Back to news

May 31, 2019 | Local, Aerospace, Naval, Land, C4ISR, Security, Other Defence

Supporting jobs and skills through defence purchases

Defence procurements support skills development for Canadians

May 29, 2019 – Ottawa, Ontario

The Government of Canada's defence and major Coast Guard purchases result in billions of dollars of work for Canadian companies and support thousands of jobs annually. Going forward, they will also contribute to the development of a highly skilled and diverse workforce.

The Honourable Navdeep Bains, Minister of Innovation, Science and Economic Development, underscored this today while at CANSEC, Canada's largest defence and security trade show, where he helped unveil the new Canadian Industrial Leadership Award (CILA). A joint initiative from L3 Technologies, Thales Canada and CAE Inc., CILA will offer fully paid internships/co-ops to 10 female students with demonstrated leadership and academic skills. The students will work on innovative projects to support their education and receive mentorship in STEM disciplines.

The companies created this program as a result of the Industrial and Technological Benefits (ITB) Policy, which requires winning bidders of defence contracts to invest the value of the contract back into the Canadian economy.

Minister Bains also announced updates to the Policy that will promote the development of new skills. Specifically, prime contractors will now receive additional credit through the ITB Policy for investments in skills development and training for Indigenous peoples in Canada.

A new cyber certification feature was also added to improve access for Canadian small and medium-sized firms seeking opportunities related to defence procurement. This will help advance the Government's commitment to setting and promoting a national standard for cyber protection among Canadian businesses. The addition follows the publication of the 10 principles that make up Canada's new Digital Charter, one of which states that Canadians should be able to rely on the integrity, authenticity and security of the services they use and should feel safe online.

Quotes

“In a competitive global economy, Canada can't afford to leave talent on the sidelines. Through the ITB Policy, the government is helping to ensure the development of a more skilled and inclusive workforce. The Canadian Industrial Leadership Award is a great example of how our policy can promote investment in the advancement of women in STEM. Going forward, the enhancements to the policy that were announced today will also motivate new investments in skills development and training for Indigenous peoples. It will also lead to improved access to cyber certification for small and medium-sized businesses, allowing them to better compete in this innovative industry.”
– The Honourable Navdeep Bains, Minister of Innovation, Science and Economic Development

Quick facts

  • The ITB Policy encourages companies to establish or grow their presence in Canada, strengthen Canadian supply chains, and develop Canadian industrial capabilities in areas such as innovation, research and development, supplier development, and exports.

  • The ITB Policy includes the Value Proposition, which motivates bidders on Canadian defence contracts to put forward proposed investments toward their ITB obligations when making their bids.

  • As of January 2019, the overall portfolio of ITB obligations included 161 projects valued at almost $47 billion, with $36.1 billion in business activities already completed, $7.1 billion of activities in progress and $3.7 billion in unidentified future work opportunities.

  • The Canadian defence industry includes over 660 firms with more than $10 billion in sales, supports close to 60,000 jobs in the Canadian economy, and employs highly skilled workers in high-quality jobs.

https://www.canada.ca/en/innovation-science-economic-development/news/2019/05/supporting-jobs-and-skills-through-defence-purchases.html

On the same subject

  • Canada moves closer to military-spending target following previous critique from NATO, U.S.

    October 23, 2020 | Local, Aerospace, Naval, Land, C4ISR, Security

    Canada moves closer to military-spending target following previous critique from NATO, U.S.

    OTTAWA - Canada has taken a big leap closer to meeting its promise to the NATO military alliance to spend a larger share of its economy on defence thanks to an unexpected assist from COVID-19. New NATO figures released Wednesday show that largely thanks to the pandemic, Canada is poised to spend the equivalent of more of its gross domestic product on defence this year than at any point in the past decade. That is because the alliance expects the Liberal government to hold Canadian defence spending steady even as COVID-19 batters the country's economic output. Yet defence analyst David Perry of the Canadian Global Affairs Institute says the results are unlikely to appease the United States, as Canada continues to fall far short of its promise to NATO to spend two per cent of GDP on defence. “I think they'll be pleased to see positive momentum,” Perry said of the U.S., “but it doesn't resolve their concern about where we are.“ All NATO members, including Canada, agreed in 2014 to work toward spending the equivalent of two per cent of their GDP — a standard measurement of a country's economic output — on defence within the next decade. The promise followed complaints from the U.S. about burden-sharing among allies and broader concerns about new threats from Russia and China as the two countries increased their own military spending. NATO and the U.S. have repeatedly criticized Canada for not meeting the target, with President Donald Trump in December calling Canada “slightly delinquent” during a meeting with Prime Minister Justin Trudeau. His predecessor, Barack Obama, also called out Canada over its defence spending during an address to Parliament in 2016. The U.S. spends more than any other NATO member on defence, both in terms of raw cash and as a share of GDP. NATO Secretary-General Jens Stoltenberg on Wednesday said the continued importance of increasing military spending would be discussed when defence ministers from across the alliance meet this week. The NATO figures show that Canada is poised to spend 1.45 per cent of its GDP on the military this year. That is not only a big jump from the 1.29 per cent last year, but the largest share of the economy in a decade. It also exceeds the government's original plan, laid out in the Liberals' defence policy in 2017, to spend 1.4 per cent of GDP on the military by 2024-25. That is when NATO members were supposed to hit the two-per-cent target. Yet the figures show the expected increase isn't the result of a new infusion of cash for the Canadian Armed Forces this year as spending is expected to hit $30 billion, up just over $1 billion from 2019. Rather, NATO predicts Canadian GDP will shrink by about eight per cent this year as COVID-19 continues to ravage the economy. The fact Canadian defence spending is expected to remain largely steady despite the pandemic is noteworthy, particularly as there have been fears in some corners about cuts to help keep the federal deficit under control. The NATO report instead appears to lend further credence to recent assertions from Defence Minister Harjit Sajjan, Defence Department deputy minister Jody Thomas and others that the Liberals are not readying the axe. Canada also remained 21st out of 29 NATO members in terms of the share of GDP spent on the military as other allies also got a surprise boost from the economic damage wrought by COVID-19. At the same time, Perry said the government has yet to lay out a timetable for when it plans to meet the two per cent target. Military spending is instead expected to start falling after 2024-25, according to the Liberal defence plan. Despite having agreed to the target during the NATO leaders' summit in Wales in 2014, successive Canadian governments have repeatedly described the NATO target as “aspirational.” This report by The Canadian Press was first published Oct. 21, 2020. https://www.thestar.com/news/canada/2020/10/21/canada-jumps-closer-to-military-spending-target-thanks-to-covid-19s-economic-damage.html

  • ‘Near total power failure’: Questions about propulsion system on new Canadian warship

    December 17, 2018 | Local, Naval

    ‘Near total power failure’: Questions about propulsion system on new Canadian warship

    David Pugliese, Ottawa Citizen The Defence department has acknowledged the government's choice for a $60-billion warship program has a propulsion system that has been plagued by problems, at times shutting down entirely while at sea. But the department says it is confident the Type 26 ship, designed by the British firm BAE, meets all the requirements necessary for the Royal Canadian Navy's future fleet. The acknowledgement of the problems is contained in a Department of National Defence fact sheet that outlines potential issues with the selection of Lockheed Martin Canada, with its bid of the BAE Type 26 vessel, as the “preferred bidder” for the Canadian Surface Combatant program. That $60-billion CSC program, the largest single government purchase in Canadian history, will see the construction of 15 warships at Irving Shipbuilding in Halifax. Among the issues addressed by the DND was an outline of some potential problems with the Type 26 warship. “The British Navy has had serious issues with the propulsion system in their BAE Type 45s, both in the generator — which has caused near-total power failures — and the engines themselves,” the DND document noted. “Given it uses the same propulsion system, will this affect the CSC too?” But in the document, the DND also expressed confidence in the Type 26, adding that a design that didn't meet all the requirements would not have been considered. Until negotiations with the preferred bidder are completed, the DND can't discuss specific elements of the warship design, the department's response pointed out. Over the years, the BAE Type 45 destroyers have been plagued by problems, with the propulsion system conking out during operations and exercises. In March the British government awarded a contract to BAE worth more than $200 million to fix the problems, with the first ship to be overhauled by 2021. But a representative of the Lockheed Martin Canada-BAE team noted in an email to Postmedia that the propulsion system for the Type 26 “is fundamentally different to the Type 45 propulsion system.” “The T26 design therefore offers more propulsion options, both mechanical and electrical, and is underpinned by a greater number of propulsion engines, providing greater redundancy,” the email noted. “We are confident that the Type 26 design is the right solution for the Royal Canadian Navy and meets the requirements for the Canadian Surface Combatant.” Officials with the consortium expressed surprise at the suggestion the Type 45 issues could be linked to the Type 26 design. Negotiations with Lockheed Martin Canada on the surface combatant program have already hit a roadblock after the Canadian International Trade Tribunal ordered the Canadian government on Nov. 27 to postpone the awarding of a contract while it investigates claims the Type 26 doesn't meet the military's needs. That came after Alion, one of the firms that submitted a bid on the CSC project, filed a complaint with the trade tribunal. Alion, a U.S. firm, has also filed a legal challenge in federal court, asking for a judicial review of the decision by Irving and the Canadian government to select Lockheed Martin and the BAE design. Alion argues the Type 26 cannot meet the stated mandatory requirements, including speed, that Canada set out for the new warship and because of that should be disqualified. Alion had offered Canada the Dutch De Zeven Provinciën Air Defence and Command frigate, which the firm says meets all of Canada's requirements. The entry of the BAE Type 26 warship in the competition was controversial. Previously the Liberal government had said only mature existing designs or designs of ships already in service with other navies would be accepted, on the grounds they could be built faster and would be less risky. Unproven designs can face challenges as problems are found once the vessel is in the water and operating. But that criteria was changed and the government and Irving accepted the BAE design, though at the time it existed only on the drawing board. Construction began on the first Type 26 frigate in the summer of 2017 for Britain's Royal Navy, but it has not yet been completed. Company claims about what the Type 26 ship can do, including how fast it can go, are based on simulations or projections. The two other bidders in the Canadian program have ships actually in service with other navies so their capabilities are known. dpugliese@postmedia.com Twitter.com/davidpugliese https://nationalpost.com/news/canada/questions-raised-about-propulsion-system-on-new-canadian-warship-amid-fears-engines-could-conk-out

  • U.S. President Joe Biden's visit puts Canadian defence spendinh and Norad modernization back under microscope

    March 23, 2023 | Local, Other Defence

    U.S. President Joe Biden's visit puts Canadian defence spendinh and Norad modernization back under microscope

    U.S. President Joe Biden?s long-anticipated first trip to Ottawa this week is expected to put the state of North America?s defences and Canada?s military spending back under the microscope.

All news