News

WASHINGTON — The United States is actively pursuing a change to a major arms control treaty that would open the door for wider exports of military drones. The proposed change to the Missile Technology Control Regime would make it easier for nations to sell the systems, also known as unmanned aerial vehicles or UAVs, that fly under 650 km per hour, according to multiple sources who are aware of the efforts. The MTCR is an agreement among 35 nations that governs the export of missiles and UAVs. Under the terms of the MTCR, any “category-1” system capable of carrying 500-kilogram payloads for more than 300 kilometers is subject to a “strong presumption of denial.” Proponents of UAV exports argue that language, while appropriate for curtailing the sale of cruise missiles, should not group together expandable weapons and unmanned systems. Instead, they argue, UAVs should be looked at the same way fighter jets or other high-tech military vehicles are. As part of an effort to find a compromise, American officials floated a white paper during the latest plenary session on the MTCR in October, proposing new language to the treaty: that any air vehicle that flies under 650 kilometers per hour would drop to “category-2” and thus be subject to approval on a case-by-case basis. A State Department official confirmed to Defense News that the U.S. presented the white paper, and that American negotiators have zeroed in on the speed of the vehicles as a potential change to the treaty. However, the official declined to comment on the exact speed under consideration. “I can't confirm any specific numbers because it's treated — inside the MTCR — as proprietary ... particularly because there's a deliberative process,” the official said. “But I can tell you that speed is the thing that we, based on industry input and all, have looked at. And that's what we have discussed with partners. And I know other governments are also looking at speed as well, so we're all sort of coming to a similar conclusion.” Under the MTCR, a “presumption of denial” about exports for category-1 systems exists. In essence, that means countries tied into the MTCR need to have a very compelling case to sell them. However, the speed change, if adopted, would result in most drones used by the U.S. military dropping down from category-1 to category-2, allowing the U.S. to sell them through the traditional foreign military sale or direct commercial sale methods. “Treating drones as missiles is fundamentally incoherent. It reflects a 1980s view of the technology,” said Michael Horowitz, a former Pentagon official now with the University of Pennsylvania who has studied drone issues. “To the extent creating a speed delineation helps you get around that problem, it's a good practical solution.” The impact of speed Most medium-altitude, long-endurance systems like General Atomics' MQ-1 Predator and MQ-9 Reaper fly at slow speeds, with the Reaper clocking in with a cruise speed of 230 mph or 370 kph, according to an Air Force facts sheet. Northrop Grumman's RQ-4 Global Hawk, a high-altitude ISR drone, flies only at a cruise speed of about 357 mph or 575 kph. The 650 kph ceiling would also keep the door open for companies developing cutting-edge rotorcraft that could be modified in the future to be unmanned — a key request made by the companies involved in the Future Vertical Lift consortium, said one industry source. Those companies include Bell Helicopter and a Sikorsky-Boeing team, both of which are developing high-speed rotorcraft that can fly at excess of 463 kph, or 250 knots, for the Army's Joint Multi Role technology demonstrator program. However, the limitation would ensure that some of the United States' most technologically advanced UAVs stay out of the grasp of other nations. For example, it would prevent the proliferation of jet-powered, fast moving flying wing drones like Boeing's Phantom Ray and Northrop Grumman's X-47B demonstrators, both of which can cruise at near-supersonic speeds. While the UAV industry wants the U.S. government to pick up the pace on drone export reform, the State Department and other agencies argue that a prudent approach is needed. For example, any change to the MTCR that loosens restrictions on low-speed drones also needs to be closely examined to ensure that missile technology is still strictly controlled. “We don't want any unintended consequences, so it has to be crafted carefully. We don't want to inadvertently drop something else out like a cruise missile,” the State Department official said. The focus on speed is particularly smart at a time when countries are focused on increasing the speed of their munitions, Horowitz said. He pointed to growing investments in hypersonic weapons as an example where creating a speed delineation in the MTCR would allow the U.S. to push for greater UAV exports while “holding the line on exports of next-generation missiles.” Industry desires Industry has long argued that the United States has taken an overly proscriptive route, hamstringing potential drone sales to allies and pushing them into the arms of more nefarious actors such as China, the other major UAV producer on the worldwide market. Modifying the MTCR is just one facet of the Trump administration's review of drone export policy, which also includes taking a second look at domestic regulations that can be amended by the president at will. Because changes to the MTCR require consensus among the regime's 35 member countries, industry sees it as a direly-needed, but long-term solution. “Now we have lighter-than-air vehicles; we have intelligence, surveillance reconnaissance [UAVs]. We still have cruise missiles, we have aircraft that could autonomous for cargo and other purposes. But [the MTCR] doesn't distinguish between any of that, so a revisit of those MTCR rules is in order for things that fly and can fly autonomously,” said Aerospace Industries Association President David Melcher during a December 14 roundtable with reporters. American firms are particularly concerned about losing out on sales in the Middle East. China has already exported its Wing Loong — a medium altitude, long endurance UAV that resembles General Atomics' MQ-1 Predator — to multiple countries worldwide, including some close U.S. partners such as Saudi Arabia and the United Arab Emirates. Meanwhile, sales of U.S.-made drones have been rarer, with many Middle Eastern countries such as the UAE only able to buy unarmed versions of American UAVs, even though those nations regularly purchase more technologically advanced weaponry like fighter jets from the United States. The State official noted that any change in the MTCR would not need to wait until the next plenary session, but could be introduced in some form as early as an April technical meeting. And at least one industry source was optimistic about the administration's MTCR reform plan. “They're taking a pretty smart process in not trying to tackle everything at once, but trying to get some of the language corrected in small bites,” the source said. “I don't see this as being an overnight process. I don't think we're going to end up in the next six months with a brand new MTCR policy.” However, Horowitz warned that the nature of the MTCR, where any single country could veto such a change, means getting any changes will not be easy. Russia, for example, could block the move not on technical reasons but geopolitical ones, given relations between Moscow and Washington. If that happens, Horowitz noted, the U.S. could potentially look to apply the 650 kph speed definition on its own, something possible because of the voluntary nature of the MTCR. https://www.defensenews.com/air/2017/12/19/heres-how-the-trump-administration-could-make-it-easier-to-sell-military-drones/

Innovative Solutions Canada is a $100-million program to fuel innovation and create middle-class jobs December 14, 2017 – Ottawa As the single-largest purchaser of Canadian goods and services, the Government of Canada will use procurement to help Canadian small businesses innovate and create employment opportunities for Canadians. The Honourable Navdeep Bains, Minister of Innovation, Science and Economic Development, together with the Honourable Bardish Chagger, Leader of the Government in the House of Commons and Minister of Small Business and Tourism, today announced the $100-million Innovative Solutions Canada program that invites Canadian small businesses to develop novel solutions to challenges proposed by federal departments and agencies. Whether the challenge is developing a way to make armour more resistant to chemicals or improving wireless connectivity in connected vehicles, the federal department or agency will ask small businesses to innovate and propose a solution. The government will work with the winning business and act as its first customer, helping the companies take their idea to market and advance the next generation of solutions that can become viable commercial products. Twenty federal departments and agencies will participate in the new program and identify problems spanning the military, economic and environmental sectors. Innovative Solutions Canada is a key component of the Government of Canada's Innovation and Skills Plan, a multi-year strategy to create well-paying jobs for the middle class. Quotes “Our government's new Innovative Solutions Canada program is a big winner on several fronts. We're being proactive and transforming our challenges into opportunities—opportunities for innovation, economic growth and small business success that will result in a vibrant innovation economy and more middle-class jobs for Canadians.” – The Honourable Navdeep Bains, Minister of Innovation, Science and Economic Development “We believe innovative Canadian small businesses are well positioned to help the government solve some of its more persistent challenges. Through Innovative Solutions Canada, we are asking entrepreneurs to develop new products and services that will help to solve these challenges, while also enabling these entrepreneurs as they work to expand to new markets and sell to new customers around the world. The benefits from this program are clear: the Government of Canada will be able to acquire new products and services that will improve our work, while hard-working small business owners will be able to grow their businesses and create more well-paying middle-class jobs.” – The Honourable Bardish Chagger, Minister of Small Business and Tourism “Our community of early-stage investors, incubators and accelerators provides much-needed coaching, connections and capital to Canada's early-stage companies seeking to grow and scale up. Many times, their ‘first customer' serves as critical validation that allows these companies to penetrate their markets locally and globally. The Innovative Solutions Canada program announced today will help Canadian companies gain early customer traction while also allowing Canadians to benefit from the adoption of homegrown innovative solutions.” ‑ Sandi Gilbert, Chair of the Board, National Angel Capital Organization (NACO Canada) Quick Facts Program funding will come from the 20 departments and agencies participating in Innovative Solutions Canada. Each department will set aside 1 percent of its research and development expenditures for this initiative. Innovative Solutions Canada is modelled on the U.S. Small Business Innovation Research program and is an essential component of the Government of Canada's efforts to help small businesses. Innovative Solutions Canada will encourage submissions from businesses owned and led by women, Indigenous peoples, youth and other traditionally under-represented groups. https://www.canada.ca/en/innovation-science-economic-development/news/2017/12/government_uses_procurementtohelpsmallbusinessesgrowandcreatejob.html

WASHINGTON — A large number of American companies supplying the U.S. military may have left the defense market, according to a study announced Thursday, raising alarm over the health and future of the defense industrial base. The Center for Strategic and International Studies study said the number of first-tier prime vendors declined by roughly 17,000 companies, or roughly 20 percent, between 2011 and 2015. The full study, due to be released in January, was authored by CSIS Defense-Industrial Initiatives Group Director Andrew Hunter, Deputy Director Gregory Sanders and Research Associate Rhys McCormick. It was sponsored by the Naval Postgraduate School and co-produced by the Aerospace Industries Association, which released an executive summary on Dec. 14, the day of its annual aerospace and defense luncheon in Washington. The authors, who used publicly available contract data, write that it's unclear — due to the limitations in the subcontract database —whether the companies have exited the industrial base entirely or still perform work at the lower tiers. “There is no doubt that a huge portion of the recent turbulence in the defense industrial base has taken place among subcontractors, who are less equipped to tolerate the defense marketplace's funding uncertainly and often onerous regulatory regime — yet it remains extremely difficult to determine the real impact of these conditions on subcontractors,” the authors conclude. Further details may yet be revealed by the Trump administration's ongoing review of the resiliency of the defense-industrial base. Defense Secretary Jim Mattis' assessment is due to President Donald Trump by mid-April 2018. The CSIS summary links 2011 Budget Control Act caps, subsequent short-term budget agreements, and Congress' “unpredictable and inconsistent” appropriations process to the “lost suppliers, changes in competition and market structure, and other turmoil” it found. The years 2011-2015 are considered a period of defense drawdown and decline. The authors, rather than focus strictly on the total decline of defense contract obligations over the entire period, chose to chart the “whipsaw” effect that struck certain sectors of the industrial base amid the imposition of sequestration in 2013 and subsequent budget caps. Though the defense budget had been declining in the years leading up to the Budget Control Act, the implementation of an across-the-board sequestration budget cut in 2013 “marked a severe market shock that had a considerable impact on the defense industry,” the authors say. Compared to the pre-drawdown fiscal 2009-2010 period, the start of the drawdown in fiscal 2011-2012, average annual defense contract obligations dropped 5 percent. When sequestration was triggered in fiscal 2013, defense contract obligations dropped 15 percent from the previous year. Average annual defense contract obligations fell 23 percent during the so-called BCA decline period, fiscal 2013-2015. The Army, which has a checkered modernization history, bore the brunt of the decline. Average annual defense contracts dropped 18 percent at the start of the drawdown, then 35 percent during the BCA decline period. Missile defense contract obligations actually gained 7 percent at the start of the drawdown and then dropped only 3 percent under budget caps. During his presidency, Barack Obama reversed course from early cuts to missile defense to spur the development and deployment of missile defense systems in Europe, Asia and the Middle East. Lockheed Martin CEO Marillyn Hewson reacted to the internally circulated findings earlier this month, saying budget cuts are responsible for the industry being “more fragile and less flexible than I've seen it, and I've been in the industry many, many years.” “What we've seen in the industry, I'll give you an example at Lockheed Martin: At the outset of budget cuts we were about 126,000 employees; today we are at 97,000 employees,” Hewson said at the Reagan National Defense Forum in California. “Our footprint has shrunk dramatically. We see some of our small and medium-sized business, some of the components that we need, there's one, maybe two suppliers in that field where there were many, many more before.” Budget cuts have squeezed the Defense Department to unduly prioritize low-cost contracts over innovation and investment. Cost “shootouts,” she said, are endangering the military's plans to grow in size and lethality. AIA Vice President for National Security Policy John Luddy said companies have coped through a variety of “healthy efficiencies,” such as mergers and acquisitions, consolidating facilities, exploring shared services, and offloading certain contracting activities. “Our companies have done an amazing job of managing the downturn, they've pulled all kinds of levels to make it work, they've shown the ingenuity of the American free market system,” Luddy said. “Nonetheless, the uncertainty of the budgeting process has become a huge challenge for us.” Army Secretary Mark Esper, formerly of Raytheon, warned lawmakers at a Senate hearing Dec. 7 that uneven funding is driving small suppliers — “an engine of innovation” — out of the defense sector. “If you're a small mom and pop shop out there, and I'm referring to my industry experience, it's hard for them to survive in the uncertain budgetary environment,” Esper said. “And we risk losing those folks who may over time decide that they're going to get out of the defense business and go elsewhere. So that's a big threat to our supply chains.” But the CSIS study found that small vendors either increased their share of platform portfolio contract obligations or held steady, while large and medium vendors were most harmed by the market shock from sequestration and the defense drawdown. https://www.defensenews.com/breaking-news/2017/12/14/american-exodus-17000-us-defense-suppliers-may-have-left-the-defense-sector/

Canada will acquire 18 F/A-18 Hornets and associated spare parts from the Royal Australian Air Force (RAAF) to augment its fleet of CF-188 fighter jets until a replacement is selected and brought into service in 2025. Government ministers and senior officials confirmed the widely anticipated plan to buy 30-year-old F/A-18A/B legacy Hornets at a press conference on Dec. 12, putting to rest a previous proposal to acquire 18 F/A-18E/F Super Hornets. The Liberal government had announced in November 2016 a plan to buy the Boeing-built Super Hornets as an interim measure to address an urgent capability gap in the fighter fleet. Although the possible sale was approved by the U.S. State Department in September, the government ceased all discussions with Boeing after the company issued a trade complaint against Montreal-based Bombardier over the sale of the C Series jetliner to Delta Air Lines. “We have received a formal offer for sale of F-18 aircraft from the government of Australia, which we intend to pursue. And we have received an offer of Super Hornets from the U.S. government, which we intend to let expire,” said Carla Qualtrough, Minister of Public Services and Procurement. At the same time, the government officially launched a $15 to $19 billion competition to procure 88 aircraft to replace the entire fleet of Royal Canadian Air Force (RCAF) legacy Hornets by inviting interested governments and manufacturers to join a suppliers list. Qualtrough said the list would allow the government to identify and “share sensitive information” with eligible governments, manufacturers and suppliers able to meet Canada's needs. “All suppliers are welcome to participate in the process. No firm is excluded,” she said. Engagement with industry, which has been ongoing since 2012, is expected to lead to a request for proposals by the spring of 2019, followed by a contract award in 2022. Delivery of the first aircraft would begin in 2025. While ministers and senior officials stressed an “open and transparent” competition, the government also introduced a new criterion in the evaluation of company's bid: Its impact on Canadian economic interests, a measure journalists quickly dubbed the “Boeing clause.” “This new assessment is an incentive for all bidders to contribute positively to Canada's economy,” said Qualtrough. “When bids are assessed this will mean that bidders responsible for harming Canada's economic interests will be at a distinct disadvantage compared to bidders who aren't engaged in detrimental behaviour.” A government official, speaking on background, acknowledged that “many of the suppliers we deal with on defence procurements have several business lines and global reach. We are seeking to leverage (these) procurements to incentivize favourable economic conduct towards Canada and discourage detrimental actions by commercial suppliers.” Qualtrough said the assessment, which will be used in future procurements, would be developed through consultations with industry. “All proposals will be subject to the same evaluation criteria. “The assessment of economic impact will be done at the time of the assessment of the bids,” she added, an indication that much could change between the government and Boeing by 2019. The eventual CF-188 replacement program will include aircraft, sustainment, infrastructure, and aircrew and maintenance training, and will generate billions for Canadian industry in industrial and technological benefits, said Navdeep Bains, Minister of Innovation, Science and Economic Development, noting that the industrial and technological benefits (ITB) policy has already generated over $40 billion in economic investment. “If you think that sounds impressive, the economic benefits of these new fighter jets will add significantly to those ITB numbers. This is an enormous investment in a very important sector for us. That's why our government feels it's important to do business with trusted partners.” MINDING THE GAP The Liberal government has faced pointed criticism on a number of fronts for claiming a capability gap. During Question Period on Tuesday, Conservative Member of Parliament Tony Clement suggested the capability gap does not exist. “It's a fairy tale created by Liberals to justify their political decisions,” he said. Gen Jonathan Vance, Chief of the Defence Staff, countered that criticism during the press conference, claiming the RCAF cannot generate enough mission-ready aircraft to meet North Atlantic Treaty Organization (NATO) and North American Aerospace Defense Command (NORAD) commitments simultaneously. “The RCAF cannot concurrently meet those obligations now without some form of supplemental capability until a future fighter fleet is in place,” he said. “The acquisition of Australian F-18s is a logical choice.” Senior officials with the RCAF and Department of National Defence (DND) said the Australian Hornets would “integrate seamlessly” with the CF-188s. Both fleets have similar operating requirements and share comparable training systems, all of which can be supported by existing supply chains and frontline maintainers. Both countries have cooperated on fleet management and system upgrades, and shared test data, “so we know the jets well,” said the DND official. “We know the state of their aircraft and what modifications may be needed to operate them until the [new] fleet is in place.” Montreal-based L3 MAS, responsible for maintaining Canada's CF-188s since they first entered service in the 1980s, has also performed centre barrel replacements on a number of Australian jets as part of a fuselage life extension program. However, Canada recently began additional structural modifications to ensure the Hornets can operate through 2025, and the Australian F-18s will need to be modified to a similar standard. The government must still negotiate the final price tag for the 18 jets, modifications and spare parts, but a senior official estimated it would be about one-tenth the cost of 18 Super Hornets and associated mission and weapon systems and support, which the U.S. State Department estimated at US$5.23 billion. “Specific dollar amounts will be available once we have finalized an agreement with Australia,” he said. If an agreement is reached, the first Australian Hornets would begin arriving in 2019 and the capability gap would be closed by the end of 2021, two years faster than the planned delivery of the Super Hornets, officials said. The RCAF had planned to deploy the Super Hornets as a standalone squadron at 4 Wing Cold Lake, Alta. The senior Air Force official said the force structure had not yet been finalized, but would likely involve aircraft being placed across the operational and training squadrons at 4 Wing and 3 Wing Bagotville, Que. He also acknowledged that more aircraft would mean a need for more pilots and technicians, and that “retention and recruitment efforts were underway to meet this requirement.” https://www.skiesmag.com/news/government-launches-cf-188-replacement-program-interim-hornet-buy/

News Release From Public Services and Procurement Canada December 12, 2017 - Ottawa, Ontario - Government of Canada Acquiring the aircraft that Canada's military needs to help ensure the safety and security of Canadians, while ensuring economic benefits for Canada, is a top priority for the Government of Canada. The government is delivering on its promise to hold an open and transparent competition to permanently replace Canada's fighter fleet. As outlined in the Strong, Secure, Engaged defence policy, Canada will purchase 88 advanced fighter aircraft. This is the most significant investment in the Royal Canadian Air Force in more than 30 years, and is essential for protecting the safety and security of Canadians, and meeting international defence obligations. Through this competition, the Government of Canada will ensure it gets the right aircraft at the right price, and maximizes economic benefits for Canadians. The government will ensure that the Canadian aerospace and defence industries and manufacturers are consulted and engaged in this process. Proposals will be rigorously assessed on cost, technical requirements and industrial, technological and economic benefits. As it is important to do business with trusted partners, the evaluation of bids will also include an assessment of bidders' impact on Canada's economic interests. When bids are assessed, any bidder responsible for harm to Canada's economic interests will be at a distinct disadvantage. This new assessment, as well as guidelines for its application as an ongoing procurement tool, will be developed through appropriate consultations. In addition, the Industrial and Technological Benefits Policy will apply to this procurement, requiring the winning supplier to make investments in Canada equal to the value of the contract. Until permanent replacement aircraft are in place and fully operational, Canada must ensure that the Canadian Armed Forces has the equipment it needs to continue to deliver its missions, and meet its international obligations. As such, the Government of Canada will pursue the purchase of 18 supplemental jets from the Australian Government. Quotes “As we promised, our government is launching an open and transparent competition to replace our fighter fleet with 88 advanced jets. We are also supplementing our CF-18 fleet by pursuing the purchase of jets from Australia while we complete this important and complex procurement. Today's announcement is about ensuring that our women and men in uniform continue to have the equipment they need to protect Canadians. At the same time, we will use this procurement to strengthen our aerospace and defence industries, create good middle-class jobs and support our economic interests.” The Honourable Carla Qualtrough Minister of Public Services and Procurement “Our women and men in uniform are entrusted with the enormous responsibility of ensuring the safety of Canadians every day. Today's announcement is a key step toward making sure that they have the equipment they need to fulfill this responsibility and meet our commitments to our partners and allies around the world.” The Honourable Harjit S. Sajjan Minister of National Defence “This project represents a significant opportunity to support the long-term competitiveness of Canada's aerospace and defence industries, which together contribute more than 240,000 jobs to the Canadian economy. We are committed to leveraging the procurement of the future fleet to support innovation, promote the growth of Canadian suppliers, including small and medium-sized businesses, and create middle-class jobs for Canadians.” The Honourable Navdeep Bains Minister of Innovation, Science and Economic Development Quick Facts Today's announcement marks the official launch of the open, competitive process to replace Canada's fighter jet fleet. The government will begin by establishing a list of suppliers, comprised of foreign governments and fighter aircraft manufacturers that have demonstrated their ability to meet Canada's needs, as defined in the Suppliers List invitation. All companies are welcome to participate in the process. Extensive planning and stakeholder engagement will take place throughout 2018 and 2019. A contract award is anticipated in 2022 and the first replacement aircraft delivered in 2025. The government will engage with foreign governments, fighter aircraft manufacturers and the Canadian aerospace and defence industries to ensure they are well-positioned to participate. The purchase of 88 aircraft represents an increase in fleet size of more than a third of what was planned prior to the Strong, Secure, Engaged defence policy (65 aircraft). Together, Canada's aerospace and defence industries contribute over 240,000 quality jobs. Aerospace is one of the most innovative and export-driven industries in Canada and adds $28 billion annually in gross domestic product to Canada's economy. The Canadian defence sector includes over 650 firms employing highly skilled workers in high-quality jobs. Associated Links Replacing and supplementing Canada's CF-18 fleet CF-18 replacement State of Canada's Aerospace Industry: 2017 Report https://www.canada.ca/en/public-services-procurement/news/2017/12/government_launchesopenandtransparentcompetitiontoreplacecanadas.html

Canada's Strong, Secure, Engaged defence policy, announced in June 2017, reaffirmed the government's commitment to invest appropriately in Canada's military. On December 12, 2017, the Government of Canada launched an open and transparent competition to permanently replace Canada's fighter fleet with 88 advanced jets. This represents an increase in fleet size of more than a third from what was planned prior to the Strong, Secure, Engaged defence policy (65 aircraft). The Industrial and Technological Benefits Policy will be applied to this procurement. The objective of the policy is to maximize opportunities for Canadian companies, support innovation through research and development, and grow export opportunities from Canada. All companies are welcome to participate in the process. Engagement The government will take the time necessary to ensure that the Canadian aerospace and defence industries and commercial suppliers are consulted and engaged in this process, and that they are well-positioned to participate. Canada will hold a Future Fighter Industry Day on January 22, 2018 at Library and Archives Canada, 395 Wellington St., in Ottawa. The objective of this event is to present foreign governments and industry with the information required for them to make an informed decision about participating in the procurement. In addition, the event will provide an opportunity for Canadian industry to network with foreign governments and fighter aircraft manufacturers. Invitation to participate Canada will begin by establishing a list of suppliers as a first step in this procurement. The list will be comprised of foreign governments and fighter aircraft manufacturers that have demonstrated their ability to meet Canada's needs, as defined in the Suppliers List invitation. The invitation to participate on the Suppliers List is available on Buyandsell.gc.ca. All companies are welcome to participate in the process. Suppliers List responses are requested by February 9, 2018. Once the list is formalized, only suppliers on the Suppliers List will be invited to subsequent engagement activities and to submit proposals for this procurement. Consultation with Canadian Industry Stakeholders In parallel to the activities related to the Suppliers List, Canadian industry stakeholders will be engaged to gather and share general information related to this procurement. This will ensure the Canadian aerospace and defence industries are well-positioned to participate. Evaluation of proposals for the permanent capability Proposals will be rigorously assessed on elements of cost, technical requirements and economic benefits. Our government feels it is important to do business with trusted partners. As such, the evaluation of bids will also include an assessment of bidders' impact on Canada's economic interests. When bids are assessed, any bidder that is responsible for harm to Canada's economic interests will be at a distinct disadvantage. The new assessment, as well as guidelines for its application as an ongoing procurement tool, will be developed through appropriate consultations. In addition, the Industrial and Technological Benefits Policy will apply to this procurement, requiring the winning supplier to make investments in Canada equal to the value of the contract. All Suppliers will be subject to the same evaluation criteria. Next Steps Engagement with suppliers will continue throughout 2018 and 2019 It is anticipated that the formal solicitation documents will be available in spring 2019 A contract award is anticipated in 2022, and the first replacement aircraft delivered in 2025 Frequently Asked Questions Competitive procurement process How long will the competition take and when will a contract be awarded? This competition requires extensive planning and stakeholder and industry engagement We need to get this right and we will take the time needed to ensure the Canadian aerospace and defence industries and commercial manufacturers are consulted and engaged in this process A contract award is anticipated in 2022 and the first replacement aircraft delivered in 2025 The current estimated schedule to complete this process is consistent with competitions led by allied and partner countries for replacing their fighter fleets Why are you using a Suppliers List? Fighter aircraft and their component systems are sensitive, heavily controlled goods, and discussing their potential sale requires the existence of defence material cooperation arrangements between Canada and its partners and allies The three criteria included in this invitation are aimed at ensuring Canada works with foreign governments that are operators of fighter aircraft that could meet Canada's needs for sharing defence information, and commercial manufacturers currently producing fighter aircraft This step will identify eligible manufacturers of fighter aircraft in partner and allied nations that demonstrate the potential to meet Canada's needs Their respective governments and/or defence organizations will also need to meet Canada's needs to be on the Suppliers List Who can participate in the Suppliers List? Foreign governments (or defence organizations made up of participating nations) and fighter aircraft manufacturers and other commercial entities that are able to meet the needs as defined in the Suppliers List invitation, are encouraged to submit a request to be added to the list in order to participate in the competition Canada's Suppliers List will be comprised of teams that will include at a minimum, a government (or defence organization made up of participating nations) and a fighter aircraft manufacturer These teams may also include other companies who are likely to be involved in supporting a future proposal, subject to approval by Canada Once the list is formalized, only suppliers on the Suppliers List will be invited to subsequent engagement activities, and submit proposals Can a government submit more than one response to the Suppliers List Invitation? Our goal through this open and transparent process is to maximize competition, and therefore governments are encouraged to submit responses for more than one fighter aircraft manufacturer, as defined in the Suppliers List invitation The decision to submit more than one response rests with the foreign government or defence organization How can Canadian industry participate in the Suppliers List? The Suppliers List will identify key suppliers that will be eligible to submit a proposal, namely a foreign government or defence organization and a fighter manufacturer These suppliers will be required to submit a Value Proposition in their bid outlining their economic commitments to Canada As a result, suppliers will be motivated to form partnerships with Canadian industry and post-secondary institutions over the coming months in order to develop a strong Value Proposition The government will engage with foreign governments, fighter aircraft manufacturers and the Canadian aerospace and defence sectors to ensure they are well-positioned to participate What are the criteria that suppliers will need to meet, to be accepted on the Suppliers List? Each team must identify a government or nation to act as Canada's main point of contact, and have a current defence material cooperation agreement with Canada The team's fighter aircraft manufacturer, must meet the criteria as defined in the Suppliers List invitation The foreign government or one of the participating nations must be an operator of a fighter aircraft produced by the proposed fighter manufacturer Canada will review response submissions to determine if they have met all the Suppliers List criteria and reserves the right to request clarification, if needed Following review of the responses, suppliers will receive email notification of Canada's decision Can Canada remove or add a supplier to the Suppliers List? Once a team has been added to the Suppliers List, it may withdraw at any time by written notification to Canada Similarly a foreign government or defence organization can add or remove a company from its team at any time by written notice to Canada, subject to Canada's approval Canada reserves the right to remove, at any time, any team or entity that is listed on the Suppliers List if it presents potential, perceived or real issues that may be injurious to Canada's national security Does this procurement include industry engagement and discussions related to Industrial and Technological Benefits for Canada? The Government's Industrial and Technological Benefits Policy will apply to this procurement, requiring contractors to make investments in Canada equal to the value of the contract The Government is engaging with fighter aircraft manufacturers and Canadian industry towards the development of a Value Proposition strategic objective that will support the long-term growth of Canada's aerospace and defence sectors This includes promoting growth and innovation of Canadian industry through investments in research and development, providing supplier development opportunities, especially for small and medium-sized businesses and providing export opportunities for Canadian firms The necessary time will be taken to engage with foreign governments, fighter aircraft manufacturers and the Canadian aerospace and defence industries to ensure they are well-positioned to participate How will Canada evaluate the proposals? Proposals will be rigorously assessed on cost, technical requirements and economic benefits Our government feels it is important to do business with trusted partners. As such, the evaluation of bids will also include an assessment of bidders' impact to Canada's economic interests When bids are assessed, any bidder that is responsible for harm to Canada's economic interests will be at a distinct disadvantage The new assessment, as well as guidelines for its application as an ongoing procurement tool, will be developed through appropriate consultations Why are you assessing impact on Canada's economic interests? We are continuously looking for ways to enhance our procurement processes and improve outcomes for Canadians Procurements are about forming effective and long-term partnerships and we want to ensure that we are doing business with suppliers whose activities align with Canada's economic interests This approach is consistent with direction in Minister Qualtrough's Mandate Letter, which outlines direction to modernize procurement practices to support our economic policy goals, among other objectives How will the government ensure that no aircraft supplier has an unfair advantage during the competition? The government is committed to conducting an open and transparent competition to replace Canada's fighter aircraft This process is overseen by an independent fairness monitor to ensure a level playing field for all suppliers Canada will also engage other stakeholders to review, gather and share general information related to the procurement throughout this competition Supplementing the Existing Fleet What is Canada doing to ensure that the Canadian Armed Forces has the equipment it needs while the competition is underway? Until permanent replacement aircraft are in place and fully operational, Canada must ensure that the Canadian Armed Forces has the equipment it needs to continue to deliver its missions, and meet its international obligations Canada has received a formal offer for sale of F-18 Hornets from the government of Australia, and intends to pursue it Will buying these F-18 aircraft require changes to Canada's existing infrastructure? The Department of National Defence is currently reviewing its existing infrastructure to evaluate if any changes are required How can you be confident these planes will be reliable, safe and effective? Ensuring the safety and security of our women and men in uniform is our top priority The Australian aircraft are similar in age to Canada's CF-18 fleet Australia and Canada have both made significant investments in the development of structural modifications that have allowed the structural life of their respective F-18s to be extended More recently, Canada invested in the development of additional structural modifications that Australia did not Canadian companies have the experience required, and are already performing most of the maintenance work on our existing fleet. Any supplemental aircraft would be maintained through these existing arrangements Just as we do with our current fleet, we will make necessary investments in these aircraft to ensure they meet all requirements of the Royal Canadian Air Force More information Fighter Jets Integrating Australian Jets into the Current Royal Canadian Air Force Fighter Fleet https://www.tpsgc-pwgsc.gc.ca/app-acq/amd-dp/air/snac-nfps/CF-18-eng.html

DANIEL LEBLANC OTTAWA PUBLISHED 2 DAYS AGOUPDATED 2 DAYS AGO The federal government is vowing to make it harder for companies that harm Canada's "economic interests" to win major contracts, starting with the $26-billion competition to provide 88 new fighter jets to the Canadian Armed Forces. The new requirement will be fleshed out in coming months, with Procurement Minister Carla Qualtrough acknowledging that it will include a mix of "objective and subjective elements." Officially, the new "economic impact test" will apply to all bidders in major competitions, with Ms. Qualtrough and Innovation Minister Navdeep Bains insisting the requirement complies with Canadian and international law. Still, the new test was quickly dubbed the "Boeing clause" as it comes in response to U.S.-based Boeing Co.'s unresolved trade dispute with Canada's Bombardier Inc. Boeing said last April that the Canadian plane maker used unfair government subsidies to clinch an important contract for 75 CS 100 planes to Atlanta-based Delta Air Lines at "absurdly low" sale prices. Prime Minister Justin Trudeau has said the trade dispute will affect Boeing's future dealings with the government, which is now giving itself leverage to fight back in disputes with foreign companies. "Anyone can apply, but we've been very clear with this new policy: If there is economic harm to Canada, if there's an impact on Canadian jobs, if there's an impact to some of the key sectors in the Canadian economy, you will be at a distinct disadvantage," Mr. Bains said at a news conference. The new test was announced as the federal government confirmed it has cancelled plans to buy 18 new Super Hornet fighter jets from Boeing. The government is buying second-hand Australian fighter jets as an "interim" measure to help Canada's fleet of CF-18s to meet the country's international obligations. Defence analyst David Perry said the new economic impact test stands to create a new layer of complexity in military procurements that are already beset by delays. "If this is not a superficial, political assessment about whether or not the government of Canada likes this company or not, this will require bureaucratic time and effort to come up with a detailed assessment that will pass legal review," Mr. Perry said. Mr. Perry, a senior analyst at the Canadian Global Affairs Institute, added that companies such as Boeing, which do billions of dollars of business and provide thousands of jobs in Canada, will be hard to box in specific categories. "Just coming down with some neat, clean assessment that says, on balance, this company is providing economic harm to Canada will be really difficult," Mr. Perry said. Boeing said that it is awaiting further details on the new economic impact test before deciding how to proceed on the upcoming competition for new jets. "We will review the Future Fighter Capability Project requirements for 88 jets, including the 'Boeing Clause,' and make a decision at the appropriate time," company spokesman Scott Day said. The federal government announced new details on the competition to replace Canada's fleet of CF-18s on Tuesday. A formal request for proposals is scheduled to be unveiled in spring, 2019, with a winning bidder announced in 2022. In addition to Boeing, other potential bidders include Lockheed Martin (F-35), Saab (Gripen), Dassault (Rafale) and Eurofighter (Typhoon). The opposition focused its attacks on the fact the government will be buying second-hand planes at an unspecified price instead of quickly launching a competition for new fighter jets. "We know these eighties-era jets are rusted out because a 2012 Australian report said corrosion was so bad that the number of active flying days had to be cut. This is not a bucket of bolts; this is a bucket of rusted-out bolts," Conservative MP Tony Clement said during Question Period. The government responded by blaming the Harper government for its failed attempt to buy F-35s without going to tenders. General Jonathan Vance, the Chief of the Defence Staff, said the requirements for the full fleet of new fighter jets have been redrawn since the days in which only the F-35 could qualify. https://www.theglobeandmail.com/news/politics/federal-government-to-link-economic-interests-to-bids-for-fighter-jets/article37303772/

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

'The laser can temporarily blind the pilot ... putting all people aboard the aircraft at serious risk' CBC News Posted: Dec 07, 2017 7:15 AM MT Last Updated: Dec 07, 2017 7:15 AM MT A pilot bound for the Villeneuve Airport northwest of Edmonton was able to navigate a safe landing after a green laser was pointed at the plane Wednesday night. The aircraft was flying somewhere over Sturgeon County when the pilot realized someone was pointing a green laser at the plane, Morinville RCMP said in a statement. RCMP said it's extremely fortunate that no one was hurt. Laser strikes on an aircraft are extremely dangerous, police said. "The laser can temporarily blind the pilot, create intense glare that affects the pilot's vision and distract the pilot, putting all people aboard the aircraft at serious risk." RCMP were notified of the incident by Nav Canada, the private operator of Canada's civil air navigation service. Police did not provide any details on the plane, how many passengers were on board, or if the pilot required medical attention. 'It's a disturbing statistic' Last year, the federal government launched a social media campaign focused on the issue of people pointing lasers at planes. The number of laser incidents reported to Transport Canada has increased in the last few years: In 2014, there were 502 so-called laser strike incidents on planes, a 43-per-cent increase since 2012. According to Transport Canada, there were more than 500 reported laser strikes in 2016. "It's a disturbing statistic," RCMP said. "It means the safety of pilots, crew and passengers were put at risk 500 times that year. Pointing a laser at an aircraft is illegal and a criminal offence." The punishment for anyone caught shining a laser at an aircraft is a fine of up to $100,000, five years in prison, or both. RCMP are asking anyone with information on the incident to contact the Morinville detachment or Crime Stoppers. http://www.cbc.ca/news/canada/edmonton/villeneuve-airport-edmonton-laser-plane-investigation-1.4437107