25 février 2020 | Local, Naval

$1 billion and counting: Inside Canada's troubled efforts to build new warships

Federal government tables figures showing what it's spent on the projects to date
Murray Brewster

The federal government has spent slightly more than $1.01 billion over the last seven years on design and preparatory contracts for the navy's new frigates and supply ships — and the projects still haven't bought anything that floats.

The figures, tabled recently in Parliament, represent the first comprehensive snapshot of what has been spent thus far on the frequently-delayed project to build replacement warships.

It's an enormous amount of money for two programs that have been operating for more than a decade with little to show for their efforts to date.

It will be years before the Canadian Surface Combatant project — which aims to replace the navy's frontline frigates with 15 state-of-the-art vessels — and the Joint Support Ship program for two replenishment vessels actually deliver warships.

The numbers and details for each advance contract were produced in the House of Commons in response to written questions from the Conservative opposition.

The money was divided almost evenly between the federal government's two go-to shipyards: Irving Shipbuilding in Halifax, the prime contractor for the new frigates, and Seaspan of Vancouver, the builder of the supply ships.

The breakdown raises critical questions about at least one of the programs, said a defence analyst, but it also shines a light on promises made by both Liberal and Conservative governments to keep spending under control for both of these projects — which could end up costing more than $64 billion.

"I think there should be a level of concern [among the public] about whether or not what's being delivered in practice is what was advertised at the outset," said Dave Perry, a procurement expert and vice president of the Canadian Global Affairs Institute.

A design still in flux

Most of his concerns revolve around the new support ships, which the Liberal government says are in the process of being built now.

The written responses, tabled in Parliament, note that the projected cost for the two supply ships — $3.4 billion — remains under review "as the design effort finalizes."

Perry said he was astonished to learn that, "seven years and half-a-billion dollars into design work on an off-the-shelf design," the navy doesn't have the support ships, even though "the middle third of the ship is built" — and officials now say "the design effort isn't finished."

Usually, he said, ships are designed before they're built.

The head of the Department of National Defence's materiel branch said most of the preparatory contracts were needed to re-establish a Canadian shipbuilding industry that had been allowed to wither.

'A lot of patience'

"I think we have to look at the totality of everything that's being accomplished under" the national shipbuilding strategy, said Troy Crosby, assistant deputy minister of materiel at DND.

"Over that period of time, and with these expenditures, we've built a shipbuilding capability on two coasts, not just through National Defence but also through the coast guard, offshore fisheries science vessels. I understand it has taken a lot of patience, I suppose, and probably some uncertainty, but we're really getting to the point now where we can see delivering these capabilities to the navy."

The largest cash outlays involve what's known as definition contracts, which went individually to both shipyards and were in excess of $330 million each. They're meant to cover the supervision of the projects and — more importantly — to help convert pre-existing warship designs purchased by the federal government to Canadian standards.

The choices on each project were made at different times by different governments, but ministers serving both Liberal and Conservative governments decided that going with proven, off-the-shelf designs would be faster and less expensive than building from scratch.

Now, after all the delays, it's still not clear that choosing off-the-shelf designs has saved any money.

"I would be completely speculating on what it would cost to invest to develop the kind of expertise and capacity inside the government, inside National Defence and everybody involved, to be able to do something like that in-house," said Crosby.

"The approach we've taken at this point, by basing both the Joint Support Ship and the Canadian Surface Combatant on pre-existing designs, allows us to retire a lot of risk in the way forward."

When Crosby talks about "retiring risk," he's talking about the potential for further delays and cost overruns.

Among the contracts, Irving Shipbuilding was given $136 million to support the drawing up of the design tender for the new frigates and to pay for the shipbuilding advice Irving was giving the federal government throughout the bidding process.

Years ago, the federal government had enough in-house expertise to dispense with private sector guidance — but almost all of that expertise was lost over the past two decades as successive federal governments cut the defence and public works branches that would have done that work.

The last time Canada built major warships was in the 1990s, when the current fleet of 12 patrol frigates was inaugurated.

The federal government has chosen to base its new warships on the BAE Systems Type-26 design, which has been selected by the Royal Navy and the Royal Australian Navy.

The hull and propulsion system on the new frigates will be "largely unchanged" from the British design, but the combat system will be different and uniquely Canadian, said Crosby.

The project is still on track to start cutting steel for the new combat ships in 2023. Crosby said he would not speculate on when the navy will take delivery of the first one.

Delivery of the joint support ships is expected to be staggered, with the first one due in 2024.

There will be a two-year gap between ships, said Crosby, as the navy and the yard work through any technical issues arising with the first ship.

If that timeline holds, the first support ship will arrive two decades after it was first proposed and announced by the Liberal government of former prime minister Paul Martin.

https://www.cbc.ca/news/politics/frigates-joint-supply-ships-navy-procurement-canada-1.5474312

Sur le même sujet

18 octobre 2018 | Local, Naval

Davie and Irving shipyards are in the midst of a lobbying blitz in Ottawa
BY TIM BOUSQUET In recent days, Unifor Marine Workers Federation Local 1, which represents Irving Shipyard workers, has been conducting a “Ships Stay Here” campaign that included getting Halifax council to support its efforts. The union fears that some of the shipbuilding work contracted to Irving will be shifted to Davie Shipyard in Quebec. Alex Cooke of the Canadian Press contacted the federal government to ask about that fear: In an emailed statement to The Canadian Press last week, the Department of National Defence spokeswoman Ashley Lemire said the government intends to announce any changes to planned maintenance on Halifax-class frigates in the coming weeks. “Given the planned work for the Royal Canadian Navy, an option with two maintenance and repair facilities to conduct this work beginning in the 2020 timeframe is being considered,” Lemire said. “Keeping these frigates operational is a priority for us, and being able to ensure all the maintenance is done when required is essential.” Lemire added that Irving is the prime contractor for the Canadian Surface Combatant project, which she said will result in an estimated $30 billion in build contracts for Irving Shipbuilding into the 2040s. However, “a spokesperson for Davie Shipbuilding strongly takes issue with comments that the Quebec company is stealing work from Halifax,” reports Jacob Boon for The Coast: “It's being portrayed as if Quebec will steal jobs, contracts from Irving,” says Fred Boisvert, vice-president of public affairs for Davie. “Where if you look properly, closely, there's nothing like it happening at all.” ... Boisvert says that's all a bit rich. No one in their right mind could believe there are production gaps at Irving, he says, given the sum total of $65 billion in federal contracts the shipyard has secured. “Guys, guys, you got $65 billion,” he says. “I mean, please, you won't get a tear from me. You're flush with contracts. You've got 20 years stability in terms of that shipyard.” Davie has laid off some 1,000 workers itself over the past year due to dwindling federal contracts. “We're bleeding people here,” says Boisvert. Both companies have been on a lobbying blitz in Ottawa. Davie has hired consultant Naresh Raghubeer of Elmvale Strategies Inc. to lobby the federal government with regard to “shipbuilding work for National Defence, Canadian Coast Guard, Transport Canada, as well as exports.” Raghubeer has made 32 reportable lobbying contacts this year, 11 of them in September alone (October reports are not yet published). The September contacts include conversations with multiple lobbyist targets at once (the reports don't say if they were in-person or conference calls), including with MPs Joel Lightbound, Steve MacKinnon, Remi Masse, Michel Picard, Luc Berthold, Steven Blaney, Gerard Deltell, Bernard Genereux, Jacques Gourde, Richard Marte, Alain Rayes, Jean-Yves Duclos (the minister of Employment and Social Development), Marc Garneau (the minister of Transport Canada), and François-Philippe Champagne (the minister of Infrastructure Canada). As well, in September Raghubeer talked with Senators Pierre-Hugues Boisvenu, Claude Carignan, Jean-Guy Dagenais, Larry Smith, Pierre Dalphond, Denis Dawson, Eric Forest, Rosa Galvez, and Andre Pratte. Raghubeer's September lobbyist efforts also including conversations with a range of political functionaries, including (twice with) Martin Belanger, the Policy Advisor to the Office of the Leader of the Official Opposition; Taras Zalusky, the Policy Advisor to Carla Qualtrough, the minister of Public Services and Procurement Canada; Mathieu Bouchard, a Senior Advisor at the Prime Minister's Office (PMO); Dominic Cormier, a Policy Advisor to the PMO; John Ma, a Policy Advisor to Harjit Singh Sajjan, the minister of DND; (twice with) Shane McCloskey, a Policy Advisor to Marc Garneau, the minister of Transport Canada; Christina Rettig, a Policy Advisor at the PMO; George Young, the Chief of Staff to Jonathan Wilkinson, the minister of Fisheries and Oceans Canada (DFO); Marc-Andre Leclerc, the Chief of Staff of the Leader of the Official Opposition; Sriram Raman, a Policy Advisor to François-Philippe Champagne, the minister of Infrastructure Canada; Marc Roy, the Chief of Staff to to Marc Garneau, the minister of Transport Canada; Jenny Demers, a Policy Advisor to Jean-Yves Duclos, the minister at ESDC; and Olivier Duchesneau, Chief of Staff to minister Duclos. For its part, lobbying efforts on behalf of Irving Shipyard are conducted by James Irving, the co-CEO of the shipyard. Irving reported 70 lobbying contacts in 2018, but just six of those were in September. Unlike Raghubeer, who speaks with multiple people at once, Irving tends to speak to one or two people at a time. James Irving's September contacts were with Taras Zalusky, the director of Policy, Procurement and Parliamentary Affairs Public Services and Procurement Canada; John Ma, a Policy Advisor to Harjit Singh Sajjan at DND; Eric Dagenais, the Assistant Deputy Minister at Innovation, Science and Economic Development Canada; John Knubley, the Deputy Minister at Innovation, Science and Economic Development Canada; Elliott Hughes, the Director of Policy at DND; Christina Rettig, a Policy Advisor at the PMO; and Justin To, the Director of Policy at the PMO. https://www.halifaxexaminer.ca/featured/davie-and-irving-shipyards-are-in-the-midst-of-a-lobbying-blitz-in-ottawa
26 décembre 2019 | Local, Naval

Industry briefing questions Ottawa's choice of guns, defence systems for new frigates
Murray Brewster The Department of National Defence has faced some tough, pointed questions about whether it has chosen the right radar, main gun and close air defence systems for the navy's new frigates, which will soon hit the drawing board. An unsolicited defence industry slide deck presentation, obtained by CBC News, questions each of those key components in the planned $60 billion modernization of the fleet. It was circulated earlier this year and put in front of the senior federal officials in charge of the program. The defence industry briefing presentation points out that the Lockheed Martin-built AN/SPY-7 radar system — an updated, more sophisticated version of an existing U.S. military system — has not been installed and certified on any warship. A land-based version of the system is being produced and fielded for the Japanese government. The briefing calls it "an unproven radar" system that will be "costly to support," and claims it comes at a total price tag of $1 billion for all of the new ships, which the undated presentation describes as "an unnecessary expenditure." Lockheed Martin Canada and British-based BAE Systems Inc. were chosen earlier this year by the Liberal government to design and help build 15 new warships to replace the country's existing patrol frigates — the backbone of the navy. Old guns, inadequate defence systems? The briefing raises concerns about DND's choice of a main gun for the frigates — a 127 millimetre MK 45 described by the briefing as 30-year-old technology that will soon be obsolete and cannot fire precision-guided shells. The briefing also singles out as inadequate the Sea Ceptor close air defence system, which is meant to shoot down incoming, ship-killing missiles. Given the Canadian government's past missteps with military procurement — buying used equipment or opting for developmental systems that take years to get into service — a defence expert said the caution being expressed by the industry now is legitimate, but in some respects it's coming years too late. "There's a risk anytime you try to do something new for the first time," said Dave Perry, an analyst who specializes in procurement at the Canadian Global Affairs Institute. The navy struggled for years to get second-hand British submarines up to Canadian standards. The air force also sat on its hands while the manufacturer of the CH-148 Cyclone helicopters worked out all of the developmental bugs. The presentation, Perry said, essentially tries to re-litigate decisions made by federal officials over three years ago, when the government's request for proposals was mapped out. 'The ship has sailed' "This is calling into question whether the government set down [technical] markers in an appropriate spot or not," he said. "There is always the possibility that these issues can be revisited, but I think at this point the ship has sailed because a competition was run, it did produce a preferred bidder." The pressure to get the new frigate design right is enormous, given the enormous expense involved and the changing nature of warfare, Perry added. The briefing presentation apparently was circulated by a rival radar-maker which was not part of the bidding process. Federal officials declined to name the company. Raytheon Canada Ltd. and its U.S. parent are among the biggest electronics and radar manufacturers in the world. A request for comment sent to their international business division went unanswered last week. 'We did our homework' The concerns in the briefing were presented last summer to: Pat Finn, former head of materiel at DND; Andre Fillion, the assistant deputy minister of defence purchasing at Public Services and Procurement Canada; and Rear Admiral Casper Donovan, the navy's director general for "future ship capability." DND confirmed the existence of the briefing presentation but refused to say who received it or which defence contractor was pushing it. "It is not uncommon for companies to present unsolicited material to our department when they are unsuccessful in a competitive process," spokesman Andrew McKelvey said recently. "We do not comment on these unsolicited documents as they are provided outside the scope of our established procurement process." Both the department and the commander of the navy stand behind the decisions that were made and the systems chosen for the new frigate. "We did our homework. We talked to other navies. We engaged our allies," said Vice-Admiral Art McDonald, who added DND was aware of other options on the market. Delivering the warships on schedule and on budget in the mid-2020s is a constant preoccupation in the department, he said. He would not say whether the choice of radar system might mean a delay in delivery. A senior executive at Lockheed Martin Canada said the company's radar system is identical to one selected by the U.S. government and other countries. Much of the system's hardware, and some of its software, have been used on U.S. Aegis-type guided missile destroyers and cruisers. The difference between the radar system chosen for Canada's frigates and conventional systems is in its array: the Lockheed Martin system sweeps around and above the vessel, rather than only horizontally. "The work that remains is to integrate it into the ship and integrate it into the ship's combat system," said Gary Fudge, general manager and vice president of Lockheed Martin Canada. "We worked for two years with BAE during the proposal stage to optimize the ship design with this particular radar." https://www.cbc.ca/news/politics/frigate-gun-radar-canadian-navy-1.5405054
20 avril 2021 | Local, Aérospatial

Plans to boost aerospace sector outlined in federal government's Budget 2021 - Skies Mag
The Canadian government recognized the strategic importance of Canada's aerospace sector, which directly and indirectly supported nearly 235,000 jobs in 2019, and signalled its intention to ensure the industry can remain an important driver of Canada's economy.

Toutes les nouvelles