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DAVID PUGLIESE, OTTAWA CITIZEN Updated: January 13, 2020 The RCAF is still working its way through various legal issues as it tries to come up with an official Canadian name for the Airbus C-295 aircraft, the service's new fixed wing search and rescue plane. The new name was supposed to be selected by November at the earliest and December at the latest. But now the RCAF says it doesn't know when it will announce a name for the planes. “The list of possible names for the CC-295 has been further narrowed down, and those names are currently undergoing legal, contractual, and trademark vetting,” RCAF spokesperson Major Jill Lawrence explained to Defence Watch. “Once the process is complete, and when appropriate, the RCAF will formally announce the new name. At this time, there is no anticipated date for that announcement.” No details were provided on the new shortlisted names. The RCAF first consulted the operational search and rescue community which came up with ten names, later narrowed down to five. After that, the public was asked to vote on the names. Around 33,000 people voted, according to Lt.-Col. Steve Neta, the director of RCAF public affairs. Another 1,600 comments were left on various RCAF social media sites. The RCAF then went back to its search and rescue personnel for more consultation. The RCAF published the five names being considered and an explanation for each name: CANSO II: Canso aircraft served with 11 RCAF squadrons during the Second World War. They operated from both coasts and were employed in coastal patrols, convoy protection and submarine hunting. After the Second World War, Cansos served with the RCAF in photo reconnaissance and search and rescue roles until they were finally retired in November 1962. GUARDIAN: A guardian is an entity that protects a community under a set of values. IRIS: Iris refers to the faculty or power of seeing. Iris was also the goddess of sea and sky in ancient Greek mythology. KINGFISHER: Found all across Canada, this bird patrols up and down rivers, constantly searching for prey. Within the First Nations of the Northwest, the kingfisher has long been recognized for its speed and agility, as well as its keen searching and hunting skills. A kingfisher was depicted on the 1986 Canadian five-dollar banknote in the “Birds of Canada” series. TURNSTONE: Turnstones are one of the migratory marvels of the Arctic bird world. They have been known to fly more than 1,000 kilometres (600 miles) in a single day. https://ottawacitizen.com/news/national/defence-watch/rcaf-still-dealing-with-legal-issues-on-new-rescue-aircraft-name-military-doesnt-know-when-it-will-be-able-to-announce-a-name

Finland, which is considering the same aircraft as Canada, for its new jet fleet, is requiring each competing aerospace company to provide two aircraft to test at low temperatures and in real world operating conditions. DAVID PUGLIESE, OTTAWA CITIZEN Updated: January 15, 2020 Canada won't conduct a fly-off between fighter jets competing to become the country's new warplane nor conduct testing to see how such aircraft perform under cold weather conditions. The decision not to proceed with such tests under Canada's $19-billion future fighter procurement program stands in contrast to Finland, which is considering the same aircraft as Canada, for its new jet fleet. Each competing aerospace company is required to provide Finland with two aircraft to test at low temperatures and be evaluated in real world operating conditions. Public Services and Procurement Canada has confirmed that Canada will not do any fly-offs among competing jet or tests for cold-weather operations like Finland has underway. “We do not have plans for an exercise of this nature,” stated department spokeswoman Stéfanie Hamel. Finland and Canada are considering the Boeing Super Hornet, Lockheed Martin F-35 and Saab Gripen. The Finnish Air Force is also testing the Dassault Rafale and the Eurofighter Typhoon, both of which pulled out of the Canadian competition because of worries the process was rigged to favour the F-35. Finland hopes to buy 64 aircraft. Canada will purchase 88 aircraft. Canadian aerospace industry representatives say the competing companies as well as allied air forces could provide Canada with results from tests they have conducted on the competing aircraft. Finland could have taken the same route but its procurement staff want to ensure the country is getting value for money since the project will cost around $14 billion. Finnish defence ministry program manager Lauri Puranen outlined in a blog post the extensive tests that will be conducted and the reasons for not relying on tests conducted by others. “The Finnish operating environment and operating methods may differ from other users' weather and lighting conditions,” Puranen stated. “Winter conditions affect the operation of the multi-function fighter and especially the performance of electro-optical systems, but possibly other active and passive systems as well.” The fighter jet candidates will be tested on the ground, in the air, and during takeoff and landing, he added. The testing of the competing aircraft is currently underway. Another series of tests involving the jets taking part in flight operations and a simulated lengthy war game will be conducted by the Finnish Air Force later this year. Finland expects to select a winner for the aircraft program in 2021. The planes, which will replace Finland's current fleet of F-18s, are expected in 2025. The Canadian government expects bids for its fighter jet program to be submitted by the end of March. A winning bidder is to be determined by early 2022. The first aircraft would be delivered to the Royal Canadian Air Force by 2025. Information about how Canada intends to evaluate the jets is limited. But Public Services and Procurement Canada has noted that 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. Concerns have been raised by Lockheed Martin's rivals that the competition has been designed to favour the F-35. This newspaper reported last year the requirements for the new jets put emphasis on strategic attack and striking at ground targets during foreign missions. That criteria is seen to benefit the F-35. In addition, the federal government changed criteria on how it would assess industrial benefits after the U.S. government threatened to pull the F-35 from the competition. The Conservative government had previously selected the F-35 as the air force's new jet but backed away from that plan after concerns about the technology and growing cost. During the 2015 election campaign, Justin Trudeau vowed that his government would not purchase the F-35. But at the same time, Trudeau stated his government would hold an open competition for the fighter purchase. The Liberal government backed away from its promise to freeze out the F-35 and the aircraft is now seen as a front-runner in the competition as it has many supporters in the Royal Canadian Air Force. Many of Canada's allies plan to operate the plane. Canada is a partner in the F-35 program and has contributed funding for the aircraft's development. https://ottawacitizen.com/news/national/defence-watch/unlike-finland-canada-nixes-cold-weather-tests-fly-off-among-competing-fighter-jets

OTTAWA — The federal government is planning to invest hundreds of millions of dollars more to ensure Canada's aging CF-18s can still fight while the country waits for replacement jets, which were originally expected years ago. The extra money comes after the federal auditor general warned in late 2018 that Canada's fighter jets risked being outmatched by more advanced adversaries due to a lack of combat upgrades since 2008 and will result in new weapons, sensors and defensive systems for the fleet. Royal Canadian Air Force commander Lt.-Gen. Al Meinzinger estimated the added cost will be around $800 million, which is on top of the $3 billion the government has already set aside to extend the lives of the CF-18s and purchase 18 secondhand fighter jets from Australia. “Canada has a history of upgrading their fighter aircraft,” Meinzinger said in a recent interview with The Canadian Press. “It's a consequence of the fact that over time, threats ... advance as technology advances.” The air force did not initially plan any upgrades to the CF-18s' combat systems after 2008 because it expected to retire the last of the fleet by 2020, when a new fleet of jets was to have taken over. Instead, thanks to how successive governments have managed — or mismanaged — the jet file over the past decade, a competition to select a new fighter for the air force is only now underway. Even then, the last CF-18 isn't scheduled to be retired until 2032. The air force “imagined perhaps transitioning the fighter force a little bit earlier,” Meinzinger acknowledged, which is why the need to invest in the CF-18s' combat systems wasn't taken — or even apparent — earlier. “Because we anticipate flying the aircraft longer, this is why we're doing what we're doing to ensure we've got at least parity with the threats that we would see over that timeline before we can transition to the new fighter,” he added. The federal auditor general flagged concerns with the combat effectiveness of Canada's CF-18s in a report in November 2018, warning that the planes “will become more vulnerable as advanced combat aircraft and air defence systems continue to be developed and used by other nations.” The auditor general also found that even though the Department of National Defence had decided to invest money into the CF-18s to keep them flying past 2020, it “removed upgrades to combat capability,” in part because of “cost concerns.” Documents obtained by The Canadian Press through the Access to Information Act show the auditor general's office initially wanted to say the fleet was “not fully capable for combat.” But defence officials said that could “compromise operational security” and suggested toned down language. “We've got an excellent capability,” Meinzinger said when asked about the state of the fleet. “The fighter force has got an outstanding reputation globally. They stand the watch 24/7, 365 under the NORAD rubric. ... I don't want Canadians to be worried about where we're at today.” The U.S. Marines are looking at keeping their F-18s — upon which the CF-18 is based — in the air until the 2030s, and Meinzinger said the two forces are working together to identify the best ways to do that. “We've made it a priority and we're moving as fast as we can to get it delivered,” he said. “Obviously our intent is always to ensure that we're making the investments such that we believe that we've got at least parity against the threats that we would face.” https://nationalpost.com/news/air-force-to-spend-hundred-of-millions-more-to-keep-cf-18s-fighting-fit

Each year the International Walt Darran Aerial Firefighting Awards celebrate the outstanding achievements and innovations within the industry. The deadline for 2020 awards is only one week away. The awards committee invites global aviation community to nominate individuals or companies before Jan. 17, 2020 to celebrate their achievements in aerial firefighting. Aiming to recognize a significant contribution by an individual or organization to aerial firefighting, the awards were inaugurated in honour of the late Walt Darran, who was a pioneer and advocate for safety and advances in aerial firefighting. These sought-after awards are a peer honour, with aerial firefighters from all around the globe honouring fellow colleagues. The nominations and resultant winners are administered by the International Awards Committee — an independent international consortium from the International Fire Aviation Working Group (IFAWG) and Associated Aerial Firefighters. Any person or organization that has made a significant contribution to furthering the safety and/or efficiency of aerial firefighting could be nominated. Once again, nominations are being accepted in two categories: Contribution to Aerial Firefighting Safety and Industry Innovation & Advancement. To nominate your candidates, please complete the awards nomination forms and return them to Kate Niven from Tangent link at kniven@tangentlink.com before Jan. 17, 2020. The awards committee will convene after this date to review written submissions and select the winners. The awards ceremony to announce winners will take place during the Aerial Firefighting North America Conference Dinner on March 4, 2020 in Sacramento, Calif., as a part of Aerial Firefighting North America 2020. https://www.skiesmag.com/press-releases/call-for-nominations-for-the-international-walt-darran-aerial-firefighting-awards-2020

BY LEE BERTHIAUME THE CANADIAN PRESS The launching of Iranian missiles against a base housing Canadian soldiers in Iraq has highlighted a long-standing deficiency for the Canadian Army: the inability to defend against air attacks such as aircraft, rockets and drones. Iran on Tuesday fired missiles at two military bases in Iraq, including one near the northern city of Irbil that has housed Canadian troops for more than five years as part of the fight against the Islamic State of Iraq and the Levant. No one was injured in the missile attack, which was in retaliation for the killing of Iranian Maj.-Gen. Qassem Soleimani by a U.S. drone last week. Prime Minister Justin Trudeau confirmed Wednesday that Canadian soldiers were at the base at the time of the Iranian attack. Canadian troops in Iraq and elsewhere are routinely deployed with allies who have what are called “ground-based air defences,” or GBADs in military parlance, which can include everything from missile interceptors and anti-aircraft guns to electronic jamming devices and lasers. But Canadian Army spokesperson Karla Gimby said the Iranian missile attack nonetheless demonstrated why a new air-defence system is one of the army's top procurement priorities. “Iran launching missiles underscores the need for militaries — and the Canadian military — to have GBADs,” Gimby said Wednesday, though she added: “It is too early to tell if recent events will impact the GBAD procurement timeline.” Successive Canadian Army commanders have raised the lack of air defences for front-line troops since the military retired the last of its anti-air weapons in 2012. However, efforts to acquire a new system have been stuck in neutral for years. The Department of National Defence is not expecting delivery of a new system until at least 2026, which is projected to cost between $250 million and $500 million. Officials have previously suggested that part of the problem is trying to figure out exactly what threats the system will be designed to counter, particularly given rapid advances in technology. In a recent interview with The Canadian Press, Canadian Army commander Lt.-Gen. Wayne Eyre referenced Iran's use of drones to attack Saudi Arabia's largest oil facility in September as one new airborne threat on the battlefield. “No army in history has gone to war with all of the resources that it wanted, all the capabilities that it wanted,” Eyre said. “That being said, GBAD is one of the ones that I am most concerned about because it is not just a capability shortfall, it's a capability gap. We don't have it.” When the Canadian military put away the last of its anti-air weapons in 2012, it was on the assumption that Canada and its allies would have air superiority in any battle and not have to worry about airborne attacks, said defence analyst David Perry of the Canadian Global Affairs Institute. “The Taliban never had any of that kind of stuff. (ISIL) really didn't have any of that kind of stuff,” Perry said. “So we've been deploying in places where it hasn't been a problem.” The Iranian attack demonstrates the importance of Canadian troops on the ground being able to protect against airborne threats, he said. https://globalnews.ca/news/6382675/iran-attack-canadian-army/

Over the past months, over 30 projects from the Competitive Projects' first Call for Proposals have advanced to Component 1b and signed $1M dollar contracts with IDEaS. In the upcoming weeks, many more are going to be posted on our web page. Competitive Projects Funding Recipients (as of December 2019) Additionally, Innovation Networks have signed 12 contribution agreements valued at nearly $18M to fund small research networks, or Micro-nets. These research communities will increase Canadian scientific capacity in a number of areas like advanced materials (detection avoidance and physical protection), and autonomous systems (trust and barriers to adoption). See the all newly signed recipients: Innovation Networks – Recently Funded Micro-Nets Corrosion Sandbox: Rust Never Sleeps Test your best technologies to find corrosion trouble spots for the Royal Canadian Navy (RCN). The next IDEaS sandbox will take place at the Centre for Ocean Ventures & Entrepreneurship (COVE) facility in Dartmouth, Nova Scotia and will focus on corrosion detection on naval vessels. COVE is a collaborative facility for applied innovation in the ocean sector. Participants will get the opportunity to showcase their products on realistic simulations, with successful demonstrations resulting in access to an actual RCN vessel to demonstrate their solution in a real world environment. Watch for the Call for Applicants in January 2020. Thank you, The IDEaS Team

By Charlie Pinkerton; iPolitics Published on Jan 2, 2020 3:02pm Although Canada's defence minister has been tasked with working toward creating a new defence procurement agency to improve the country's often slow-moving system for purchasing military equipment, there's no clear timeline for when the new body will be put in place. In the mandate letter addressed to him by Prime Minister Justin Trudeau and published last month, Harjit Sajjan was told that part of his job in this Parliament will be to “bring forward analyses and options for the creation of Defence Procurement Canada,” which the Liberals promised to advance toward in this mandate while they campaigned in the fall's election. “A lot of work has already started on (Defence Procurement Canada) and the goal of this is to make sure that we get the procurement projects done as quickly as possible to make sure the Canadian Armed Forces has what they need,” Sajjan told iPolitics the day before his mandate letter was released. Sajjan also said the Department of National Defence (DND), Innovation, Science and Economic Development Canada and Public Services and Procurement Canada still need to complete “more work” before a timeline for the creation of the new procurement agency would be set. Some of the first steps of the Trudeau government to improve Canada's military procurement system was in transferring the responsibility of military procurements to being managed internally at DND. When the Liberals published its overhauled defence policy in June 2017, DND said that 70 per cent of procured projects were being delivered past their deadlines. “Cumbersome decision making and approval processes have introduced undue delays. Accountability among departments has been diffuse and at times unclear,” says the Liberals' defence policy (it's titled Strong, Secure, Engaged). As a response, the defence policy declared that DND would internally manage the contracts of all projects of under $5 million — an initiative which it said would reduce departmental approval times by 50 per cent for 80 per cent of all contracts. The defence policy is intended to lead how Canada's military operates beyond this decade. At the same time as developing the new agency for military procurement projects, Sajjan has also been tasked with choosing which company the government will choose to pay almost $20 billion to build Canada's next generation fleet of fighter jets. According to the current timeline laid out by the Canadian Armed Forces, the government will receive the final bid proposals from the three companies it deemed in 2018 as being capable of meeting Canada's needs (which includes Saab, Lockheed Martin and Boeing) early in 2020. If it sticks to its timeline, the government will pick which company will be its fighter jet provider by next year and will receive the first next generation jet as early as 2025. Sajjan's mandate letter includes another procurement-related list item; he's also tasked with advancing the renewal of Canada's naval fleet. There are four major navy procurement projects that are nearing their conclusion. Canada is buying new surface combatants, new Arctic and offshore patrol ships, new joint patrol ships and retrofitting its 12 frigates. The combined cost of these projects is expected to cost taxpayers more than $83 billion. Investments in procured projects account for a large portion of the $32 billion jump in annual defence spending that Canada is planning for by 2027. If achieved in that year, Canada's defence spending as it relates to a portion of the country's gross domestic product (GDP) would equal about 1.4 per cent. Canada currently spends just over 1.3 per cent of its GDP on its military two years ago. It has pledged to NATO to work toward spending two per cent of its GDP on its military, which is a common goal amongst allied countries. Over the past few years, U.S. President Donald Trump has repeatedly called on Canada to increase its military spending to surpass two per cent of GDP. Global News reported less than a month ago that Canada had multibillion-dollar discrepancies in the last two years in how much it planned to spend on its military and how much it actually spent. According to documents obtained by the publication, it had a discrepancy of $2.29 billion in military spending in 2017-2018 and a shortfall of $4.45 billion in spending last year, compared to what it outlined in its defence policy.

Article by Marcia Mills and Paul Burbank Capital Perspectives Last Updated: January 3 2020 The issues surrounding defence acquisition took a backseat in the run up to the 2019 federal election. As noted by the Canadian Global Affairs Institute, this occurred despite the fact that two of the largest defence procurements in Canadian history – the Canadian Surface Combatants (warships) project and the Future Fighter Capability Program (fighter jets) – are in active procurement mode, spending is falling short of forecast and roughly 70 per cent of the approved projects under the 2017 implementation of the Strong, Secure, Engaged Defence Policy have seen schedule delays 1. Canadian defence procurement is a many-layered affair. Spread across three departments and a central agency (the Department of National Defence; Public Procurement and Services Canada; Innovation, Science and Economic Development; and Treasury Board, respectively), the need to coordinate and align this much bureaucracy is often viewed as one of the significant problems in defence procurement. The two main political parties offered very different solutions to these issues during the election, but provided few details. The Platforms The Conservatives focused on the need to "de-politicize" the procurement process, which would in turn deliver greater value for money and better resources for the Canadian military. To accomplish this, new oversight mechanisms, both in Cabinet and in the Privy Council Office, would be created. 2 Major defence procurements are already subject to oversight by the Defence Procurement Secretariat, a Deputy Ministers Governance Committee and a Ministers Working Group. It is not entirely clear how additional layers of oversight would reduce delay and improve efficiencies, unless the new mechanisms replaced all or some of the current oversight layers. The Liberal platform included a portion on defence procurement that pointed to the creation of "Defence Procurement Canada," to ensure defence projects were delivered on time and with greater transparency. The structure of Defence Procurement Canada was not explained. A bit of speculation is now in order as to what this could mean for defence procurement. The New Cabinet The Liberals formed a minority government and announced their new Cabinet on Nov. 20. While the Ministers of Defence (Harjit Sajjan) and Innovation, Science and Economic Development (Navdeep Bains) remain the same, Treasury Board has a new President and Public Services and Procurement Canada (PSPC) has a new Minister – Jean-Yves Duclos and Anita Anand, respectively. Treasury Board President Duclos moves from a smaller, specific portfolio within Employment and Social Development Canada to now preside over one of the federal government's most powerful central agencies and cabinet committees. He will have a considerable role in ensuring effective financial management and government spending. Minister Anand is a new face in Cabinet and a first-time Member of Parliament for the riding of Oakville, Ont. She is assuming responsibility for, amongst other things, the two single largest purchasing organizations in the federal government (PSPC and Shared Services Canada (SSC)). Going Forward Defence procurement in Canada follows a general ebb and flow – resources are increased during times of conflict and are reduced in times of peace. Restructuring occurs in response to these influences, as well as perceived redundancies, desired efficiencies and the odd scandal or two. Various Minsters and departments have been responsible for defence procurement and production over the past 100 years, including boards or commissions set up during times of war. A new independent department for defence procurement would result in three different departments (SSC, PSPC and the Defence Procurement Canada) managing the vast majority of federal acquisition. This approach would be similar to the stand up of the Department of Defence Production in the '50s. The DDP had a short life. Established in 1951, it was expanded to become the central purchasing organization in 1963 as an interim measure, then disbanded in 1969 with the establishment of the Department of Supply and Services. The amalgamations of various entities continued until 1993, with the creation of the Department of Public Works and Government Services (a.k.a. PSPC). PSPC operates as a central purchasing agent for the government, with exclusive authority under the Defence Production Act to acquire defence supplies for DND. If Defence Procurement Canada is to exist as a departmental corporation or agency, the government would want to launch this new entity early in its mandate so that it can lay claim to any degree of efficiency or success achieved. If so, the new entity would likely remain within PSPC, as the Minister has existing statutory authority to create a supporting departmental corporation or agency under the Defence Production Act. Creating this entity outside of PSPC's current authority would require a significant reorganization of the public service and change to the operations of government of a magnitude greater than that required to establish Shared Services Canada – this would include deciding whether to maintain or decentralize the functions of defence procurement and defence production, as well as significant statutory amendments to provide or reduce, as required, the authority of all Ministers involved. Ministerial mandate letters, which were released in mid-December, shed no additional light on the specific operational structure or corporate identity that Defence Procurement Canada is expected to take. Notable in these letters, however, is a prevailing theme: Minister Anand has the clear responsibility for bringing forward options to Cabinet, but that effort will be supported by a host of respected, senior ministers, including Minister Sajjan (National Defence), Minister Jordan (Fisheries & Oceans and the Canadian Coast Guard), and Minister Bains (Innovation, Science and Industry). As all of these Ministries are already involved in defence procurement, their continued support is not surprising. Throughout the history of defence acquisition and production in Canada, large-scale reorganization has been predicated by one of three events: war, post-war reconstruction or scandal. Absent one of these triggers, a minority government may have little appetite (or be able to drum up support from any other party) to stand up a wholly new department, or even a departmental corporation or agency within PSPC itself, on the basis of efficiency and economy alone, particularly in light of the on-going Phoenix debacle and the continued issues at Shared Services Canada. As no new Minister for Defence Procurement Canada was named in the new Cabinet nor were any Additional Ministers within PSPC named for defence or Defence Procurement Canada, it appears that, at least for now, any defence acquisition reorganization is likely to remain on the backburner. Marcia Mills is procurement counsel with the Fasken Ottawa office and has 20+ years of private and public sector experience. She provides clients with legal and strategic advice for all aspects of government procurement, as well as advice on government policies and procurement processes. Paul Burbank is an associate with the Fasken Ottawa office. He works with the Communications Law group to provide advice on telecommunications and broadcasting in Canada. Paul also works with Fasken's Government Relations and Political Law group on strategy and compliance matters. Footnotes 1 The Defence Procurement Outlook for Canada's 43rd Parliament by David Perry, The Global Exchange, 2019 Volume XVII, Issue III; Canadian Global Affairs Institute 2 Global News: With billions at risk, federal parties promise to fix defence, procurement

by Chris Thatcher; Skies Magazine Posted on December 24, 2019 When the Aerospace Industries Association of Canada in June released its blueprint for the next five years, Vision 2025: Charting a New Course, support for small- and medium-sized enterprises (SMEs) was one of its core themes. Small companies make up over 90 per cent of the sector and the report argued for greater government support to help them scale up, generate more jobs, and enhance their global competitiveness. That could include new funding to pursue digital business transformation, a reduction in the complexity of government contracting, and greater priority in the value propositions of prime contractors chasing defence procurements. “If our small- and mid-sized companies are left at risk, the negative impacts will be felt across Canada's aerospace industry as a whole,” according to the report, prepared by Jean Charest, a former premier of Quebec and deputy prime minister of Canada. Small companies are viewed as the prime creators of aerospace jobs and, in a sector buffeted by changing technology and new players, many may be more agile and better able to adapt than larger counterparts that must answer to corporate headquarters outside of Canada. But support from original equipment manufacturers (OEMs) and governments is essential to their survival, according to a panel of SMEs at the Canadian Aerospace Summit in November. There is no one-size-fits-all to helping SMEs scale up. Companies at different stages of growth require different types of support, they noted. But help with skilled labour shortages and easier access to government programs are common challenges for all. A solid position on a major platform is critical to initial success, but long-term growth requires diversification, observed Barney Bangs, chief executive officer of Tulmar Safety Systems. Located between Ottawa and Montreal in the small community of Hawkesbury, Ont., the company manufactures protective and safety equipment, associated components and in-flight training products. Traditionally, its focus has been 80 per cent defence — Tulmar has been a supplier to a military platform for over 25 years and benefitted from a strong aftermarket. In recent years, though, the company has sought a better balance between military and commercial customers. “As of last year, we were 65 per cent defence and 35 per cent (civilian) aerospace,” he said. Tulmar has also become more of what he called “a solution provider,” integrating components from other suppliers to provide an OEM with a final, certified piece of equipment such as an aircraft seat rather than just the safety harness or seatbelt. “We are doing more in-house and saving customer-costs for the OEM,” said Bangs. Diversification has also been a priority for Apex Industries, a machining, components, subassembly and structures manufacturer in Moncton, N.B. Twelve years ago, its aerospace business was five per cent defence and 95 per cent civil, much of it geared to Bell Helicopter and Bombardier. “We made a conscious effort to diversify into the military side a lot more,” said vice-president Keith Donaldson. “We are very conscious of not allowing our sales to go too high on one platform or with one customer.” Challenged by cost-savings pressures in commercial aviation contracts, military platforms offer a company like APEX “good visibility,” he said. However, militaries have long been trading quantity for technological superiority, meaning fewer platforms and a relatively short production cycle. And ramping up quickly with people and equipment to meet tight delivery schedules is a challenge for small businesses that need other options to justify and sustain the investment when the contract ends. “It is very tough for a SME like ourselves to invest.” However, defence procurement and government programs can go a long way to supporting the scale-up of SMEs, said Patrick Mann, president of Patlon Aircraft & Industries, a technical sales force for global manufacturers of custom components and systems. The scale-up program must be run by single entity within government committed to the Canadian SME community that would be “funded, independent and have the authority to make decisions.” Mann suggested coping what has worked well in other jurisdictions, noting the success of the United States Small Business Administration's set-aside program. “Within that, there is a small business innovation research program which has been highly successful in scaling up SMEs,” he said. The Vision 2025 report called for a federal scale-up program to “provide advice, coaching, networking, value proposition development and consortium-building support to incentivize growth and build capacity–helping firms expand their global footprints and giving them the means and maturity to support OEMs effectively.” The report recommended the Office of Small and Medium Enterprises (OSME) within Public Services and Procurement Canada shoulder that responsibility. “Having OSME at the table as a contributor to the development of government procurement strategies and as a champion of small and medium-sized business interests will help ensure government policies and programs recognize the unique characteristics of small firms,” it stated. “We are a pretty good example of a scale-up of an SME using competitive bid government procurement as a mechanism,” said Mann. However, developments over the past 10 years such as single point of accountability and bundling, where multiple small contracts are combined in one larger procurement that is awarded to one contractor, have been “devasting” to smaller suppliers. “It has been a real issue for us. Again, it is an issue where (OSME) can play a role.” OEMs can bolster government programs by mentoring small companies within their supplier base on management and production processes, especially around digitization, added Donaldson. “OEMs have a lot of that knowledge ... [but] I don't think [they] do enough of that.” He and Bangs both cautioned that the ability to scale up will be contingent on resolving talent shortages. Developing and attracting skilled labour is a chronic problem affecting the entire sector, but it is particularly acute for SMEs in more remote locations that don't have the resources to recruit as widely or navigate the immigration system. “Before we launch a scale-up program with support for financing and working capital, we have to make sure we have our skills done first,” said Donaldson. However the Liberal government opts to respond to the Vision 2025 report, the value of investing in SMEs should be clear. Viking Air, KF Aerospace or IMP Aerospace & Defence were once small companies and are “now thriving global participants,” said Mann. “That is the reason why todays SMEs are an important part of our industry.”