7 novembre 2018 | Local, Aérospatial

French firm Dassault pulls out of fighter-jet competition: Sources

By Lee Berthiaume

The long effort to replace Canada's aging fighter jets took another surprise twist on Tuesday, as multiple sources revealed that French fighter-jet maker Dassault is pulling out of the multibillion-dollar competition.

The decision comes just over a week after the federal government published the military's requirements for a replacement for Canada's CF-18s as well as a draft process by which a winning supplier will be chosen.

Dassault had repeatedly pitched its Rafale aircraft to Canada over the years as successive governments in Ottawa have wrestled with selecting a new fighter jet. Dassault's pitch included significant promises, including that it would assemble the planes in Canada.

But sources tell The Canadian Press that Dassault's decision to withdraw was related to the fact France is not a member of the Five Eyes intelligence-sharing network, which counts the U.S., Britain, Australia, New Zealand and Canada as members. The five members have very specific requirements for how their equipment works together.

The French government, which had been closely working with Dassault as the most recent iteration of Canada's fighter-replacement program has inched along over the past year, was preparing to notify Ottawa of the company's withdrawal.

The move leaves four companies — U.S. aerospace giants Lockheed Martin and Boeing, European competitor Airbus and Swedish firm Saab — competing for the $19-billion contract to replace Canada's 76 CF-18s with 88 new fighters.

A contract isn't expected to be awarded until 2021 or 2022, with delivery of the first new aircraft slated for 2025. In the meantime, the government is planning to upgrade its CF-18s and buy 25 used fighters from Australia as a stopgap.

Dassault faced several significant challenges in meeting Canada's requirements for a new fighter, said defence analyst David Perry of the Canadian Global Affairs Institute, and while they weren't insurmountable, they would have cost time and money.

Those challenges included meeting those Five-Eyes intelligence-sharing requirements, which Perry said put Dassault at a distinct disadvantage in the competition when compared to Lockheed Martin, Boeing and, to a certain degree, Airbus.

"For any of the non-American companies, solving the Five-Eyes interoperability issues is going to be challenging," he said, noting that the U.S. in particular is very sensitive about data-sharing.

"And it costs companies a lot of money to mount and pursue bids. So if they think at this point in time that it's not a realistic prospect, then pulling out is pretty understandable."

That could explain why Dassault never established a strong presence in Canada during the many years when it was trying to sell the Rafale as a replacement for the CF-18, he added.

The CF-18s are about 35 years old. Canada's attempts to buy a new fighter jet have dragged on for nearly a decade after the previous Conservative government announced in 2010 that Canada would buy 65 F-35s without a competition, with the first to be delivered in 2015.

But the Tories pushed the reset button in 2012 after the auditor general raised questions about the program and National Defence revealed the jets would cost $46 billion over their lifetimes.

After campaigning on a promise not to buy the F-35s, the Trudeau Liberals announced in November 2016 they would take their time with a competition to replace the CF-18s, and buy 18 "interim" Boeing Super Hornets without a competition because Canada needed more fighter jets badly.

But then Boeing's trade dispute with Canadian rival Bombardier saw the Liberals scrap their plan to buy Super Hornets and instead begin talks to buy 18 used fighter jets from Australia. A contract for those used planes is expected in the coming weeks.

The formal competition to replace the CF-18s is scheduled to begin next spring.

https://www.nationalobserver.com/2018/11/07/news/french-firm-dassault-pulls-out-fighter-jet-competition-sources

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  • Arrival of used Aussie fighters pushed back to summer 2019 or later

    12 février 2018 | Local, Aérospatial

    Arrival of used Aussie fighters pushed back to summer 2019 or later

    Senior defence official says Canada will take used Aussie FA-18s as they become available It will be 2022 before the Royal Canadian Air Force receives all of the used Australian fighter jets the Liberal government intends to purchase, says senior defence official. The plan was rolled out with much fanfare at the end of last year because the air force has faced — in the words of Defence Minister Harjit Sajjan — an "urgent capability gap" and is not able to meet its NATO and Norad commitments at the same time. Pat Finn, who is in charge of the materiale branch of National Defence, told CBC News in a recent interview a final agreement is still months away. He is confident, however, everything will come together. Delivery is "staggered over three years," Finn said. The Trudeau government announced in December it would buy 18 used Australian "classic" FA-18s as an interim measure to bolster the air force until the entire Canadian fleet of CF-18s is replaced, beginning in the mid-2020s. It had wanted to buy brand new Boeing Super Hornets, the newer, bigger, more advanced version of the FA-18 and CF-18. The plan was scuttled when the manufacturer, Chicago-based Boeing, filed a trade complaint against Canadian aerospace giant Bombardier. No price tag for the Australian deal was released at the time of the formal announcement, which was made by Sajjan and Public Works Minister Carla Qualtrough. Ongoing discussions Finn said those details are still being worked out. The Liberal government said in December the first used fighters, which were purchased by Australia around the same Canada bought its CF-18s, would arrive by January 2019. Finn said the delivery schedule is being finalized, but he anticipates receiving the first two warplanes by the summer of that year. Another one would follow by the end of the year, but much depends on the Royal Australian Air Force and how quickly it retires the fighters and the age of what's being offered. "They, of course, release aircraft as they get aircraft," Finn said. "We do not necessarily want the oldest aircraft, so we would like to have an ongoing discussion." He said there is some flexibility and if "summer '19 turns into" something a few months later because they can get a better jet, then it's something that can be negotiated. The Australian government is in the process of seeking permission to sell the planes because they were originally manufactured in the U.S. Once the Australian warplanes arrive in Canada, they will need to be given life-extension modifications that will bring them up to the standard of the CF-18s, which have been modified to continuing flying until 2025. It stands in stark contrast to the urgency with which the Liberals initially painted the shortage of fighter aircraft. "In 2025, the CF-18s will not be able to fly, and it is important that we move very quickly in filling this capability gap." said Sajjan in June 2016. Finn said the air force is managing the capability gap by making more CF-18s available for operations on a daily basis. "We're basically working right now to increase the availability of our current airplanes," he said. Experts say that would mean pouring more than expected into the maintenance budget in order to keep fighters on the flight line. Urgent purchase? One defence analyst said the government has a strange definition of urgent. "Nothing about the handling of this file lines up with the identification of it as an urgent need, either the interim or the permanent purchase," said Dave Perry, an expert in procurement at the Canadian Global Affairs Institute. He said he believes it will present a political headache for the Liberals come the next election. "The fact that this government may, at best, have a couple of second-hand aircraft before the next election after having identified an urgent need to acquire new fighter aircraft is just incredible," he said. When the Australian deal was announced, the government also laid out a timeline for the full replacement of the CF-18s, which were purchased in the 1980s, but extensively modified and upgraded in the early 2000s. Public Works recently held a consultation day with defence contractors, but Perry says no one seems to understand why it will take until the early 2020s to launch the competition. When the former Conservative government was struggling over whether to buy the F-35 stealth fighter, it conducted extensive research on the alternatives and possible types of warplanes Canada would need. That research, which conceivable could move things along faster, was largely discarded by the Liberals and is gathering dust on a shelf, Perry says. http://www.cbc.ca/news/politics/aussie-fighter-jets-1.4530875

  • Canadian military gets its 1st female vice-chief of the defence staff in major shakeup | CBC News

    9 mars 2021 | Local, Aérospatial, Naval, Terrestre, C4ISR, Sécurité

    Canadian military gets its 1st female vice-chief of the defence staff in major shakeup | CBC News

    An important shakeup is happening at the top of the Canadian military. The deputy commander of the Armed Forces has been replaced. Lt-Gen. Mike Rouleau will step aside as vice-chief of the defence staff to make way for Lt.-Gen. Frances Allen, the country's first woman deputy commander.

  • How COVID-19 could remake Canada’s military

    7 avril 2020 | Local, Aérospatial, Naval, Terrestre, C4ISR, Sécurité

    How COVID-19 could remake Canada’s military

    By Elliot Hughes. Published on Apr 6, 2020 10:20am "It's safe to say that everyone involved in defence procurement should expect a significant shift to the right in timelines, and a retrenchment and re-focus towards projects that align with the government's recast military and geopolitical priorities." Since everyone is either overrun with work or inundated with COVID-19 news, here's the bottom line up front (or the BLUF in military jargon): the COVID-19 pandemic will have a material impact on all aspects of Strong, Secure, Engaged (SSE), Canada's defence policy. These changes will be felt acutely in defence funding, overseas operations, and defence procurement, though it's too early to predict the scale of the impact. There you have it. You can now go back to watching Tik Tok videos. For those choosing to forge ahead, it was only last week that Defence Minister Harjit Sajjan and Chief of the Defence Staff General Jonathan Vance laid out the domestic military response plan to the COVID-19 pandemic. Dubbed Op LASER, the plan will prioritize slowing the spread of COVID-19, support vulnerable communities, and assist provincial, territorial and municipal partners, if needed, by mobilizing up to 24,000 regular and reserve force members, all while maintaining the Canadian Armed Force's (CAF) ability to respond to natural disasters in Canada via Op LENTUS. This announcement was preceded by a letter to all CAF members from General Vance where he outlined the global pandemic's impact on Canada's military. In the letter, General Vance tells troops and their families in no uncertain terms that ‘normal activities have changed dramatically'. Too true. But the impacts of COVID-19 won't stop with the women and men in uniform. SSE was a historical investment in Canada's military, with new funding in the tens of billions of dollars ($48.9B on an accrual basis, $62.3B on a cash basis) from a party that some felt was not inherently defence friendly. The 20-year plan set aside hundreds of billions of dollars ($497B on an accrual basis, or $553B on a cash basis) to rebuild, retool, and refocus Canada's military after years of neglect during the Harper years. With unprecedented levels of new funding, DND finally had the plan, the funding, and the political commitment to move forward with confidence, poised to become the agile and adept military of the future. Then the world was hit with a global health crisis. In the face of the pandemic, the federal government has, to date, announced combined direct economic measures and tax deferrals of $190B. The numbers are eye-popping, and the implications of such spending are hard to fathom. The deficit this year and next could creep up towards $200B. Now, there's no question these fiscal measures are necessary and non-structural, meaning they could be unwound depending on how the Canadian economy looks post-COVID-19. The soaring deficits will place tremendous pressure on government to reduce its spending in non-COVID-19 areas in favour of healthcare and related priorities. DND/CAF had already been struggling to spend the money it had been allocated in SSE, and that was before their annual budgets increased significantly. People within and outside of government were beginning to question the department's ability to absorb the money they had been given. It is my view that COVID-19 will force Defence officials, with or without urging from Finance Canada, to use the upcoming five-year review period of SSE to re-assess and re-prioritize the entire strategy. In fact, that work is likely already underway. There are some who suggest that defence spending is a good way to get money flowing back into the domestic economy, particularly through the manufacturing supply chain. And there are areas that should remain off-limits to claw backs including big ticket procurements like the Canadian Surface Combatants (CSC) and Future Fighter Capability Project (FFCP), programs that directly support troops and their families, domestic operations and disaster relief, investments to support the development of defence and security capabilities such as the IDEaS program, IT investments (including in data analytics and updating key IT infrastructure), deferred maintenance, and perhaps most critically, cyber defence. Everything else will be fair game. Ring-fencing and reprioritizing essential programs won't be easy. But under the current circumstances, it's the right thing to do. Every department should be prepared to do the same. Overseas operations, including joint military exercises and training, is another area COVID-19 will have a direct and material impact. At this juncture, it's hard to know how big a role the CAF will be asked to play domestically. The situation in Canada is evolving by the hour. The dreaded peak of the pandemic has yet to hit. While we should remain optimistic, we also need to be realistic. This means the military should be poised to intervene if required. We know that close to a quarter of all active troops are on standby and depending on the severity of the crisis, this number could go up. On any given day, approximately 8,000 troops are involved in some form of deployment – preparing to ship out, actively engaged in theatre, or returning from mission. It's hard to see how this rotation rhythm escapes the reaches of COVID-19. Indeed, General Vance alluded to this in his letter stating, ‘mission postures would be reviewed', and that this year's ‘Annual Posting Season (APS) will be seriously disrupted'. It's likely the pull towards supporting domestic efforts will be strong. That doesn't mean the desire to re-engage internationally won't persist. However, the ability to do so will depend on how the situation unfolds here in Canada, the willingness of countries abroad to welcome back foreign troops, and the impact COVID-19 has on the geopolitical landscape. (This is by no means an endorsement of that view. Canada should do everything it can to remain engaged internationally wherever possible, particularly with respect to humanitarian missions). Cyber defence is one domain we should do everything we can to remain engaged in. But while Canada's expertise and influence on the world stage is undoubtedly a positive one, this global pandemic will inevitably lead to a further focusing of our most critical interests. Defence procurement, and the potential implications of COVID-19, is an area of acute interest to the defence community. This subject could be an entire article in and of itself (and if you're looking for the latest analysis on how DND/CAF was doing on procurement spending I'd encourage you to read David Perry's piece from December 2019). However, broadly speaking, it's worth noting that before this global health crisis hit, DND/CAF were progressing on procurement. Many projects, though not all, were moving ahead, even with the structural constraints and limitations of government processes holding them back. Large procurements, namely jets and ships, were plagued with delays that are expected for any large procurement. Now, given the magnitude of the COVID-19 pandemic, those typical speed bumps are bigger than before. The reality for defence procurement today is that the pace of work has come to a grinding halt. Nearly all personnel across government are working from home. Government IT challenges persist, with DND staff having to coordinate amongst themselves to schedule when they can log on to their system. And any work requiring access to a secured system is a non-starter as this would require being in the office. The Defence department is a bit like an aircraft carrier in that it takes time to get up to full speed and doesn't handle sharp corners very well. This crisis will expose that rigidity. But it isn't simply DND that needs to get back to work for defence procurement to start moving again – it will take a government-wide effort. For the process to run effectively officials from a range of government departments, including Public Services and Procurement Canada (PSPC), the Treasury Board Secretariat (TBS), Finance Canada, the Canadian Coast Guard and Global Affairs Canada, need to be fully engaged. Today, those Departments are focused almost exclusively on addressing the immediate challenges posed by COVID-19, with this to continue for the foreseeable future. Moreover, one also needs to consider the impact COVID-19 is having on companies bidding on projects. The entire supply chain has been hit and it will take months to get it humming again. How significant an impact this delay will have, and on which projects, is difficult to predict today. But it's safe to say that everyone involved in defence procurement should expect a significant shift to the right in timelines, and a retrenchment and re-focus towards projects that align with the government's recast military and geopolitical priorities. We are still in the early days of this crisis. Government is projecting a return to some sense of normalcy in July, at the earliest. The run-on impacts of that kind of pause are hard to comprehend, with a full understanding of the entirety of COVID-19 impacts likely to take even longer still This is a once-in-a-century event, with every person and institution expected to face indelible consequences. The very nature of the defence department, its size and scope, means we should expect a proportionate impact. https://ipolitics.ca/2020/04/06/how-covid-19-could-remake-canadas-military/

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