2 juin 2022 | Local, Naval

Irving Shipbuilding and Acadia University Announce Certificate in Maritime Security at CANSEC Canada's Global Defence and Security Trade Show

Acadia University Acadia University OTTAWA, June 01, 2022 (GLOBE NEWSWIRE) -- Acadia University and Irving Shipbuilding Inc. (ISI), in partnership with the International Association of Maritime Security Professionals (IAMSP), are pleased to announce the creation of a new Professional Certificate in Maritime Security (PCMS) to be offered through Open Acadia starting in the fall of 2022. Announced at CANSEC, Canada's Global Defence and Security Trade show on June 1, the PCMS consists of two compon

https://finance.yahoo.com/news/irving-shipbuilding-acadia-university-announce-150000795.html

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  • New defence procurement agency would be disruptive, costly

    20 février 2020 | Local, Aérospatial, Naval, Terrestre, C4ISR, Sécurité

    New defence procurement agency would be disruptive, costly

    It almost seemed like a throwaway line at the end of the Liberal Party's 2019 election platform, in a section on proposed approaches to security: “To ensure that Canada's biggest and most complex defence procurement projects are delivered on time and with greater transparency to Parliament, we will move forward with the creation of Defence Procurement Canada.” Little was said about the proposal during the election campaign, but in the mandate letters to ministers that followed, National Defence (DND), Public Services and Procurement (PSPC), and Fisheries, Oceans and the Canadian Coast Guard were tasked with bringing forward options to establish Defence Procurement Canada (DPC), a priority, the Prime Minister wrote, “to be developed concurrently with ongoing procurement projects and existing timelines.” Whether DPC would be a department, standalone agency or new entity within an existing department isn't clear. Nor is it apparent how the government would consolidate and streamline the myriad procurement functions of multiple departments. Jody Thomas, deputy minister of National Defence, acknowledged as much during an address to the Canadian Global Affairs Institute (CGAI) Jan. 29 when asked about DPC progress. “I don't know what it is going to look like ... We're building a governance to look at what the options could be and we are studying what other countries have done,” she said, noting that a standalone agency outside the department of defence has not necessarily worked particularly well in other countries. “Everything is on the table. We're looking at it, but we haven't actually begun the work in earnest.” The idea of moving defence procurement under a single point of accountability is hardly new. Alan Williams, a former assistant deputy minister of Material (Adm Mat), made the case for a single agency in a 2006 book, Reinventing Canadian Defence Procurement. And the Canadian Association of Defence and Security Industries (CADSI) issued a report in 2009 calling for a “separate defence procurement agency reporting through a single Minister ... [to] consolidate procurement, industrial, contracting and trade mandates into one new department, like a Defence Production Department, reporting to a minister.” More recently, an interim report on defence procurement by the Senate Committee on National Defence in June 2019 argued that “a single agency could simplify the complex procurement governance framework. Serious consideration could also be given to empowering project officials and making the Department of National Defence the lead department.” Williams remains a strong proponent. In a presentation to a CGAI conference on defence procurement in the new Parliament in late November, he greeted the DPC decision with a “hallelujah,” pointing to the high cost created by overlap and duplication when multiple ministers are involved in a military acquisition decision, and the tendency to play the “blame game” when delays or problems arise and there is no single point of accountability. But he cautioned that the initiative would falter without better system-wide performance measures on cost, schedules and other metrics. “If you don't monitor and put public pressure on the system, things will [slide],” he said. Williams also called for a defence industrial plan, backed by Cabinet approval, to help identify where to invest defence capital, and “a culture that recognizes and demands innovative creativity, taking chances.” Other former senior civil servants, many with decades of experience in public sector organizational reform, were less optimistic about the prospects of a new agency or departmental corporation. “There is always a good reason why things are the way they are,” said Jim Mitchell, a research associate with the Graduate School of Public and International Affairs at the University of Ottawa and part of massive reorganization of government departments undertaken by Prime Minister Kim Campbell during her brief tenure in 1993. “If you want to change things, you first have to understand, why do we have the current situation that we have in defence procurement and who are the people who have a major stake in the status quo and why? If you don't understand that, you are going to get into big trouble,” he warned the CGAI audience of government and industry leaders. At a time when the departments are moving a record number of equipment projects, including CF-188 Hornet replacement, through the acquisition process under the government's 2017 defence policy, any restructuring could significantly delay progress. “Organizational change is always disruptive, it's costly, it's difficult, it's hard on people, it hurts efficiency and effectiveness of organizations for a couple of years at minimum,” said Mitchell. “It is something you do very, very carefully.” It's a point not lost on CADSI. “The sheer scale of the change required to make DPC real should give companies pause. It could involve some 4,000-6,000 government employees from at least three departments and multiple pieces of legislation, all while the government is in the middle of the most aggressive defence spending spree in a generation,” the association wrote in an email to members in December. A vocal proponent of improving procurement, it called DPC “a leap of faith,” suggesting it might be “a gamble that years of disruption will be worth it and that the outcomes of a new system will produce measurably better results, including for industry.” Gavin Liddy, a former assistant deputy minister with PSPC, questioned the reasoning for change when measures from earlier procurement reform efforts such as increased DND contracting authority up to $5 million are still taking effect. “You really need an extraordinarily compelling reason to make any kind of organizational change. And every time we have attempted it ... it takes five to seven years before the organization is up and standing on its feet,” he told CGAI. “If you want to do one single thing to delay the defence procurement agenda...create a defence procurement agency. Nothing would divert attention more than doing that.” While few questioned the need for enhancements to the defence procurement process, many of the CGAI participants raised doubts about the logic of introducing a new entity less than three years into the government's 20-year strategy. Thomas described a number of improvements to project management and governance that are already making a difference. “The budgeting and project management in defence is really extraordinarily well done. If I am told by ADM Mat they are going to spend $5.2 billion, then that is what they spend. And we have the ability to bring more down, or less, depending on how projects are rolling,” she explained. “We are completely transparent about how we are getting money spent, what the milestones are on projects ... The program management board is functioning differently and pulling things forward instead of waiting until somebody is ready to push it forward.” “And we are working with PSPC. I think it is time to look at the government contracting [regulations], how much we compete, what we sole source, the reasons we sole source. I think there is a lot of work there that can be done that will improve the system even more.” https://www.skiesmag.com/news/new-defence-procurement-agency-would-be-disruptive-costly

  • After The Shock: Implications For M&A In The Aerospace & Defense Market

    29 juin 2020 | Local, Aérospatial

    After The Shock: Implications For M&A In The Aerospace & Defense Market

    By Adil Khan, Jim Adams and Steve Beckey Forbes; KPMG Contributor Jun 23, 2020 The current economic disruption—coming on the heels of the 737MAX suspension—has varying impact across A&D segments. The impact on commercial aerospace has been immediate and extensive, while the defense sector has largely remained unscathed. However, it is hard to see how it will remain so, given the extensive fiscal measures being taken. What will this mean for M&A in A&D? Some trends are beginning to emerge that will affect the entire deal life-cycle (from deal strategy through integration and value creation). Yet, as in other times of economic disruption, new opportunities will emerge, which leads us to believe that the slowdown of M&A activity will be short-lived. As we enter this next phase, deal makers who adapt quickly to the realities of the new industry landscape could be well positioned to maximize value. Pre COVID-19 environment Not too long ago, commercial aerospace was booming, with year-over-year ramp ups in build rates and record backlogs. There were expectations of another golden decade — further extending the unprecedented 14-year “super up-cycle”, defying the long-standing cyclicality of the sector. However, in 2019, the historic correlation between GDP, air-traffic growth, carrier profitability, orders and build rates was suddenly disrupted. GDP and airline profitability levels remained relatively healthy, but new orders and build rates dropped as the industry grappled with the 737MAX shock, as well as a slowdown in the twin-aisle segment. Other undercurrents also emerged — slowdowns in world trade from escalating tariff tensions, weakness in high-growth geographic markets such as China and India, and declining consumer confidence. In contrast, U.S. defense spending was on the rise, averaging 4 percent1 annual growth over the past 5 fiscal years; the $738 billion FY2020 defense bill2 ensured this momentum would continue. The government services sector was also set to benefit from continued funding increases to modernize IT infrastructure and address evolving national security challenges. With general confidence in the long-term fundamentals of the sector and a favorable budgetary environment, players in certain A&D segments pursued M&A to build scale. Others “re-realized” that content matters and initiated vertical and horizontal integration strategies to capture more value and drive cost competitiveness, or acquired targeted niche capabilities and emerging technologies. We also saw the emergence of Super Tier I's through scale-driving consolidation aimed at broadening capabilities and potentially exerting greater influence on OEMs. Deal volume in the A&D sector reached record levels — almost doubling over the last 5 years and outpacing the broader M&A market by 40 percent.3 Valuations remained elevated on the strength of high bidder interest, limited supply of attractive assets, high A&D stock valuations (which outperformed the S&P 500 by 8 percent),4 as well as healthy balance sheets and strong cash positions. TEV/EBITDA multiples for A&D transactions averaged 11x,5 outpacing increases in the overall M&A market. Although, deal volumes moderated in the second half of 2019, amid elevated uncertainty about defense spending heading into a presidential election year, the overall outlook remained optimistic. COVID-19 impact COVID-19 caused a precipitous collapse in air traffic. With travel restrictions and stay-at-home orders, carriers around the globe made unprecedented cuts to capacity, idled fleets, and began deferring or canceling new aircraft deliveries. Also, the MRO (maintenance, repair, and overhaul) and aftermarket segments, which had benefited from the prolonged 737MAX grounding and high fleet utilization, suddenly faced stiff headwinds. Thus far, the defense industrial base has not experienced a COVID-19 demand shock. There is no noticeable disruption in appropriations or major delays and cancellation of military programs. However, as in the commercial sector, defense contractors are actively monitoring their supply base and taking steps to preserve liquidity, minimize supply chain disruption, and taking measures to comply with CDC and local government guidelines. The range of scenarios for defense spending is bookended by two scenarios: an elevated national security threat that would preserve or accelerate funding, or a reordering of budget priorities to fund social and other mandatory programs, resulting in sequestration-type measures, similar to 2011. With these developments, volatility in the financial markets, lack of access to financing, alternative more pressing liquidity needs by corporates and most importantly, uncertainty in the marketplace, deal flow in A&D has come to an immediate standstill. Several “in-flight” processes have been halted, new deals in the pipeline have been deferred, and even some announced transactions terminated. Access to the new public offering market is effectively closed. The gap in expected valuations between buyers and sellers has widened considerably, due to disparate perceptions of the extent of economic disruption caused by COVID-19; contrasting views on reopening of the economy and the pace of return to normal; and diverse perspectives on what the post-COVID-19 new reality looks like. This has rendered financial forecasts and pre-COVID-19 market perspectives obsolete. Further, the extent and nature of unusual and non-recurring events6 impacting financials, present considerable challenges for deal makers to form a credible view of normalized earnings and cash flows. With the lack of reliable projections, it is nearly impossible to form a credible view on valuations let alone bridge this gap. Additionally, although M&A teams have attempted to navigate through practical challenges with offsite due diligence, virtual facility tours, video conferences, etc., adapting to a virtual M&A environment, especially for cross-border deals, has been challenging. Developments to watch as economies reopen Given the health concerns, changes in social behaviors (some of which may be slow to reverse) and anticipated lead-time to an effective vaccine, a V-shape recovery in air traffic appears increasingly unlikely. As governments move from combating coronavirus to reopening economies, the pace and extent of the economic recovery is expected to vary significantly around the world. Further, some long-lasting or permanent developments may trigger some dramatic shifts in the sector: KPMG Implications for M&A trends and outlook KPMG Although we probably do not expect to see M&A activity return to the pre-crisis levels immediately, we expect M&A activity to drive realignment of the industry landscape in the post COVID-19 environment. Implications for M&A Capabilities As we enter the next phase, deal makers will need to adapt to the realities that impact how deals get done. Examples include: KPMG While the challenges are intimidating, the opportunities will be vast, and those who move quickly and decisively are likely to be rewarded for years to come. Those who take this unique opportunity to prepare and are ready to act will stand ready to reshape the A&D industry. 1. 2019 DoD Comptroller Data (Green Book) 2. Department of Defense 3. CapIQ, Institute for Mergers, Acquisitions, and Alliances 4. Year return, S&P A&D index vs S&P 500 5. Trailing 12-month average to June 2019 and avg. 16x for deals >$500M in value; CapIQ, Dacis Company reports and Press releases 6 Worker furloughs, facility shut-downs, loss of business or order cancellation, idled or underutilized facilities, CARES Act funding, changes to performance-based compensation structures or payouts, health and sanitization related measures, IT infrastructure investments to adapt to remote working environment, deferral of payroll taxes, carryback of NOLs, increased interest expense tax deduction, etc KPMG Contributor

  • The Canadian Armed Forces to host international partners in Nunavut

    25 février 2020 | Local, Aérospatial, Naval, Terrestre

    The Canadian Armed Forces to host international partners in Nunavut

    This week, approximately 350 Canadian Armed Forces (CAF) personnel will deploy to Resolute Bay and Rankin Inlet, Nunavut as part of Operation Nanook-Nunalivut 2020 (Op Na-Nu 20). From Feb. 24 to March 27, 2020, CAF personnel and international partners will work together to enhance and test their specialized Arctic skill-sets, and reaffirm their ability to operate in the High Arctic. Ranging from ground and underwater activities to complex logistical support, Op Na-Nu 20 will demonstrate the presence and capabilities of the CAF in the Arctic, and will improve our readiness to operate in the region: a key component of Canada's Defence Policy – Strong, Secure, Engaged. Operations like Op Na-Nu 20 also enhance Canada's ability to work effectively with northern partners and allies. “Each year, Operation Nanook-Nunalivut provides us with a renewed focus on our operational capabilities and effectiveness in the High Arctic. The North is a vast, harsh and unique place to operate, and because of this, careful preparations and close collaboration with our northern partners is key. Sharing knowledge with our partners and allies will allow us to be better able to adapt to new demands and challenges in the North, and address common northern defence, security and safety concerns in the High Arctic,” said BGen Patrick Carpentier, commander, Joint Task Force (North). https://www.skiesmag.com/press-releases/the-canadian-armed-forces-international-partners-nunavut

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