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JOHN A. TIRPAK The secret B-21 bomber will progress to a major milestone—critical design review—by the end of this year, Air Force Rapid Capabilities Office director Randall Walden said Monday. Walden also revealed that the B-21 is merely one of 28 programs being managed by the RCO, which he noted is funded at about $30 billion over the five-year future year defense plan. Walden, speaking at an AFA Mitchell Institute event in Arlington, Va., said the B-21 has already passed its preliminary design review, and noted that the release of drawings for the bomber is progressing well. As for critical design review, "we haven't done it, but we're on our way," and he predicted it would happen by the end of December. Major design work on the bomber is taking place at Northrop Grumman's Melbourne, Fla., facility. He acknowledged that subscale models of the aircraft have been tested in wind tunnels, but said no full-size version has yet been fabricated. "Component testing" is moving along at an "appropriate" speed, he said. "We're looking forward to ... an 'on-time' start of production," Walden said. Walden has spoken publicly about the RCO in a number of venues, but was more forthcoming than usual about the organization and its products at the Mitchell event. Of the 28 projects in the RCO's portfolio, 13 are "ACAT 1," he noted, meaning they are major defense acquisition programs, which usually means a major platform, like an aircraft, missile, or command and control system. While Walden would only identify the B-21 and X-37 orbital vehicle among those that the RCO is working on, he said the majority of the rest could best be characterized as "family of systems" projects. Interestingly, Walden said the RCO has not been called on to undertake any hypersonics programs. The Air Force is pursuing hypersonics projects with the Defense Advanced Research Projects Agency (DARPA), and the other services are conducting independent research in the field. Walden said the RCO has about 220 people, who are headquartered at JB Anacostia-Bolling, in Washington, D.C. Among them are experts from the line Air Force who are "embedded" with programs to offer operator advice on design and development. Four bomber pilots are attached to the RCO to advise on the B-21's development, he noted. The B-21 program manager—who Walden did not name—has had experience with management of the F-22 and F-35 programs, he said. The B-21 program has long been scheduled to produce a "usable asset" in the 2024 timeframe, according to comments offered by Air Force officials for the last three years. Rep. Rob Wittman (R-Va.), chair of the House Armed Services Seapower and Projection Forces panel, revealed in March that problems had arisen with airflow to the B-21's engines, and Walden said Monday that these had been resolved. "Complex weapon systems, especially engine integrations, ... you've got to get throat sizes done right, prior to anything being built" he said, referring to the serpentine tunnels by which air reaches the B-21's engines, which are buried in the fuselage. The RCO obtained "insight from actual lab testing" and found the optimal solution, he said. The RCO has been asked to help with the set-up of a dedicated "Space RCO" at the Space and Missile Systems Center at Los Angeles AFB, Calif., and Walden said he has recommended veterans of his own shop to run it, especially those who have worked on space systems, and they have been hired, he said. Walden resisted allowing his own people to be hired away for the new organization, he said. Walden was asked whether the RCO is working on a successor platform to the X-37, and although he did not reply directly, he did say that it is "no different from any other system, ... it starts to get old," and there begin to emerge problems with vanishing vendors and parts obsolescence. However, he forecast no "big change" in that program in the near future. The X-37 tends to fly two-year missions, and various agencies that use the data collected from it are very happy with its activities, he said. Walden told Air Force Magazine he is not experiencing trouble obtaining the workforce he requires, but he said he's aware that major vendors are experiencing difficulties hiring all the engineering and especially software talent needed to execute the Air Force's array of high-tech projects. He also reported that the RCO's experience with protests—wherein a contractor not selected for a program complains that the judging was not fair—is no worse, and probably somewhat better, than that experienced by the Air Force in its "white world," or non-secret programs. Commenting on the "culture" of the RCO, Walden said it is largely based on the Lockheed "Skunk Works" model of small teams with tightly defined objectives and a vastly shortened reporting chain. Where the RCO saves time and money is usually in the area of "deciding to do" something and not going into endless coordination efforts. The RCO can save two to three years on a project simply by having the authority to make decisions, Walden said, avoiding "the tyranny of consensus." It reports to an executive committee comprised of the Secretary and Chief of Staff of the Air Force, the service's acquisition executive, and the Pentagon's acquisition chief. It's not possible to rush the development of, say, an aircraft, he said, noting that basic design must be gotten right or problems are inevitable later on. It takes about three years at a minimum to develop a design, he said. Asked whether the RCO can provide a model to the overall acquisition system, Walden said it can be applied to a degree, but there is the risk that the organization could get too big. "There is a knee in the curve. I can't tell you" what it is, he said, but at a certain size, an RCO-like acquisition agency would no longer be able to do things rapidly. The value of something of constrained size, like the RCO, is to "make a decision, get on contract," Walden said. The mainstream acquisition system takes "an inordinate amount of time" on those two steps. An analysis of alternatives can take up to three years and "sometimes no one makes a decision," Walden said. Walden insisted the RCO is fully observant of the 5000-series of acquisition regulations, but makes a careful review of them on all its efforts and works to "avoid" the ones that don't really affect its programs. He also said the organization turns away many people who want to be involved in overseeing or getting briefed on RCO activities unless they are required under regulations. Even so, he said the RCO has a good relationship with Congress because it tries to be transparent with members, and even when it runs into problems, people on Capitol Hill "want to help." He added that the Pentagon's "risk-averse" acquisition process took many years to get that way and reversing that mindset to one of risk-taking and experimentation will not happen quickly. http://www.airforcemag.com/Features/Pages/2018/June%202018/B-21-Bomber-Critical-Design-Review-by-End-of-Year.aspx

LUXEMBOURG (Reuters) - Neuf pays européens dont l'Allemagne, la Belgique et le Royaume-Uni ont signé lundi la lettre d'intention de l'initiative européenne d'intervention (IEI) prônée par Paris pour porter une approche novatrice de la défense hors des dispositifs de l'UE. Par l'IEI, la France ambitionne de doter les Européens d'une capacité d'action et de prévention autonome de l'UE, pour des conflits mais aussi des crises humanitaires ou environnementales, en mutualisant la planification militaire, le soutien aux opérations, l'anticipation et le renseignement. “Face aux doutes éventuels, il faut affirmer ses convictions”, a déclaré la ministre des Armées Florence Parly à l'issue de la signature. “Les Européens doivent être forts, les Européens doivent être capables, de plus en plus, d'assurer leur protection et leur souveraineté et donc cette initiative est en faveur de la souveraineté européenne”, a-t-elle ajouté. L'Allemagne, la Belgique, le Danemark, les Pays-Bas, l'Estonie, la France, le Portugal, l'Espagne et le Royaume-Uni ont signé lundi à Luxembourg le premier acte de l'initiative. La ministre des Armées, qui a porté le projet qu'Emmanuel Macron avait appelé de ses voeux en septembre lors d'un discours à la Sorbonne, a estimé qu'il répondait en outre aux appels américains pour une Europe qui assume plus sa sécurité. “Cette étape va permettre de commencer très vite des travaux communs qui impliqueront les états-majors des différentes forces armées”, a-t-elle précisé dans un entretien au Figaro. “Une première rencontre aura lieu mi-septembre à Paris pour mettre en place un programme de travail concernant l'anticipation, la planification et l'organisation d'exercice”, poursuit-elle, évoquant l'étude de scénarios concrets, “par exemple pour préparer l'exfiltration de ressortissants”. Absente de la liste des signataires, l'Italie “réfléchit à la possibilité de rejoindre cette initiative, mais n'a pas pris de décision définitive”, a précisé Florence Parly. Dans un communiqué, elle ajoute que “d'autres pays européens, capables, volontaires et partageant les objectifs de l'IEI, pourront rejoindre l'Initiative européenne d'intervention”. MOBILISATION PLUS RAPIDE L'accord à neuf a ménagé des concessions à l'Allemagne sur le maintien d'un lien fort entre l'IEI et la Coopération structurée permanente (Pesco ou CSP), le pacte de défense entériné en décembre dernier par 25 pays de l'Union européenne (excluant un Royaume-Uni sur le départ). “L'Allemagne ne souhaitait pas que l'Initiative européenne d'intervention soit détachée de la CSP. C'est parce que nous maintiendrons entre les deux mécanismes un lien fort qu'elle a décidé d'adhérer”, a précisé Florence Parly. En dépit d'inquiétudes quant à l'accumulation de dispositifs, le secrétaire général de l'Otan Jens Stoltenberg a salué la décision, jugeant que l'initiative faciliterait la modernisation des armées européennes et leur rapidité de mobilisation. “Je pense que cela peut renforcer la disponibilité des forces, car nous avons besoin d'une disponibilité élevée”, a-t-il déclaré à la presse en marge de la réunion des ministres de la Défense et des Affaires étrangères de l'Union européenne. Paris, qui entend stimuler des réponses européennes plus promptes face aux crises, se place au centre d'une réorganisation des structures européennes de défense post-Brexit, en incluant la puissance militaire britannique au sein de cette nouvelle initiative. Le ministre allemand des Affaires étrangères, Heiko Mass, a paru lundi partager l'impatience française et a dit souhaiter que la politique étrangère européenne soit décidée par un vote à la majorité à l'avenir, et non par une décision à l'unanimité. Londres entend conclure un traité avec l'Union européenne en matière de sécurité d'ici 2019, en vue notamment de garder après le Brexit accès aux bases de données, contrats d'armement et au partage d'informations au sein de l'Union, un projet soutenu par plusieurs Etats membres mais dont d'autres ne veulent pas. “Notre engagement dans la sécurité de ce continent est sans conditions”, a déclaré lundi un diplomate britannique, qui déplore la vision idéologique de certains pays pour lesquels le départ du Royaume-Uni de l'Union doit être total. https://fr.reuters.com/article/topNews/idFRKBN1JL1S2-OFRTP

C'est toujours le flou autour des offres pour le remplacement des F-16. Pour rappel, trois avions sont sur la table du gouvernement : le F-35 américain, l'Eurofighter Typhoon européen et le Rafale français qui lui, est "hors procédure" — c'est-à-dire que l'offre n'a pas été faite dans le cadre de l'appel d'offres officiel. Une situation qui a déjà donné naissance à quelques cacophonies au sein du gouvernement, le ministre de la Défense voulant privilégier les offres rendues en bonne et due forme, et le Premier laissant entendre que l'offre française (plutôt alléchante) serait examinée, malgré le fait qu'elle n'ait pas respecté les procédures. Et quatre mois avant que le gouvernement ne doive rendre sa décision, rebelote. Le ministre de la Défense Steven Vandeput (N-VA) a déclaré dans dans les pages du Morgen que la proposition de la France pour le remplacement des F-16 était exclue, "On ne peut pas faire comme si les Français faisaient partie de la procédure", affirme Steven Vandeput , vendredi. La décision est bien entendu à prendre au sein du gouvernement et le ministre a toujours dit qu'il y présenterait les éléments concernant ce dossier, a indiqué vendredi le cabinet de Steven Vandeput (N-VA), tout en rappelant que les Français n'ont pas introduit leur offre dans le cadre de la procédure officielle. Paris toujours en lice Sa sortie dans le Morgen a rapidement conduit le Premier ministre Charles Michel à réagir en soulignant que l'offre de Paris était toujours en lice et que la décision finale serait "prise au sein du gouvernement et nulle part ailleurs". "L'offre des français est sur la table du gvt. Nous devons encore discuter. Les discussions ne sont pas closes. Il y a toujours trois candidats constructeurs, deux dans la procédure classique et une autre proposition émanent des français", a alors précisé Steven Vandeput à l'entrée du conseil des Ministres Interviewé sur Radio 1, M. Vandeput a précisé qu'il ne voulait pas envoyer un message au Premier ministre avec son intervention dans la presse, mais uniquement "mettre les points sur les i" après que le constructeur français Dassault - qui produit le Rafale - a lancé une large campagne de communication sur son offre. Sur la question d'un contexte géopolitique européen, avec le projet d'une Europe de la Défense qui pourrait influencer le choix du gouvernement, le ministre de l'Intérieur Jan Jambon répond : "Ce projet là est très important, mais il est pour l'horizon 2045. D'ici là, nous devons acheter de nouveaux avions et on ne peut pas attendre." "On n'achète pas des bicyclettes, il faut tout analyser : le prix, les éléments techniques... On doit maintenant envisager toutes les options, même celle du prolongement éventuel des F-16" a quant à lui déclaré le vice-Premier Didier Reynders. https://www.rtbf.be/info/belgique/detail_remplacement-des-f-16-la-proposition-francaise-est-exclue-pour-steven-vandeput?id=9952799

Today, foreign affairs ministers and defence ministers discussed the implementation of the EU Global Strategy in the area of security and defence. The Council then adopted conclusions which highlight the significant progress in strengthening cooperation in the area of security and defence and provide further guidance on next steps. Permanent structured cooperation (PESCO) The Council adopted today a common set of governance rules for projects within the PESCO framework. The sequencing of the more binding commitments undertaken by member states participating in PESCO is expected to be defined through a Council recommendation, in principle in July 2018. An updated list of PESCO projects and their participants, including a second wave of projects, is expected by November 2018. The general conditions for third state participation in PESCO projects are expected to be set out in a Council decision in principle also in November. Capability development plan and coordinated annual review on defence (CARD) The Council approved the progress catalogue 2018, which provides a military assessment of the prioritised capability shortfalls and high impact capability goals to be achieved in a phased approach. It forms a key contribution to the EU capability development priorities. These priorities are recognised by the Council as a key reference for both member states' and EU defence capability development initiatives. The aim of CARD, for which a trial run is being conducted by the European Defence Agency, is to establish a process which will provide a better overview of national defence spending plans. This would make it easier to address European capability shortfalls and identify new collaborative opportunities, ensuring the most effective and coherent use of defence spending plans. European defence fund The European Defence Fund is one of the key security and defence initiatives by the Commission, reaffirmed in its proposal for the future multiannual financial framework (2021-2027), with a proposed envelope of €13 billion. The European Defence Fund aims to foster innovation and allow economies of scale in defence research and in the industrial development phase by supporting collaborative projects in line with capability priorities identified by Member States within the CFSP framework. This will strengthen the competitiveness of the Union's defence industry. Under the current financial framework, with the same objectives, the European Defence Industrial Development Programme (EDIDP) was agreed by the representatives of the co-legislators on 22 May 2018. The Council welcomes this agreement. The EDIDP should aim at incentivising collaborative development programmes in line with defence capability priorities commonly agreed by EU member states, in particular in the context of the capability development plan. European peace facility The High Representative for Foreign Affairs and Security Policy proposed the creation of a European Peace Facility in the context of the future multiannual financial framework, an off-EU budget fund devoted to security and defence. The aim of the facility would be: funding the common costs of military operations under the Common Security and Defence Policy (currently covered by the Athena mechanism); contributing to the financing of military peace support operations led by other international actors (currently covered by, for example, the African Peace Facility); and providing support to third states' armed forces to prevent conflicts, build peace and strengthen international security. The Council takes note of the proposal and invites the relevant Council preparatory bodies to take the work forward and present concrete recommendations on the proposed facility. Military mobility The aim of improving military mobility is to address those obstacles which hinder the movement of military equipment and personnel across the EU. The High Representative and the Commission presented a joint communication on improving military mobility in the EU on 10 November 2017 and an action plan on 28 March 2018. The Council welcomes this action plan and calls for its swift implementation. As a first step in this direction, the Council approves the overarching high-level part of the military requirements for military mobility within and beyond the EU. The Council also stresses that improvement in military mobility can only be achieved with the full involvement and commitment of all member states, fully respecting their national sovereignty. The conclusions also touch on other strands of work in the field of EU security and defence, including strengthening civilian CSDP, developing a more strategic approach for EU partnerships on security and defence with third countries, and increasing resilience and bolstering capabilities to counter hybrid threats, including further developing the EU's strategic communication approach together with member states. Background On 14 November 2016, the Council adopted conclusions on implementing the EU Global Strategy in the area of security and defence. These conclusions set out three strategic priorities in this regard: responding to external conflicts and crises, building the capacities of partners, and protecting the European Union and its citizens. Since then, the EU has significantly increased its efforts in the area of security and defence. Progress was noted and further guidance provided through Council conclusions on 6 March 2017, on 18 May 2017 and 13 November 2017. Council conclusions on strengthening civilian Common Security and Defence Policy (CSDP) were adopted on 28 May 2018. At the same time, the EU has also increased its cooperation with NATO, on the basis of the joint declaration on EU-NATO cooperation signed by the President of the European Council, the President of the European Commission and NATO Secretary-General on 8 July 2016 in the margins of the Warsaw summit. http://www.consilium.europa.eu/en/press/press-releases/2018/06/25/security-and-defence-cooperation-eu-will-enhance-its-capacity-to-act-as-a-security-provider-its-strategic-autonomy-and-its-ability-to-cooperate-with-partners/

Since the first F-35 rolled off Lockheed Martin's production line in 2006, the fifth-generation multirole stealth fighter has taken the world by storm. U.S. F-35s deployed to Europe and the Pacific in 2017, and Israel has reportedly already used its jets in combat in the Middle East. Soon, the Arab world might get its first F-35 — the United Arab Emirates is in talks with the United States about buying the aircraft. To date, the program's reach has expanded to 12 nations around the globe, and all signs point to the F-35 continuing to dominate the Western fighter market for decades to come. But tensions between historically close NATO allies could threaten the fate of one partner nation's F-35 fleet: Turkey. Here's the breakdown of the global F-35 fleet. https://foreignpolicy.com/2018/06/22/the-countries-where-f-35-sales-are-taking-off/

By: Andrew C. Jarocki WASHINGTON — U.S. Air Force Space Command will send a new military satellite into space in 2020 with the help of SpaceX. The AFSC's Space and Missile Systems Center announced Friday a $130 million contract with the rocket design and manufacturing company. The relatively low-cost price tag secured the deal for SpaceX's Falcon Heavy rocket, beating out main rival United Launch Alliance (composed of Boeing and Lockheed Martin) by tens of millions of dollars and earning praise from the Air Force. Lt. Gen. John Thompson, program executive officer for the Space and Missile Systems Center, approved the contract, saying it “directly supports [the Center's] mission of delivering resilient and affordable space capabilities to our nation while maintaining assured access to space.” The agreement for the Evolved Expendable Launch Vehicle service contract includes “launch vehicle production, mission integration and launch operations” from SpaceX, according to a news release. The Heavy Falcon can deliver a payload of 70 tons to low-Earth orbit. SpaceX president Gwynne Shotwell highlighted the price savings in a statement, saying her company's services offer “the American taxpayer the most cost-effective” and “reliable” services for national space missions. https://www.defensenews.com/space/2018/06/22/us-air-force-announces-rocket-deal-with-spacex-for-military-satellite/

By: Danica Kirka, The Associated Press LONDON — Aviation giant Airbus is threatening to leave Britain if the country exits the European Union without an agreement on trade relations, underscoring the concerns of business leaders who say the government is moving too slowly. Airbus, which employs about 14,000 people at 25 sites in the U.K., said it needs to know by the end of the summer what rules will govern its operations, or the company will “reconsider its long-term footprint in the country.” Airbus also says a proposed transition deal that runs through December 2020 is too short for the company to reorganize its supply chain. “While Airbus understands that the political process must go on, as a responsible business we require immediate details on the pragmatic steps that should be taken to operate competitively,” Tom Williams, CEO of Airbus Commercial Aircraft, said in a statement. “This is a dawning reality for Airbus. Put simply, a no-deal scenario directly threatens Airbus' future in the U.K.” While many business leaders have demanded clarity about the future with Britain set to leave the EU in nine months, Airbus' sheer size and role in the economy make it an influential voice in the Brexit debate. Airbus is the U.K.'s largest commercial aerospace company, a leading provider of military satellite communications and the biggest supplier of large aircraft to the Royal Air Force. It also has a significant impact on other companies, funneling an estimated £5 billion (U.S. $6.6 billion) to 4,000 U.K. suppliers, including big names like Rolls-Royce, as well as many smaller businesses. Darren Jones, the member of Parliament for the community where Airbus makes wings, attacked the government for listening to those who want the most hard-line form of Brexit and “not to the businesses that employ thousands of British workers, including Airbus.” “Thousands of skilled, well-paid jobs are now on the line because of the shambolic mess the government have created over the Brexit negotiations,” he said. Airbus, the biggest rival to U.S.-based aircraft-maker Boeing, has been a prime example of how European cooperation could lead to success in business. The German, French and Spanish governments own 26.4 percent of Airbus, which was created through the merger of German, French and Spanish aerospace companies. Prime Minister Theresa May's government reacted quickly to the Airbus statement, saying it was confident of getting a good deal and “we do not expect a no-deal scenario to arise.” But Williams said Airbus is frustrated after it tried to discuss its concerns with the government for 12 months and made little progress. “We've got to get clarity,” he said in an interview with the BBC. “We've got to be able to protect our employees, our customers and our shareholders, and we can't do that in the current situation.” The comments came as Airbus published an assessment of the risks Brexit poses to the company. The report shows that Airbus, like many modern companies, is particularly vulnerable to Brexit because of its international supply chain. Plants in several countries make specialized components, which are shipped back and forth across international borders as aircraft are assembled. Britain's membership in the EU makes this easy because goods move freely between the 28 member states, with no tariffs or other trade barriers. That will change after Brexit because Britain will not be a member of the EU's single market and customs union. While the U.K. government says it wants trade to be as frictionless as possible after Brexit, manufacturers are running out of time to plan for the future. Airbus said it is facing a variety of decisions, including whether to invest in future manufacturing capacity, the need to build up stocks of components in the event of border delays and how to ensure parts are certified by aircraft regulators in the future. Delays caused by a no-deal scenario could cost Airbus as much as €1 billion euros (U.S. $1.2 billion) of revenue a week, according to the risk assessment. “This scenario would force Airbus to reconsider its investments in the U.K., and its long-term footprint in the country, severely undermining U.K. efforts to keep a competitive and innovative aerospace industry, developing high-value jobs and competences,” Williams said. https://www.defensenews.com/industry/2018/06/22/airbus-threatens-to-leave-britain-over-brexit-trade-relations/

Andrew Chuter LONDON ― The British Ministry of Defence's Modernising Defence Programme, essentially a review of spending and capabilities, should start to see the light of day around the time of the July 11-12 NATO summit in Brussels. British Prime Minister Theresa May could unveil the headline conclusions of the program at the summit, with the details to follow sometime in the future. The fear is that without the government handing the military more money over the next decade, capabilities will be lost and procurement programs abandoned or delayed ― and in some instances, that is already happening. The MoD has been battling for additional cash from the Treasury for months, but with the British government announcing June 18 plans to spend billions of pounds more on health over the next few years, the chances of defense getting any significant boost appears increasingly remote. Instead the MoD will likely have to persevere with efficiency and other cuts to reduce a black hole in the 10-year equipment plan that the National Audit Office, the government's financial watchdog, said earlier this year could be unaffordable to the tune of between £4.9 billion and £20.8 billion (U.S. $5.7 billion and U.S. $24.1 billion). The parliamentary Defence and Public Accounts committees are so worried about “severe“ budgetary pressures that they took the unusual step of jointly writing to the prime minister in early June to voice their concerns. A June 18 report by the Defence Committee said that if the government wants to have the resources to keep the country safe, it “must begin moving the level of defence expenditure back towards 3% [from the current level of 2 percent] of GDP, as it was in the mid-1990s.” https://www.defensenews.com/smr/nato-priorities/2018/06/25/big-reveal-of-uk-modernization-plan-expected-in-brussels/

David Pugliese, Ottawa Citizen An Italian aerospace firm dropped a lawsuit against Canada over what it claimed was a rigged aircraft purchase shortly before the federal government awarded it a new sole-source deal potentially worth billions of dollars. But the Canadian Forces and officials with Italian defence company, Leonardo, say the ending of the legal action in May had nothing to do with the company being picked for a new project the same month. Leonardo has been selected by the Royal Canadian Air Force to upgrade its Cormorant search-and-rescue helicopters and provide seven additional aircraft. It is estimated the project will cost taxpayers between $1 billion and $5 billion, a price tag that includes the purchase of simulators and support equipment. Leonardo had been fighting the Canadian government in Federal Court over its 2016 decision to award its rival, Airbus, a contract to build fixed-wing search-and-rescue planes as part of a $4.7-billion program. The company was asking the court to overturn the contract to Airbus and instead award the lucrative deal to Leonardo and its Canadian partners. It alleged the Airbus aircraft failed to meet the government's basic criteria. But that legal action was stopped in May just as the Canadian government was awarding Leonardo the new helicopter deal. The Department of National Defence suggested the decision to drop the lawsuit was not related to its decision to select Leonardo for the sole-source deal. “The Government of Canada's priority is to select a best-value package for the Cormorant Mid-Life Upgrade,” the DND noted in an email. “Decisions related to this procurement were made based on consultations with industry and our subject matter experts and follow standard procurement reviews.” But the sole-source deal to Leonardo caught the aerospace industry by surprise. The RCAF had asked companies just last year for informal proposals on how Canada's future search and rescue helicopter needs could be met. One firm, Sikorsky, went as far as launching a campaign to promote its civilian S-92 helicopter as a cost-effective solution. It proposed that it was cheaper to buy new helicopters than to upgrade the older Cormorants. The federal government acknowledged that it has now received correspondence from aerospace firms raising issues about the sole-source deal with Leonardo. “We have received some responses,” Pierre-Alain Bujold, a spokesman for Public Services and Procurement Canada, stated in an email. “PSPC officials are currently reviewing the responses, in collaboration with the Department of National Defence and Innovation, Science and Economic Development Canada.” “Once this review is complete, officials will determine appropriate next steps and inform respondents accordingly,” Bujold added. But defence industry insiders say the review is simply for the sake of appearances and it is expected the deal with Leonardo will proceed. Leonardo officials said their decision to drop the lawsuit was made in April but it took until the next month before that process could be completed. The Cormorant fleet entered service in the year 2000 and the modernization would allow the helicopters to operate for another 25 years at least. One of Leonardo's subsidiaries was the original manufacturer of the Cormorants. The decision to sole-source the deal moved through the federal system quickly. On April 20, RCAF spokesman Maj. Scott Spurr stated the air force was still examining options on how to proceed and that the next phase of the project wouldn't come until 2019. But on May 24 the Canadian government announced it had decided to go with Leonardo on the exclusive deal. Department of National Defence officials say it was determined that it was more cost effective to stay with the Cormorant fleet as it is a proven aircraft the RCAF knows well. The upgrade program is expected to include the latest avionic and mission systems, advanced radars and sensors, vision enhancement and tracking systems. http://nationalpost.com/news/politics/aerospace-firm-drops-lawsuit-against-dnd-as-defence-officials-award-it-multibillion-dollar-contract