Biden invokes Defense Production Act for printed circuit board production

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  1 décembre 2017 | Local, Naval

  Chantier Davie won’t take ‘no’ for an answer

  By Kevin Dougherty. Published on Dec 1, 2017 10:46am QUEBEC – Chantier Davie in Lévis, across the St. Lawrence from Quebec City, will be forced to lay off 800 shipyard workers before Christmas without a new contract to build a second supply vessel for the Canadian navy. “We're not taking no for an answer on that,” Davie CEO Alex Vicefield said in a telephone interview on Thursday, after Defence Minister Harjit Singh Sajjan told Le Journal de Québec last week through his press attaché that the government does not plan to buy a second supply ship. In an email response Thursday, Sajjan's press attaché Bryne Furlong reiterated that, “Navy and Coast Guard supply requirements have been extensively studied and are subject to long-term planning, which does not include a second supply vessel‎.” The layoffs have begun, now that the Davie workforce has completed — on time and on budget — conversion of the German-built container ship Asterix into a supply ship to deliver fuel, water, food and supplies to the ships of the Royal Canadian Navy. Davie's plan now is the $600 million conversion of the Obelix, a sister ship to the Asterix, into the navy's second supply ship. Vicefield said Ottawa's plan calls for paying $2 billion each for two new supply vessels, the first of which will only be available 10 years from now. “Why do we need to build these ships for $2 billion each?” Vicefield asked, noting the Asterix and Obelix cost $600 million each and are superior vessels. “I'm not a political activist but we believe in the project and we delivered,” Vicefield said. In 2011, the Harper government unveiled its National Shipbuilding Procurement Program, awarding $38-billion in contracts to build ships for the Navy and Coast Guard to Irving Shipbuilding Inc. of Halifax and Seaspan Shipbuilding of Vancouver. Davie, emerging from bankruptcy at the time, is Canada's largest shipyard and was excluded. Cost estimates have risen since then, Vicefield noted, with the cost ballooning to over $100 billion. And in the six years since the plan was announced, the two winning shipyards have delivered no ships. Officially, Seaspan is to launch its first replacement supply ship in 2021. But Vicefield noted that Andy Smith, the official responsible for shipbuilding in the federal department of fisheries and oceans, told a Commons committee Nov. 7 that Seaspan has a backlog of three ships to build before work on the first supply ship can begin in 2023, for delivery in 2027. Vicefield said that in spite of granting the lion's share of shipbuilding contracts to Halifax, the Conservatives where shut out in Atlantic Canada in the 2015 election, and Steven Blaney, the Conservative MP representing Lévis, was re-elected even though Davie was excluded from the National Shipbuilding Procurement Strategy. “The key point here is that shipbuilding contracts do not win votes,” Vicefield said. “But major procurement scandals bring down governments. “If I was in government, I would be worried about a major procurement scandal, where you are spending five, six times the cost to buy a ship than any other country in the world pays and nothing is being delivered.” The Asterix is also a hospital ship and can deliver humanitarian aid in the event of major natural disasters, such as a tsunami or a devastating hurricane. Davie stepped into the breach in 2014, when the navy's two existing supply ships were scrapped and plans by Seaspan to build two replacement supply ships were a distant prospect. The Harper government granted Davie a contract to convert the Asterix into a supply ship for about $600 million as a private-public partnership, with Davie managing the project from stem to stern, its financing, as well as providing its civilian crew and leasing the ship to the federal government for five years. When Justin Trudeau led his Liberals to power in 2015, Irving Shipbuilding leaned on Liberal ministers from the Maritimes to have the contract cancelled. But the work was underway and Ottawa did not block the Asterix project. The Halifax-based and crewed Asterix will supply Canadian navy ships off the east coast, while off the west coast Canadian naval vessels will be supplied by Chilean and Spanish navy supply ships. “Why would you do that when you can put the money back into Canada and ensure the jobs of 800 people here for another two years?” Vicefield said. “It makes no sense.” Vicefield regards the Harper government's plans, renamed by the Liberal government as the National Shipbuilding Strategy, as “mind-boggling” and “a bit of a joke.” And he believes Canada can have three shipyards, including Davie, to build and maintain naval and Coast Guard vessels. “There are about 50 large ships that need replacing,” he said, noting the average age of the Coast Guard fleet is 40 years. “So there is enough work for sure for three shipyards for the next 30 years.” “We haven't been pushing against the National Shipbuilding Strategy,” Vicefield said. “I think it is going to fall on its own.” Irving, which is now building ships in Romania, and Seaspan, which has ordered two ferries to be built in Turkey, are defending the plan, and so far have political support. “They see the writing on the wall,” Vicefield said. “They want to destroy the competition. They see that now they have the upper hand. “But we're not going to let that happen,” he insists. “We're convinced the new government, the Liberals, will actually see sense. “But it is taking time for them to get their feet under the desk.” https://ipolitics.ca/article/chantier-davie-wont-take-no-answer/

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  20 décembre 2019 | Local, Autre défense

  Canadian Forces had valuable ‘insights’ in Afghanistan, defence minister says following damning U.S. report

  By Charlie Pinkerton. Defence Minister Harjit Sajjan says Canadian Forces deployed to Afghanistan contributed useful insights to American forces, whose past military operations in the country have drawn new scrutiny following The Washington Post's publication of the so-called Afghanistan Papers. The documents obtained and published by the Post are the product of hundreds of interviews carried out by the special inspector general for Afghanistan reconstruction (SIGAR). SIGAR was mandated to complete a series of reports exploring the effectiveness of its nearly two-decade, close to trillion-dollar mission that it began as a retaliation against al-Qaeda for the Sept. 11, 2001, attacks. The documents fought for in court by the Post include notes, transcripts and audio recordings that the subjects had been promised would not be made public by the government. They provide a thorough look at the frustrations and concerns of top U.S. brass and a lack of understanding of the conflict by the American military and its government. One of the revelations of the Afghanistan Papers is the that as the conflict continued, top American military officials considered it an unwinnable conflict. Sajjan completed three Afghanistan tours, where he worked in intelligence before working directly with top American troops as an adviser. In giving his take on how the Canadian perspective compared to that of the Americans during the mission, Sajjan said the Canadian Armed Forces had a better understanding of the realities of the conflict than its closest allies. READ MORE: A year-end Q&A with Defence Minister Harjit Sajjan “I would say the insights the Canadians provided were actually very useful. That's one point that I'm trying to get across here, and I appreciate the Americans coming out and talking about this now,” Sajjan said. “Canadians were providing a very good perspective, very early on, to have a much more, I would say, accurate account of what is happening,” One passage the Post highlighted from the thousands of pages of documents to underscore the discontent with the conflict by U.S. officials was an interview with Douglas Lute, a former top army general who became an adviser on the Afghan war in the White House. “We were devoid of a fundamental understanding of Afghanistan — we didn't know what we were doing,” Lute said. “What are we trying to do here? We didn't have the foggiest notion of what we were undertaking.” Sajjan said good decisions were made only with an “accurate” and “good understanding” of the Afghanistan conflict. From 2001 to 2014, 40,000 Canadians served in Afghanistan. There were 158 Canadian soldiers killed. On top of its military effort, Canada has provided more than $3 billion in international assistance to Afghanistan since 2001. In talking about Canada's operations in Afghanistan, Sajjan also defended well-known Canadian-led aspects of the mission, such as the Operational Mentoring and Liaison Team (OMLT, but known colloquially as omelette) and its stabilization-focused whole-of-government approach to the conflict. “What I'm trying to say here is that the work that Canada did there was highly valued and I appreciate other allies coming out with different perspectives,” Sajjan said. https://ipolitics.ca/2019/12/19/canadian-forces-had-valuable-insights-in-afghanistan-defence-minister-says-following-damning-u-s-report/

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  6 janvier 2020 | Local, Aérospatial, Naval, Terrestre, C4ISR, Sécurité

  Canada: Defence Procurement Canada: Is It ‘Back To The Future' For Defence Procurement?

  Article by Marcia Mills and Paul Burbank Capital Perspectives Last Updated: January 3 2020 The issues surrounding defence acquisition took a backseat in the run up to the 2019 federal election. As noted by the Canadian Global Affairs Institute, this occurred despite the fact that two of the largest defence procurements in Canadian history – the Canadian Surface Combatants (warships) project and the Future Fighter Capability Program (fighter jets) – are in active procurement mode, spending is falling short of forecast and roughly 70 per cent of the approved projects under the 2017 implementation of the Strong, Secure, Engaged Defence Policy have seen schedule delays 1. Canadian defence procurement is a many-layered affair. Spread across three departments and a central agency (the Department of National Defence; Public Procurement and Services Canada; Innovation, Science and Economic Development; and Treasury Board, respectively), the need to coordinate and align this much bureaucracy is often viewed as one of the significant problems in defence procurement. The two main political parties offered very different solutions to these issues during the election, but provided few details. The Platforms The Conservatives focused on the need to "de-politicize" the procurement process, which would in turn deliver greater value for money and better resources for the Canadian military. To accomplish this, new oversight mechanisms, both in Cabinet and in the Privy Council Office, would be created. 2 Major defence procurements are already subject to oversight by the Defence Procurement Secretariat, a Deputy Ministers Governance Committee and a Ministers Working Group. It is not entirely clear how additional layers of oversight would reduce delay and improve efficiencies, unless the new mechanisms replaced all or some of the current oversight layers. The Liberal platform included a portion on defence procurement that pointed to the creation of "Defence Procurement Canada," to ensure defence projects were delivered on time and with greater transparency. The structure of Defence Procurement Canada was not explained. A bit of speculation is now in order as to what this could mean for defence procurement. The New Cabinet The Liberals formed a minority government and announced their new Cabinet on Nov. 20. While the Ministers of Defence (Harjit Sajjan) and Innovation, Science and Economic Development (Navdeep Bains) remain the same, Treasury Board has a new President and Public Services and Procurement Canada (PSPC) has a new Minister – Jean-Yves Duclos and Anita Anand, respectively. Treasury Board President Duclos moves from a smaller, specific portfolio within Employment and Social Development Canada to now preside over one of the federal government's most powerful central agencies and cabinet committees. He will have a considerable role in ensuring effective financial management and government spending. Minister Anand is a new face in Cabinet and a first-time Member of Parliament for the riding of Oakville, Ont. She is assuming responsibility for, amongst other things, the two single largest purchasing organizations in the federal government (PSPC and Shared Services Canada (SSC)). Going Forward Defence procurement in Canada follows a general ebb and flow – resources are increased during times of conflict and are reduced in times of peace. Restructuring occurs in response to these influences, as well as perceived redundancies, desired efficiencies and the odd scandal or two. Various Minsters and departments have been responsible for defence procurement and production over the past 100 years, including boards or commissions set up during times of war. A new independent department for defence procurement would result in three different departments (SSC, PSPC and the Defence Procurement Canada) managing the vast majority of federal acquisition. This approach would be similar to the stand up of the Department of Defence Production in the '50s. The DDP had a short life. Established in 1951, it was expanded to become the central purchasing organization in 1963 as an interim measure, then disbanded in 1969 with the establishment of the Department of Supply and Services. The amalgamations of various entities continued until 1993, with the creation of the Department of Public Works and Government Services (a.k.a. PSPC). PSPC operates as a central purchasing agent for the government, with exclusive authority under the Defence Production Act to acquire defence supplies for DND. If Defence Procurement Canada is to exist as a departmental corporation or agency, the government would want to launch this new entity early in its mandate so that it can lay claim to any degree of efficiency or success achieved. If so, the new entity would likely remain within PSPC, as the Minister has existing statutory authority to create a supporting departmental corporation or agency under the Defence Production Act. Creating this entity outside of PSPC's current authority would require a significant reorganization of the public service and change to the operations of government of a magnitude greater than that required to establish Shared Services Canada – this would include deciding whether to maintain or decentralize the functions of defence procurement and defence production, as well as significant statutory amendments to provide or reduce, as required, the authority of all Ministers involved. Ministerial mandate letters, which were released in mid-December, shed no additional light on the specific operational structure or corporate identity that Defence Procurement Canada is expected to take. Notable in these letters, however, is a prevailing theme: Minister Anand has the clear responsibility for bringing forward options to Cabinet, but that effort will be supported by a host of respected, senior ministers, including Minister Sajjan (National Defence), Minister Jordan (Fisheries & Oceans and the Canadian Coast Guard), and Minister Bains (Innovation, Science and Industry). As all of these Ministries are already involved in defence procurement, their continued support is not surprising. Throughout the history of defence acquisition and production in Canada, large-scale reorganization has been predicated by one of three events: war, post-war reconstruction or scandal. Absent one of these triggers, a minority government may have little appetite (or be able to drum up support from any other party) to stand up a wholly new department, or even a departmental corporation or agency within PSPC itself, on the basis of efficiency and economy alone, particularly in light of the on-going Phoenix debacle and the continued issues at Shared Services Canada. As no new Minister for Defence Procurement Canada was named in the new Cabinet nor were any Additional Ministers within PSPC named for defence or Defence Procurement Canada, it appears that, at least for now, any defence acquisition reorganization is likely to remain on the backburner. Marcia Mills is procurement counsel with the Fasken Ottawa office and has 20+ years of private and public sector experience. She provides clients with legal and strategic advice for all aspects of government procurement, as well as advice on government policies and procurement processes. Paul Burbank is an associate with the Fasken Ottawa office. He works with the Communications Law group to provide advice on telecommunications and broadcasting in Canada. Paul also works with Fasken's Government Relations and Political Law group on strategy and compliance matters. Footnotes 1 The Defence Procurement Outlook for Canada's 43rd Parliament by David Perry, The Global Exchange, 2019 Volume XVII, Issue III; Canadian Global Affairs Institute 2 Global News: With billions at risk, federal parties promise to fix defence, procurement