November 28, 2018 | Local, Naval

Tribunal orders feds to postpone contract in $60B warship project

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.

https://nationalpost.com/pmn/news-pmn/canada-news-pmn/tribunal-orders-feds-to-postpone-contract-in-60b-warship-project

On the same subject

August 6, 2020 | Local, Land

Canada launches production of new combat vehicles
ByDylan Malyasov Aug 5, 2020 Canadian Defense Minister Harjit Sajjan said that production on the first Armoured Combat Support Vehicle, or also know as ACSV, has begun in London, Ontario at the General Dynamics Land Systems-Canada manufacturing facilities. These new vehicles will fulfill a variety of combat support roles such as that of Troop/Cargo Vehicle (TCV), ambulance, command post, and mobile repair and recovery, according to a press release issued Tuesday by National Defense. The contract for this project was awarded last September, and since then, a number of subcontracts have been awarded by General Dynamics to allow work to start. These subcontracts represent over $137 million in investments to more than 30 Canadian businesses from coast to coast to coast, creating and sustaining over 400 jobs across the country. This is a big step forward as the government continues to deliver on Strong, Secure, Engaged, Canada's first fully costed and funded defence policy. As per the Industrial and Technological Benefits Policy, General Dynamics will re-invest an amount equal to the value of the contract to create and sustain well-paying jobs across the country. These vehicles will replace the current fleets of M113 Tracked Light Armoured Vehicle (TLAV) and the LAV II Bison. The first vehicle is expected roll off the production line this December, with deliveries occurring through February 2025. Testing, training, and procurement of spare parts will be required before the initial vehicles are distributed to Canadian Armed Forces bases in 2022. “These vehicles will form the backbone of the Army's combat support fleet, and be used on a wide range of operations including domestic disaster relief and international peace support missions,” said Harjit Sajjan. “Thanks to the flexibility found in our defense policy, Strong, Secure, Engaged, work on the vehicles has started years earlier than expected and ensures that we continue to support well-paying Canadian jobs and critical innovation in communities across the country.” The Honourable Navdeep Bains, Minister of Innovation, Science and Industry also added that “Our government has ensured that this contract supports Canadian jobs and provides benefits to Canadian industry, including small and medium-sized businesses. Through the Industrial and Technological Benefits Policy, this project will continue to strengthen key industrial capabilities that support the Canadian Armed Forces and help to keep Canada's economy strong.”
October 1, 2020 | Local, Naval, C4ISR, Other Defence

Terrestrial Energy and L3Harris Technologies to Develop IMSR Generation IV Nuclear Power Plant Simulator
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December 16, 2019 | Local, Aerospace, Naval, Land, C4ISR, Security

Defence minister says Canada 'very fortunate' to have Vance as defence chief
OTTAWA — Defence Minister Harjit Sajjan has come out in support of Canada's top military general, saying the country is "very fortunate" to have someone like Gen. Jonathan Vance leading the Canadian Armed Forces. The comments come amid questions over whether the newly re-elected Liberal government plans to replace Vance, who was first appointed chief of the defence staff by Stephen Harper and is now in his fifth year in the position. "When it comes to the chief of defence staff, this is a decision for the prime minister and so we'll reflect on that and make a decision accordingly," Sajjan told The Canadian Press during a wide-ranging interview last week. However, he added, "Canada has been very fortunate to have somebody like Gen. Vance in this role at a very important time." Vance is already one of the longest-serving defence chiefs in Canadian history, and his lengthy tenure has coincided with a number of significant decisions and developments for the Armed Forces - both positive and negative. Those include significant new investments in the military through a new defence policy, the deployment of troops to Iraq, Mali and Latvia as well as efforts to crackdown on sexual misconduct and recruit more women. Yet he has also faced his share of criticism over the years, including over his decision to suspend Mark Norman in 2017, more than a year before the now-retired vice-admiral was charged with breach of trust. The case was eventually dropped. Vance also found himself under fire for the way he handled replacing Norman as the military's second-in-command last year, which saw significant upheaval and instability in the Armed Forces' senior ranks. The defence chief has also been accused of being too supportive of controversial decisions by the Liberal government such as its plan to buy interim fighter jets while some in the Forces have grumbled about a domineering style. While he wouldn't say whether the government planned to replace Vance any time soon, Sajjan said the general has brought important qualities and attributes to the high-profile and difficult position over the past four-plus years. Those include Vance's experience having served in Afghanistan and elsewhere and the work that he put into helping the government develop its defence policy, which was released in June 2017. "I'm very happy with the service that Gen. Vance has given," Sajjan said. "There's only one four-star general in our Canadian Armed Forces. You don't get there easily and every single one brings a unique experience. And Gen. Vance has brought very important experience during a very important time." Speculation about Vance's future has been mounting if for no other reason than the amount of time he has spent as Canada's top military general, said defence analyst David Perry of the Canadian Global Affairs Institute. Exactly who would replace him is an open question, however. Norman's suspension and subsequent retirement contributed to a wider series of changes within the top ranks that have left many senior commanders relatively new in their positions. The reality is that Vance and Sajjan, who has served as defence minister since the Liberals were first elected to power in fall 2015, have emerged as the "constants" at the Department of National Defence and Canadian Armed Forces, said Perry. Given that and indications the Liberals do not have big plans to dramatically switch directions or roll out new initiatives for the military, "I think there's going to be a lot of continuity," he added. Which on the surface would suggest no immediate changes at the top. "Certainly the signals the government has sent to this point of time look a lot more like continuity and continuing to implement the policy and the framework that they set in place during the last Parliament." This report by The Canadian Press was first published on Dec. 15, 2019. https://www.nsnews.com/defence-minister-says-canada-very-fortunate-to-have-vance-as-defence-chief-1.24035658

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