Canada needs a better national security policy

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  25 février 2020 | Local, Naval

  $1 billion and counting: Inside Canada's troubled efforts to build new warships

  Federal government tables figures showing what it's spent on the projects to date Murray Brewster The federal government has spent slightly more than $1.01 billion over the last seven years on design and preparatory contracts for the navy's new frigates and supply ships — and the projects still haven't bought anything that floats. The figures, tabled recently in Parliament, represent the first comprehensive snapshot of what has been spent thus far on the frequently-delayed project to build replacement warships. It's an enormous amount of money for two programs that have been operating for more than a decade with little to show for their efforts to date. It will be years before the Canadian Surface Combatant project — which aims to replace the navy's frontline frigates with 15 state-of-the-art vessels — and the Joint Support Ship program for two replenishment vessels actually deliver warships. The numbers and details for each advance contract were produced in the House of Commons in response to written questions from the Conservative opposition. The money was divided almost evenly between the federal government's two go-to shipyards: Irving Shipbuilding in Halifax, the prime contractor for the new frigates, and Seaspan of Vancouver, the builder of the supply ships. The breakdown raises critical questions about at least one of the programs, said a defence analyst, but it also shines a light on promises made by both Liberal and Conservative governments to keep spending under control for both of these projects — which could end up costing more than $64 billion. "I think there should be a level of concern [among the public] about whether or not what's being delivered in practice is what was advertised at the outset," said Dave Perry, a procurement expert and vice president of the Canadian Global Affairs Institute. A design still in flux Most of his concerns revolve around the new support ships, which the Liberal government says are in the process of being built now. The written responses, tabled in Parliament, note that the projected cost for the two supply ships — $3.4 billion — remains under review "as the design effort finalizes." Perry said he was astonished to learn that, "seven years and half-a-billion dollars into design work on an off-the-shelf design," the navy doesn't have the support ships, even though "the middle third of the ship is built" — and officials now say "the design effort isn't finished." Usually, he said, ships are designed before they're built. The head of the Department of National Defence's materiel branch said most of the preparatory contracts were needed to re-establish a Canadian shipbuilding industry that had been allowed to wither. 'A lot of patience' "I think we have to look at the totality of everything that's being accomplished under" the national shipbuilding strategy, said Troy Crosby, assistant deputy minister of materiel at DND. "Over that period of time, and with these expenditures, we've built a shipbuilding capability on two coasts, not just through National Defence but also through the coast guard, offshore fisheries science vessels. I understand it has taken a lot of patience, I suppose, and probably some uncertainty, but we're really getting to the point now where we can see delivering these capabilities to the navy." The largest cash outlays involve what's known as definition contracts, which went individually to both shipyards and were in excess of $330 million each. They're meant to cover the supervision of the projects and — more importantly — to help convert pre-existing warship designs purchased by the federal government to Canadian standards. The choices on each project were made at different times by different governments, but ministers serving both Liberal and Conservative governments decided that going with proven, off-the-shelf designs would be faster and less expensive than building from scratch. Now, after all the delays, it's still not clear that choosing off-the-shelf designs has saved any money. "I would be completely speculating on what it would cost to invest to develop the kind of expertise and capacity inside the government, inside National Defence and everybody involved, to be able to do something like that in-house," said Crosby. "The approach we've taken at this point, by basing both the Joint Support Ship and the Canadian Surface Combatant on pre-existing designs, allows us to retire a lot of risk in the way forward." When Crosby talks about "retiring risk," he's talking about the potential for further delays and cost overruns. Among the contracts, Irving Shipbuilding was given $136 million to support the drawing up of the design tender for the new frigates and to pay for the shipbuilding advice Irving was giving the federal government throughout the bidding process. Years ago, the federal government had enough in-house expertise to dispense with private sector guidance — but almost all of that expertise was lost over the past two decades as successive federal governments cut the defence and public works branches that would have done that work. The last time Canada built major warships was in the 1990s, when the current fleet of 12 patrol frigates was inaugurated. The federal government has chosen to base its new warships on the BAE Systems Type-26 design, which has been selected by the Royal Navy and the Royal Australian Navy. The hull and propulsion system on the new frigates will be "largely unchanged" from the British design, but the combat system will be different and uniquely Canadian, said Crosby. The project is still on track to start cutting steel for the new combat ships in 2023. Crosby said he would not speculate on when the navy will take delivery of the first one. Delivery of the joint support ships is expected to be staggered, with the first one due in 2024. There will be a two-year gap between ships, said Crosby, as the navy and the yard work through any technical issues arising with the first ship. If that timeline holds, the first support ship will arrive two decades after it was first proposed and announced by the Liberal government of former prime minister Paul Martin. https://www.cbc.ca/news/politics/frigates-joint-supply-ships-navy-procurement-canada-1.5474312

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  7 octobre 2019 | Local, Aérospatial, Naval, Terrestre, C4ISR, Sécurité

  With billions of dollars at stake, all parties promise to fix defence purchases

  Every election, would-be prime ministers promise to cancel bad military purchases or processes, hurry along good ones, fix the mess once and for all OTTAWA — The seemingly endless effort to replace Canada's CF-18s fighter jets passed a tiny milestone Friday: fighter-jet makers participating in the $19-billion competition were required to explain how they planned to make their aircraft compliant with U.S. intelligence systems. For nearly a decade, Canadians have been inundated with talk of fighter jets without Canada ever buying them, an ever-worsening symbol of the failures of Canada's military procurement system. Every election, would-be prime ministers promise to cancel bad purchases or processes, hurry along good ones, fix the mess once and for all. Conservative Leader Andrew Scheer this week promised to “de-politicize” military procurement with new oversight bodies in cabinet and the Privy Council Office while working toward multi-partisan consensus on procurement projects in Parliament. The Liberals promise to establish a new agency called Defence Procurement Canada, which suggests taking the entire function away from the four departments that now share responsibility for buying military kit. The New Democrats and Greens promise, without detail, that they will ensure Canada's military gets the equipment it needs. The origins of what we face today can be traced back to the end of the Cold War when Canada and its allies began to cut defence spending after a decades-long arms race with the Soviet Union. There were concerns about whether or not you're getting the right kind of economic benefits “We deferred purchasing new fighter planes and did the same thing with our frigate fleet,” says David Perry, vice-president of the Canadian Global Affairs Institute and one of Canada's foremost experts on defence spending and procurement. “We just kicked the can down the road on fixed-wing search-and-rescue aircraft. There was a bunch of other projects that fit the same vein.” The military had to use equipment for years longer than it was supposed to and the Department of National Defence lost most of its procurement experts. But in the mid-2000s, the Forces' equipment problems were revealed in Kandahar: the military lacked transport aircraft to resupply its Afghanistan mission, artillery and tanks to support troops on the ground and helicopters to move them around. Ottawa rushed into gear, purchasing transport planes, howitzers, helicopters and tanks in short order — in most cases without competitions. New equipment flooded in but there were some big failures, starting with accusations defence officials rigged the requirements for a new search-and-rescue plane to select a specific U.S. plane. There was also a failed effort to buy new supply ships for the navy and, most explosively, a plan to buy new fighter jets, Lockheed Martin's F-35s, without a competition. In 2012, auditor general Michael Ferguson blasted the Defence Department for failing to communicate the stealth fighter's risks, including escalating costs and schedule delays, to Parliament and decision-makers. Dan Ross, who was the department's head of military procurement at the time, would later say defence officials had all the information and were willing to share it — the Harper government just wouldn't let them. Either way, the public's confidence in the system and the government's ability to manage it were shaken. The F-35 purchase was scrapped. The Tories imposed new constraints to keep costs under control and ensure Canadian industry and communities benefit from defence contracts. “There were concerns about whether or not you're getting the right kind of economic benefits, some significant concerns about whether or not process was being adhered to until you had this system recalibration where you had an injection of additional rules and governance,” Perry says. That recalibration imposed a fundamental tension on the system: the need to get the best equipment possible, with the most benefit to the economy or local industry, at the lowest cost. Every big procurement is partly about the military's needs and partly about national industrial policy — and, that means, partly about politics. Most procurements are still completed with minimal fuss. The problems largely lie with big, once-in-a-lifetime contracts like fighters and warships that are worth billions of dollars and are not only essential for the military to operate, but have the potential to benefit Canadian businesses and communities for years. The ones that involve billions of public dollars. “You're trying to get the best bang for the buck for as little buck as possible,” says Queen's University professor Kim Nossal, who wrote a book entitled “Charlie Foxtrot: Fixing Defence Procurement in Canada” in 2016. “The one comforting thing is that very few countries have got the balance right. All industrial countries, all of our allies, faces these kinds of pressures. They worry about jobs and costs and capability.” Efforts to combine the three competing priorities can lead to bickering among federal departments, lawsuits from companies and politicians sticking their fingers in things. Seconds after saying he would de-politicize the military procurement system this week, Scheer promised to negotiate the purchase of an interim naval supply ship from Quebec's Chantier Davie shipyard, which lobbied the Liberal government for years to ink such a contract without success. Davie is one of Canada's big players in shipbuilding — and it's in much-contested political territory just outside Quebec City. Alan Williams, who was the Defence Department's head of procurement from 1999 to 2005 and now advises companies on procurement matters, compares Scheer's promise on Davie to Justin Trudeau's promise in 2015 not to buy the F-35. That's because while a government can decide to purchase a piece of military equipment, procurement laws — and Canada's international trade obligations — forbid it from choosing or excluding a specific product or supplier except under extreme circumstances. Upon taking office, the Liberals twisted themselves in pretzels to get around the legal implications of their promise. That twisting led to a plan to buy Super Hornets from a competing vendor. When that fell through, four years passed before an actual competition was launched — with the F-35 now one of three planes still in contention. In the meantime, the CF-18s will fly until 2032, reinforced with second-hand Australian F-18s to buy time. https://nationalpost.com/news/politics/election-2019/with-billions-of-dollars-at-stake-all-parties-promise-to-fix-defence-purchases

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  10 juillet 2023 | Local, Aérospatial

  Avions militaires: retombées possibles de 5,2 G$, estime Bombardier

  Le Canada pourrait profiter de retombées économiques de 5,2 G$ si Bombardier obtenait un contrat de la Défense.