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  23 novembre 2017 | Local, Aérospatial, Naval, Terrestre, C4ISR, Sécurité

  Innovation requires experience: AIAC panel

  Posted on November 23, 2017 by Chris Thatcher When the federal government delivered its 2017 budget last spring, innovation was mentioned 262 times and served as the focal point for numerous new initiatives. The centrepiece was the Innovation and Skills Plan, a series of proposals that included additional venture capital funding, new support for innovation in key growth areas and superclusters, and Innovation Canada, an initiative to bring siloed projects and funding programs for innovators under one roof. More recently, the government in its 2017 defence policy introduced IDEaS (Innovation for Defence Excellence and Security), a program currently seeking Treasury Board approval that will invest $1.6 billion over the next 20 years to generate solutions to complex challenges across the Canadian Armed Forces. It will also speed up the development of new technologies through contests, sandbox trials, research networks and other programs. The devil is always in the details of such initiatives, and all are in the early stages. Still, they have been widely welcomed by the aerospace sector. However, innovation is not for the inexperienced, four seasoned small business executives cautioned during the annual Canadian Aerospace Summit on Nov. 7. While government programs often appear to be tailored to recent graduates with youthful enthusiasm, true innovation doesn't succeed without business acumen. “It takes experience; it takes patience,” said Gabe Batstone, a self-described serial entrepreneur with over two decades in the tech sector, who recently launched Ottawa-based Contextere, an artificial intelligence firm focused on applications for blue collar workers that has secured funding from BMW, Lockheed Martin and Samsung. Aerospace and defence programs can take years to mature and regulations invariably play a big part in the introduction of any new technology, he said. “To bring emergent technology into complex organizations, it's about procurement [expertise], about sales, about relationships, about [understanding] regulations. The technology is the least difficult part.” In fact, tried and true business practices focused on customer relations are essential to entrepreneurial success. “I was never worried about the technology,” said John Mannarino, president of Montreal-based Mannarino Systems and Software, a company that has grown from a one-man consultancy to over 60 employees specializing in engineering services and airborne software. Rather, innovation has come from listening to customers and suppliers, and that takes time. “I had to learn.” In an address to the Summit, hosted by the Aerospace Industries Association of Canada, Michael Anderson, president of Saab North America, observed that innovation does not happen without an element of risk. “The organization that has the best ability to effectively mitigate risk while providing an environment that promotes risk-taking will eventually be a successful innovator and, of course, a successful business.” But there is a point at which small companies cannot take on more risk, said Dave Muir, president and CEO of Ottawa-based Gastops, a health monitoring firm that has developed sensor and analysis tools for complex aircraft and engines. “The larger companies are pushing risk way more down into the supply chain than they were. As a small fish there is only so far out from the shore you can swim before bad things happen.” The pace of change is also creating challenges for small business, and it's not limited to technology. Development cycles, production schedules, and time to market have all been compressed in recent years. For Patrick Thera, president of SED, a division of Calian that has been developing commercial satellite and ground systems solutions for over 50 years, that means being shrewd about where and with whom to invest. “Key collaborations are very important,” he said, noting that “coopetition” has sometimes made for unexpected partners. “One day you're competing against a fellow company and the next you're partnering with that company.” Gastops, too, has invested far more than previously in establishing collaborative networks to further its innovation. “I strongly believe, especially for a small company, that you cannot do innovation in the aerospace industry by yourself alone in the back room,” said Muir. Adapting to the pace of change can be especially difficult if you don't have the necessary specialized skills in your company. All four executives acknowledged the challenge of finding top software and engineering talent when much larger companies in every sector are pursuing the same people. But they also argued that as products become more sophisticated, expertise in procurement, project management, intellectual property and marketing is critical to innovation and a company's growth. When you are competing against cool start-ups with world-changing visions, “you have to go a long way to show people that you do offer a lot of things that they can take pride in, that you save lives every day with the technologies you create,” said Thera. https://www.skiesmag.com/news/innovation-requires-experience-aiac-panel

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  17 décembre 2020 | Local, Naval

  'Too much noise' on Canadian warship program - DND Deputy Minister admonishes industry executives

  David Pugliese • Ottawa Citizen Dec 14, 2020 • Last Updated 3 days ago • 6 minute read Defence industry executives have been told by a top bureaucrat to stop raising concerns about the controversial program to build a new fleet of warships that is now estimated to cost $70 billion and could go even higher. Company officials have been complaining to politicians and media outlets that the Canadian Surface Combatant project has fallen far short on its promises of creating domestic employment. Another company is in the middle of a lawsuit over the Canadian Surface Combatant or CSC, alleging the procurement was bungled. Federal lawyers are trying to limit the amount of information that can be disclosed in court about the project, with the next hearing to be held Jan. 13. Other industry executives have been warning politicians the rising price tag for CSC will jeopardize funding for other equally important military equipment projects. But Jody Thomas, deputy minister of the Department of National Defence, told executives Oct. 5 that they are hindering the project and she characterized their efforts as being those of sore losers. “I think there's still too much noise from unsuccessful bidders that makes my job and Bill's job very difficult,” she said, referring to Bill Matthews, deputy minister at Public Services and Procurement Canada. The CSC project would see the construction of 15 warships for the Royal Canadian Navy at Irving Shipbuilding on the east coast. Construction of the vessels, to replace the current Halifax-class frigate fleet, isn't expected to start until 2023. But the project has already faced delays and significant increases in cost as the price tag has climbed from an original $14 billion estimate to around $70 billion. In an email to this newspaper about Thomas's statement to defence executives, the DND noted that industry officials have the right to raise their concerns with politicians or turn to the courts if needed. “However, the Department of National Defence, including the Deputy Minister, works for Canadians,” the DND stated. “While we maintain close, positive working relationships with industry, our primary responsibility is to the Canadian taxpayer.” But Thomas's admonishment didn't surprise industry representatives; although they won't go on record with their names for fear of jeopardizing future military contracts, a number of executives point out that for years federal officials have tried to keep a lid on questions and concerns as well as information about the CSC. A review of past actions by the current Liberal and previous Conservative governments and internal documents obtained by this newspaper through the Access to Information law appear to support that view. Federal officials have on two occasions tried to stymie attempts by the Parliamentary Budget Officer to obtain details and budget outlines of the CSC project, as well as with other vessel construction programs under the government's National Shipbuilding Strategy. In 2019, officials with Public Services and Procurement Canada issued a directive that firms interested in maintenance work on the Canadian Surface Combatant program could not talk to journalists and instead must refer all inquiries to the department. That was the fifth such gag order on military equipment projects issued by government over a year-long period. In one case, Procurement Canada threatened to punish any firms who violated the gag order on the proposed purchase of a light icebreaker. That prompted one unnamed company to submit a question to the department on whether a government ban on talking to journalists was even legal, according to records. Industry executives pointed out last year the secrecy was not based on security concerns, but on worries the news media would be able to use the information to keep close tabs on the problem-plagued military procurement system. After this newspaper reported on the gag orders, Procurement Canada claimed last year it would no longer use such bans. Michael Byers, a professor at the University of British Columbia who has produced two studies on the troubled federal shipbuilding program, said government officials have repeatedly tried to limit the amount of information available on the CSC and other shipbuilding projects. “These projects are in serious trouble and when you have those problems, combined with politics, the pressure to keep things secret are very very high,” he explained. Federal officials appear to be concerned specifically about journalists who might be reporting on two particular ship projects; the CSC and the Arctic and Offshore Patrol Ships or AOPS. Both projects involve Irving Shipbuilding. Documents show Irving representatives and bureaucrats from Procurement Canada (then called Public Works) warned DND procurement official Ian Mack in April 2013 that CBC journalist Terry Milewski was working on a story about the high costs of the AOPS and the fact that other nations paid a fraction of what Canadian taxpayers were being charged for similar vessels. Six days after Mack sent his warning out to other bureaucrats, Milewski produced his report. In 2016, Public Works officials alerted Minister Judy Foote's office this newspaper was asking questions about the CSC. Foote's office, in turn, warned Irving representatives. In March 2019, the DND and Public Services and Procurement Canada warned Irving Shipbuilding this newspaper was asking questions about problems with welds on the AOPS. Documents show that after a series of questions were submitted by this newspaper to the DND, PSPC deputy minister Bill Matthews, DND deputy minister Thomas and Pat Finn, then DND's top procurement official, held a conference call with Irving President Kevin McCoy. McCoy briefed “Jody, Bill, Pat” about the company's plans to sue this newspaper if it “published anything that impugned our professional reputation.” There is no indication in the document that the bureaucrats raised any objections to the company's strategy. Thomas took no notes during the conference call, according to the department's Access to Information branch. Matthews responded to Irving's decision with a supportive email. “Welcome to my world,” Matthews wrote to McCoy. Matthews has declined requests to be interviewed by this newspaper. In an email, the department stated the deputy minister's comment was referring to the fact defence procurement “is a highly complex environment, in which we often face criticism about our processes and decisions.” DND confirmed to this newspaper that there had been minor issues with welding on the AOPS and the article was published. In May 2019, the Globe and Mail also reported federal officials alerted Irving the newspaper was seeking information from the Department of Innovation, Science and Economic Development about whether the French fry plant investment qualified as an industrial benefit for the Arctic ship project. After the Globe sent two emails to the department's media relations branch, the newspaper received a letter from a lawyer working for Irving. The letter threatened legal action if the article contained any allegations of improper conduct. Innovation, Science and Economic Development spokesman Hans Parmar stated in an email that Irving was told of the media inquiry as part of the department's policy to ‘'encourage transparency.'' At the time, Irving spokesman Sean Lewis said while the firm respects the work of journalists, in the case of the Globe and this newspaper the company threatened legal action because the news organizations “had highly inaccurate information that would cause our company, and the reputation of our hardworking employees, considerable reputational damage.” In the case of the Globe, Irving confirmed it had received the approximately $40 million industrial benefit credit for the French fry plant. The incident with the Globe and Mail also revealed bureaucrats at Innovation, Science and Economic Development Canada had a system to alert Irving each time a journalist asked questions about AOPS. The department claimed it was required to do so according to its contract with Irving. However, that contract contains only a general reference to coordinating public communications. It is unclear whether the department has established a similar system for the CSC project. The department did not answer questions about how many times it has shared information about journalists with Irving officials. Asked about how many times Innovation, Science and Economic Development Canada has alerted Irving about journalists asking questions about shipbuilding matters, company spokesman Thomas Ormsby responded: “We do not discuss customer contracts.” https://ottawacitizen.com/news/national/defence-watch/too-much-noise-on-canadian-warship-program-dnd-deputy-minister-admonishes-industry-executives

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  9 avril 2019 | Local, Naval

  The case for a second interim supply ship? New stats show how foreign navies continue to refuel Canadian warships

  DAVID PUGLIESE, OTTAWA CITIZEN MV Asterix is now operating with HMCS Regina in Middle Eastern waters as part of a Canadian-led coalition task force. The Asterix, a commercial ship converted by Davie shipyards in Quebec and leased to the federal government to perform a military supply role, has been going almost non-stop since it was launched. It has refueled both Canadian and allied warships. Prime Minister Justin Trudeau has said there is no need for a second such interim supply ship and the head of the Royal Canadian Navy, Vice Admiral Ron Lloyd, says he is happy with having the Asterix as the force's only supply ship until 2023 when the first of two Joint Support Ships, to be built at Seaspan in Vancouver, is expected to be ready. Davie, however, has offered to convert a second such ship, MV Obelix, to the same capabilities of Asterix and lease it to the government. At one point the navy had three of its own supply ships supporting its vessels. Information recently tabled in Parliament indicates that even though Asterix has been going full-tilt over the last year, there was still a requirement for Canadian warships to receive fuel and provisions from supply vessels operated by foreign navies or for Canadian ships to head to port to receive fuel and supplies. Here are the details from Parliament: The Asterix is also at the heart of federal government's case against Vice Admiral Mark Norman. Norman has been accused by the RCMP of warning Davie that Liberal cabinet ministers wanted to derail the Asterix project. That development leaked out to the news media and the resulting embarrassment was one of the factors that forced the Liberal government to back down on its plans and Asterix proceeded. Norman has denied any wrongdoing. Prime Minister Justin Trudeau had twice predicted that Norman would eventually wind up in court, prompting concerns of political interference and concerns the Liberal government is punishing the officer. Norman's lawyers are in pre-trial trying to get documents they argue are needed so the officer can defend himself. Norman's trial is scheduled for August. https://ottawacitizen.com/news/national/defence-watch/the-case-for-a-second-interim-resupply-ship-new-stats-show-how-foreign-navies-continue-to-refuel-canadian-navy-ships