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Airbus Press Release The first Airbus C295, purchased by the Government of Canada for the Royal Canadian Air Force (RCAF) fixed-wing search and rescue (FWSAR) aircraft replacement program, has completed its maiden flight, marking a key milestone towards delivery by the end of 2019 to begin operational testing by the RCAF. The aircraft, designated CC-295 for the Canadian customer, took off from Seville, Spain, on July 4 at 8:20 p.m. local time and landed back on site one hour and 27 minutes later. “On these types of flights, pilots and flight engineers test the aircraft's flight controls, hydraulics and electrical systems,” an Airbus spokesperson told Skies. “All systems performed effectively, as expected.” FWSAR program facts and figures The contract, awarded in December 2016, includes 16 CC-295 aircraft and all in-service support elements including, training and engineering services, the construction of a new training centre in Comox, B.C., and maintenance and support services. The aircraft will be based where search and rescue squadrons are currently located: Comox, B.C.; Winnipeg, Man.; Trenton, Ont.; and Greenwood, N.S. Considerable progress has been made since the FWSAR program was announced two-and-a-half years ago: the first aircraft will now begin flight testing; another five aircraft are in various stages of assembly; and seven simulator and training devices are in various testing stages. In addition, the first RCAF crews will begin training in late summer 2019 at Airbus's International Training Centre in Seville. The FWSAR program is supporting some $2.5 billion in Industrial and Technological Benefits (ITB) to Canada through high-value, long-term partnerships with Canadian industry. As of January 2019, 86 per cent of key Canadian In-Service Support (ISS) tasks have been performed in-country by Canadian companies in relation to establishing the FWSAR ISS system. Airbus is thus on track in providing high value work to Canadian industry and has demonstrated a successful start to the development and transfer of capability to Canadian enterprises for the support of the FWSAR aircraft. Beyond direct program participation, Airbus is generating indirect business across Canadian military, aeronautical and space industry including small and medium businesses in support of the ITB program. https://www.skiesmag.com/press-releases/first-royal-canadian-air-force-c295-makes-maiden-flight/

DAVID PUGLIESE Canadian special forces will receive three new surveillance aircraft from the U.S. with the planes expected to arrive in 2022. But the cost is substantially more than what the U.S. Air Force spends to buy the same or similar aircraft. The three Beechcraft King Air planes, to be based at CFB Trenton in Ontario, will be outfitted with sensors and equipment to intercept cell phone and other electronic transmissions. Canadian special forces and, potentially, other government departments will use them for missions overseas and in Canada. The agreement for the aircraft was finalized on April 26 with the U.S. government. Three aircraft and equipment will be delivered in the spring of 2022, the Canadian Forces noted. The agreement signed with the U.S. government is for $188 million (CAN). The U.S. Air Force lists the cost of the MC-12W surveillance aircraft as $17 million each or around $23 million Canadian. That includes communications/sensors and modification of the aircraft for that equipment. So three aircraft should cost in total about $70 million Canadian, give or take. It is not clear why Canada is spending more than double the cost of the aircraft than the U.S. Air Force. It could be that the aircraft are not exactly the same but does that account for more than double the cost? Postmedia asked the Canadian Forces for an explanation last week but there has been no response. If an answer is provided then this article will be updated. The main contractor for the planes is Beechcraft in Wichita, Kan. https://ottawacitizen.com/news/national/defence-watch/canada-spends-more-than-double-for-special-forces-aircraft-but-the-reason-why-is-a-mystery-so-far

Bluedrop Training & Simulation Inc., a subsidiary of Bluedrop Performance Learning Inc., has received an in-service support (ISS) contract with Boeing to provide ongoing support for computer-based training (CBT) courseware for maintainers of Canada's CH-147F Chinook helicopters. The agreement provides management and on-site support of instructor-led CBT materials used in the maintenance training classroom environment to facilitate efficient and timely updates to course materials used by training instructors with the 450 Tactical Helicopter Squadron. The contract performance period runs through March 31, 2023, with a value of US$2.2 million and potential for two additional option periods that could extend the contract through March 2033. “This is an important in-service support agreement that will provide critical support for CBT courseware and will ensure the RCAF maintenance personnel at 450 Squadron in CFB Petawawa will have high quality computer aided, instructor led training,” said Jean-Claude Siew, Bluedrop vice president of technology & simulation. “We will also provide onsite support that will be established at CFB Petawawa and provide training expertise to ensure that the courseware will evolve to meet enhanced requirements such as mobile delivery and advanced instructor interactivity. “We will provide additional support with our core team of e-learning professionals based in Halifax and utilize Bluedrop's Learninglogics learning management system. We thank Boeing for its continued trust in Bluedrop's expertise and innovation capabilities of our Halifax-based training team.” https://www.verticalmag.com/press-releases/bluedrop-receives-boeing-contract-to-provide-courseware-support-for-ch-147f-chinook/

The 2019 Parliamentary Budget Officer (PBO) report has indicated that the Canadian Surface Combatant (CSC) programme will now cost C$69.8bn ($52.7bn) over 26 years. The previous report, 2017 PBO, estimated the programme would cost $61.8bn ($46.84bn). Canada plans to acquire a fleet of 15 new naval warships that will serve as the country's major surface component of maritime combat power. The revision in the total programme cost is a reflection of inflated costs due to construction delay and an increase in the size of the CSC. The break-up of the cost structure includes C$5.3bn ($4.01bn) in pre-production costs, along with C$53.2bn ($40.32bn) for production, and C$11.4bn ($8.64bn) in project-wide expenses. A major driver of costs is the increase in the displacement of the ship. The 2017 estimate was calculated on the basis of a 5,400t lightship weight, which was an estimate based on available designs for the CSC programme at the time. Following selection of the BAE Systems Type 26 Global Combat Ship design, the weight increased to 6,790t. This increase has significantly contributed to the C$8bn ($6.06bn) difference in the two project cost estimates. The updated plan cost includes project development, production, two years of spare parts and ammunition, training, government programme management, and upgrades to existing facilities. Irving Shipbuilding is the prime contractor of the surface combatant project. The company awarded a subcontract to Lockheed Martin Canada to design the CSC vessels for the Royal Canadian Navy. The Combat Ship Team responsible for design includes Lockheed Martin, BAE Systems, CAE, L3 Technologies, MDA, and Ultra Electronics Maritime Systems. Construction of the first ship under the CSC project is scheduled to take place in the early 2020s. https://www.naval-technology.com/news/canadian-surface-combatant-project-found-to-cost-more-than-52-7bn/

By Christian Paas-Lang Canada's 15 new warships will cost almost $70 billion over the next quarter-century, according to Parliament's budget watchdog, and the cost could change further depending on the final design of the ships and when they actually get built. The estimate, released in a report by the parliamentary budget office Friday, is up substantially from a Canadian government estimate in 2017 that pegged the price of the project at between $56 billion and $60 billion. The 2017 estimate was itself a revision of the project's original $26-billion price tag. Also in 2017, the PBO estimated the total cost of the ships to be $61.8 billion, but its report released Friday updates that to reflect the design of the ships — frigates known as “Type 26” — which wasn't known at the time. It also accounts for delays in the project. The Canadian government will now pay out $69.8 billion over 26 years, the PBO estimates. In a statement released shortly after the PBO report, the Department of National Defence said it remained “confident” in its 2017 estimate, and that the “vast majority” of the difference between the estimates came from the PBO's choice to include taxes in its projections. Taking away taxes brings the two estimates to within 10 per cent of each other, the DND said. But the department conceded that any small difference means hundreds of millions of dollars in costs for taxpayers. The PBO report says the difference in the estimates is due to a later start date for construction and a heavier ship design. The report assumes ships will start being built by the 2023-2024 fiscal year, three years later than its 2017 projection. As the timeline extends into the future, costs increase due to inflation. The PBO originally projected a displacement, or weight, of 5,400 tonnes for each ship but the Type 26 design is a heftier 6,790 tonnes per ship, an increase of more than 25 per cent. The report also includes an analysis of what effect further significant delays would have on the project. For a one-year delay, the PBO estimates, an extra $2.2 billion will be added to the project cost, and a two-year delay would cost the government $4.5 billion. In an interview Friday, the top bureaucrat in charge of procurement at the DND expressed skepticism that the heavier ships will result in as much increased cost as the PBO suggests, but he did say the potential for delays was something he is “watching more carefully.” “The labour piece is always where uncertainty can remain,” said Pat Finn, the department's associate deputy minister for material, noting labour can make up around 40 per cent of the cost of a ship. Finn said the DND is in the “same place” as the PBO on the cost of “slippage” — delays in the project — but that he is confident the structure of the National Shipbuilding Strategy will mean the project could benefit from a skilled workforce and ongoing expertise. The purchase of additional Arctic patrol ships, announced last month, means there will not be a lapse in efficiency at Irving's Halifax shipyard, which is building the warships, Finn said. He set a goal for start of construction earlier than the PBO assumes in its report. “We would say between mid-2022 and mid-2023, we're in-contract and cutting steel,” Finn said. Potential delays would certainly increase costs, and it would be “absolutely no shock if there was additional delays,” said Dave Perry, a procurement expert with the Canadian Global Affairs Institute. “To this point in time, the government has not been able to meet any of the timelines that have been put forward publicly,” he added. Still, the closer you get to construction, Perry said, the less uncertainty there should be about costs and the potential for further delay. The last thing that might change the final cost of the ships is the specifics of what components are chosen to fill out the design — which radar equipment, for example, Perry said. The DND is deciding on those components as it reconciles the requirements of the ships with costs. “You could potentially get a few-percentage-point swing” in price in either direction based on those choices, said Perry. “But if you're talking about several tens of billions of dollars, a few-percentage-points swing is real money.” https://globalnews.ca/news/5418997/canada-warships-cost/

DAVID PUGLIESE The three Beechcraft King Air planes, to be based at CFB Trenton in Ontario, will be outfitted with sensors and equipment to intercept cell phone and other electronic transmissions. Canadian special forces and, potentially, other government departments will use them for missions overseas and in Canada. The agreement for the aircraft was finalized on April 26 with the U.S. government. Three aircraft and equipment will be delivered in the spring of 2022, the Canadian Forces noted. The federal government is also setting up a competitive process to select a company to maintain the aircraft and related systems for a potential period of 20 years. A Request for Proposals is expected sometime this summer. The agreement signed with the U.S. government is for $188 million (CAN). The value of the project is estimated at $247 million. The funding includes the acquisition of the aircraft and prime mission equipment from the U.S. and an initial portion of the associated in-service support of the aircraft. The main contractor is Beechcraft in Wichita, Kan. Canadian companies had wanted to provide the aircraft and on-board equipment, and several have formed alliances with U.S. firms who supply the Pentagon with the same or similar aircraft. But the Canadian military decided it needed the planes more quickly than they believed Canadian companies could deliver, and that U.S. security regulations governing the on-board sensor equipment might cause delays. As a result, it determined the U.S. government was the only supplier capable of providing the planes. DND has declined to provide an estimate of what that long-term support would cost taxpayers. RCAF pilots will fly the aircraft but members of the Canadian Special Operations Forces Command will operate the specialized equipment in the planes. The planes will be outfitted with electro-optical sensors that would allow the aircraft to track the movement of individuals and vehicles on the ground. Canadian special forces had access to similar aircraft in Afghanistan to track and target insurgents. https://ottawacitizen.com/news/national/defence-watch/canadian-special-forces-will-receive-three-new-surveillance-aircraft-aircraft-expected-2022

DAVID PUGLIESE Procurement Canada has provided aerospace firms a new draft version of the requirements for Canada's next generation fighter jet fleet. Some changes have been made in the draft request for proposals document to deal with concerns raised by the companies, according to federal government sources. The requirements for the new Canadian fighter jet originally put emphasis on strategic attack and striking at ground targets during foreign missions, according to federal government procurement documents obtained by Postmedia. While the Liberal government had been highlighting the need to buy the jets to protect Canadian airspace and meet the country's commitments to the U.S.-Canadian North American Aerospace Defence Command, the procurement criteria provided additional weight to those aircraft that can excel at ground attack for overseas operations. That criteria was seen to favour Lockheed Martin's F-35 stealth jet, say those industry representatives allied with Lockheed's rivals in the upcoming $19 billion competition. The evaluation criteria also had less emphasis on sustainability, another plus for the F-35 which has been dogged with high maintenance bills, they added. The latest version of the requirements now eases back somewhat on the ground attack role and puts a little more emphasis on air-to-air scenarios, say sources. Some changes have also been made to provide for more points to companies who can provide a better deal on sustainment of the aircraft. Another change affects the length of time a firm has to meet its industrial benefits associated with its proposal. That has increased from 20 years to 25 years. Pat Finn, the Department of National Defence's procurement chief, has said he wants the final request for proposals for the fighter jets out to industry by mid-July. At this point four aircraft are to be considered. Those include two U.S.-built aircraft, the F-35, and the Super Hornet, and two European planes, the Eurofighter Typhoon and the Gripen. The winning bidder will build 88 jets for Canada. The new aircraft will replace the Royal Canadian Air Force's CF-18s. https://ottawacitizen.com/news/national/defence-watch/some-changes-made-to-canadian-fighter-jet-requirements-as-new-document-sent-to-companies

DAVID PUGLIESE Federal officials are hoping to get out the request for proposals on the Canada's future fighter jet procurement project by mid-July. That will mean that any changes have to be done and the process signed off in the coming weeks. At the same time a federal election is expected by October and should take place on or before October 21. Can federal bureaucrats make the mid-July deadline? “There's always risk to it,” said Pat Finn, Assistant Deputy Minister for Materiel at the Department of National Defence. “We recognize the closer we get to a writ period the more there is an issue there. So we're just making sure we're driving hard to get it out by mid-July.” At this point four aircraft are expected to be considered: two U.S.-built aircraft, the F-35, and the Super Hornet, and two European planes, the Eurofighter Typhoon and the Gripen. The winning bidder will build 88 jets for Canada, and the first delivery is expected in the mid-2020s with the full capability available in the early 2030s, according to documents produced by the Department of National Defence. https://ottawacitizen.com/news/national/defence-watch/will-the-request-for-bids-for-new-canadian-fighter-jets-be-released-next-month

Vision 2025: Beyond our Imagination is an industry-led initiative to start a new dialogue between industry, government, the public, and other stakeholders that will chart a course for Canada's future in the international aerospace sector. Full article: https://aiac.ca/vision2025/