DAVID PUGLIESE, OTTAWA CITIZEN
The Canadian Forces and Department of National Defence has updated the status of a number of its major procurement programs including the Arctic Offshore Patrol Ships which it says will be fully operational by 2025.
Under the schedule the first ship is to be delivered sometime this summer to the Royal Canadian Navy but won't be operational until 2020, according to the update. Other ships will follow over the years with the fleet being declared fully operational in 2025, according to the schedule. Each ship will go through various tests and sea trials, with ships being brought on line as those are finished and crews are trained.
The Arctic Offshore Patrol Ships, or AOPS, being built by Irving Shipbuilding, were announced in 2007 by then prime minister Stephen Harper. The vessels were supposed to be in the water by 2013. But the program has faced delays. Critics have also questioned why Canada is paying around $400 million per ship when Denmark received similar vessels for $70 million each.
In November 2018 the Liberal government announced it was building a sixth Arctic patrol ship to add to the five originally commissioned from Irving Shipbuilding. But it acknowledged that ship will cost taxpayers $800 million — double the price-tag of each of the other vessels.
The Liberal government announced the construction of the sixth AOPS after a push by Irving and its employees for additional work. The project was originally to build five AOPS and only proceed with a sixth if Irving could find savings and work within the existing budget. That didn't happen, Department of National Defence officials noted.
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Sans faire de vagues, le constructeur d’hélicoptères Bell Textron centralise à Mirabel ses activités d’ingénierie commerciale – autrefois partagées des deux côtés de la frontière. Par la bande, cette usine située dans les Laurentides récolte les fruits d’un important contrat décroché par le conglomérat auprès de l’armée américaine l’an dernier.
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By: Joe Gould   1 day ago WASHINGTON ― General Dynamics has received $1 billion since the renegotiation of a $10 billion contract for Canada to sell light armored vehicles to Saudi Arabia, company officials said on its first quarter earnings call. In a deal last month, Canada lifted its ban on arms sales to Saudi Arabia, which in turn agreed to a speedier payment schedule for the LAVs. Canada had the vehicles on hold since 2018, following the death of Saudi journalist Jamal Khashoggi; and by October, Saudi Arabia had racked up $1.5 billion in back payments to General Dynamics. Amid news on the April 29 call that the company's revenue fell $512 million in connection with the coronavirus pandemic, General Dynamics Chief Financial Officer Jason Aiken highlighted “the formal signing of the restructured contract on the Canadian international program, which settled all issues to the satisfaction of the parties.” “With respect to our standing receivable you may recall that we received $500 million early in the first quarter and we received another $500 million this month. This will be very helpful to free cash flow in the second quarter,” Aiken said. “We will begin a regular cadence of scheduled payments in 2021 consistent with deliveries and making further progress in the scheduled amortization of the arrearage.” The company's Combat Systems division had revenue of $1.7 billion, up 4.4 percent over the same quarter last year, and sales to the U.S. government were up 12 percent. The firm's aerospace business segment also had revenue of $1.7 billion, but that represented a 23 percent fall from the same quarter last year. On April 9, Canada's foreign affairs minister, François-Philippe Champagne, announced Ottawa was “able to secure significant improvements” to the LAV contract, including more latitude for the Canadian government to speak about it. Under the new terms, Canada could also delay or deny export permits without penalty if it learned Saudi Arabia was not using the vehicles for their stated purpose. Ottawa would also be reviewing permit applications on a case-by-case basis to ensure they meet Canadian law and the U.N. Arms Trade Treaty. Though the Trudeau government has been under political pressure to scrap the LAV deal over human rights concerns, Champagne said its cancellation would have “resulted in billions of dollars in damages” and risked thousands of Canadian jobs across the defense supply chain. The vehicles are made by the General Dynamics Land Systems subsidiary in London, Ontario. https://www.defensenews.com/congress/2020/05/07/general-dynamics-saw-1-billion-bump-after-canada-saudi-accord