ViaSat’s KOR-24A STT first small radio to pass testing for Canada’s ASCCM

On the same subject

• 

  March 17, 2021 | Local, Aerospace, Naval, Land, C4ISR, Security

  No title found

• 

  December 20, 2018 | Local, Land

  Saudis fall $1.8B behind in payments for arms deal with Canada

  NORMAN DE BONO Saudi Arabia has fallen behind in making payments on its $15-billion arms deal with Canada, a contract that Prime Minister Justin Trudeau has said he's looking for ways to halt. The Saudi government was short $1.8 billion in payments to the end of September for light-armoured vehicles assembled at General Dynamics Land Systems Canada (GDLS) in London, according to financial statements from the Canadian Commercial Corp., the federal Crown corporation overseeing the controversial contract. “It is a problem. There is concern, absolutely,” a federal official with knowledge of the agreement told The London Free Press on Wednesday. The arrears on the deal can be traced to a new regime in Saudi Arabia since the agreement was signed in 2014, and there have been delays in payments since the change, said the official, who declined to be identified. “That changed the way everything worked, including payments,” he said of the desert kingdom's new leadership. However, since September the oil-rich country has been making payments and has reduced the amount owed, the official added. The deal, which the Liberals are under pressure to scuttle amid Saudi human rights abuses, including the slaying of dissident journalist Jamal Khashoggi at the country's consulate in Turkey, affects thousands of workers in the London area and in a supply chain that extends nationwide. Trudeau, whose government inherited the deal from former prime minister Stephen Harper's Conservatives, said publicly this week for the first time that the Liberals are trying to find a way to stop the sale involving hundreds of light-armoured military vehicles built by the Canadian division of American defence giant General Dynamics. The report by the Crown corporation handling the sale says “trade receivables” are short $1.86 billion as of quarterly statements ending Sept. 30, and that payments have been sparse over the course of about one year. “The significant increase in past due trade receivables, is mostly attributable to the ABP contract,” the report says, referring to the armoured brigades program. “Trade receivables are considered past due when the payor has failed to make the payment by the contractual due date.” The payment issue hasn't been helped by recent public musings by Trudeau, who on Sunday told CTV's Question Period the government is looking for a way to halt the sale. “We are engaged with the export permits to try and see if there is a way of no longer exporting these vehicles to Saudi Arabia,” he said, without being specific. Such a move would devastate GDLS Canada's 1,800-member workforce in London, as well as thousands of jobs with supplier companies, said David Perry, a senior analyst with the Canadian Global Affairs Institute think-tank. The Saudis may now feel even less inclined to write a cheque, he added. “It does not give the Saudis a reason to catch up on payments. The government of Canada is responsible for making sure GDLS gets paid for the work it has done,” said Perry. It also makes even less sense that Ottawa should want out of the deal now, he added. Not only would the federal government incur billions of dollars in penalties, according to GDLS Canada, but the Saudis aren't likely to pay the balance owed. “It does not make sense. It would leave the government out of pocket,” said Perry. A review of the quarterly reports suggest payments began slowing about a year ago, he added. “We are right back to dealing with an unreliable client, and that is a problem,” said London-Fanshawe NDP MP Irene Mathyssen. “Work has been done and they have not seen fit to pay their obligation.” She also slammed Trudeau for creating uncertainty around the issue. “It is a problem, it creates stress. The PM cannot make up his mind about what to do.” As for why payments aren't being made, Mathyssen cites reports of financial issues with the Saudi government. Media in May reported soaring debt in Saudi Arabia and economic woes as a result of low oil prices. “There have been reports they overspent, they do not have the cash they once did,” said Mathyssen. “Saudis are used to dictating to the world because they hold such significant oil reserves. They are used to calling the shots.” The Canadian Commercial Corp. (CCC) helps businesses sell overseas and works with foreign governments to buy here. It declined comment on the quarterly reports, saying financial matters between the Crown corporation and business are confidential. “CCC is bound by commercial confidentiality, and, as such, we are not able to disclose the details of our contracts or their management,” the company wrote in an email message. James Bezan, the Conservative critic for national defence, blamed Global Affairs Minister Chrystia Freeland for the slowing cash flow. Her tweets in May criticizing the Saudi human rights record coincide with fewer payments made, he said. “It is concerning. It occurred after irresponsible tweets from Freeland rather than working through proper diplomatic channels,” he said. “The Liberals are prepared to trade away good jobs in London and southern Ontario rather than deal with this at a diplomatic level.” Bezan encouraged the government to find other ways to pressure the Saudis, such as targeting oil imports here, instead of cancelling a contract that would result in massive job losses. “GDLS has been on time, and on budget,” and would be the ones punished. “The government has the responsibility to work through the payments in a timely fashion,” he said. TRUDEAU WEIGHS IN ON SAUDI DEAL Speaking to reporters at a year-end news conference, Prime Minister Justin Trudeau was asked about whether he'll cancel the Saudi arms deal serviced by a major London defence contractor. “Our priority since Day 1 has been thinking about the Canadian jobs, the workers in London, and in the supply chains that have fed into this contract. We know that there are a lot of hard-working families in London who rely on these jobs, and we're going to keep those jobs in mind.” Says the contract, signed by the previous Conservative government, includes a confidentiality clause that prevents him from discussing what's in it, or the nature of the penalties for breaking the contract. Says Canadians are increasingly questioning whether the country should do business with Saudi Arabia. Called it a “complex situation.” Says he's been answering questions about the deal since taking office Says he'll continue to reflect on the “best path forward for Canada and for Canadians.” https://lfpress.com/news/local-news/saudis-fall-1-8b-behind-in-under-fire-arms-deal-with-canada

• 

  November 19, 2019 | Local, Aerospace

  Boeing pitches guarantee of billions of dollars of work for Canadian firms if its Super Hornet is picked by Canada

  DAVID PUGLIESE, OTTAWA CITIZEN U.S. aerospace giant Boeing is pitching its guarantee of billions of dollars of work for Canadian companies as well as keeping aircraft maintenance in country as it tries to convince the Liberal government to select a new version of the Super Hornet fighter jet. Boeing is hoping that new technology on the Super Hornet and its commitment to place as much as $30 billion of work with Canadian firms will result in it winning the competition to build 88 jets. The move comes as the NDP and aerospace unions are becoming more vocal about the need for Canada's fighter jet replacement project to pay major dividends for the economy. NDP leader Jagmeet Singh said last week he would be pushing that issue when Parliament returns and he hopes to have a discussion with the Liberal's new defence minister about how Canadian jobs can be created and sustained by the program. Boeing had been non-committal to the Canadian program as it reviewed the bidding requirements throughout the summer. But that changed last week when Boeing confirmed it was in the race. “We wouldn't be having this conversation if we didn't think we had a very realistic chance of winning,” Boeing executive Jim Barnes said in an interview with this newspaper. Lockheed Martin's F-35 stealth fighter is considered the top contender in the project that will see the purchase of new jets at a cost of between $15 billion and $19 billion. Saab of Sweden is also in the competition, offering the Gripen fighter jet. The issue of guaranteed economic benefits for Canada could be a problem for the Liberal government, which under pressure from the U.S., changed the procurement rules to allow the F-35 to be considered. Because of the way the U.S.-led F-35 program is structured, Lockheed Martin cannot provide guarantees of any work for Canadian firms, a stance that in the past would have disqualified a company from bidding on a major defence acquisition. In early September, the union representing machinists in the aerospace industry warned that the changes made for Lockheed Martin would come at the expense of other firms offering guaranteed work for Canada's aerospace sector. In addition, the union is worried that if Canada were to purchase the F-35 then most of the key maintenance would be done in the U.S., putting in jeopardy 600 jobs at L-3 in Mirabel, Que. L-3 conducts maintenance on the Royal Canadian Air Force's current CF-18 fighter fleet. Barnes said Boeing was surprised about the change in the Canadian competition that lifted the need for guarantees on providing domestic firms with work equal to, or more than, the cost of the project. Boeing has L-3 on its fighter jet team as well as Peraton Canada Corp., CAE Inc., GE Canada and Raytheon Canada. Barnes said over the years the Canadian government has built up a capability to maintain its fighter jets at home by using those companies. “So we are leveraging that investment by the government of Canada,” he added. Boeing officials say they are confident in guaranteeing billions of dollars of work for Canadians as the company has an extensive presence in both military and commercial aerospace around the world as well as its own facilities in Canada. Lockheed Martin has countered that while there are no guarantees of work on the F-35 program, Canadian firms have picked up more than $1.3 billion in contracts on the project over the last 12 years. The amount of those contracts could significantly increase as more F-35s are delivered to the U.S. and Canada's allies, Lockheed Martin officials have noted. Boeing is offering what is known as the Block 111 Super Hornet, an advanced version of the existing aircraft. Earlier this year the U.S. Navy confirmed it is purchasing 78 of the aircraft which are equipped with a new computer, sensors and data links to boost the amount of information that can be received or transmitted. The aircraft also has satellite communications, which is important for Arctic operations, Boeing noted. Some stealth aspects have also been added and Boeing says it has been able to increase the life of the aircraft from 6,000 flight hours to 10,000 flight hours. It is also pitching the new Super Hornet as less costly to maintain. The aircraft costs about $18,000 U.S. an hour to operate compared to the F-35 which costs $44,000 U.S. The Pentagon and Lockheed Martin are working on reducing that F-35 cost. Bids for the Canadian program must be submitted by the spring of 2020, and the winner is expected to be determined by early 2022. The first aircraft would be delivered by 2025. Technical merit will make up the bulk of the assessment at 60 per cent. Cost and economic benefits companies can provide to Canada will each be worth 20 per cent. A trade dispute between Canada and Boeing over duties on Canadian-made civilian passenger jets prompted the Liberals to include in the fighter jet competition a clause that would consider any economic harm a company has done to Canada. Barnes said that clause is in the bidding documents. Boeing, however, does not see that as a problem for the company as it ultimately lost the trade dispute. https://ottawacitizen.com/news/national/defence-watch/boeing-pitches-guarantee-of-billions-of-dollars-of-work-for-canadian-firms-if-its-super-hornet-is-picked-by-canada