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A FrontLine Report © 2018 FrontLine Defence (Vol 15, No 4) Activity on the Canadian Surface Combatant (CSC) procurement project, the “Crown Jewel” of the Government's National Shipbuilding Strategy, is starting to heat up as contenders submit their bids. Since FrontLine last articles detailing the CSC project, Canada's prime contractor, Irving Shipbuilding Industries (ISI) and their U.S. subcontractors have been busy reviewing the final bids submitted by the three industry teams who emerged over the past two years as serious enough in the pursuit to invest the significant amount of capital required to generate a bid. Stressing that the following list is in no particular order, the 3 bidders are: Team Alion – composed of Alion Canada (a subsidiary of American Alion Science and Technology), Atlas Elektronik (now being merged under thyssenkrupp Marine Systems), and Hensoldt Sensor, (a spin-off from Airbus Group), this group is bidding the Dutch Damen Scheld Naval Shipbuilding De Zeven Provinciën Air Defence and Command (LCF) frigate, which has 10+ years in service under its belt. Team BAE – or CSC Home Team as they like to be called, includes Lockheed Martin Canada, BAE Systems Canada, L3 Technologies Canada, MacDonald Dettwiler and Associates (now a component of U.S. MAXAR Technologies), Ultra Marine Systems Canada, and CAE. Their proposed design is the BAE UK-designed Type 26 Global Combat Ship (GCS). Team Navantia – consisting of Navantia SA of Spain, Saab Australia, and CEA Technologies, this team is bidding the F105 frigate design. Currently in service with the Spanish Navy, the design has also been chosen by Norway and Australia. Other team members include US Lockheed Martin (Moorestown, NJ), General Dynamic Mission Systems – Canada, DRS Technologies Limited Canada (now a Leonardo company), OSI Maritime Systems, and Rheinmetall Canada. Meanwhile, in a decision that may impact Canada's thinking, Australia has announced that it chose the T26 Global Combat Ship (GCS) as the winning design in its Sea5000 program. This announcement occurred just before Canada Day and local pundits were quick to comment on the potential impact on the CSC down-select process. Most agreed that this was good news for the CSC Home Team bidders despite its “paper ship” classification of not being a proven design. With the T26 design being developed concurrently in Canada, timelines are such that there is a possibility that in fact Canada may have a GCS completed before the UK. We now find the CSC program in the final stage of bid evaluation, which includes the ‘Cured' Technical component as well as the financials. There is speculation that the Crown will adopt a similar approach for the financial component as they did for the technical component, which is a financial “cure” opportunity. The expectation is that there will be a period of several months to accommodate the cure process and arrive at final bids from the three teams, and then a 4-week turn around for the final (amended) financial information to be submitted. Looking back, readers will recall that in 2016 we witnessed the Trudeau promise to kill the F-35 purchase and put more money into shipbuilding, and in particular the CSC Project. This was assessed as posturing as we all knew that most of the F-35 budget is money that would be spent on operations and maintenance, not capital expenditure. However, after the election, the Trudeau Government did make good (sort of) on the promise to “take a look under the hood” in terms of adjusting the CSC procurement process. Although they did not change the engine, they did more than just tinkering with the carb. In 2017 the Trudeau Government realized the dual stream selection method for a warship designer and a combat system integrator, known as the RFRE qualifier process, was a mis-step and changed the procurement process to allow teams to form and submit a combined Design and Combat systems bid. Around this time-frame, they also awarded a “shipbuilding” contract that fell outside of the NSS. An unsolicited proposal was accepted from Chantier Davie to convert a container ship into an urgently needed temporary replacement for the auxiliary oiler replenishment (AOR) capability. Given that neither Irving nor Seaspan had the capacity to execute this AOR contract in a timely manner, and notwithstanding that Irving made an intervention to try to kill the award to Chantier Davie, which caused the new Liberal Government to put the award on hold, the “pause” on the “At Sea Support” project (aka Project Resolve) was short-lived. The deal was upheld and MV Asterix was successfully delivered to DND on time and on budget. This is a true success story in these times of amazing ineptitude in defence contracting. Regrettably, neither the RCN nor DND have had much to say about the success of Asterix – we can only surmise this is a result of the most unfortunate “Norman-Gate”. Back to CSC, the reader will undoubtedly remember the 2017 surprise of finding out that Irving would be sharing bidders' sensitive intellectual property with its subcontractors, most of them American. The most astounding of those in Irving's information pipeline for sensitive proprietary information, was Gibbs & Cox – a naval engineering firm and a competitor to many, if not all, of the potential designers. Others include AT Kearney Public Service and Defense Services (a U.S. consulting firm); Fleetway Inc. (part of the Irving Group); and Systems Planning and Analysis Inc. (another U.S. consulting firm). It was reported by David Pugliese in March that the Government approved an additional $54 million (for a total of $83 million) for project bid evaluation, and then in April, he reported that all three bidders had failed to meet some requirements. 2016 RFRE qualifiers As announced by the Government in November 2016, the RFRE qualifiers for Warship Design were (in alphabetical order): Alion-JJMA Corp. BAE Systems Surface Ships Limited DCNS SA (now Naval Group) Fincantieri Naval Vessels Navantia SA Odense Maritime Technology ThyssenKrupp Marine Systems The RFRE qualifiers for Combat Systems Integrator included: Atlas Elektronik DCNS SA (Naval Group) Lockheed Martin Canada Saab Australia Pty Ltd. Selex ES (now Leonardo) Thales Nederland B.V. ThyssenKrupp Marine Systems After the RFRE process was abandoned... Regarding the 2016 RFRE process and quest for the holy grail (officially known as the Total Ship Reference Point or TSRP), only three of those original qualifiers are now left in the race. The others dropped out (or teamed up) for one reason or another over the past 24 months – some by simply vacating the premises so to speak, while others went out with somewhat of a bang. Of the 2016 qualifiers, Naval Group (formerly DCNS), Fincantieri, and Odense Maritime Technology have walked away. Interestingly, two of the qualifiers (DCNS/Naval Group and TKMS) had been pre-qualified in both streams and had been assessed as having the upper hand, however, neither submitted a bid after examining the Irving/Government's bid conditions and recognizing the risk of sharing IP without contracted legal protection in place. We shall look at them first. DCNS – Naval Group The French FREMM (multi-mission frigate) project by Naval Group (formerly DCNS) was touted as combining the latest technologies developed by Naval Group and a design adapted to Canadian requirements. It was to be the cornerstone of French efforts to share its expertise with Canadian partners. In 2015-16, DCNS was reportedly taking the CSC Project very seriously. However, their gravitas was all for naught as it saw the sharing IP without a contract as jeopardizing its future. Possibly because of this, Naval Group failed to seriously engage Canadian Suppliers which would allow it to develop a winning strategy. Rather, what evolved into a French (Naval Group) – Italian (Fincantieri S.p.A. Naval Vessels Business Unit) FREMM lash-up, and chose to not submit a bid in accordance with the Government/Irving RFP, but instead proposed an off-the-shelf purchase for a very reasonable $30 Billion. Their rationale, as reported in the press, was they did not want to hand over sensitive proprietary data to Irving and its subcontractors. This proposal was not well received by PSPC, which publicly stated the proposal would not be considered. thyssenkrupp Marine Systems thyssenkrupp Marine Systems (tkMS) of Germany was also very forthcoming in providing information on its potential RFRE submission. Its project references were based primarily on its role as prime contractor for the F124 frigates, where it was responsible for the development of the Combat Management System software and the integration of entirely new and highly-complex sensor and weapon system technologies. tkMS saw itself as fully capable of providing complete logistics support with training facilities, operator and technician training, discrete logistics support elements, as well as the supply of spare parts for both the platform and combat systems. In early 2017, and despite having qualified as CSI and WD, tkMS had assessed the potential for winning, and particularly the requirement to submit proprietary technical data to a non-government agency (read ISI), as unpalatable and all but withdrew from the race. The local Ottawa office did not submit a bid for the final 30 November deadline for the technical and Canadian Content Value aspects of the bid. In hindsight, the modular approach to the tkMS MEKO design concept featured in the design of Germany's F124 and F125 warship-size frigates, is still a very appealing design and may have carried the day. Their decision to withdraw was reportedly based on factors that included an intense distrust of sharing intellectual property other than Government to Government. Danish Iver Huitfeldt Frigate by Odense Maritime Technologies (OMT) – Maersk In 2015, the Danish Iver Huitfeldt-class frigate was considered one of the four serious contender designs. At 6600 GRT and 138 metres in length, the vessel appeared to be a good fit for the CSC high-level requirements as briefed by the Royal Canadian Navy in August 2014. The team that produced the ship design – Maersk Shipping, Odense and the Danish Navy – established itself as Odense Maritime Technology (OMT) to market its expertise in producing spacious, logical, efficient designs that can be procured for much less than a warship of similar tonnage built elsewhere. The Iver Huitfeldt Frigate design is powered by four diesel main engines driving two shafts in separate engine rooms, max speed 29 knots. The weapons are in modular units for ease of change-out or upgrade, and there is space for four TEU shipping containers for additional mission fits. The Danish Navy operates the ship with a crew of 105, although there are additional 60 bunks for mission fit, training staff and other requirements. The cost to build was quoted as $325M, which was considerably cheaper than expected and was certainly appealing to the bean counters in the early days of the program. Below the main deck, the ship's design is largely commercial, having been designed by Maersk, one of the world's largest shipping companies. In hindsight, perhaps the commercial below decks design was just that – too commercial. Notwithstanding, the FrontLine assessment is that OMT's lack of commitment to the program and the need to pre-commit on Canadian content was their downfall. Despite the efforts of OMT's Vice President Business Development, Mr. Kevin Pitt, from the Toronto office, and qualification through the RFRE process, the bid was destined to fail from the outset. OMT was unable to line up a dance partner in the form of a CSI in time to adapt to the new procurement strategy and the bid collapsed. FrontLine's view was, and still is, good design notwithstanding, to be competitive OMT should have invested in a larger engineering and design footprint in Canada with all the necessary security bells and whistles to support their marketing process. Selex ES – Leonardo DRS As an RFRE qualifier, Selex ES never emerged from the shadows as a contender. The Leonardo bid of an Italian FREMM seemed to wither as time went on. Eventually, as mentioned above, the French Naval Group and the Italians combined forces but never got out of the starting block after they received the results of the pre-qualifier bid review process. Thales Nederland Another multi-national, Thales Group, was also successful with their submission in response to the CSI RFRE, relying primarily on their international credentials for project references from Thales Nederland BV. Thales has significant bona fides, having integrated Combat Systems across 27 shipyards on nearly 200 naval platforms, making it one of the leading Naval Combat Systems Integration companies in the world, and Thales Canada has been the largest supplier of naval sensors to the RCN for the past 40 years. Thales is proud of its track record in integrating Above Water and Underwater Warfare suites and its extensive experience integrating communications suites. Thales Canada was seen as having good potential to emerge on a team as a strong player. However, there were not enough dance partners to go around among the designers and Thales dropped down to the category of potential Tier 2 supplier. Like many of the other potential CSI bidders, Thales is maintaining close contact with all of the potential CSIs and would likely be a supplier to the eventual CSI winner in their strong suit – Naval Combat System products in the areas of Naval Radars and Electro-optical solutions, Naval Underwater systems, Electronic Warfare systems, and Naval Communications system. Thales will continue as a Tier 1 partner with Seaspan for the delivery of all of Mission Systems solutions for the Joint Support Ships (JSS) and Coast Guard vessels. The 2017 award of the in-service support contract known as AJISS – for the Arctic Offshore Patrol Ships (AOPS) and JSS – will keep Thales in Canada for years to come. Full article: https://defence.frontline.online/article/2018/4/10242-Canada's-Combat-Ship-Procurement-Process

The Defence Capabilities Blueprint (DCB), accessible through a new online tool, is now available, and offers access to information related to defence investment opportunities. Like the previous Defence Acquisition Guide, the DCB provides industry access to planning information such as funding ranges and project timelines. Information on approximately 250 projects funded under Strong, Secure, Engaged (SSE) including infrastructure projects, as well as significant in-service support contracts is available for industry to plan for and compete in defence procurement opportunities. With this information, industry will be able to make informed research and development (R&D) and strategic partnering decisions based on projected needs of the Canadian Armed Forces. Within the DCB the following are found: Projects: Capital equipment or infrastructure projects with a value of over $5 million that are planned and funded under SSE Support Contracts: In-service support contracts and professional services contracts with an expected value of greater than $20 million that will be awarded in the coming years to support the capabilities being delivered under SSE SSE projects which are noted and identified The DCB includes a key word search function and segments investment opportunities into searchable components by: Defence Capability Areas (DCAs) Defence Capability Investment Areas (DCIAs) Project sponsors Key Industrial Capabilities (KICs) Defence Capability Areas (DCAs) are 13 broad component categories, such as Land, Sea, Air, Space and Cyber. These categories are further comprised of smaller constituent components of more than 150 Defence Capability Investment Areas (DCIAs). Examples of DCIAs are Commercial Pattern Vehicles, Ship Parts and Components, or Avionics. Projects may include more than one DCA and several DCIAs. Project Sponsors are the service command level or civilian equivalent organizations within Department of National Defence (DND). Projects and investment opportunities are also searchable under Innovation, Science and Economic Development Canada's Key Industrial Capabilities (KICs). These capability areas inform industry about which key business activities are government priorities in defence procurement. Finally there is an Advanced Search capability that allows the user to filter their searches into specific parameters. http://dgpaapp.forces.gc.ca/en/defence-capabilities-blueprint/index.asp https://www.canada.ca/en/department-national-defence/corporate/reports-publications/defence-investment-plan-2018.html

CHRIS MACLEAN © 2018 FrontLine Defence (Vol 15, No 2) A critically honest and engaged discussion about government and industry engagement, was held recently at the Telfer School of Management as part of the new Complex Project Leadership Programs. The program participants (mostly federal civil servants who are involved in procurement) interacted with executive-level industry leaders – Joe Armstrong, Vice President and General Manager at CAE; Jerry McLean, Vice President and Managing Director of Thales Canada; Iain Christie, Vice President of AIAC; and Kevin Ford, CEO of Calian – who shared their leadership insights, as well as what it is really like to do business in Canada. Through the highlighting of mutual pain points and frustrations, as well as identifying what is being done well and ways to move forward together, efficiently, each party gained insight and understanding that is sure to improve communication and future progress. It was evident that both sides wanted to learn from each other and pinpoint the principles that would help achieve mutual success; ultimately impacting the national economic footprint and saving taxpayer dollars. From the industry perspective, dependability equals direction. When a company can be assured that it has a fair opportunity to compete for a contract, it can set its sights on that goal and will make the necessary investments to ensure the best possible outcome. When government programs start and stop and change and restart, companies find it difficult to justify the extended costs because they lose their competitive edge and/or any ability to make a profit. Instability does not save the taxpayer, but it does have the potential to impact both quality of product and sustainability of the bidders (therefore employment numbers). Contracts equal sustainability and confirmation that the company direction is on track for success. Profit equals growth and further investment. Employment and supply chain purchases depend on a profit margin that allows growth. This “number one” business requirement conflicts with the government's prime directive is to ensure its bidders make a bare minimum of profit. When asked what they need from their government counterparts in order to create a better working relationship and foster a robust industry that can contribute to a strong GDP, the industry panelists identified two key elements. One was “more accuracy in the procurement process” and the other was “predictability”. Industry must be able to foresee where profits and sustainability could potentially come from. The time it takes to award large projects is also a limiting factor to success. It was noted that, since the beginning of time, a cornerstone of success for industry has always been ensuring the satisfaction of its client. It is believed that trust in the quality of the product and ease of customer service will lead to sustainability in the form of continued business. Not so with government contracts, which seem skewed to ensure previous successes gain no advantage, and must in some cases be hidden from decision-makers. Not taking into account a company's excellent past delivery performance, was said to contribute to industry's lack of incentive to perform to the best of its ability at all times. A company's ability to invest goes beyond individual contracts, which means the prospect of being evaluated for value can be a powerful incentive for going that extra mile – if exploited, not suppressed. Government employees were encouraged to exhibit courage in pursuing ways to truly streamline the procurement process, rather than repeatedly adding more and more layers of approvals and meetings. Industry leaders across the spectrum have commented on a palpable “lack of trust” on the part of government negotiators. Does this mistrust come from contract negotiators feeling the pursuit of profit is somehow un-Canadian? Or does it mean a company does not care enough about its customers? Neither assumption is accurate, and this may be one area where a culture change could make a world of difference. As one audience member exclaimed: “This was the best, most transparent conversation regarding the procurement process, I have ever heard.” While large-scale procurements will always be contentious due to the huge dollars and risk at stake, embracing the concept of open and unreserved dialogue, like what was experienced by this small group, has the potential to uncover procurement pitfalls and create a more progressive process. The Telfer School of Management's Complex Program Leadership programs focus on the hard and soft skills necessary to successfully deliver inherently complex programs and projects, while emphasizing strategic thinking, creative problem solving, stakeholder engagement, and leadership skills as key building blocks for this goal. http://defence.frontline.online/article/2018/2/9586-Bridging-the-vast-%C2%ADProcurement-Divide

Canada has a new representative at the NATO Communications and Information Agency (NCIA / NCI Agency). Ms Joanna Glowacki started this fall and is ready to help Canadian companies connect with NATO ICT business opportunities. She can be reached at joanna.glowacki@ncia.nato.int or +32 (0)2 707.82.27 As you know, Canada has established a new Liaison Officer at the NATO Support and Procurement Agency (NSPA) in Capellen, Luxembourg. Lieutenant-Colonel Martin Bedard arrived in the summer and some of you have already been engaging with him. Martin's email address is calo@nspa.nato.int Canadian companies are encouraged to continue to track NATO business opportunities on the websites of the two NATO Acquisition Agencies – NCI Agency and NSPA. For companies tracking ICT business opportunities at NATO, it is recommended that you follow the NCI Agency Bulletin Board website https://www.ncia.nato.int/Industry/Pages/Home.aspx for the latest updates on current business opportunities. If you see an opportunity of interest, shown on the website as a Notice of Intent (NOI), notify the Canadian Delegation to be added to the bidders list. There is no cost to receive the bid package and no commitment to bid once on the bidders list, although for each and every opportunity you must notify Canada's Delegation to NATO at BNATO.industry@international.gc.ca to be added to the bidders list. For NATO business opportunities in the area of logistics and maintenance, the NATO Support and Procurement Agency (NSPA) website is: http://www.nspa.nato.int/en/index.htm. You should also register your company as a supplier of NSPA – there is no cost and no commitment to register your company – so you start to receive notices of NSPA business opportunities in your domain. You can register at the following link: http://www.nspa.nato.int/en/organization/procurement/supplier.htm. You can also view “Future Business Opportunities” on the NSPA database: http://www.nspa.nato.int/en/organization/procurement/fbo.htm. Right click on an item of interest for more detail. Check out as well the “Request for Proposal” opportunities at the same site – right side of page. You can also look at the following webpages for general information: Guide to navigating NATO procurement: http://www.forces.gc.ca/en/business-connecting-foreign-markets/nato-faqs-guide-procurement.page Answers to Frequently Asked Questions about NATO business opportunities: http://www.forces.gc.ca/en/business-connecting-foreign-markets/canadian-industry-doing-business-nato-faqs.page Guide pour la navigation- Acquisitions au sein de l'OTAN: http://www.forces.gc.ca/fr/faire-affaires-acceder-marches-etrangers/otan-faqs-guide-acquisition.page Réponses aux questions fréquemment posées sur les opportunités d'affaires de l'OTAN: http://www.forces.gc.ca/fr/faire-affaires-acceder-marches-etrangers/industrie-canadienne-faqs-otan.page

Public Services and Procurement Canada (PSPC) is responsible for the oversight of major marine procurement initiatives, including: National Shipbuilding Strategy Other major projects—sea PSPC provides integrated procurement services primarily to federal government departments. The commodity focus is ship construction for both military and civilian applications. The scope of service includes: development of procurement strategies specification review and preparation solicitation for bids contract management project management https://www.tpsgc-pwgsc.gc.ca/app-acq/amd-dp/mer-sea/index-eng.html

The Major projects - Land directorate is responsible for acquisition related to several Department of National Defence projects, including the Medium support vehicle system project and the Tactical armoured patrol vehicle project. Medium support vehicle system Logistic vehicle modernization Tactical armoured patrol vehicle Medium support vehicle system A cornerstone of army transformation, the Medium support vehicle system project will replace the department of National Defence's existing Medium logistics vehicle wheeled with two new vehicles as follows: a quantity of up to 1,500 Standard Military Pattern trucks for operational units as well as logistics support for the life expectancy of the vehicle estimated at 20 years; and a quantity of 1,300 "Militarized" Commercial Off-The-Shelf trucks for Reserve training in Canada. The project will also acquire up to 300 trailers, up to 150 armour protection systems and up to 1,000 Special Equipment Vehicles (SEV) Shelters and associated Kitting. The kits consist of tailored workspaces such as medical units or command posts, which are fitted to the SEV Shelters. Once installed on a truck, they convert that vehicle into a specialized unit such as a dental clinic or an equipment repair facility. Logistic vehicle modernization The Logistic vehicle modernisation project seeks to acquire modern light and have logistice vehicle fleet capabilities. Project deliverables may include, but not be limited to, new vehicles, trailers, flat racks, specialized vehicle mounted modules, special containers and bulk material handling systems. The project is replacing two fleets: the Heavy logistic vehicle wheeled and the Logistic support vehicle wheeled, and two minor fleets: the Heavy engineer support vehicles generations 1 and 2. These trucks will be used to carry light and heavy cargo with various vehicle configurations and roles for domestic and expeditionary training and operations. These fleets of light and heavy logistics vehicles are in need of replacement due to their age and waning ability. Tactical armoured patrol vehicle On June 7, 2012, the Government of Canada awarded Textron Systems Canada Inc. (TSCI), contracts for 500 Tactical armoured patrol vehicles (TAPV), as well as logistics support for the life expectancy of the vehicle estimated at 25 years. TSCI was awarded the contracts after a comprehensive two-stage procurement process involving a Statement of Interest and Qualification phase as well as a Request for Proposal process in which four companies ultimately submitted proposals. Canada's Industrial and Regional Benefit policy was a mandatory element of the TAPV procurement, where TSCI is required to undertake business activity in Canada valued at 100 percent of the value of both TAPV contracts, thereby ensuring a dollar-for-dollar investment in the canadian economy. The TAPV is a wheeled combat vehicle that will fulfill a wide variety of roles including but not limited to reconnaissance and surveillance, security, command and control, cargo, and armored personnel carrier. It will have a high degree of tactical mobility and provide a very high degree of survivability to its crew. Armoured vehicles The Armoured vehicles projects directorate is responsible for the acquisition, integration and in-service support of Wheeled and tracked armoured vehicles. In addition, the Directorate is responsible for managing the procurement of the following projects under the Family of land combat vehicles (FLCV) program, which seeks to upgrade or replace the current fleet of land combat vehicles. The FLCV projects under the directorate responsibility consist of the Light armoured vehicle (LAV III) upgrade and the Force mobility enhancement (FME). Leopard 2 family of vehicles Wheeled light armoured vehicles support Project management office light armoured vehicles and light armoured vehicle III upgrade Light armoured vehicle – Reconnaissance surveillance system upgrade project Leopard 2 family of vehicles The Leopard 2 family of vehicles consists of the Tank replacement project and the Force mobility enhancement project. The Tank replacement project was established in 2007 to loan combat-ready Leopard 2 A6M tanks from Germany to support the operation in Afghanistan and to acquire 100 surplus modern Leopard 2 main battle tanks, from the Netherlands, to meet the operational and training needs of the department of National Defence. The total project value is estimated at $650M. Delivery of the Leopard 2 A4 training tank variant was completed in October 2014. The project also procures Leopard 2-based Armoured recovery vehicles (ARV) to support the Leopard 2 main battle tank fleets. Delivery of the first ARV was completed in November 2014. The last ARV is scheduled to be delivered in December 2015. The Force mobility enhancement project was established in 2009 for the acquisition of Leopard 2-based armoured engineering vehicles to support the Leopard 2 main battle tank fleets and to procure and integrate implements for the various Leopard 2 fleets, such as mine rollers, mine ploughs and dozer blades. The total project value is estimated at $376M. Initial delivery of the vehicles is expected in November 2015. Wheeled light armoured vehicles support Responsible for in-service support of the Canadian Forces fleets of Wheeled Light Armoured Vehicles (WLAV) consisting of 651 LAV III, 203 Coyote, 199 Bison and 75 RG-31. In-service support consists of spare part procurement, repair and overhaul, program management, fleet management and engineering support services. The Optimized Weapon System Support (OWSS) contract for the WLAV is the main procurement instrument, and covers the vast majority of the required support. A significant portion of OWSS for WLAVis sub-contracted. Separate government contracts exist to cover other needs associated with additional armoured protection and specialized armament. In-service support is also provided to other WLAV variants under separate contractual arrangements with their respective Original Equipment Manufacturers. Prime Contractor: General Dynamics Land Systems – Canada, London, Ontario. Project management office light armoured vehicles and light armoured vehicle III upgrade The Project management office (PMO) Light armoured vehicles (LAV) provides strategic procurement leadership, contract management and administration services to the department of National Defence for all LAV projects. It is now delivering the LAV III upgrade project. The LAV III upgrade project valued at $1.4B, will deliver mobility, protection and lethality upgrades on 550 LAV IIIs, with an option for an additional 60, over the next three years. Light armoured vehicle – Reconnaissance surveillance system upgrade project The PMO LAV is also responsible for developing and executing the procurement strategy, as well as for providing contract management, for the Department of National Defence's LRSS Upgrade project. This Project will modernize Land Force reconnaissance and surveillance capabilities. Modernization will be achieved through the acquisition of new sensor suites, vehicle and ground mounts, operator control stations and silent watch power supplies. These systems and equipment will collectively increase the performance of the LRSS and enhance the capacity to collect, process and disseminate information on the battlefield. The contracting office will be responsible for the overall management of this complex acquisition process, the timely delivery of procurement services, and to provide leadership, expertise and strategic level guidance in sourcing the LRSS from industry. https://www.tpsgc-pwgsc.gc.ca/app-acq/amd-dp/terre-land/index-eng.html

Public Services and Procurement Canada is responsible for the oversight of major aircraft procurement initiatives, including: Replacing and supplementing Canada's CF-18 fleet National Fighter Procurement Secretariat Fixed-Wing Search and Rescue Aircraft Replacement Project Other major projects - Air The department is also responsible for acquiring a wide range of complex aerospace systems, including military and civilian aircraft, and related mechanical systems, equipment, aircraft trainers and simulators and logistic spares. It also acquires various services such as engineering, repair and overhaul, maintenance, modifications, component repair, publications maintenance and revision services. https://www.tpsgc-pwgsc.gc.ca/app-acq/amd-dp/air/index-eng.html

Industry and government collaborate on Principles for the Management of Intellectual Property in Defence and Marine Procurement In 2017 Public Services and Procurement Canada, the Department of National Defence, Innovation Science Economic Development Canada and the Canadian Coast Guard worked with Canadian defence industry representatives such as Canadian Association of Defence and Security Industries (CADSI) and Aerospace Industries Association of Canada (AIAC), through the Defence Industry Advisory Group, to develop principles for the management of IP in defence and marine procurement. The Principles for the Management of IP in Defence and Marine Procurement (Principles) provide a broad policy foundation for IP management in defence and marine procurement by the Government of Canada that: reflect the Government's national interests and strategic defence and marine capability needs reflect the defence industry's interests in the protection of privately developed IP as valuable business and economic assets and as a factor in creating and sustaining an innovative Canadian defence and marine industry recognize that the development, protection and commercialization of IP are critical among several priorities to advance a broader Canadian socio-economic agenda, including economic growth and jobs recognize that IP management occurs between the Government and defence industry in strategic and dynamic sectors subject to rapid technological changes, and emerging defence capabilities and vulnerabilities serve as a framework for adaptable, flexible, principles-based and outcome-based approaches using IP management strategies that help government secure needed capabilities and ensure value for money while bolstering industry innovation and sustainability, and serve as a framework to help define IP requirements, draft contracts and design bid evaluations at earliest stages in procurements, while also helping guide the management of IP throughout the lifecycle of defence and marine assets The Principles align with the Canadian Government's Contracting Policy and Policy on Title to Intellectual Property Arising Under Crown Procurement Contracts, which prescribed a whole-of-government approach to IP management and addresses the ownership and licensing of intellectual property arising during a Crown procurement contract. Principles for the management of intellectual property in defence and marine procurement The Principles reflect key points of agreement between government and the Canadian defence industry on how government intends to approach the management of IP throughout the life cycle of defence and marine assets. The Principles serve as a framework for government and industry on the framing of requirements, the design of bid evaluations, and the drafting of contracts. They should also guide the management of IP during the life cycle of assets, seeking to balance the national interests of the government and the industry's interests to maximize benefits for Canada. The Principles recognize that the development, protection, and commercialization of IP are among several priorities to advance the broader Canadian socio-economic agenda, such as economic growth and jobs. The Principles also recognize that IP management discussions between governments and defence suppliers occur in strategic sectors subject to rapid technological changes, and emerging defence capabilities and vulnerabilities. As a result, governments are facing shorter and shorter procurement life cycles and having to return to market sooner to benefit from technological changes, while ensuring value for money. Defence firms, on the other hand, are in a position to offer technological evolution through the lifecycle of products and offer new products and services which may significantly alter the performance or the cost of the item procured. Being able to take advantage of this dynamic market will require that IP discussions take place very early on during the procurement phase and be considered as a function of the life cycle of the product or service. In this context, adapted, flexible, principles-based and outcome-based IP management strategies can help the Government secure needed capabilities, while ensuring value for money and working with industry to foster technological advantages and economic benefits. http://www.tpsgc-pwgsc.gc.ca/app-acq/amd-dp/propriete-intellec-property-eng.html

Backgrounder From National Defence December 12, 2017 – Ottawa, Ontario – National Defence / Canadian Armed Forces Canada recently announced its decision to purchase Australian F-18 aircraft to supplement the current fleet of fighter aircraft. These aircraft are of similar age and design to Canada's CF-18 fleet and can be integrated quickly with minimal modifications, training and infrastructure changes. In order to integrate these aircraft into Royal Canadian Air Force's (RCAF) operations, the following steps will be taken. Once complete, the aircraft purchased from Australia will integrate seamlessly with the current CF-18 fleet. Life extension and upgrade The Australian F-18 aircraft will be modified and undergo the technical work to be brought to a similar configuration to Canada's CF-18 aircraft, and to ensure that they will be available to supplement the CF-18 fleet until the future fighter fleet is procured. Canada has extensive experience doing this with our current fleet of fighter jets. Modifications and maintenance of the current CF-18 fleet will continue to be required. The Government of Canada has evaluated the required work and associated costs to sustain the current fleet and these additional aircraft. Over the years, both Australia and Canada have made significant investments in the development of structural modifications and capability that have allowed the structural life of our respective F-18s to be extended. More recently however, Canada invested in the development of additional structural modifications that Australia did not. These modifications are currently being applied to Canadian aircraft, and will also be applied to Australian aircraft acquired by Canada thereby allowing a further life extension. These aircraft are currently being employed in operations. Inspections have confirmed that they can be life extended and upgraded to the level of our current fleet. Acquiring spare parts Part of the purchase from the Australian government will include spare parts to help sustain these additional aircraft and the existing CF-18 fleet until the future fighter fleet is operational. Canada also has an existing supply chain for F-18 parts that we will continue to use. Training and personnel Training for the Australian F-18 is identical to that which is required for the present fleet of CF-18s. More aircraft will require more pilots and more technicians to maintain the aircraft. As outlined in Strong, Secure, Engaged, energized retention and recruitment efforts are underway to meet these personnel requirements. Operations Canada's defence policy, Strong, Secure, Engaged, requires the Canadian Armed Forces to fulfil missions at home, in North America, and elsewhere in the world, concurrently. With respect to Canada's fighter capability, the Royal Canadian Air Force must be able to provide a number of mission-ready planes to fully and simultaneously meet Canada's commitments to both NORAD and NATO. Canada does not currently have the aircraft or personnel to fully meet these commitments simultaneously. The supplementation of additional aircraft will provide required capacity to meet our obligation in a seamless way with our current fleet. The first supplemental aircraft are expected to be available for operational employment in the early 2020s, after structural upgrades are completed to match the CF-18 fleet. Infrastructure The aircraft will be employed at 3 Wing Bagotville and 4 Wing Cold Lake. DND is currently reviewing infrastructure requirements to accommodate the additional aircraft. Any modifications are expected to be minimal as the supplemental jets are of similar age and design to the CF-18. Related Products News Release: Canada announces plan to replace fighter jet fleet Backgrounder: Engagement with Industry and Allied Partners Backgrounder: The Procurement Process Defined: Replacing Canada's CF-18 Fleet Backgrounder: Ensuring Economic Benefits for Canada Backgrounder: The Role of Canada's CF-18 Fighter Fleet Associated Links CF-188 Hornet Contacts Media Relations Department of National Defence Phone: 613-996-2353 Email: mlo-blm@forces.gc.ca https://www.canada.ca/en/department-national-defence/news/2017/12/integrating_australianjetsintothecurrentroyalcanadianairforcefig.html