U.S. approves possible sale of P-8A aircraft and equipment to Canada for $5.9B - Skies Mag

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  December 7, 2018 | Local, C4ISR

  Raytheon building Canadian radar to test effects of Aurora Borealis

  Project could lead to a new polar radar system to monitor the Canadian north CALGARY, Alberta, Dec. 4, 2018 /CNW/ -- Raytheon Canada Limited (RCL), a subsidiary of Raytheon Company (NYSE:RTN), will design, build and install two over-the-horizon radar sites in Canada's polar region to determine what effects, if any, the Aurora Borealis has on target detection along the Canadian north. These two contracts, totaling $30 million, resulted from a competitive solicitation posted on BuyandSell.gc.ca by Public Services & Procurement Canada on behalf of the Department of National Defence. These contracts will enable Defence Research and Development Canada to conduct a feasibility study of using sky-wave Over-The-Horizon Radar technology, in the arctic, to determine the effect of the Aurora Borealis on target detection beyond line-of-site. Working with Raytheon Intelligence, Information and Services, RCL will build two test sites to gauge how the Northern Lights may impact operations. Should those tests prove successful, Canada may decide to build additional radar sites to monitor its increasingly accessible arctic waterways. "Raytheon built and operates a similar radar system in the U.S. which has been key to defending America's borders," said David Appel, director for mission systems at Raytheon IIS. "A full over-the-horizon radar will monitor the arctic, as those waters have become more accessible to shipping traffic." Raytheon also will work with local companies to design and build the system. "We will be working with Canadian suppliers to secure the Canadian north," said Terry Manion, RCL vice president and general manager. "We understand the environment and can provide crucial technologies which may lead to significant long term economic growth." About Raytheon Canada Limited Raytheon Canada Limited (RCL) is a subsidiary of Raytheon Company. RCL is a leader in high technology solutions, engineering services, surveillance and navigation systems including air traffic control radars, highway traffic management systems, maritime surveillance radars and systems, and precision optics. About Raytheon Raytheon Company, with 2017 sales of $25 billion and 64,000 employees, is a technology and innovation leader specializing in defense, civil government and cybersecurity solutions. With a history of innovation spanning 96 years, Raytheon provides state-of-the-art electronics, mission systems integration, C5I™ products and services, sensing, effects, and mission support for customers in more than 80 countries. Raytheon is headquartered in Waltham, Mass. Follow us on Twitter. Media Contact Chris Johnson +1-571-250-3418 Chris.Johnson@raytheon.com SOURCE Raytheon Company https://www.newswire.ca/news-releases/raytheon-building-canadian-radar-to-test-effects-of-aurora-borealis-701865451.html

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  June 11, 2018 | Local, Aerospace, Naval, Land, C4ISR

  DND unable to spend billions in equipment funds, pushing projects beyond next election

  Murray Brewster National Defence fell $2.3 billion short in its plan to re-equip the military in the past year — a failing that one defence analyst says guarantees many important decisions on warplanes, ships and vehicles will be pushed beyond next year's election. Defence Minister Harjit Sajjan revealed the figure Wednesday as he launched the department's long-anticipated investment plan at a major defence industry trade show in Ottawa. The plan is the Liberal government's spending roadmap for its defence policy, released a year ago, which pledged $6.2 billion in new capital spending in the first year. New figures show $3.9 billion was spent. Later in the day, the chair of the Liberal government's council of economic advisers underscored the importance of investment in the defence sector and how it will drive innovation in other sectors. "If we want to grow — and we can in Canada, and we want to grow more significantly — the defence sector is going to play an essential part in doing that," Dominic Barton said. Leading-edge military technology and the possibilities for its commercialization can transform the broader economy, he added. However, the investment plan presented by the Liberals on Wednesday leans heavily on refurbishing existing technology and equipment — mostly aircraft — in the coming decade. The Defence Capabilities Blue Print will see the air force's CF-18 fighter jets, C-140 Aurora surveillance planes, C-144 Challenger executive jets, C-150 Polaris refuellers and transports, CT-114 Tutor trainers and demonstration jets, C-149 search and rescue helicopters and CH-146 Griffons all given life extensions and upgrades. New aircraft, including drones, won't be introduced until the mid-2020s — or later. A defence analyst said that's no surprise since many major decisions will be pushed past the 2019 election. That means it will be up to the next government to make the tough decisions on how much to buy and how much to spend. "Unless we see an extremely busy June with a lot of announcements on milestone projects, a lot of the work is going to be left until later," said Dave Perry, an expert in procurement at the Canadian Global Affairs Institute. "They're not moving ahead as quickly as they suggested in the defence policy." The government could leave even more money on the table this year. Figures compiled by Perry, using the federal government's own budget documents and records, suggest as much as $3 billion could go unspent on military equipment in the current fiscal period. The former Conservative government was repeatedly criticized for promising the military big things in terms of equipment, but rarely delivering and allowing allocated funds to lapse. That cash was eventually kicked back to the federal treasury and used for deficit reduction. DND gets to keep money, spend it later Sajjan said defence spending is now guaranteed in the fiscal framework, the government's long-term financial plan. That means National Defence gets to keep the money and spend it later. "We always know we might not need the extra funds, but they have to be there just in case," Sajjan said. "Rest assured, the unspent $2.3 billion dollars is protected. Those funds remain available when we need them." He defended the spending "delta," saying that 30 per cent of it comes because projects came in under budget. Another 42 per cent was because of delays by defence contractors. Approximately one-third, though, relates to the department's inability to make a decision — or develop specifications on time. Sajjan took a shot at the government of former prime minister Stephen Harper, which used to regularly publish its defence spending plans, but never had specific funding attached to individual projects. Conservative defence critic James Bezan said there is a disconnect between the government's defence policy and its spending plans as outlined in federal budget documents. "Nothing seems to match," said Bezan, who treats the federal budget as the last word in spending. There was no mention of National Defence in Finance Minister Bill Morneau's latest fiscal, presented in February. Defence officials insist that is because the department's spending is already accounted for in the fiscal framework. The federal Treasury Board, however, must approve funding on a project-by-project basis — and Bezan said that hasn't been done. "There's no money to do the things Sajjan is out there talking about," he said. "We are still dealing with the problems of getting procurement done in a timely manner and getting it done on budget." The head of a defence industry group — Sajjan's audience as he made the announcement — said the government does deserve credit for consulting more about projects ahead of time, but there are obvious shortcomings. "Any time funding moves to the right, it is a predictability problem for us. We want as as predictable and as stable funding as we can get," said Christyn Cianfarani, the president and CEO of the Canadian Association of Defence and Security Industries. "I still think, systemically, there is a problem and if we don't turn it upside down and shake it — the whole procurement system — and do things differently ... many, many things differently, we'll still see sluggishness in the procurement system." He said the Liberal investment plan is not "aspirational" and states clearly where the cash is coming from. The Conservative guidebook in the end "did not deliver for the men and women in uniform," Sajjan told the audience of defence contractors. http://www.cbc.ca/news/politics/sajjan-dnd-equipment-funds-1.4683606

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  June 25, 2019 | Local, Naval

  Cost of 15 new Canadian warships rises to $70 billion: PBO report

  By Christian Paas-Lang Canada's 15 new warships will cost almost $70 billion over the next quarter-century, according to Parliament's budget watchdog, and the cost could change further depending on the final design of the ships and when they actually get built. The estimate, released in a report by the parliamentary budget office Friday, is up substantially from a Canadian government estimate in 2017 that pegged the price of the project at between $56 billion and $60 billion. The 2017 estimate was itself a revision of the project's original $26-billion price tag. Also in 2017, the PBO estimated the total cost of the ships to be $61.8 billion, but its report released Friday updates that to reflect the design of the ships — frigates known as “Type 26” — which wasn't known at the time. It also accounts for delays in the project. The Canadian government will now pay out $69.8 billion over 26 years, the PBO estimates. In a statement released shortly after the PBO report, the Department of National Defence said it remained “confident” in its 2017 estimate, and that the “vast majority” of the difference between the estimates came from the PBO's choice to include taxes in its projections. Taking away taxes brings the two estimates to within 10 per cent of each other, the DND said. But the department conceded that any small difference means hundreds of millions of dollars in costs for taxpayers. The PBO report says the difference in the estimates is due to a later start date for construction and a heavier ship design. The report assumes ships will start being built by the 2023-2024 fiscal year, three years later than its 2017 projection. As the timeline extends into the future, costs increase due to inflation. The PBO originally projected a displacement, or weight, of 5,400 tonnes for each ship but the Type 26 design is a heftier 6,790 tonnes per ship, an increase of more than 25 per cent. The report also includes an analysis of what effect further significant delays would have on the project. For a one-year delay, the PBO estimates, an extra $2.2 billion will be added to the project cost, and a two-year delay would cost the government $4.5 billion. In an interview Friday, the top bureaucrat in charge of procurement at the DND expressed skepticism that the heavier ships will result in as much increased cost as the PBO suggests, but he did say the potential for delays was something he is “watching more carefully.” “The labour piece is always where uncertainty can remain,” said Pat Finn, the department's associate deputy minister for material, noting labour can make up around 40 per cent of the cost of a ship. Finn said the DND is in the “same place” as the PBO on the cost of “slippage” — delays in the project — but that he is confident the structure of the National Shipbuilding Strategy will mean the project could benefit from a skilled workforce and ongoing expertise. The purchase of additional Arctic patrol ships, announced last month, means there will not be a lapse in efficiency at Irving's Halifax shipyard, which is building the warships, Finn said. He set a goal for start of construction earlier than the PBO assumes in its report. “We would say between mid-2022 and mid-2023, we're in-contract and cutting steel,” Finn said. Potential delays would certainly increase costs, and it would be “absolutely no shock if there was additional delays,” said Dave Perry, a procurement expert with the Canadian Global Affairs Institute. “To this point in time, the government has not been able to meet any of the timelines that have been put forward publicly,” he added. Still, the closer you get to construction, Perry said, the less uncertainty there should be about costs and the potential for further delay. The last thing that might change the final cost of the ships is the specifics of what components are chosen to fill out the design — which radar equipment, for example, Perry said. The DND is deciding on those components as it reconciles the requirements of the ships with costs. “You could potentially get a few-percentage-point swing” in price in either direction based on those choices, said Perry. “But if you're talking about several tens of billions of dollars, a few-percentage-points swing is real money.” https://globalnews.ca/news/5418997/canada-warships-cost/