November 28, 2018 | Local, Naval
The Canadian Press, Lee Berthiaume
OTTAWA — The $60-billion effort to build new warships for Canada's navy is facing another delay after a trade tribunal ordered the federal government to postpone a final contract for the vessels' design.
The federal government announced last month that U.S. defence giant Lockheed Martin beat out two rivals in the long and extremely sensitive competition to design replacements for the navy's frigates and destroyers.
Lockheed's design was based on a brand-new class of frigates for the British navy called the Type 26. The company is now negotiating a final contract with the government and Halifax-based Irving Shipbuilding, which will build the ships.
But one of the other two bidders, Alion Science and Technology of Virginia, has asked the Canadian International Trade Tribunal and the Federal Court to quash the government's decision.
It says Lockheed's design did not meet the navy's stated requirements and should have been disqualified. Two of those requirements related to the ship's speed, Alion alleged, while the third related to the number of crew berths
Late Tuesday, the tribunal released a one-page statement ordering the government to “postpone the awarding of any contract ... until the Tribunal determines the validity of the herein complaint.”
Alion has argued that the rules of the competition required the federal procurement department and Irving, which helped evaluate the bids, to reject Lockheed's bid because of its non-compliance. Instead, they selected it as the preferred design.
The company also maintains that its own proposed design, which is based on a Dutch frigate, met the navy's requirements. It has said that it has received no information about why Lockheed's bid was selected over its own, despite requests for answers.
Lockheed Martin and Public Services and Procurement Canada declined to comment because the matter is before the tribunal and federal court. The third company in the competition, Spanish firm Navantia, has remained largely silent on Lockheed's successful bid.
The government is planning to build 15 new warships starting in the next three or four years, which will replace Canada's aging Halifax-class frigates and retired Iroquois-class destroyers. They're to be the navy's backbone for most of the century.
The bid by Lockheed, which also builds the F-35 stealth fighter and other military equipment, was contentious from the moment the design competition was launched in October 2016.
The federal government had originally said it wanted a “mature design” for its new warship fleet, which was widely interpreted as meaning a vessel that has already been built and used by another navy.
But the first Type 26 frigates are only now being built by the British government and the design has not yet been tested in full operation.
There were also complaints from industry that the deck was stacked in the Type 26's favour because of Irving's connections with British shipbuilder BAE, which originally designed the Type 26 and partnered with Lockheed to offer the ship to Canada.
Irving also worked with BAE in 2016 on an ultimately unsuccessful bid to maintain the Canadian navy's new Arctic patrol vessels and supply ships.
Irving and the federal government have repeatedly rejected such complaints, saying they conducted numerous consultations with industry and used a variety of firewalls and safeguards to ensure the choice was completely fair.
But industry insiders had long warned that Lockheed's selection as the top bidder, combined with numerous changes to the requirements and competition terms after it was launched — including a number of deadline extensions — would spark lawsuits.
Government officials acknowledged last month the threat of legal action, which has become a favourite tactic for companies that lose defence contracts, but expressed confidence that they would be able to defend against such an attack.
April 8, 2022 | Local, Aerospace, Naval, Land, C4ISR, Security
OTTAWA - The federal Liberal government responded Thursday to months of pressure from the NATO military allian...
August 20, 2019 | Local, Land
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
April 7, 2020 | Local, Aerospace
Posted on April 7, 2020 by Dr. Suzanne Kearns This article originally appeared in The Hill Times and is published here with the permission of the author. The COVID-19 pandemic has challenged Canadians to adapt their way of life. Aviation professionals are playing a vital role in preserving societal functioning, with airlines volunteering to repatriate Canadians abroad, crew members risking exposure to reunite travellers with their families, and cargo operations playing a vital role in the supply chain – distributing essential medical supplies. These critical activities are only possible because of the work of the entire aviation sector that includes maintenance engineers, air traffic controllers, airport professionals, and so many others. In 2019 airlines carried 4.3 billion passengers, 58 million tonnes of freight, and supported 65.5 million jobs around the world (3.6 per cent of the world's gross domestic product according to the Aviation Benefits Report). The tourism sector is interconnected with aviation, supporting a further 37 million tourism-related jobs. The COVID-19 pandemic is testing the aviation industry in ways that were unfathomable at the beginning of this year. International aviation had been on a growth trajectory, with traffic projected to double in the coming 15 years. As 2020 began, some of the most pressing industry challenges were how to meet the demand for aviation professionals and achieve emission-reduction targets towards environmental sustainability. Aviation has always been a cyclical industry directly and rapidly impacted by downturns in the economy. The industry reported losses in the early 1990s due to the recession and again in 2001 after the 9/11 attacks; in 2003 following the SARS epidemic, and in 2008 linked to the financial crisis. Each of these downturns was followed by a period of economic recovery. Looking specifically at SARS, airlines lost $6 billion in revenues with the outbreak's economic impact having a V-shape where the rapid decline was matched by a speedy economic recovery. Despite the airline industry's cyclical nature it has maintained profitability for the past 10 years, with a profit of $25.9 billion in 2019 despite recent tragedies and challenges, according to IATA. For example, the sector faced the 737 Max accidents in 2018 and 2019, the Ukraine Airlines Flight 752 shot down in Iran, and the emergence of “flygskam” flight shaming air travel due to its emissions. Each of these events impacts passenger confidence in aviation, and many industry experts were bracing for an economic decline as a result. The industry maintaining profitability over the last decade is a testament to its strength and resilience. The COVID-19 pandemic is testing the aviation sector in new ways. The entire industry is being stretched to a breaking point, without interventions, it can not survive the crisis. Assuming travel restrictions are lifted after three months, 2020's passenger demand will be 38 per cent less than 2019, resulting in an impact of USD$ 252 billion according to IATA. Airports are projected to lose $46 billion in 2020, said Airport Council International (ACI). Although previous pandemics were followed by a sharp recovery, they did not cause recessions as COVID-19 might. This has led to three critical questions about the future of international aviation. When will the impacts of COVID-19 subside – and what will society look like when it does? How long will it take for people to have the funds and confidence to begin flying again? What specifically can be done to ensure the industry survives the crisis? How can we innovate during the downturn to craft a stronger future? The most pressing need for aviation is essential financial support through the pandemic, and in the coming months as society faces future waves of the virus. Beyond support to operators, it is critical to recognize that this situation also creates an opportunity to reflect upon and innovate practices within the industry. We will overcome this challenge, and hopefully build a better future. Key priorities during this time should explore how to mobilize Canada's innovation and research infrastructure towards aviation challenges. We have leading researchers in sustainability, cognitive science and engineering, material science, machine learning, automation, cybersecurity, and artificial intelligence among other areas. We are in a position to apply Canadian expertise towards aviation innovations, as important elements of our economic recovery strategy. What is certain is that COVID-19 will change the world – what is unknown is how we can learn from this to create a stronger and more resilient future together. https://www.skiesmag.com/news/covid-19-and-aviation-survival-recovery-and-innovation