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

October 31, 2019 | Local, Aerospace

SkyAlyne: A True Canadian Collaboration for FAcT
In May 2018, CAE and KF Aerospace joined together to form SkyAlyne Canada – a 50/50 joint venture to focus on developing and delivering military pilot and aircraft training in Canada. These two companies currently deliver all phases of pilot training to the Royal Canadian Air Force through the NATO Flying Training in Canada (NFTC) program and the Contracted Flying Training and Support (CFTS) program. These programs will come to an end in the next few years and Canada is looking to award a new contract to renew its existing aircrew training services through the Future Aircrew Training program (FAcT). Vanguard recently had the opportunity to speak with Peter Fedak, Program Solutions, SkyAlyne Canada. Can you tell us a little more about this joint venture between CAE and KF Aerospace? Peter Fedak: CAE and KF Aerospace are the current providers of all phases of military pilot training and air combat system operator training in Canada. Since we have the knowledge, experience, and credibility with the RCAF in providing these training services to them, we thought that by joining together we can provide the best solution for Canada. The best way to do that was to create an entirely new entity – a 50/50 joint venture – with two leading air training Canadian companies. That led to the birth of SkyAlyne, a true collaboration to bring the best solution for the future, provided by a truly Canadian organization. The expertise that we possess – right here in Canada – is a real benefit to Canadians and the RCAF. What are some of the top training challenges with the current programs? PF: With any government program, the most important thing to taxpayers is cost. In Canada, we have some unique environmental challenges that drive the cost up, like the weather, flying below 40 degrees Celsius or above 40. This requires infrastructure, aircraft requirements, and personnel to operate in these extreme temperatures. Another challenge is timing. The NFTC program will expire in 2023, with an option year to 2024. The timeline to engineer the transition, planning, and infrastructure is a challenge that we and the government recognize, but we are ready to face it. With our ongoing programs, we are well situated to seamlessly make the transition for Canada. If SkyAlyne is selected for the FAcT program, what are some of the capabilities that this joint venture will bring to the table? PF: A key part in the lead up to FAcT will be to maintain the existing training programs while transitioning to the new program. We have the employees, technical and infrastructure base with the current programs and the ability to seamlessly move between the two. The most valuable resource is people and under NFTC and CFTS, we have a true core human resources capability of trained, qualified and professional people that work under these programs every day and are committed to the success of the pilot training program for the RCAF. Having these personnel is a real core capability for us to maintain the production of pilots while moving forward. Can you share with us some of the lessons or takeaways from the CFTS program that you think would be important to incorporate into the FAcT program? PF: The key lesson is the relationship. We didn't create this program and then offer it to the RCAF. We are here because of the RCAF and the Government of Canada. We are here to support them by understanding the culture and people and building on that by working closely with them to keep the program moving forward. This is truly a long-term relationship, like a marriage. We are here for 22 years under this contract and looking for another 25 years. So, it's a matter of establishing and maintaining that trust going forward. That's the only way you can get through these long-term complex contracts – building a good relationship. Thanks for taking the time to speak with us. PF: Thank you very much for the opportunity. It's always a pleasure to speak about not only our current programs here in Southport, Manitoba and Moose Jaw, Saskatchewan but also the future opportunities to continue supporting the Government of Canada with our exciting new joint venture of SkyAlyne. To hear more about this topic listen to the podcast with Peter Fedak. https://vanguardcanada.com/2019/10/30/skyalyne-a-true-canadian-collaboration-for-fact/
October 18, 2019 | Local, Aerospace, Naval, Land, C4ISR, Security

Conservatives promise to 'protect' defence spending from deficit battle
Defence takes a fifth of the federal budget and has often been a target for deficit cutters Murray Brewster The Conservatives have pledged to "protect" the budget of the Department of National Defence even as they work to eliminate the federal deficit. In their election platform, the Tories said they would find $5 billion in savings by cutting operational expenses, but were not clear on precisely what that meant, other than to say it would not affect services to Canadians. The Liberals, through their two-year-old defence policy, committed to increase defence spending by 70 per cent to $32 billion annually by 2024-25 — a program that would unfold at precisely the same time a potential Conservative government intends to cut expenditures. The Liberals have also set in motion plans to buy two of the military's biggest-ticket items — new fighter jets and navy frigates. Conservative leader Andrew Scheer said Wednesday his party would stick with those purchases, but would be more efficient. "We are committed to the funding allocated to the Department of National Defence," he said during a campaign stop in in southwestern Ontario. "We will not do what the Liberals did, which is waste hundreds of millions of dollars stopping and starting the procurement process." The Conservatives have pledged to depoliticize the process of buying military equipment and have complained about the Liberal government's delivery timelines and decisions, including the plan to purchase used Australian F-18s to supplement the existing fighter jet force until a decision is made on brand-new warplanes. Says money wasted "They have wasted so much money when it comes to procurement," Scheer said, adding that Conservatives would "protect the budgets of National Defence [and] we're going to ensure that the money that's allocated to National Defence is spent wisely." At least two experts wonder how the Conservatives can live up to that pledge in light of the fact the Defence Department is the single biggest discretionary expense on the federal balance sheet and the last two times Conservatives — or Liberals — tried to balance the budget, military spending took major hits. Under the government of former prime minister Stephen Harper, the defence budget was cut by $2.1 billion annually and the department racked up sizeable chunks of lapsed spending, money that was appropriated by Parliament, but not spent. The reduction took place after the Afghan war and the department faced concurrent spending cuts through the Conservative strategy review and deficit reduction action plan. Both Liberal and Conservative governments in the 1990s cut defence spending and postponed buying new equipment, most notably new maritime helicopters, which only came into service in the last few years Defence spending an obvious target "Balancing a federal budget without looking at defence spending is extraordinarily difficult, to impossible," said Dave Perry, an analyst and expert in defence spending at the Canadian Global Affairs Institute. "Defence spending accounts for one-fifth of the federal budget." And even if the Conservatives did look for savings, a change to the accounting structure at Defence leaves little room for them to recoup much money by cancelling or postponing equipment purchases. Reducing the size of the military or the civil service was something previous governments did, but Perry said those kinds of cuts "take two years or more" to make their way through the system. 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Faced with extraordinary pressure from the Trump administration to meet NATO's goal of earmarking two per cent of gross domestic product for military spending, the Liberal government committed to a 70 per cent increase by 2024-25. The Feb. 25, 2019 slide presentation shows that spending will peak in 2026-27 and begin to fall again in the preceding decade. Used Australian fighter jets could cost $1.1B: Parliamentary budget officer The document also shows that, for two years running, the Liberals have not spent as much as they planned on new equipment. While $12.7 billion was set aside in their plan between 2017-19 for new military gear, the Trudeau government only asked Parliament for permission to spend $8.34 billion — leaving $4.4 billion still in the treasury. The slide presentation said part of the reason is that some existing projects came in under budget, but in one-third of the instances the spending delay was because the Defence Department — or the federal government in general — could not get the projects organized. https://www.cbc.ca/news/politics/conservatives-defence-spending-1.5323618
April 17, 2023 | Local, Other Defence

Dozens of political and military luminaries call on Ottawa to stop backsliding on national defence | CBC News
More than 60 of this country's former top security officials, military commanders and politicians - along with a former top Supreme Court justice - have signed an open letter imploring the Liberal government to take national security and defence more seriously.

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