31 mai 2019 | Local, Aérospatial

Fighter RFP delayed again pending official review of industrial benefits policy

Shortly before Defence Minister Harjit Sajjan announced on May 29 that a formal request for proposals (RFP) to supply 88 new Canadian fighter jets would be delayed again — this time to mid-July — two potential contenders said that a proposal to scrap the customary industrial benefits element of the procurement is problematic.

Jim Barnes, director of Business Development in Canada for Boeing Defense, Space & Security and Roger Schallom, the company's St. Louis-based vice-president of International Business Development, along with Patrick Palmer, vice-president and head of Sales at Saab Canada Inc., expressed their common concern during briefings at CANSEC, the annual Ottawa trade show organized by the Canadian Association of Defence and Security Industries (CADSI).

Boeing's contender to replace the RCAF's legacy fleet of CF-188 Hornets is the F/A-18 Super Hornet, while Saab's is the JAS 39 Gripen (the company had a full-scale replica parked front-and-centre outside CANSEC's main entrance). The other contenders are Lockheed Martin's F-35 Lightning II Joint Strike Fighter (JSF) and Airbus Military's Eurofighter Typhoon.

Barring any further hiccups in a program fraught with political indecision and already years behind the original schedule, the RFP process overseen by Public Services and Procurement Canada (PSPC) is expected to lead to two finalists being chosen next year with a view to making a final selection in 2022.

The government had been expected to issue its RFP by May 31 after years of indecision, but that latest deadline in the troubled procurement was postponed as officials at DND, PSPC and Innovation, Science and Economic Development Canada review the industrial benefits element.

“This is proof that your feedback is heard and acted upon,” Sajjan told the CANSEC audience.

The proposed industrial benefits change was disclosed earlier this month by Richard Shimooka, a senior fellow at the Macdonald-Laurier Institute (MLI), an Ottawa-based think tank.

He said in a report published by the MLI (May 6) that the Canadian government was yielding to pressure from the United States by changing the long-established requirement that companies bidding for contracts agree to investing an equivalent amount in Canada. The fighter procurement, including in-service support, is expected to cost at least $18 billion.

Shimooka cited letters from U.S. officials that indicate “resentment and distrust towards the government of Canada had grown, particularly within the U.S. Air Force.” The letters evidently focused on the “significant strategic and economic benefits that have already been accrued from being part of the JSF program.”

However, he added, the letters also contained “an implicit (but clear) threat that Canada could be kicked out of the program if Ottawa continues with its current policy of trying to obtain guaranteed industrial benefits that, by their very nature, are not allowed under the JSF Program. . . . There was a complete lack of logic of Canada's policy, which seemed to ignore basic facts about membership in the JSF program, including clear advantages in cost and capability that the F-35 provided.”

In his CANSEC briefing, Barnes admitted to having been “surprised by the recommended changes” in the shift in the long-standing requirement. “That policy's been in place for decades and it's been very successful for Canadian industry,” he replied, questioning what he called the government's decision to “accommodate a competitor.”

Schallom added that adhering to the historic requirement for direct industrial offsets, rather than simply offering “non-binding” bidding opportunities on future contracts, would be better for Canada's economy over the expected 30 years or more of the new fighter program. “You're probably missing out on $30 billion-plus in guaranteed work.”

Saab's Palmer echoed that position 30 minutes later, saying that he is concerned that the “non-binding requirement may not necessarily give Canadians the best value over the long term,” but, “until we see the final RFP (request for proposals), I'll reserve final judgment.”

However, when asked how Saab had responded formally to the proposed change on industrial benefits, he said, “We've asked them for some more information as it relates to the specifics of how items are going to be measured,” but had “definitely indicated that it doesn't necessarily encourage the best solution for Canada at the end of the day.”

https://www.skiesmag.com/news/fighter-rfp-delayed-again-pending-official-review-of-industrial-benefits-policy

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9 septembre 2019 | Local, Aérospatial

Leonardo & CAE collaborate on helicopter training solutions for U.S. government
Leonardo and CAE USA have joined forces to collaborate in the United States to offer integrated solutions for helicopter training requirements for the government market. A memorandum of agreement (MoA) was signed recently between the companies that expands on the long-established relationship between Leonardo and CAE in helicopter training. The MoA is focused on delivering tailored helicopter-and-training packages to U.S. government operators and Foreign Military Sales (FMS) customers. The companies will provide low risk and best value by offering a comprehensive and integrated training solution that includes aircraft, simulators and courseware. Working together to create a cohesive flight training package, Leonardo and CAE will be at the forefront of integrated, live, and virtual training developed for specific aircraft missions. The integrated offerings from Leonardo and CAE could include advanced helicopters, simulators and training devices, courseware, training services, and training centers. Each arrangement will be specific to the customer and determined on a case-by-case basis. William Hunt, CEO AgustaWestland Philadelphia Corporation, said: “Leonardo has a long history of collaborating with CAE for helicopter training. By creating integrated training systems for the U.S. government together, we are able to offer forward-looking, cost effective solutions that ensure mission success.” “We look forward to collaborating with Leonardo on training opportunities in the U.S. military market related to Leonardo's range of helicopter platforms,” said Ray Duquette, president and general manager, CAE USA. “Our extensive experience in helicopter simulation and training and specifically on Leonardo helicopters means we will be able to offer timely, cost-effective and integrated training solutions to our U.S. customers.” https://www.verticalmag.com/press-releases/leonardo-cae-collaborate-on-helicopter-training-solutions-for-u-s-government/
14 avril 2020 | Local, Terrestre

ANALYSIS: Cloud lifted from GDLS Saudi deal, but future business uncertain: analyst
Canada's $14-billion deal to sell armoured vehicles to Saudi Arabia is going ahead and will keep a London defence giant rolling, but some say questions remain about future business between General Dynamics Land Systems Canada (GDLS) and the desert kingdom. NORMAN DE BONO Canada's $14-billion deal to sell armoured vehicles to Saudi Arabia is going ahead and will keep a London defence giant rolling, but some say questions remain about future business between General Dynamics Land Systems Canada (GDLS) and the desert kingdom. The federal government said it's lifting a moratorium on new permits for military exports to Saudi Arabia, a critical step for London since GDLS, with about 2,000 employees in London, has a nearly 40-year relationship supplying armoured vehicles to the Saudis. But Ottawa also said it's appointing an advisory panel of experts to review Canada's arms export process and to push for an international inspection for arms sales. That could threaten future business, warned analyst David Perry, vice-president of the Canadian Global Affairs Institute. The Canadian-Saudi deal, with GDLS at the centre, negotiated by the former Conservative government and inherited by the Liberal successor, had come under sharp attack, with some critics calling for it to be scrapped, amid concerns about Saudi Arabia's poor human rights record. “If I was a worker I would be tremendously relieved and happy they made the decision,” Perry said of the federal government. He stressed reviews of the contract determined there was no indication GDLS vehicles were involved in human rights violations. “This went back and forth for a few years, and the government reviewed and threatened to cancel this contract outright. I think there has been irreparable harm. If you're another country open to exports, they may be thinking twice about doing business with Canada,” said Perry. “They (Saudi Arabians) have options when it comes to sourcing. 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Perry, who shared the memo with The Free Press, said he has heard similar concerns from the Canadian defence sector. “I have spoken to businesses that have lost business opportunities” from the moratorium on arms trade with Saudis. “This is welcome news,” he added of the lifting of restrictions, “but the government has introduced uncertainty into Canadian defence industry and exports.” Political scientist Erika Simpson at Western University also questioned the role of the panel, saying there are few details about its authority and adding that only Global Affairs has the authority to impact trade agreements. She also questioned why the contract appears to have been reduced by $1 billion in value. When the Conservatives announced it in 2014, it was worth $15 billion. Ottawa now says it is a $14-billion contract. “I think $1 billion is a lot of money. What happened to $1 billion?” asked Simpson, an associate professor of international politics. “This is good news, but I want to know where the $1 billion went.” GDLS Canada declined comment Friday. Perry also questioned the timing of the announcement. With more than three million Canadians expected to be left unemployed due to the COVID-19 crisis, Ottawa could not jeopardize thousands of jobs across Canada, he said. “As important as this is in Southwestern Ontario, it is not just Southwestern Ontario,” he said. London Liberal MP Peter Fragiskatos downplayed down the idea the review panel could dampen further GDLS business. “I don't think so. This government is behind this contract, this workforce, 100 per cent. On the contrary, I would say a review is a good thing. It will bring greater transparency to the arms program. I welcome it,” the London North Centre MP said. 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8 décembre 2017 | Local, Naval

Bold move backfires as Canada declines Naval Group-Fincantieri frigate offering
PARIS, ROME, and VICTORIA, British Columbia — Naval Group and Fincantieri are out of the running to compete in Canada's program to acquire a fleet of new surface combatants after they failed to submit a bid through the formal process and instead sent a proposal directly to the Canadian government. The companies had offered Canada a proposal to construct 15 ships at Irving Shipbuilding in Nova Scotia for a fixed cost. But the proposal circumvented the government's procurement procedure, which required formal bids to be submitted to Irving by Nov. 30. Naval Group and Fincantieri did not follow that requirement. The Canadian government announced Tuesday it had rejected the proposal from the two firms. “The submission of an unsolicited proposal at the final hour undermines the fair and competitive nature of this procurement suggesting a sole source contracting arrangement,” Public Services and Procurement Canada, or PSPC, which is overseeing the procurement, said in a statement. “Acceptance of such a proposal would break faith with the bidders who invested time and effort to participate in the competitive process, put at risk the Government's ability to properly equip the Royal Canadian Navy and would establish a harmful precedent for future competitive procurements.” Canada's decision effectively removes Naval Group and Fincantieri from taking part in the program since the companies never submitted a formal bid, government officials noted. Public Services and Procurement Canada declined to say how many bids were received for the Canadian Surface Combatant project. Besides a bid from the BAE-Lockheed Martin Canada consortium for the Type 26 frigate, only two other companies have acknowledged bidding. A team led by Alion Canada is offering the Dutch De Zeven Provinciën-class air-defense and command frigate. The Spanish shipyard, Navantia, has submitted a bid based on its F-105 frigate design. Canada expects to make a decision on the winning bid sometime in 2018. The program to build 15 new warships is estimated to be worth CAN$62 billion (U.S. $49 billion). The program was originally estimated to cost CAN$26 billion, but that figure has been revised a number of times and has been climbing steadily over the last several years. Fincantieri and Naval Group had hoped the proposal of a fixed price tag of about CAN$30 billion for a new fleet might sway the Liberal government, as it would eliminate much of the risk and would offer a proven warship design. The proposal had the backing of the French and Italian governments and was made directly to Canadian Defence Minister Harjit Sajjan. Naval Group and Fincantieri took note Canada had rejected their joint bid that filed outside the competition for a frigate fleet, but they were still ready to offer the design of their warship for local assembly, the companies said Wednesday. “We acknowledge the position expressed by the Public Services and Procurement Canada (PSPC) not to take into consideration the offers submitted outside the process of the Canadian Surface Combatant program (CSC) Request For Proposal (RFP),” Naval Group and Fincantieri said. “Nevertheless, Naval Group and Fincantieri remain at the disposal of Canada to contribute to the modernization of Canadian forces with a sea-proven warship, currently in service with the French and Italian Navies, that would minimize the scheduling gaps for design and construction of all the ships in Canada and maximize value for money,” the companies said. Asked on Wednesday how Fincantieri and Naval Group will react to Canada's rejection, Fincantieri CEO Giuseppe Bono declined to give a direct response but did suggest there might be room for compromise. “We don't want to take risks,” he said, adding: “we need to see what makes sense” and “the customer is always right.” In addition, he said the design of the ship offered to Canada would be more similar to the Italian version than the French. “We have made a joint offer of a FREMM, which is close to the Italian version if only because Italy has an anti-submarine warfare version,” he said. 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A frigate generally takes about four years to build. The Franco-Italian frigate was offered with the Thales Sea Fire radar, a multifunction digital system, an industry executive said. Naval Group offered its Senit combat management system, with Fincantieri delivering the ship design. Thales developed the flat-paneled Sea Fire for the FTI, an intermediate frigate ordered for the French Navy and aimed mainly for export markets. Anti-submarine systems included Thales Captas hull-mounted and towed array sonars, specialist website Mer et Marine reported. The weapons could include a 127mm gun and two vertical launchers for surface-to-air missiles, which would likely be Aster but would also be available for American weapons. https://www.defensenews.com/industry/2017/12/06/bold-move-backfires-as-canada-declines-naval-group-fincantieri-frigate-offering/

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