May 7, 2019 | Local, Aerospace

U.S. threatens to pull F-35 from jet competition over industrial requirements

OTTAWA — U.S. officials have threatened to pull the F-35 out of the competition to replace the Royal Canadian Air Force's aging CF-18 fighters over the Liberal government's plan to ask bidders to re-invest some of the giant purchase contract in Canadian industry.

The warnings are in two letters sent to the government last year and obtained by defence analyst Richard Shimooka. They were released in a report published Monday by the Macdonald-Laurier Institute think-tank.

They say the requirement is incompatible with Canada's obligations as a member of the group of countries working together to develop the F-35 stealth fighter in the first place.

While the re-investment requirement is standard for most Canadian military procurements, the U.S. officials note Canada agreed not to include it when it signed on as one of nine F-35 partner countries in 2006.

Companies in those countries must instead compete for work associated with the plane — only companies from those countries are eligible, but they're supposed to compete on equal footing. The U.S. officials say conditions on bidders that would privilege Canadian companies will mean the F-35 won't be entered in the race.

The F-35, which is built by Lockheed Martin, had been expected to go up against the Eurofighter Typhoon, Saab Gripen and Boeing Super Hornet for an 88-plane procurement worth about $19 billion. French company Dassault pulled its Rafale from contention late last year.

"In summary, we cannot participate in an offer of the F-35 weapon system where requirements do not align with the F-35 partnership," U.S. Vice-Admiral Mathias Winter, program executive officer for the Pentagon's F-35 office, wrote on Dec. 18. "Such an offer would violate (the F-35 agreement) and place the entire F-35 partnership at risk."

In his letter to Paula Folkes-Dallaire, senior director of the fighter-jet program at Public Services and Procurement Canada, Winter asked for clarity by Jan. 31 as to the government's decision on the re-investment requirements.

Winter's letter followed a similar one from Ellen Lord, the Pentagon's head of military procurement, on Aug. 31, 2018.

In a statement, Public Procurement Minister Carla Qualtrough's spokeswoman said the government has engaged in several rounds of discussions and exchanges with potential bidders, which included providing them with opportunities "to ask questions, raise concerns and provide suggestions.

"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," added Ashley Michnowski.

"This stage of the process is not yet complete, though is nearing its conclusion and a final (request for proposals) will be issued soon."

The Pentagon's F-35 office did not return requests for comment.

Stephen Harper's Conservatives first announced plans to buy 65 F-35s without a competition in 2010, but backed off that plan over questions about cost and concerns over the Defence Department's tactics in getting government approval for the deal.

During the 2015 federal election campaign, Justin Trudeau's Liberals promised they would immediately launch an open and fair competition to replace the CF-18s, but not buy the F-35.

The Trudeau government has since said the F-35 will be allowed to compete while officials had been expecting to finally launch that competition in the coming weeks.

That the re-investment requirement remains unresolved is both surprising and unsurprising given defence experts have long warned it would be a significant obstacle to running a fair and open competition that includes the F-35.

Canada, which has already contributed roughly $500 million over the past 20 years toward developing the F-35, could in theory quit as a partner country, but would have to pay more for the stealth fighters if the F-35 won the competition.

Canada could also be on the hook for hundreds of millions more in development fees despite quitting the program, while Canadian companies would not be allowed to compete for work related to the aircraft.

In a recent interview, the Department of National Defence's head of military procurement, Patrick Finn, said the government is trying to strike the right balance between military and economic priorities when it comes to the fighter-jet competition.

"The feedback we're seeing from some suppliers some are quite content, some would like to see some more flexibility in other areas," he said.

"So it's making all of that work, respecting (companies') strengths, keeping everybody in the competition and doing it in a way that brings the right capability to the air force for decades to come."

—Follow @leeberthiaume on Twitter

Lee Berthiaume, The Canadian Press

https://www.nationalnewswatch.com/2019/05/06/ottawas-planned-fighter-competition-incompatible-with-f-35-obligations-u-s-3

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October 12, 2018 | Local, Aerospace, Security

Vancouver Island company to advance aerospace innovation and firefighting technology
Investment helps create up to 15 new high-value, local jobs and global opportunities PORT ALBERNI, BC, Oct. 11, 2018 /CNW/ - Canadians will benefit from a stronger aerospace industry and better aerial firefighting technology thanks in part to a new investment in a British Columbian firm specializing in firefighting aircraft. Today the Honourable Carla Qualtrough, Minister of Public Services and Procurement, Minister of Accessibility and Chair of the Cabinet Committee on Federal Recovery Efforts for the 2017 and 2018 British Columbia Wildfires, on behalf of the Honourable Navdeep Bains, Minister of Innovation, Science and Economic Development, announced a repayable investment of nearly $3.4 million in Coulson Aircrane Ltd., a small aviation company based in Port Alberni, British Columbia. This investment helps create good middle-class jobs and strengthens Coulson's position in the aerospace supply chain. The project will facilitate collaboration with post-secondary institutions, ensure workers have the skills they need and generate new Canadian intellectual property. This funding supports Coulson's first-of-its-kind research and development (R&D) initiative to convert a Boeing 737 plane into a dual-purpose aerial firefighting tanker / passenger aircraft that can be used to fight fires in Canada and elsewhere. This investment is being made through the Strategic Innovation Fund, a program designed to attract and support high-quality business investments across all sectors of the economy by encouraging R&D that will accelerate the transfer of technology and the commercialization of innovative products, processes and services and will facilitate the growth of innovative firms. Quotes "Our government's support for Coulson Aircrane demonstrates our commitment to Canada's aerospace industry—a major engine of innovation and a key contributor of well-paying jobs to the national economy. By investing in innovative projects like this one at Coulson, we're creating new opportunities for Canadians from coast to coast. That's how, through the Strategic Innovation Fund, we're investing in innovation today to create the jobs of tomorrow." – The Honourable Navdeep Bains, Minister of Innovation, Science and Economic Development "Innovative companies such as Coulson Aircrane are a key part of our government's plan to grow the economy and create well-paying middle-class jobs for British Columbians. As a world leader in aerial firefighting, Coulson is a testament to the kind of quality work that this region is capable of—and the quality talent that is right here in British Columbia. The development of this innovative technology will better protect our forests from wildfire damage and increase efficiency by providing the ability to deliver both fire retardant and fire-fighting personnel at the same time. This is a great demonstration of how Canada can lead in the technology economy.." – The Honourable Carla Qualtrough, Minister of Public Services and Procurement "Coulson Aviation is appreciative of Minister Qualtrough's announcement of Government of Canada support for innovation in Canada. This investment has been instrumental in our company's conversion of airliners into tankers for fighting fires as well as carrying passengers. Extensive aircraft modifications took place here at the Port Alberni airport, involving 140,000 hours of work in the community. We are proud that the newly completed air tankers will begin fighting forest fires globally this fall and that we are currently converting another airliner." – Wayne Coulson, CEO, Coulson Group Quick facts Coulson Aircrane is a family-owned company and a key player in the aerial firefighting business. The company works with firefighting agencies in Canada, the United States and Australia. Canada's aerospace industry includes 700 firms, directly contributes close to $12.6 billion in GDP to Canada'seconomy and employs more than 85,000 Canadians. The Strategic Innovation Fund is a flexible program that reflects the diversity of innovation in all sectors of the economy. In addition to the Strategic Innovation Fund, there are hundreds of programs and services to help businesses innovate, create jobs and grow Canada's economy. With a simple, story-based user interface, the Innovation Canadaplatform can match businesses with the most fitting programs and services in about two minutes. Follow Innovation, Science and Economic Development Canada on Twitter: @ISED_CA SOURCE Innovation, Science and Economic Development Canada For further information: Nilani Logeswaran, A/Press Secretary, Office of the Minister of Innovation, Science and Economic Development, 613-668-1794; Media Relations, Innovation, Science and Economic Development Canada, 343-291-1777, ic.mediarelations-mediasrelations.ic@canada.ca https://www.newswire.ca/news-releases/vancouver-island-company-to-advance-aerospace-innovation-and-firefighting-technology-696990951.html
May 7, 2020 | Local, Aerospace

Federal government issues another extension for fighter replacement proposals
Posted on May 7, 2020 by Chris Thatcher Public Services and Procurement Canada has extended the deadline for proposals to replace the CF-188 Hornets until July 31, 2020. The 30-day extension is a response to the coronavirus pandemic that has disrupted business operations globally, especially in the aerospace sector. “The COVID-19 pandemic is presenting numerous challenges for businesses and their workforce, including the eligible suppliers for the Future Fighter Capability Project,” said a spokesperson for the department in a statement on May 6. “The unprecedented situation has impacted proposal finalization. To support our commitment to conducting an open, fair, and transparent competition, the extension will ensure all suppliers are able to submit their most competitive offer to Canada.” Three qualified contenders remain in the competition to replace the Royal Canadian Air Force fighter jet fleet: Sweden's Saab Aeronautics with the Gripen E and the United States-backed Boeing F/A-18 Super Hornet and Lockheed Martin F-35A Lightning II. Dassualt Aviation and Airbus Defense and Space withdrew their entrants, the Rafale and Eurofighter Typhoon, in 2018 and 2019, respectively. The project, valued at up to $19 billion, is seeking proposals for 88 advanced aircraft to replace an aging fleet of 76 A and B model Hornets that began entering service in the mid-1980s. The bids will be evaluated on technical capability, worth 60 per cent of the evaluation; acquisition and operating costs (20 per cent); and economic benefit to Canadian industry, also 20 per cent and the highest weighting for economic return on any defence procurement to date. It's the second time this year the federal government has prolonged the deadline for the request for proposals (RFP). In February, at the request of one of the suppliers, it granted a three-month extension from March 30 to June 30. Release of the formal RFP was also pushed back several times before being issued in July 2019, to accommodate changes during the draft RFP process. The project is the largest acquisition in recent Air Force history and has faced numerous schedule changes over the past decade. This latest change comes a week after Canada submitted an annual payment of US$70.1 million to remain in the F-35 development program, which is being supported by nine partner countries. To date, the government has invested US$541.3 million since 1997 into the multi-variant, next-generation fighter program. However, Canadian companies have captured US$1.8 billion in work on the fighter. “This participation provides Canadian industry with contract opportunities that are only available to program participants,” a spokesperson for National Defence told Canadian Press. “Our membership will also allow us preferential pricing and sequencing in the build schedule should the F-35 aircraft be successful in the current future fighter capability program.” Despite the recent delay because of COVID-19, PSPC still anticipates to award a contract in 2022. The first new aircraft would be delivered in early 2025. In the interim, the government is acquiring and upgrading 18 operational Australian F/A-18A Hornets to augment the current fleet of 76 Hornets. The RCAF is also finalizing an upgrade package for the 76 fighters that will likely include enhancements to their combat capability. https://www.skiesmag.com/news/government-extends-fighter-proposal-deadline/
April 14, 2020 | Local, Aerospace, Naval, Land, C4ISR, Security

FUNDING for Innovators who can help fight COVID-19 / Financement pour les innovateurs pouvant contribuer à la lutte contre COVID-19
Today we launched our Testing Stream (formerly the Build in Canada Innovation Program) Call for Proposals aimed at Canadian innovators who have a prototype that can help Canada combat COVID-19 or similar future outbreaks. This call for proposals is a special edition of our Testing Stream and will be open for a limited time to support the Government of Canada's collective efforts in combating COVID-19. We are calling on innovators across the country who have an innovative solution ready to be tested by the federal government and its provincial, territorial and municipal partners to submit a proposal. You could land a sale of up to $550K, and if your innovation is deemed to be a game changer in the fight against COVID-19, under exceptional circumstances we may provide additional funding to test your innovation. This funding opportunity is open for a LIMITED time only – Apply before April 21, 2020. We are also planning the launch of a Testing Stream open Call for Proposals for any type of innovative prototype in Spring-Summer 2020. You may also be interested in three COVID-19 R&D funding challenges we recently launched: Made in Canada filtration material for the manufacture of N95 respirators and surgical masks Point of Care and Home Diagnostic Kit for COVID-19 Low-cost sensor system for COVID-19 patient monitoring APPLY ONLINE Aujourd'hui, nous avons lancé notre appel à propositions pour le volet de mise à l'essai (anciennement le Programme d'innovation construire au Canada - PICC) destiné aux innovateurs canadiens qui disposent d'un prototype pouvant aider le Canada à lutter contre COVID-19 ou d'autres épidémies futures similaires. Cet appel à propositions est une édition spéciale de notre volet de mise à l'essai, et sera ouvert pour une durée limitée, afin de soutenir les efforts collectifs du gouvernement du Canada dans la lutte contre COVID-19. Nous invitons les innovateurs de tout le pays qui disposent d'une solution innovante prête à être testée par le gouvernement fédéral et ses partenaires provinciaux, territoriaux et municipaux à soumettre une proposition. Vous pourriez décrocher une vente allant jusqu'à 550 000 $, et si votre innovation est considérée comme un facteur de changement important dans la lutte contre COVID-19, nous pouvons dans des circonstances exceptionnelles, vous fournir un financement supplémentaire pour tester votre innovation. Cette opportunité de financement est ouverte pour une durée LIMITÉE seulement - Posez votre candidature avant le 21 avril 2020. Nous prévoyons également le lancement d'un appel à propositions ouvert pour tout type de prototype innovant, au printemps-été 2020. Vous pourriez également être intéressé par trois opportunités de financement sous forme de défis visant la R&D que nous avons récemment lancée : Matériau de filtration fait au Canada pour la fabrication de respirateurs N95 et de masques chirurgicaux Système de capteurs peu coûteux surveiller l'état des patients atteints de la COVID-19 Trousse de diagnostic au point de service et à domicile pour le COVID-19 APPLIQUEZ EN LIGNE

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