22 juin 2018 | Local, Aérospatial
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.
30 juin 2022 | Local, Aérospatial, Naval, Terrestre, C4ISR, Sécurité
Ahead of a NATO summit in Spain, the Prime Minister said Canada has repeatedly proven its commitment to the military alliance by stepping up with deployments in Latvia and elsewhere
20 juillet 2022 | Local, Aérospatial
Le Canada aura bientôt officiellement sa force spatiale militaire. Mais attention : ceux qui s’imaginent des soldats en mission dans un champ de bataille céleste vont vite revenir sur terre : « Ce n’est pas aussi excitant que les séries de science-fiction », avertit le futur commandant de cette force, le brigadier général Michael Adamson.
23 octobre 2020 | Local, Aérospatial, Naval, Terrestre, C4ISR, Sécurité
OTTAWA - Canada has taken a big leap closer to meeting its promise to the NATO military alliance to spend a larger share of its economy on defence thanks to an unexpected assist from COVID-19. New NATO figures released Wednesday show that largely thanks to the pandemic, Canada is poised to spend the equivalent of more of its gross domestic product on defence this year than at any point in the past decade. That is because the alliance expects the Liberal government to hold Canadian defence spending steady even as COVID-19 batters the country's economic output. Yet defence analyst David Perry of the Canadian Global Affairs Institute says the results are unlikely to appease the United States, as Canada continues to fall far short of its promise to NATO to spend two per cent of GDP on defence. “I think they'll be pleased to see positive momentum,” Perry said of the U.S., “but it doesn't resolve their concern about where we are.“ All NATO members, including Canada, agreed in 2014 to work toward spending the equivalent of two per cent of their GDP — a standard measurement of a country's economic output — on defence within the next decade. The promise followed complaints from the U.S. about burden-sharing among allies and broader concerns about new threats from Russia and China as the two countries increased their own military spending. NATO and the U.S. have repeatedly criticized Canada for not meeting the target, with President Donald Trump in December calling Canada “slightly delinquent” during a meeting with Prime Minister Justin Trudeau. His predecessor, Barack Obama, also called out Canada over its defence spending during an address to Parliament in 2016. The U.S. spends more than any other NATO member on defence, both in terms of raw cash and as a share of GDP. NATO Secretary-General Jens Stoltenberg on Wednesday said the continued importance of increasing military spending would be discussed when defence ministers from across the alliance meet this week. The NATO figures show that Canada is poised to spend 1.45 per cent of its GDP on the military this year. That is not only a big jump from the 1.29 per cent last year, but the largest share of the economy in a decade. It also exceeds the government's original plan, laid out in the Liberals' defence policy in 2017, to spend 1.4 per cent of GDP on the military by 2024-25. That is when NATO members were supposed to hit the two-per-cent target. Yet the figures show the expected increase isn't the result of a new infusion of cash for the Canadian Armed Forces this year as spending is expected to hit $30 billion, up just over $1 billion from 2019. Rather, NATO predicts Canadian GDP will shrink by about eight per cent this year as COVID-19 continues to ravage the economy. The fact Canadian defence spending is expected to remain largely steady despite the pandemic is noteworthy, particularly as there have been fears in some corners about cuts to help keep the federal deficit under control. The NATO report instead appears to lend further credence to recent assertions from Defence Minister Harjit Sajjan, Defence Department deputy minister Jody Thomas and others that the Liberals are not readying the axe. Canada also remained 21st out of 29 NATO members in terms of the share of GDP spent on the military as other allies also got a surprise boost from the economic damage wrought by COVID-19. At the same time, Perry said the government has yet to lay out a timetable for when it plans to meet the two per cent target. Military spending is instead expected to start falling after 2024-25, according to the Liberal defence plan. Despite having agreed to the target during the NATO leaders' summit in Wales in 2014, successive Canadian governments have repeatedly described the NATO target as “aspirational.” This report by The Canadian Press was first published Oct. 21, 2020. https://www.thestar.com/news/canada/2020/10/21/canada-jumps-closer-to-military-spending-target-thanks-to-covid-19s-economic-damage.html