Industry Sustainment Business Case Analysis Workshops (October 2020 and January 2021)

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  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. I think they may be thinking in the future about where they source (their military equipment).” Lifting the cloud from the Saudi deal comes at a critical time on the London business landscape, with the fallout of the coronavirus pandemic and the lockdowns that have brought new uncertainty for many employers. In clearing the air on the deal, the federal government also revealed it would have been on the hook for up to $14 billion if it had cancelled the contract to sell light armoured vehicles to the Saudis, a deal that dates to 2014. The review panel, however, poses a level of uncertainty in future business dealings, Perry noted. “A new export panel will offer another layer of review. I don't know how to interpret that. It depends on who is appointed to that panel,” he said. In 2018, after news broke that the Saudi government had ordered the murder of dissident journalist Jamal Khashoggi, the Trudeau Liberals announced a review of all Canada's existing arms sales to Saudi Arabia. Ottawa also slapped a moratorium on new export permits for shipments of military goods to Riyadh. Existing military contracts, such as the GDLS deal, were not affected by the moratorium. But in 2018 Prime Minister Justin Trudeau publicly talked about trying to find a way to end shipments of armoured vehicles to Saudi Arabia. Thursday, Foreign Affairs Minister François-Philippe Champagne and Finance Minister Bill Morneau said the suspension of approval of new Saudi permits is now lifted. They cited a government review last September that found no credible evidence linking Canadian exports of military or other controlled goods to Saudi human rights violations. But the moratorium on trade with the Saudis has already affected the Canadian defence sector to the tune of about $2 billion, according to a memo sent to the foreign affairs minister from two top foreign affairs and international trade officials. “(Twenty) companies that have a history of exporting to KSA (Kingdom of Saudi Arabia) suggest that approximately $2 billion in trade has been affected since August 2018. A number of Canadian exporters to KSA have suspended their business development operations . . . The open-ended nature of Canada's moratorium on new export permits, and the lack of identified conditions that would allow a resumption of permit issuance, present a high commercial risk for Canadian companies,” the memo says. 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. He also stressed the Saudi deal is only about half complete, meaning about six more years of work may remain before there needs to be a discussion about future contracts. “I am pleased to say the least. It was in the making for some time, but it is a very good result not just for the company and its workers, but for the city,” said Fragiskatos. It's too soon to draw conclusions about the future of work by GDLS for the Saudis, since that depends largely on who is at the table negotiating future deals, said Bill Pettipas, former president of GM Defence, which General Dynamics bought and renamed. Pettipas bargained several arms contracts with foreign powers, including a multi-billion dollar deal with the U.S. army to supply it with Stryker armoured vehicles. “It depends on individuals, on relationships. It will get resolved. It will normalize eventually. That relationship has been going on since the early 1980s,” said Pettipas. “Time takes care of things.” Officials with Unifor Local 27, the union for many GDLS workers in London, couldn't be reached for comment Friday. Unifor's national office declined comment. https://lfpress.com/news/local-news/analysis-cloud-lifted-from-gdls-saudi-deal-but-future-business-uncertain-analyst

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  25 novembre 2019 | Local, Aérospatial

  Defence Construction Canada issues Advance Procurement Notice for the Future Fighter Capability Project

  Defence Construction Canada (DCC) has issued an Advance Procurement Notice (APN) for Solicitation No. APN-DC-2527 for construction programs for the Future Fighter Capability Project (FFCP). If contracts are awarded, the work will occur between 2020 and 2030. SECRET personnel, document safeguarding and facility security clearances will be required for all projects for contractors and consultants. Information management system clearance to the level of SECRET may be required, but will only be approved post-contract award. Potential bidders who do not currently meet these requirements can apply to the Industrial Security Program (ISP) for clearances. DCC is an approved sponsor under the ISP. Requests for security clearances must be received prior to January 7, 2020. Advance Procurement Notice, Future Fighter Capability Project (FFCP), Canada (APN-DC-2527) Project Infrastructure is required at the Main Operating Bases in Cold Lake and Bagotville, with potential for work at various Deployed Operating Bases; Forward Operating Locations[1] and Combined Air Operations Centres in support of Future Fighter Capability (FFC). ISP Backgrounder Government of Canada information is subject to data and information protection requirements. The ISP is responsible for granting the necessary security clearances to contractors and their subcontractors for access to Government of Canada information designated as PROTECTED or higher. Key requirements include: individual and facility security clearances must be received in advanceof any access to government information; individual and facility security clearance must match the level of security assigned to the information being accessed; security clearances cannot be extended, transferred or assigned between organizations; site-specific Document Safeguarding Capability (DSC) security clearance is required for organizations that handle government information or assets at their facilities; IT systems that will receive, store and process government information must be approved in advance; foreign-based employees accessing government information at Canadian facilities must obtain a visitor screening approval in advance; foreign-based employees accessing government information from locations outside of Canada require security clearances, as does the facility within which they are working; subcontractors who will receive, process, store or access government information are subject to all of the same assessments and requirements as are the prime contractors (those holding the contract with the Canadian government) and must possess a valid security clearance for each contract; and prime contractors remains solely responsible (and liable) for the subcontractors compliance with the ISP. Compliance with the Industrial Security Program is a material requirement for any government contract having a security requirement. Failure to comply with the ISP can result in suspension or termination of security clearances. The termination of security clearances is considered to be a breach of contract, which entitles the government to terminate the contract for default. The requirements for SECRET clearances are extensive, necessitating advance planning to gather the significant and necessary information that is required. Whether you are currently registered in the ISP or seeking to do so, understanding the requirements of the ISP is critical to your ability to successfully bid for federal government work. To view all formatting for this article (eg, tables, footnotes), please access the original here. https://www.lexology.com/library/detail.aspx?g=8a031226-d61b-424e-ac7b-ccc8b7df104b

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  16 janvier 2018 | Local, Aérospatial

  Report could renew Canadian debate over U.S. missile defence system: defence analyst

  A European report forecasting a surge in billions of dollars worth of missile and missile defence sales worldwide over the next 10 years could renew Canadian debate over signing on to the U.S. missile defence system, a defence analyst says. The forecasting agency based in Amsterdam is offering a market report on missile systems to global defence production companies that forecasts a rise in the value of sales to $93 billion for 2027 — compared to $55 billion in 2018 — for a total of $725 billion in sales over the decade. In the summary of its industry report, ASDMedia BV says the main driver for missile production, including all types of missiles from ballistic to short range and air-to-air missiles, is an increase in “territorial conflicts.” “The market for missile defence systems is anticipated to be the largest category primarily due to the ongoing procurement of missile systems by countries of the Asia Pacific, North American and European regions,” the report says. The report was published recently, during the escalation of tension over North Korean nuclear missile launches, but prior to the missile attack scare from a false alarm in Hawaii on Saturday. The missile spending forecast could also be of interest to participants in an international conference the Canadian government is hosting in Vancouver this week on the North Korean standoff. Senior analyst with the Canadian Global Affairs Institute, David Perry, says the market forecast of missile sales reflects a concern the Department of National Defence included about missile proliferation in the Liberal government's first national defence policy earlier this year, which at the same time included no specific plans for a response to the problem. Although the Liberal strategy included references to ballistic missile defence and modernizing northern defence warnings systems along with the U.S., it did not take a position on the long-sensitive question of whether Canada should sign on to the U.S. ballistic missile defence system. “It was one of those strange bits of the policy where there was an identification of an increased concern and a threat, but then not really any specific itemization of what was going to be done about it,” said Perry. Perry, who took part in closed-door consultations with experts in the lead-up to the review, said the market forecasts, along with the ongoing North Korea crisis, indicate ballistic missile defence should be renewed in Canadian defence discussions, following a short-lived flirtation with the idea by the last Liberal government in 2005. This past August, Prime Minister Justin Trudeau appeared to almost rule out any chance of discussions with the U.S. over ballistic missile defence, but in September said Canada was not considering the idea “for the time being.” “Based on the comments by the Prime Minister, I'm not expecting any urgent movement on ballistic missiles,” said Perry, who argued for Canadian involvement in missile defence during the policy consultations. “I'm curious in a strategic sense, international market observers are saying there's a growing market for this technology because the potential threat of missiles is proliferating, and you've got that (ambiguous) language reflected in the defence policy,” he told iPolitics. The head of Ottawa's Rideau Institute, founded as an advocate for the rule of international law and disarmament, said Perry's desire to renew ballistic missile defence discussions is a reflection of the defence industry's views. “In my view, there isn't actually a debate,” said Rideau Institute president Peggy Mason. “The defence industry lobby keeps raising it, but I think it's absolutely clear that this government, the Liberal government, the Justin Trudeau government, has no interest in reviewing this issue, so long as President Trump is President,” said Mason. “There are so many good reasons not to review it,”Mason told iPolitics, “but just the difficulty of trying to sell this, getting closer to the U.S. on a very controversial and very costly area while President Trump is in office...” https://ipolitics.ca/2018/01/16/report-renew-canadian-debate-u-s-missile-defence-system-defence-analyst/