24 juillet 2018 | Local, Naval
The final bids are being submitted Friday by various consortiums for the Canadian Surface Combatant program.
The bids going in Friday involve the finalized portions of the bids on designs (the technical design bids were originally submitted in November but today marks the deadline for responses that deal with any questions the federal government may have had/changes needed to be made) as well as proposals for the financial elements for the project.
The new ships will be the backbone of the future Royal Canadian Navy.
The groups bidding include:
-Lockheed Martin Canada, who will be the prime on the team that includes BAE Systems, CAE, L3 Technologies, MDA, and Ultra Electronics. The team is offering the BAE Type 26 warship for the Canadian program. The proposal will include Lockheed Martin Canada's combat management system, CMS 330, which is currently on board the modernized Halifax-class frigates. A scaled down version of the system will be used on the Royal Canadian Navy's new Arctic Offshore Patrol Ship fleet. The United Kingdom is acquiring 8 of the Type 26 ships. Australia has also identified the Type 26 as the design for its future warship.
Gary Fudge, Vice President and General Manager, Lockheed Martin Canada Rotary and Mission Systems told Defence Watch that the group's bid was submitted earlier this week. He noted that the Type 26 would be excellent in an anti-submarine warfare role as it is designed to be extremely quiet. The vessel also has room to future modernization, unlike older designs, he added. The Lockheed Martin team, which is making $17 billion in value proposition commitments to Canada, will commit to spending billions in innovation across Canada's priority areas, including $2 billion in supplier development and $2 billion in research and development, and $200 million in advanced manufacturing, the company noted.
-Alion Science and Technology, along with its subsidiary Alion Canada, submitted their proposal based on the Dutch De Zeven Provinciën Air Defence and Command (LCF) frigate. “Our solution delivers an effective, affordable, production-ready 21st century naval capability to meet Canada's defence needs,” Bruce Samuelsen, Chief Operating Officer for Alion, said last year while promoting the firm's bid. The De Zeven Provinciën-class frigate is a proven NATO vessel, built by Damen Schelde Naval Shipbuilding, with more than 10 years of operational excellence, the company added.
Alion's combat system solution is based on the world-class capabilities of ATLAS-Elektronik and Hensoldt Sensors. ATLAS brings an open architecture Combat Management System that readily accepts new and evolving technologies, the firm noted. Hensoldt's capability and experience in developing and fielding state-of-the art radars was central to meeting the unique Canadian requirements with a fielded, non-developmental radar, the Alion team added in an earlier news release. Other key suppliers include L3 Technologies Canada, Raytheon Canada Limited, DRS Technologies Canada Limited (DRS TCL) and Rheinmetall Canada Inc.
-Navantia of Spain is leading a team that includes Saab Australia and CEA Technologies. Its proposal is based on the F-105 frigate design, a ship in service with the Spanish navy. The design has also already been exported to Norway and Australia. Saab, which would provide the combat management system, has support on the CSC program from Lockheed Martin (Moorestown, New Jersey), General Dynamic Mission Systems – Canada, DRS Technologies Limited Canada, OSI Maritime Service and Rheinmetall Canada, according to Navantia.
The F-105 Anti-Submarine Warfare ship will incorporate Saab's 9LV Combat Management Systems, elements of which are in service on over 240 platforms in 16 navies across the globe, including Canada's own Halifax-class frigates, the company has said.
The budget for the Canadian Surface Combatant project is estimated by the federal government to be between $55 billion and $60 billion. That is a range but specific costs won't be known until contacts are signed and more details worked out. Fifteen warships will be built.
Pat Finn, assistant deputy minister for materiel at the Department of National Defence, told Defence Watch he expects a winning bid to be selected by the end of this year.
After that negotiations would start and a contract is expected to be signed sometime early 2019. If an agreement can't be reached then negotiations would begin with the group that came second in the competition.
About half of the cost of the surface combatant price-tag is for systems and equipment that will go on the 15 ships, according to federal documents obtained by Postmedia through the Access the Information law. “Approximately one-half of the CSC build cost is comprised of labour in the (Irving's) Halifax yard and materials,” the documents added.
Jean-Denis Fréchette, the Parliamentary Budget Officer, estimated the CSC program would cost $61.82 billion. He also warned that every year the awarding of the contract is delayed beyond 2018, taxpayers will spend an extra $3 billion because of inflation.
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EUGENE LANG Eugene Lang is an adjunct professor at the School of Policy Studies, Queen's University, and a fellow at the Canadian Global Affairs Institute. “It's Canada, they have money,” Donald Trump said at last week's NATO summit. Most of what the U.S. President says is either exaggerated or false, but occasionally he sums up in a sentence what everyone knows to be true. After admonishing Prime Minister Justin Trudeau at the summit for Canada's failure to meet, or strive toward, the North Atlantic Treaty Organization's defence-spending target of 2 per cent of Gross Domestic Product (GDP), Mr. Trump pointed out an inconvenient truth. The President was saying Canada is rich and cheap. But just how rich is Canada? Among the Group of Seven -- a group of the richest countries in the world -- Canada enjoys the third-highest per-capita income and, since 2016, has led the G7 in economic growth. Canada also has the lowest net-debt-to-GDP ratio among those same seven countries, and the second-lowest national-government-deficit-to-GDP ratio. Which means, in essence, that Canada is the third-richest country in the G7 and the best in class with government finances. Successive governments in Ottawa have spent 20 years boasting about this strong national balance sheet to Canadians at every turn, and telling anyone abroad who would listen. This is why Mr. Trump knows that Canada does indeed have money. We are rich, at least compared with most other countries. But are we cheap? Canada spends about 1.3 per cent of GDP on national defence, tying us for fourth with Italy within the G7. Yet, Ottawa has never fully accepted the validity of the defence-spending-to-GDP measure. Both the Harper government – which signed the Wales Declaration, enshrining the 2-per-cent NATO target – and the Trudeau government have claimed input measures such as the GDP ratio don't tell the full story, and that output indicators are more meaningful. The defence output measure that is best understood is the extent to which a country's military is engaged in operations internationally. On that score, Canada looks terrible. We have fewer troops deployed abroad today on NATO, United Nations and other multilateral missions than in decades. To be sure, having influence internationally and carrying your fair share of global responsibility entails much more than the size or engagement of your military. Official Development Assistance (ODA), or foreign aid, is another important measure in this connection. Canada also ranks fourth among G7 countries in ODA as a percentage of gross national income (GNI). However, Ottawa is spending only 0.28 per cent, up slightly from 0.26 per cent last year, the lowest level this century. Fifty years ago, a World Bank Commission report, titled Partners in Development, recommended developed countries spend 0.7 per cent of GNI on aid. That Commission was chaired by Lester Pearson, former prime minister of Canada, recipient of the Nobel Peace Prize and a Canadian icon. Over the years, various Canadian governments have paid homage to Mr. Pearson's vision. Yet in the five decades since his report was published, Canada has rarely reached half of the Pearson target in any given year. Whether Ottawa likes or doesn't like input or output measures, or GDP or GNI ratios, doesn't really matter in the world of international politics. For better or worse, these are the indicators that are used to compare and assess the degree to which countries are living up to their obligations and responsibilities internationally. Imperfect as they are, these are measures of burden sharing. They are the statistics countries look at when considering whether Canada or any other country is pulling its weight globally. And on these measures, Canada looks middling at best, and bad at worst, by both international comparative standards. At the same time, we are among the world leaders in economic growth among developed countries, and we have held the gold medal in public finances for years. Rich and cheap, as it were. That was the essence of Mr. Trump's criticism of Canada this week at the NATO Summit. And foreign governments the world over know it to be true. https://www.theglobeandmail.com/opinion/article-canada-is-rich-and-cheap/