 20 years for three new infrastructure projects. For example, this funding will enable the construction of new buildings to house the expanded and enhanced Canadian Armed Forces Joint Incident Response Unit. This will ensure that the unit is able to provide chemical, biological, radiological, and nuclear defence support to the Canadian Special Operations Forces Command. $4.5 billion to fully fund planned projects over the next 20 years. https://www.canada.ca/en/department-national-defence/corporate/reports-publications/canada-defence-policy/annex-b.html

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  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