Ottawa launches lonfyig-awaited competition for purchase of armed military drones

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  7 mai 2020 | Local, Terrestre

  General Dynamics saw $1 billion bump after Canada-Saudi accord

  By: Joe Gould   1 day ago WASHINGTON ― General Dynamics has received $1 billion since the renegotiation of a $10 billion contract for Canada to sell light armored vehicles to Saudi Arabia, company officials said on its first quarter earnings call. In a deal last month, Canada lifted its ban on arms sales to Saudi Arabia, which in turn agreed to a speedier payment schedule for the LAVs. Canada had the vehicles on hold since 2018, following the death of Saudi journalist Jamal Khashoggi; and by October, Saudi Arabia had racked up $1.5 billion in back payments to General Dynamics. Amid news on the April 29 call that the company's revenue fell $512 million in connection with the coronavirus pandemic, General Dynamics Chief Financial Officer Jason Aiken highlighted “the formal signing of the restructured contract on the Canadian international program, which settled all issues to the satisfaction of the parties.” “With respect to our standing receivable you may recall that we received $500 million early in the first quarter and we received another $500 million this month. This will be very helpful to free cash flow in the second quarter,” Aiken said. “We will begin a regular cadence of scheduled payments in 2021 consistent with deliveries and making further progress in the scheduled amortization of the arrearage.” The company's Combat Systems division had revenue of $1.7 billion, up 4.4 percent over the same quarter last year, and sales to the U.S. government were up 12 percent. The firm's aerospace business segment also had revenue of $1.7 billion, but that represented a 23 percent fall from the same quarter last year. On April 9, Canada's foreign affairs minister, François-Philippe Champagne, announced Ottawa was “able to secure significant improvements” to the LAV contract, including more latitude for the Canadian government to speak about it. Under the new terms, Canada could also delay or deny export permits without penalty if it learned Saudi Arabia was not using the vehicles for their stated purpose. Ottawa would also be reviewing permit applications on a case-by-case basis to ensure they meet Canadian law and the U.N. Arms Trade Treaty. Though the Trudeau government has been under political pressure to scrap the LAV deal over human rights concerns, Champagne said its cancellation would have “resulted in billions of dollars in damages” and risked thousands of Canadian jobs across the defense supply chain. The vehicles are made by the General Dynamics Land Systems subsidiary in London, Ontario. https://www.defensenews.com/congress/2020/05/07/general-dynamics-saw-1-billion-bump-after-canada-saudi-accord

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  11 octobre 2018 | Local, Aérospatial

  Purchase of three spy planes from the U.S. could cost Canada $140 million more than planned

  DAVID PUGLIESE, OTTAWA CITIZEN Canadian companies had wanted to provide the aircraft, but the Canadian military decided it needed the planes quicker than they believed Canadian firms could deliver The cost of three small surveillance aircraft Canada is buying from the U.S. could be $140 million more than the Canadian military had originally estimated. The three Beechcraft King Air planes, to be based at CFB Trenton in Ontario, will be outfitted with sensors and equipment to intercept cell phone and other electronic transmissions. Canadian special forces and, potentially, other government departments will use them for missions overseas and in Canada. On Oct. 1 the Canadian Forces told Postmedia the three outfitted planes and initial in-service support would cost between $100 million and $249 million, as outlined in the Liberal government's defence policy documents. However, on Oct. 4 the U.S. Defense Security Cooperation Agency revealed the final tally, informing Congress that the deal was underway with an estimated cost of US $300 million — around $389 million. Canadian companies had wanted to provide the aircraft and on-board equipment, and several have formed alliances with U.S. firms who supply the Pentagon with the same or similar aircraft. But the Canadian military decided it needed the planes more quickly than they believed Canadian companies could deliver, and that U.S. security regulations governing the on-board sensor equipment might cause delays. As a result, it determined the U.S. government was the only supplier capable of providing the planes. The Canadian Forces says it hopes to get a better deal. The cost the U.S. government agency presented to Congress is not the final tally and the “final cost is anticipated to be much lower,” the Canadian Forces claimed in an email. “Over the coming months, we will work to more clearly define our interests and requirements for the purchase, and negotiate an acceptable price with the U.S.,” the email said. Department of National Defence spokeswoman Ashley Lemire said in an email to Postmedia that the delivery of the first plane would take place sometime between 2020 and 2021. The final delivery of the three aircraft would be wrapped up by 2022. The main contractor is Beechcraft in Wichita, Kan. The Canadian government will run a separate program to allow companies to compete to provide in-service support for the planes. The government expects to ask for bids for that 20-year contract sometime in the spring of 2019, said Lemire. DND declined to provide an estimate of what that long-term support would cost taxpayers. Industry representatives have complained over the years that the Canadian Forces cut domestic firms out of the project and reduced the role they could play. Lemire rejected that claim, saying Canadian firms would have a role in servicing the planes. https://calgaryherald.com/news/purchase-of-three-spy-planes-from-the-u-s-will-cost-canada-140-million-more-than-planned

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  27 octobre 2022 | Local, Naval

  Taxpayers face $300 billion price tag for new navy warships, warns Parliamentary Budget Officer

  Parliamentary Budget Officer Yves Giroux flagged a couple more torpedoes related to the Royal Canadian Navy’s project to buy new warships.