May 7, 2019 | Local, Aerospace

Trump administration claims Ottawa's jet procurement plan is unfair to F-35, says report

The Trump administration fired two warning shots last year over the Liberal government's long-delayed plan to replace Canada's CF-18 fighters, saying the procurement process discriminates against the Lockheed-Martin-built F-35 stealth jet, according to a new academic report.

The study by a researcher at the Macdonald-Laurier Institute (MLI) cites leaked Pentagon letters written last summer and late fall to officials at Public Services and Procurement Canada.

The report, released Monday, largely blames the Liberal government for the delays in the procurement, while making only a passing reference to the inability of the former Conservative government to deliver on the same program.

The report's major revelation involves the leaked letters — which are expected to inflame the debate over the nearly decade-long on-again, off-again plan to replace the air force's 1980s-vintage CF-18s with modern warplanes.

The source of the Pentagon's irritation is a federal government policy that insists defence manufacturers deliver specific industrial benefits to Canadian companies.

Canada accused of angling for better deal

That's not how the F-35 program is structured. Countries that participated in the development of the stealth jet — as Canada did — pay an annual fee to remain part of the program, which gives domestic aerospace companies in those countries the right to bid on F-35 work.

The U.S. undersecretary for defence acquisition and sustainment wrote to Canada's assistant deputy minister of defence procurement in Public Services and Procurement Canada last summer to complain about the Industrial and Technological Benefits (ITB) policy.

Ellen Lord warned the policy runs contrary to the F-35 participation agreement and accused Canada of trying to leverage a better deal than its allies.

"This text basically stated that Canada had signed the [Memorandum of Understanding] clearly understanding these provisions and could not now try to renegotiate a better deal," said the Aug. 31, 2018 letter, leaked to MLI researcher Richard Shimooka.

Lord went on to say the current procurement process "would be fundamentally and structurally prejudicial to any F-35 bid."

The point was hammered home when former U.S. Vice-Admiral Mathias Winter, in charge of the Joint Program Office overseeing F-35 development, wrote to Canada's head of future fighter development at Public Services.

After reviewing the federal government's draft request for proposals, Winter wrote that the F-35 would not be able to participate given the way the system is structured now.

"Fundamentally, the F-35 program is different from Foreign Military Sales or Direct Commercial sales procurements," said the Dec. 18, 2018 letter.

"The current [Future Fighter Capability Program] does not allow the F-35 to participate in a fair and open competition that recognizes the special nature and distinct advantages of the partnership."

Lockheed-Martin is one of four manufacturers that plan to bid on the fighter jet replacement program. Several defence and defence industry sources told CBC News in a story published last month that the full tender was expected to be released at the end of May, with final bids to be delivered by the end of the year.

There is considerable uncertainty about the timeline, however, because of questions and disputes about the project's industrial expectations.

"A delay is inevitable," said one defence industry source on Monday.

With the release of the letters, the institute's analysis peels back the curtain on perhaps the most contentious of the disputes: how to reconcile the existing F-35 benefits package with the federal government's standard procurement model.

Lockheed-Martin would not confirm whether the issues raised in the letters remain active concerns, but sources within both the defence industry and the federal government say there is an ongoing dialogue.

The U.S. defence giant, in a statement, said it did not commission the report but acknowledged it had provided "factual information to several think tanks in Canada" about its various programs.

The company said the structure of the F-35 program means it is the U.S. defence department that does all of the talking.

"We continue to provide our feedback to the U.S. government, which leads all government-to-government discussions related to the Canadian fighter replacement competition," said Cindy Tessier, head of communications for Lockheed Martin Canada.

She touted the $1.25 billion in contracts already awarded to Canadian companies because of the F-35 program and said the potential is there for more work once the fighter aircraft reaches full production in a few years.

"As a valued current partner on the program, Canadian industry has the opportunity to produce and sustain components and systems to a fleet that is expected to grow to more than 4,000 aircraft," she said.

A spokeswoman for Public Services Minister Carla Qualtrough did not address the Pentagon letters directly, but did say the government has engaged in continuous dialogue with potential bidders as it sought feedback on the proposed tender.

"The approach is inherently designed to encourage continuous supplier engagement," said Ashley Michnowski. "We do this so that suppliers are able to make informed business decisions.

"Our government has been hard working to address as much of the supplier feedback as possible to ensure a level playing field and a fair and open competition with as many eligible suppliers as possible."

The process is not yet complete, although it is nearing its conclusion and a final request for proposals will be issued soon, she added.

https://www.cbc.ca/news/politics/trump-administration-claims-ottawa-s-jet-procurement-plan-is-unfair-to-f-35-says-report-1.5125009

On the same subject

January 11, 2021 | Local, Aerospace, Naval, Land, C4ISR, Security

Canada’s defense minister: Our investment in defense is an investment in North American security
By: Harjit Sajjan For any military force, maintaining an advantage requires innovation and investment. It is why Canada is modernizing our Army, Navy and Air Force while putting our serving members in the Canadian Armed Forces at its core. To ensure our people have the most advanced capabilities and tools for the future, Canada is putting a greater focus on research and development, supporting innovators in industry and in government, and building a closer relationship between these two worlds. Since 2017, when we published our fully funded 20-year defense policy “Strong, Secure, Engaged,” we have seen significant changes in the global security environment. These new challenges underscore the need to invest in defense as a matter of national security and economic vitality. “Strong, Secure, Engaged” was released at a time when the dominant forces of the current security environment were just beginning to take shape. Today, Canada faces a world defined by great power conflict, rapid military modernization by states set on upending the international rules-based order, and advances against disruptive technologies in which North American geography no longer affords the protection it once did. While we have traditionally been able to address threats abroad before they reach our shores, our security requires reinforcement. While this new space has many unknowns, we know that multilateralism and supporting the rules-based international order is critical to our success and our safety. Since 2017, Canada has increased our support to NATO partners through Operation Reassurance — which has seen Royal Canadian Navy ships deployed in the Black Sea region, the Royal Canadian Air Force supporting air policing in Romania, and Canadian Armed Forces members leading the Enhanced Forward Presence Battlegroup in Latvia — as well as through our work leading NATO Mission Iraq and our support for the coalition. We also know that this changing security landscape means we need to take a thorough look at how we can secure North America against the threats of today and the future. It is why Canada continues to work with our American partners on the modernization of North American Aerospace Defense Command to build continental resiliency. This critical work will ensure that Canada and the United States of America have the ability to detect, deter and respond to threats, and that the only binational command in the world can meet the challenges of the 21st century. For many years now, the Department of National Defence has worked hard to keep defense industries informed of future investment opportunities that will continue generating jobs and improving Canada's capacity for innovation. It is one reason that we have a forward-looking, 10-year defense investment plan that is updated every three years. This engagement with industry has become an integral part of the procurement process, providing critical insights while showing industry that we are a predicable partner. Despite the unexpected challenges during 2020, Canada reached important milestones for key defense projects. In July 2020, the first Arctic and offshore patrol ship was delivered to the Royal Canadian Navy, followed in the fall by delivery of the first new fixed-wing search and rescue aircraft to the Royal Canadian Air Force. Construction of armored combat support vehicles for the Canadian Army began in May 2020, with the first vehicle delivered to the Armed Forces in December 2020. We also continue to invest hundreds of millions of dollars into equipping members of our armed forces. We now see unprecedented innovation in all corners of the world, which militaries can harness to quickly understand and respond to potential threats before they cause harm. It is why new and emerging technologies in cyber and artificial intelligence are becoming an integral part of defense projects. Canada is growing its defense industry by leveraging research and development from both industry and government to achieve the best results. By working together, we can come up with innovative solutions to increase Canada's operational effectiveness while showing that defense is forging a path to the future. In addition to embracing innovation within defense institutions and industry, more work is needed to support our people. The Canadian Armed Forces is a diverse institution, and our equipment needs to recognize that. It is why the Gender-based Analysis Plus process looks at factors such as gender, race, religion and ethnicity so that our defense projects better meet the needs of armed forces members. These changes help get the best out of our people, producing meaningful results. For example, changes made to the brake pedal assembly in the new armor-protected cab of the Standard Military Pattern vehicle ensure all soldiers, no matter their size, can safely operate these vehicles. By building an agile, well-educated, flexible, diverse, combat-ready military, we will be able to deal with threats abroad to protect stability at home. This historic investment through “Strong, Secure, Engaged” allows Canada to modernize our military by putting our people at its core as we continue to step up our contribution to North American and global security. When our partners and allies call upon Canada, we will be there for them. Harjit Sajjan is Canada's minister of national defense. https://www.defensenews.com/outlook/2021/01/11/canadas-defense-minister-our-investment-in-defense-is-an-investment-in-north-american-security/
October 5, 2020 | Local, C4ISR, Security

CyberSecure certification to help protect businesses from cyber attacks
NEWS PROVIDED BY Innovation, Science and Economic Development Canada New Government of Canada program will help small and medium-sized organizations improve competitiveness OTTAWA, ON, Oct. 2, 2020 /CNW/ - By investing in cyber security, Canadian businesses are giving themselves a competitive advantage. Effective cyber security limits the direct and indirect impact of cyber attacks on a business, such as financial loss, litigation, and damage to its reputation and critical infrastructure. It not only protects a business but also inspires customer confidence and Canadians' trust. Today, at the start of Cyber Security Awareness Month, CyberSecure Canada is officially launching a web portal to help organizations obtain cyber certification. Canada's cyber security certification program helps small and medium-sized organizations assess, plan and implement cyber security practices to guard against cyber attacks, protecting their business, their clients and their partners. By obtaining CyberSecure certification, Canadian organizations will: protect their data and cyber activities; increase supply chain trust and confidence among suppliers, customers and investors; establish valued relationships with their partners and consumers, who will know steps have been taken to mitigate risks; and increase their competitive advantage. Cyber Security Awareness Month is an internationally recognized campaign held each October to inform the public of the importance of cyber security. Led by the Communications Security Establishment (CSE), it is focused on helping all Canadians be more secure online by being informed and knowing the simple steps to take to protect themselves, their families, their workplace and their devices. Cyber security is a challenge for all of Canada, and we need all Canadians to do their part to keep Canada cyber-safe! Quote "With the current COVID-19 crisis, Canadian businesses are relying on technology more than ever. Many businesses had to quickly pivot to remote work and online operations while dealing with a spike in the number of cyber attacks, phishing scams and other security-related issues during the pandemic. The new CyberSecure Canada certification program will help businesses protect themselves from these threats, give Canadians confidence in continuing to work and grow in the digital economy, and reduce the costs of cybercrime." – The Honorable Navdeep Bains, Minister of Innovation, Science, and Industry Quick facts CSE's Cyber Centre continues to deliver world-class dynamic defence of Canadian government networks, routinely protecting federal systems from almost 2 billion malicious actions every day. The CyberSecure Canada program, announced in Budget 2018, launched the pilot phase in August 2019. The aim of the program is to encourage small and medium-sized organizations to improve their cyber security by implementing a baseline set of security requirements and completing a certification process through a third party accredited certification body. The Cyber Security Review called for the Government of Canada to back a standard for cyber security, as outlined in the National Cyber Security Strategy. Canada's Digital Charter, launched in spring 2019, is a result of the National Digital and Data Consultations with Canadians. The CyberSecure Canada program supports the Charter's "Safety and Security" principle: Canadians will be able to rely on the integrity, authenticity and security of the services they use and should feel safe online. https://www.newswire.ca/news-releases/cybersecure-certification-to-help-protect-businesses-from-cyber-attacks-890953890.html
April 8, 2022 | Local, Aerospace, Naval, Land, C4ISR, Security

Announcing a major boost to defence spending, Freeland delivers a wartime speech | CBC News
Observers in the national security sector — accustomed to hearing cabinet ministers talk in circumspect terms about Canada's war-fighting abilities — say they were surprised by the unambiguous language about Russia's war on Ukraine in Finance Minister Chrystia Freeland's budget speech.

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