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  18 janvier 2019 | Local, Naval

  Overcoming ‘Boom and Bust’? Analyzing National Shipbuilding Plans in Canada and Australia

  by Jeffrey F. Collins CGAI Fellow Executive Summary While both Canada and Australia share similar constitutional frameworks and imperial histories, they are also no stranger to procurement challenges. Cost overruns, delays, regionalism, and protracted intellectual property disputes have all been part of major defence acquisition projects in recent decades. This Policy Paper analyzes the largest and most expensive procurement projects undertaken by either country, Canada's $73 billion (estimated) National Shipbuilding Strategy (NSS), launched in 2010, and Australia's A$90 billion Naval Shipbuilding Plan (NSP), launched in 2017. Each project represents an attempt to implement a rational, multi-decade approach to naval acquisition. Driven by a desire to overcome previous boom-and-bust cycles, the NSS and NSP aim to create a sustainable shipbuilding sector capable of meeting the immediate and future naval demands of Ottawa and Canberra. Neither country has attempted a shipbuilding plan on this scale before. The NSS and NSP are still in their early stages but some common themes have emerged. On implementation challenges, old problems persist. For one, the rational approach to naval shipbuilding is not devoid of procurement politics and regionalism. Determining which province or state will be home to billions in contracts over many years remains a zero-sum game no matter how arms-length the process of yard selection. Cost increases also remain a reality. Building domestically can carry a 30 per cent to 40 per cent premium. Project delays increase this premium, something Canada has already experienced when initial NSS acquisition costs, pegged at $37.7 billion nearly a decade ago, jumped to an estimated $73 billion today. Australia's delays in securing an agreement with France's Naval Group on its $A50 billion future submarine project could mean additional cost increases. In this context, schedule is king and avoiding cost increases requires keeping to planned shipbuilding schedules. Failure to do so opens production gaps and necessitates going with alternative options including building overseas (Australia) or converting commercial vessels for naval and coast guard use (Canada). Prolonged cost sensitivities raise the consideration of trade-offs on committing more money to continuous shipbuilding at the expense of acquiring other military capabilities. Canada, for instance, will need to make decisions at some point on whether to spend billions on replacing the North Warning System in the country's North. Australia will have to grapple with an Indo-Pacific region proliferating with relatively cheaper but lethal anti-ship missiles. In this context, money spent on surface combatants may be perhaps better spent on other capabilities. None of this is to say that progress has not occurred in either the NSS or NSP. Ships are getting built, including Arctic Offshore Patrol Ships in Canada, and Offshore Patrol Vessels in Australia. In 2018, both countries selected the British Type-26 as their preferred design for a new generation of surface combatants. It is very possible that these respective strategies will achieve their goals of bypassing the boom-and-bust eras, but ongoing challenges serve as a reminder that even with the best-laid plans, naval shipbuilding is a complicated affair. 1 https://www.cgai.ca/overcoming_boom_and_bust_analyzing_national_shipbuilding_plans_in_canada_and_australia

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  13 août 2018 | Local, Naval

  Quebec's Davie shipyard wins $610M contract to convert icebreakers for coast guard

  Jean-Yves Duclos, who represents the Quebec City region made announcement Friday The federal government has signed a $610-million contract to acquire and convert three icebreakers to renew the Canadian Coast Guard's aging fleet. Federal Families, Children and Social Development Minister Jean-Yves Duclos, who represents the Quebec City region made the announcement at the Davie shipyard in Lévis, which will be doing the work. The coast guard fleet lacks the capacity to perform its icebreaking duties. The Canadian Coast Guard ship Terry Fox, launched in 1993, is the newest icebreaker in the fleet. The contract is expected to result in the creation of 200 new jobs over the next two years, according to Davie spokesperson Frédérik Boisvert. Last year, when Davie was working on conversion of the Asterix and finishing two ferries, Davie employed 1,500 workers, Boisvert said. Many of them were laid off once the projects were completed. In June, the Liberal government concluded a deal with Davie to purchase three icebreakers, but there was no price tag attached to the project at the time. Negotiations to acquire the vessels were launched in January after Prime Minister Justin Trudeau abruptly announced the plan in a Radio-Canada interview in Quebec City. That marked the beginning of a seven-month negotiating process between the government and Davie. Fraser noted that the usual time it takes to negotiate a shipbuilding contract with the government is eight years, praising the work of negotiators for the government and Davie. MacKinnon confirmed that Ottawa sped up the process for the icebreaker deal. Full Article: https://www.cbc.ca/news/canada/montreal/ottawa-will-allow-quebec-s-davie-shipyard-to-bid-on-national-shipbuilding-plan-contracts-1.4780836

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  18 janvier 2018 | Local, Aérospatial

  U.S. isn’t worrying about Canada and missile defence, says Obama adviser

  By Tim Naumetz. Published on Jan 11, 2018 4:49pm Canadians don't have to wring their hands over whether the country should sign on to the U.S. ballistic missile defence system, says a former top defence adviser to President Barack Obama. Washington is paying more attention to bigger Canadian defence issues such as the long-delayed acquisition of a fleet of new modern fighter jets, Lindsay Rodman, former director of defence policy and strategy for Obama's National Security Council, said in a Canadian interview streamed earlier this week. Rodman, a temporary U.S. expatriate who now is an international affairs fellow at the University of Ottawa, said in a podcast interview with the Canadian Global Affairs Institute that the missile defence question is not a major issue in U.S. military and security circles. “The question of ballistic missile defence has been really surprising to me since I came to Canada a little over a year ago now,” Rodman said in the interview with Global Affairs institute vice-president David Perry. “It is just not on the forefront of anyone's mind in the United States, but it is one of the first things that any Canadian wants to talk to you about the U.S. American alliance,” said Rodman, an attorney who also served in the Pentagon as Obama's senior adviser for international humanitarian policy. “The U.S. is much more concerned with just making sure that NORAD is healthy, that the NATO alliance is healthy, that our homeland defence is being well supported, and we know that we don't depend on Canada for ballistic missile defence. “We do depend on Canada's fighter capability in terms of how we've planned our North American defence, so making good on the promises that Canada has made is going to be more important than new promises that Canada could make in the future, which would be something like ballistic defence.” The Global Affairs Institute offered the podcast up earlier this week, but the interview was recorded on Dec. 18, the same day U.S. President Donald Trump released his administration's first national security strategy. It was only two years after President Obama released his second national security strategy, which Rodman said should have been in place for four years under the normal U.S. four-year cycle for renewing national security and military strategies. While explaining U.S. views on Canadian defence positions — particularly the first Canadian defence strategy released by the Trudeau government last June — Rodman told Perry that while Canada's overarching defence positions have rarely diverged after a change of government, Trudeau's new personal and political approaches to Canada's role in the world may have made a difference. “I would say that Justin Trudeau, just by nature of his international sort of celebrity status, brought a new cachet to Canada, and that's pretty useful,” she said. “Certainly, being in Canada now and learning the ins and outs about the political system a little bit more, I can appreciate the nuances in Canada's position much better.” Canada's new defence policy specifically ruled out Canadian involvement in U.S. ballistic missile defence, even after the topic had been raised multiple times in four months of cross-country consultations that preceded the defence review in 2016. Still, by last December, even Trudeau signalled that the government has not yet ruled the possibility out, and several military experts have advocated Canada's participation in a series of House of Commons and Senate committee hearings. “For a very close ally like Canada, the most important thing is interoperability,” said Rodman. “We not only depend on Canada to potentially help us out in the world, but in terms of our homeland defence there's no one we depend more on than Canada. We really need everything to be interoperable.” The most important question facing the government as it slowly moves toward a 2025 target for acquiring a fleet of 88 new fighter jets could be how the most sophisticated warplane in the world — the Lockheed Martin F-35 strike fighter — fares as it goes through a competition that will decide which aircraft Canada will buy. Interoperability with U.S. warplanes has been a central part of the argument favouring the F-35 acquisition for Canada. https://ipolitics.ca/2018/01/11/u-s-isnt-worrying-canada-missile-defence-says-obama-adviser/