May 8, 2019 | Local, Aerospace
The American government is once again urging Canada to acquire U.S.-built fighter jets to replace its fleet of CF-18s, one day after it emerged the Pentagon recently threatened to pull the F-35 out of the $26-billion competition for new aircraft.
The contradictory messages from the U.S. government showcase how the Americans are trying to prevent a tendering process that would favour European manufacturers at the expense of either the Lockheed Martin F-35 or the Boeing Super Hornet.
The Canadian government is weeks away from launching a competition for 88 new fighter jets, with the two American firms set to enter into a competition against the Swedish Gripen and the Eurofighter Typhoon, which is built by a consortium that includes Airbus.
In a statement on Tuesday, the American government called on Canada to make sure its fighter jets can operate alongside U.S. military aircraft around the world. The “crucial” point, according to the American government, is Canada's participation in the North American Aerospace Defence Command (NORAD) that controls the Canadian and American airspace.
Only U.S.-built fighter jets currently operate in NORAD and European aircraft would face technological hurdles in gaining the ability to fully integrate into the bi-national military alliance.
“We continue to believe in the importance of NATO and NORAD interoperability as a crucial component of Canada's acquisition of defence assets,” said Joseph Crook, a spokesman for the U.S. embassy in Ottawa.
Mr. Crook added the American government remains “hopeful that U.S. firms are able to participate in open and transparent competition processes that can support Canada's NATO and NORAD obligations, especially when it comes to co-operative engagement capabilities.”
On Monday, the Macdonald-Laurier Institute published letters from American officials who warned their Canadian counterparts last year that the F-35 might be pulled from the competition unless Canada's requirements for industrial benefits were modified.
The American government is concerned about Canada's Industrial and Technological Benefits (ITB) policy, which requires the winner of the contract to invest the equivalent of the acquisition cost in Canada.
Built by Lockheed Martin, the F-35 is a stealth aircraft developed by an international consortium of allied militaries under a program that specifically rejects the application of traditional industrial benefits. Canada has been a member of the program since 2006.
In an interview after a cabinet meeting on Tuesday, Defence Minister Harjit Sajjan said he has sought to reassure the Americans by pointing out that the Canadian government will focus mostly on technical capabilities in deciding which aircraft to purchase.
“First of all, the capabilities of the aircraft is the number one priority. Making sure we meet the needs of the Canadian Armed Forces – the Air Force in this particular case – is the number one priority. We will always make sure that will happen,” Mr. Sajjan said.
He added that obtaining benefits for the Canadian economy is also important, while suggesting the matter will have less importance in the final weighting of the bids.
“This obviously factors into the equation, but the capability requirements for the Canadian Armed Forces is always the number one priority,” he said.
In a speech laying out his foreign-affairs policy on Tuesday, Conservative Leader Andrew Scheer said he will seek to modernize the NORAD alliance if his party forms the next government, including through the purchase of fighter jets that can defend North America alongside the U.S. fleet.
“I will act to select a new fighter jet through an open competition and make sure the new jets are interoperable with our American allies,” Mr. Scheer said.
Vice-Admiral Mathias Winter of the U.S. Navy said in a letter last December that Canada has received US$1.3-billion in economic benefits from its participation in the F-35 program to this point.
“The F-35 supplier team will submit an F-35 offer only if (1) the ITB requirement is waived entirely and (2) there is no future ITB obligation arising from selecting the F-35,” Vice-Adm. Winter said in his letter.
November 18, 2022 | Local, Aerospace, Naval, Land, C4ISR
Halifax has been chosen by the federal government to host the new North American NATO defence innovation office, Defence Minister Anita Anand said Friday.
April 26, 2018 | Local, Naval
David Pugliese The problems centre around technical issues. Some are minor but in other cases there is a view among defence industry officials that Canada is asking for too much in some areas Canada's quest for a new fleet of warships is off to a rocky start with all bidders failing to meet some of the federal government's requirements. Procurement officials are now trying to regroup on the $60-billion project and figure out ways that bidders might be able to change their proposals to make them acceptable, a number of defence industry executives pointed out. The problems centre around technical issues. Some are minor but in other cases there is a view among defence industry officials that Canada is asking for too much in some areas such as radar, which may be causing problems with meeting requirements. Public Services and Procurement Canada spokeswoman Michèle LaRose said the bids received for the Canadian Surface Combatant project have not been disqualified. Three bids have been received. The federal government and Irving Shipbuilding are still evaluating the proposals, she added. LaRose pointed out that the evaluation is at the second stage in the process. Government officials say that involves what is known as “the cure process” in which bidders will be given details of how their proposals have failed to meet the stated criteria. They will then be given only one opportunity to fix issues with their bids. If they are still considered “non-compliant” after the cure period they “will be eliminated from the competition,” according to the federal government. Technical specifications are now being evaluated by the government. Later this year, the companies will provide the financial information related to their bids. Warship builders submitted their bids on Nov. 30. A winning bid is expected to be selected sometime this year. Irving Shipbuilding will begin construction of the first ship in the early 2020s and delivery of the first vessel is expected in the mid-2020s, according to the federal government. But the project has been plagued with delays and controversy. The final cost of the ships is still unknown. In 2008 the government estimated the total cost of the project to be about $26 billion. But in 2015 navy commander Vice Admiral Mark Norman voiced concern that taxpayers may not have been given all relevant information, and publicly predicted the cost for the ships alone would be around $30 billion. Cost estimates for the project are now between $55 billion and $60 billion. About half of the cost is for systems and equipment that will go on the 15 ships, according to federal documents obtained by Postmedia through the Access to Information law. “Approximately one-half of the CSC build cost is comprised of labour in the (Irving's) Halifax yard and materials,” the documents added. Last year, Jean-Denis Fréchette, the parliamentary budget officer, estimated the CSC program would cost $61.82 billion. He also warned that every year the awarding of the contract is delayed beyond 2018, taxpayers will spend an extra $3 billion because of inflation. The surface combatant will be the backbone of the future Royal Canadian Navy. In November in a surprise twist a French-Italian consortium declined to formally submit a bid and instead offered Canada a fleet of vessels at half the price. Officials with Fincantieri of Italy and Naval Group of France said they don't believe the procurement process as it is currently designed will be successful. Instead they provided the Canadian government with a direct proposal that Irving Shipbuilding on the east coast construct 15 ships based on the consortium's FREMM frigate design, which is proven and is currently in operation with the French and Italian navies. They are guaranteeing the cost of the ships at a fixed price of $30 billion. The deal would have also focused on using Canadian technology on board the ships and included technology transfer to Canadian firms, so they could be involved in future sales of the FREMM vessels on the international market. FREMM ships are operated by the Italian, French, Moroccan and Egyptian navies. Under that plan, Irving could start building the warships almost immediately. The Liberal government, however, rejected the deal. http://nationalpost.com/news/canada/new-canadian-warship-project-off-to-rocky-start-as-bidders-fail-to-meet-some-requirements
March 27, 2023 | Local, Other Defence
U.S. President Joe Biden on Monday invoked the Defense Production Act to spend $50 million on domestic and Canadian production of printed circuit boards, citing the technology's importance to national defense.