April 8, 2022 | Local, Aerospace, Naval, Land, C4ISR, Security
January 21, 2019 | Local, Land
Tens of millions paid out due to bungled Canadian Forces procurement, but government says details are secret
DAVID PUGLIESE, OTTAWA CITIZEN
The case dates back to 2016 when the Canadian International Trade Tribunal ruled that the process which awarded a truck contact to Mack Defense of the U.S. was flawed
Taxpayers are on the hook for potentially tens of millions of dollars after federal bureaucrats bungled the purchase of trucks for the Canadian Forces and now must make good on the lost profits for a U.S. firm.
But Public Services and Procurement Canada, which oversaw the flawed defence procurement, has declined to provide details on just how much the penalties will cost the public.
Defence industry representatives, however, say the penalty being paid to the U.S. company, Oshkosh, could be as high as $60 million as it has to account for lost profit on the $834-million contract as well as other expenses the firm incurred.
The case dates back to 2016 when the Canadian International Trade Tribunal (CITT) ruled that the process, which awarded the truck contact to Mack Defense of the U.S., was flawed. The CITT supported the concerns of Mack's rival, Oshkosh, that there were significant issues with the evaluation of the vehicles. As a result, the tribunal called on Public Services and Procurement Canada to conduct a new evaluation of the trucks being purchased for the Canadian Forces.
The CITT recommended that Oshkosh be compensated for its lost opportunity to profit
But instead, the department continued with the process to buy the Mack trucks and went to federal court in 2017 to challenge the tribunal's ruling. It recently abandoned that appeal.
It was revealed by the tribunal that Public Services and Procurement Canada had failed to keep many key records to support its claim that the Mack trucks met the requirements for the Canadian military.
“The CITT recommended that Oshkosh be compensated for its lost opportunity to profit,” the department noted in a response to Postmedia about the settlement it reached with the firm.
The department, however, declined to provide details, claiming that the payout is confidential. It did not explain why the penalties that taxpayers must shoulder should be considered secret.
“This matter is now closed,” according to the department's statement.
The Conservative government announced in 2015 that Mack Defense had won the $834-million contract to provide the 1,500 standard military pattern trucks as well as in-service support for the vehicles.
“Truck deliveries are ongoing and expected to be completed during spring 2020,” Public Services and Procurement Canada noted. It stated that the Mack trucks meet the required standards.
Oshkosh said in a statement to Postmedia that it was pleased with the financial settlement that resulted from its challenge heard by the trade tribunal. “Oshkosh cannot comment further on the details of this confidential settlement,” noted Alexandra Hittle of Oshkosh Defense.
The program to purchase the trucks was originally announced in 2006 by the Conservatives but the acquisition was dogged by problems. The vehicles were supposed to be delivered in 2008 and the project was considered a priority because the vehicles they were to replace had become a safety hazard, with faulty brakes and excessive rust.
But in 2012 the Conservative government temporarily shut down the project after learning that the Department of National Defence increased the cost of the project by $300 million but hadn't received permission from government to do that. The government had approved an original budget of $430 million but department and military officials began adding more capabilities to what they wanted in the vehicles, bumping the estimated cost up. DND officials continued on with the acquisition without going back to Treasury Board for approval for the extra money, angering the Conservative government.
Delivery of the Mack trucks began last year and have continued to various bases throughout Canada. Earlier this month Defence Minister Harjit Sajjan highlighted the delivery of some of the trucks to a base in Quebec, noting that, “through our defence policy, Strong, Secure, Engaged, we are providing the women and men of our Canadian Armed Forces with the equipment they need to do their jobs.”
Sajjan did not mention that the trucks were ordered under the Conservative government.
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March 31, 2020 | Local, Aerospace, Naval, Land, C4ISR, Security
Canadian military on notice to provide logistic support, help vulnerable populations in wake of COVID-19
Canada's top general says the military is in the process of determining what forces would be required to assist federal and provincial governments in responding to the novel coronavirus and that response will be geared to supporting vulnerable populations and providing logistics support. There has been no official call yet for the use of military forces from federal, provincial or territorial governments. But Canadian Forces planners are preparing for such a request. “Our tasks will be geared to support Federal, Provincial, Territorial and Municipal governments and agencies in their efforts to suppress the disease, to support vulnerable populations and to provide logistical and general support to communities,” Chief of the Defence Staff Gen. Jon Vance noted in a statement released Friday on social media. “To do this we are now in the process of identifying the forces required, including our incredibly valuable Primary Reserves and Canadian Rangers. These forces will be organized down to individual level into task forces able to deploy by sea, road or air to where they are needed.” More information will come in the next week, Vance said. But defence sources tell this newspaper that the response if needed will, among other areas, focus on providing support to remote Indigenous communities. Such communities have limited resources, particularly in the area of health and medical capabilities. The Canadian Forces has an extensive logistics capability with its fleet of vehicles and aircraft. It can also set up mobile shelters and medical facilities. Vance noted that many military personnel volunteer in their communities but such work must now be restricted to first responder duties since they are required to be ready for Canadian Forces duties at short notice. “When it's time, we will marshal forces, conduct reconnaissance and deploy as, where and when required,” he added. In his message to military personnel and their families, Vance also announced that the Canadian Forces will go ahead with its annual process of shifting personnel around the country for promotions and new jobs, albeit at a reduced level. The annual military posting season comes at a time when federal government officials are advising Canadians to stay at home and practice physical distancing in an effort to reduce the number of cases of COVID-19. “It is our intention to execute as many of the planned postings as is responsible and reasonable to do,” Vance explained. He noted that the overall number of moves will be reduced significantly and they must be vetted and approved by senior leaders as operationally essential. The busiest time for postings and relocations from one community to another is during what is known as the “Active Posting Season” or APS, according to the Canadian Forces. During APS, about 5,000 to 6,000 members receive their posting messages, usually during the spring and most of the movement is carried out in the summer. Vance said the active posting season will be lengthened to conclude by Dec. 31. In addition, Vance warned that the COVID-19 pandemic is disrupting normal administration procedures for the Canadian Armed Forces or CAF. “To reduce the administrative risks and to preserve our strength as recruiting has almost ceased, transition out of the CAF and retirements may be voluntarily delayed,” he warned. “Those who are releasing voluntarily but wish to remain in the CAF are welcome to do so and appropriate terms of service will be offered. Those wishing to continue with transition may do so, but you must expect significant delays and disruptions.” Vance also encouraged former military personnel to rejoin the Canadian Forces. https://ottawacitizen.com/news/national/defence-watch/canadian-military-on-notice-to-provide-logistic-support-help-vulnerable-populations-in-wake-of-covid-19/
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November 5, 2018 | Local, Aerospace
Aviation de combat : le Canada devrait lancer un appel d'offres au printemps 2019
Par Michel Cabirol Le Canada doit lancer au printemps 2019 un appel d'offres pour l'acquisition de 88 avions de combat. Il sera adressé aux cinq constructeurs de quatre pays sélectionnés en février dernier : Boeing, Lockheed Martin, Dassault Aviation, Airbus Defense and Space et Saab AB. Le dossier de renouvellement de la flotte d'avions de combat canadiens arrive bientôt dans sa phase cruciale. Le Canada doit lancer au printemps 2019 un appel d'offres (RFP) pour l'acquisition de 88 avions de combat. Il sera adressé aux cinq constructeurs de quatre pays sélectionnés par Ottawa en février dernier : Boeing ainsi que Lockheed Martin associé à Pratt and Whitney (Etats-Unis), Dassault Aviation (avec Thales DMS France, Thales Canada, et Safran Aircraft Engines), Airbus Defense and Space (Grande-Bretagne) et Saab AB (Suède). Le vainqueur de la compétition, qui devra livrer le premier appareil en 2025 et les derniers en 2031, sera désigné fin 2021, début 2022. "Il y a trois ans, nous nous trouvions dans une impasse avec ce processus, a rappelé jeudi dernier la ministre des Services publics et de l'Approvisionnement et de l'Accessibilité Carla Qualtrough. Aujourd'hui, je suis heureuse de vous apprendre que cette entreprise ambitieuse a repris son élan". En novembre 2016, le Canada avait lancé un appel d'offres afin de moderniser sa flotte de combat tout en restant partenaire du programme F-35 de Lockheed Martin. Une décision qui allait à l'encontre de la promesse du gouvernement canadien faite en 2010 d'acquérir 65 F-35. Une intention d'achat qui n'a pas résisté à l'inflation des prix du F-35. Des F-18 d'occasion pour faire la jonction Où en est-on aujourd'hui? Après avoir lancé le processus en décembre 2017, puis désigné les constructeurs admissibles en février, Ottawa a remis la semaine dernière un projet d'appel d'offres aux six avionneurs. Ces derniers disposent d'un délai d'environ huit semaines pour envoyer leurs commentaires, qui seront utilisés par le Canada en vue de peaufiner et finaliser l'appel d'offres (RFP, Request for proposal). Une fois le document envoyé aux six constructeurs, ces derniers enverront leur proposition initiale au Canada à l'hiver 2019-2020. Ensuite, elles seront évaluées entre 2020 et 2021 et pourront faire l'objet d'une négociation si nécessaire. "Nous travaillerons avec les fournisseurs, au cours des mois à venir, sur cette ébauche, a expliqué Carla Qualtrough. La demande de propositions officielle sera distribuée aux fournisseurs admissibles le printemps prochain". En attendant la livraison du premier avion de combat en 2025, Ottawa travaille avec le gouvernement australien pour acheter 18 F-18 d'occasion et les pièces de rechange associées de la Royal Australian Air Force pour renforcer la flotte existante. "Nous prévoyons recevoir les deux premiers avions en 2019", a affirmé Carla Qualtrough. Initialement, le Canada avait prévu d'acheter des F-18 neufs à Boeing. Mais en décembre 2017, la ministre des Services publics a annoncé que le Canada n'a "pas l'intention de donner suite à l'offre du gouvernement américain pour des Super Hornet". Un contrat évalué à plus de 5 milliards de dollars qui passe sous le nez de Boeing en raison de la multiplication des conflits commerciaux avec les États-Unis. Play Video Des retombées technologiques et industrielles pour le Canada La nouvelle politique du Canada en matière de retombées industrielles et technologiques exige des groupes se voyant attribuer une commande dans la défense qu'ils investissent localement un montant égal à la valeur du contrat. Elle s'appliquera à l'appel d'offres des avions de combat. Les soumissionnaires seront donc invités à présenter leur meilleure proposition de valeur pour le Canada. Car ce critère a une influence directe sur le choix du vainqueur. À l'heure où le Canada amorce une période d'investissements importants dans la défense, le gouvernement a fixé une cible très ambitieuse de retombées économiques pour le pays. Il vise une augmentation de 40 % sur une période de dix ans des revenus de l'industrie de la défense canadienne. Les propositions seront également évaluées en fonction des coûts et des exigences techniques. Elles seront par ailleurs assorties d'une évaluation de l'incidence globale des soumissionnaires sur les intérêts économiques du Canada. Quel constructeur se rapprochera le plus d'un avion de combat "Made in Canada"? https://www.latribune.fr/entreprises-finance/industrie/aeronautique-defense/aviation-de-combat-le-canada-devrait-lancer-un-appel-d-offres-au-printemps-2019-795860.html