Feds should create a new, single entity Defence Procurement Canada

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  6 octobre 2020 | Local, Naval

  Shipbuilding industry pushes back as federal government shops for used icebreaker

  Murray Brewster The federal government is in the market for another used icebreaker that could be converted for use by the Canadian Coast Guard on the Great Lakes — much to the dismay of shipbuilders across the country. A request for proposals to acquire an existing light icebreaker was posted on the government's procurement website in mid-September. The timing is interesting. Federal decision-makers have known for five years that the coast guard needs such a vessel for the region. The request for proposals — which closes at the end of October — was posted as U.S. lawmakers began to push bipartisan legislation through Congress to strengthen the U.S. Coast Guard's capacity to break ice and keep commerce flowing on the Great Lakes. The plan for Canada to buy a used icebreaker follows a separate decision by Transport Canada to purchase a used ferry from Spain on an emergency basis. Build them here, says industry The Canadian Marine Industry and Shipbuilding Association (CMISA), which represents most of the marine suppliers and shipyards across the country, said both decisions represent a loss of domestic jobs and at least $250 million in federal spending that could have gone into a Canadian economy hard hit by the coronavirus. "We're of the strong belief that vessels such as light icebreakers can and should be built in Canada," said Colin Cooke, president and chief executive officer of the shipbuilding association. "We have the capacity. We have the skilled trades. We have the expertise, the technical expertise. We have the shipyards. And that was what the point of the National Shipbuilding Strategy was all about." That shipbuilding strategy is supposed to direct government work to Canadian shipyards. Cooke said the plan to purchase an existing icebreaker and the deal to acquire a former Spanish ferry would both be unacceptable in normal times — but they're even less acceptable now. "We are in a COVID time when we're looking for all sorts of ways to make sure that people are employed, that businesses are able to survive — I won't say thrive, I will say survive — through the lockdowns caused by this pandemic," he said. Public Services and Procurement Canada was asked for comment last Thursday but did not respond. The tender for the light icebreaker, posted online Sept. 18, describes the purchase as a necessary interim step for the coast guard to "bridge the gap while awaiting the delivery of dedicated new vessels." Significantly, the request for proposals noted that the need for such a ship was identified five years ago — around the same time a comprehensive analysis warned that the coast guard icebreaking fleet was in dire straits and in need of immediate replacement. "In 2015-16 the CCG identified a requirement for interim icebreaking capabilities to fill gaps in capacity resulting from ships being temporarily withdrawn from service" for refit and life extension, said the tender. Two years ago, the Liberal government concluded a deal worth $827 million with Chantier Davie of Levis, Que., which operates the Davie shipyard, to refit three medium-sized commercial icebreakers for the coast guard. Used icebreakers could be scarce Tim Choi, a University of Calgary shipbuilding expert, said this recent tender suggests the federal government is operating on the flawed assumption that there is an abundance of used icebreakers on the market. The deal with the Davie shipyard was an anomaly and federal officials "got lucky" last time because there happened to be three vessels available, he said. Choi said he believes the federal government isn't likely to be so fortunate this time: his research suggests there may be only one light icebreaker out there that would fit in the bill — in Finland — and it's not clear the Finns are ready to part with it. "There are very few requirements for a vessel like that outside of Canada and the United States in the Great Lakes, St. Lawrence region," said Choi. "It's not like there's a used car lot where you can just go out and buy these things." The shipbuilding association said it can make a strong case for a fast-track build in Canada. Choi said he believes procurement services may be forced in that direction anyway because of market conditions. In mid-September, three U.S. senators — Tammy Baldwin (D-WI), Todd Young (R-IN) and Gary Peters (D-MI) — introduced the Great Lakes Winter Commerce Act. The bipartisan legislation is expected to codify the U.S. Coast Guard's icebreaking operations on the Great Lakes and, more importantly, increase the size of its fleet. "Inadequate icebreaking capacity in the Great Lakes is costing us thousands of American jobs and millions in business revenue," said Baldwin in a statement. "We must boost our icebreaking capacity in the Great Lakes to keep our maritime commerce moving." https://www-cbc-ca.cdn.ampproject.org/c/s/www.cbc.ca/amp/1.5751143

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  11 juillet 2023 | Local, Autre défense

  Analysis: With Canadians struggling financially, Trudeau can safely ignore calls for more military spending

  In the last several years, generals and defence analysts have pushed fantastical scenarios designed to generate fear among the public.

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  11 juin 2018 | Local, Aérospatial, Naval, Terrestre, C4ISR

  DND unable to spend billions in equipment funds, pushing projects beyond next election

  Murray Brewster National Defence fell $2.3 billion short in its plan to re-equip the military in the past year — a failing that one defence analyst says guarantees many important decisions on warplanes, ships and vehicles will be pushed beyond next year's election. Defence Minister Harjit Sajjan revealed the figure Wednesday as he launched the department's long-anticipated investment plan at a major defence industry trade show in Ottawa. The plan is the Liberal government's spending roadmap for its defence policy, released a year ago, which pledged $6.2 billion in new capital spending in the first year. New figures show $3.9 billion was spent. Later in the day, the chair of the Liberal government's council of economic advisers underscored the importance of investment in the defence sector and how it will drive innovation in other sectors. "If we want to grow — and we can in Canada, and we want to grow more significantly — the defence sector is going to play an essential part in doing that," Dominic Barton said. Leading-edge military technology and the possibilities for its commercialization can transform the broader economy, he added. However, the investment plan presented by the Liberals on Wednesday leans heavily on refurbishing existing technology and equipment — mostly aircraft — in the coming decade. The Defence Capabilities Blue Print will see the air force's CF-18 fighter jets, C-140 Aurora surveillance planes, C-144 Challenger executive jets, C-150 Polaris refuellers and transports, CT-114 Tutor trainers and demonstration jets, C-149 search and rescue helicopters and CH-146 Griffons all given life extensions and upgrades. New aircraft, including drones, won't be introduced until the mid-2020s — or later. A defence analyst said that's no surprise since many major decisions will be pushed past the 2019 election. That means it will be up to the next government to make the tough decisions on how much to buy and how much to spend. "Unless we see an extremely busy June with a lot of announcements on milestone projects, a lot of the work is going to be left until later," said Dave Perry, an expert in procurement at the Canadian Global Affairs Institute. "They're not moving ahead as quickly as they suggested in the defence policy." The government could leave even more money on the table this year. Figures compiled by Perry, using the federal government's own budget documents and records, suggest as much as $3 billion could go unspent on military equipment in the current fiscal period. The former Conservative government was repeatedly criticized for promising the military big things in terms of equipment, but rarely delivering and allowing allocated funds to lapse. That cash was eventually kicked back to the federal treasury and used for deficit reduction. DND gets to keep money, spend it later Sajjan said defence spending is now guaranteed in the fiscal framework, the government's long-term financial plan. That means National Defence gets to keep the money and spend it later. "We always know we might not need the extra funds, but they have to be there just in case," Sajjan said. "Rest assured, the unspent $2.3 billion dollars is protected. Those funds remain available when we need them." He defended the spending "delta," saying that 30 per cent of it comes because projects came in under budget. Another 42 per cent was because of delays by defence contractors. Approximately one-third, though, relates to the department's inability to make a decision — or develop specifications on time. Sajjan took a shot at the government of former prime minister Stephen Harper, which used to regularly publish its defence spending plans, but never had specific funding attached to individual projects. Conservative defence critic James Bezan said there is a disconnect between the government's defence policy and its spending plans as outlined in federal budget documents. "Nothing seems to match," said Bezan, who treats the federal budget as the last word in spending. There was no mention of National Defence in Finance Minister Bill Morneau's latest fiscal, presented in February. Defence officials insist that is because the department's spending is already accounted for in the fiscal framework. The federal Treasury Board, however, must approve funding on a project-by-project basis — and Bezan said that hasn't been done. "There's no money to do the things Sajjan is out there talking about," he said. "We are still dealing with the problems of getting procurement done in a timely manner and getting it done on budget." The head of a defence industry group — Sajjan's audience as he made the announcement — said the government does deserve credit for consulting more about projects ahead of time, but there are obvious shortcomings. "Any time funding moves to the right, it is a predictability problem for us. We want as as predictable and as stable funding as we can get," said Christyn Cianfarani, the president and CEO of the Canadian Association of Defence and Security Industries. "I still think, systemically, there is a problem and if we don't turn it upside down and shake it — the whole procurement system — and do things differently ... many, many things differently, we'll still see sluggishness in the procurement system." He said the Liberal investment plan is not "aspirational" and states clearly where the cash is coming from. The Conservative guidebook in the end "did not deliver for the men and women in uniform," Sajjan told the audience of defence contractors. http://www.cbc.ca/news/politics/sajjan-dnd-equipment-funds-1.4683606