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  17 février 2021 | Local, Naval

  DND unable to say exactly when delays in $70-billion warship program began

  David Pugliese, Ottawa Citizen, Postmedia News (dpugliese@ottawacitizen.com) Published: a day ago Updated: a day ago National defence says it doesn't know when it determined that a $70-billion project to buy new warships had fallen five years behind schedule, adding billions of dollars to the cost. That lack of knowledge about a massive mega-project is unprecedented, according to the department's former top procurement official, and is further proof the Canadian Surface Combatant project has gone off the rails. The Department of National Defence revealed Feb. 1 that the delivery of the first surface combatant ship would be delayed until 2030 or 2031. The first ship was to have been delivered in 2025, according to DND documents. The five-year delay will cost taxpayers billions of dollars, but the specific amount has yet to be determined. DND now acknowledges that while there were indications in early 2020 the project schedule was slipping, it doesn't actually know when it was determined the Canadian Surface Combatant program was facing significant delays. “There was no specific month/year,” DND spokesperson Jessica Lamirande wrote in an email to this newspaper. “It was an evolving schedule that continued to shift.” But Alan Williams, the former assistant deputy minister in charge of procurement at DND, said that lack of insight by DND staff is dangerous. On major equipment procurements, every step should be documented, as bureaucrats could be called on to justify future spending decisions and overall management of a project, he said. “It's totally absurd they can't even say when they first determined this project would be delayed by five years,” said Williams. “Is that not the definition of a total loss of accountability and control?” The Canadian Surface Combatant (CSC) project would see the construction of 15 warships for the Royal Canadian Navy at Irving Shipbuilding on the east coast. The vessels will replace the current Halifax-class frigate fleet. However, the project has already faced delays and significant increases in cost, as the price tag climbed from an original $14-billion estimate to $26 billion and then to $70 billion. The parliamentary budget officer is working on a new report on the CSC cost, to be finished by the end of February. Each year of delay could cost taxpayers more than $2 billion, the PBO warned previously. Although the DND has a new delivery date for the initial ship in the fleet, that doesn't mean that the vessel will be ready for operations at that time. “We expect delivery of the first ship in 2030/2031, followed by an extensive sea trials period that will include weapons certification and the corresponding training of RCN sailors, leading to final acceptance,” Lamirande said. No dates, however, were provided on when that final acceptance of the first ship would happen. Troy Crosby, the assistant deputy minister of materiel at the DND, denied the CSC project is in trouble. “I wouldn't call it trouble,” he said in an interview with this newspaper in November. “Is it hard? Is it challenging work? Absolutely. But I wouldn't say we're in trouble.” Other defence analysts are arguing the CSC program is salvageable with better governance and oversight. But Williams said the CSC is like a train rolling down a hill without brakes. “You're heading for disaster and people are talking about improving governance,” he said. “That won't save this project.” Canada has yet to sign a contract to build the Type 26 ship proposed by the consortium of Lockheed Martin and BAE for the CSC. So far, taxpayers have spent $739 million preparing for the eventual construction, according to figures tabled with parliament. Australia and the United Kingdom also plan to purchase the Type 26. But the first ship, destined for the U.K., has yet to be completed. The Canadian government originally said it would only accept a winning bid based on a mature existing ship design or a ship already in service with other navies. That would eliminate technical risk, as the design would be a known and tested commodity. The Type 26 carries extra risk as its design has not yet been proven. Williams said Canada could build an initial three Type 26 ships and then purchase other warships based on a proven design at a much reduced cost. Copyright Postmedia Network Inc., 2021 https://www.thechronicleherald.ca/news/canada/dnd-unable-to-say-exactly-when-delays-in-70-billion-warship-program-began-552869/

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  16 juin 2020 | Local, Naval

  Ottawa awards $2.4B contract to finish building navy's supply ships

  The decision signals the project won't be delayed by pandemic-driven deficit spending Murray Brewster · CBC News · Posted: Jun 15, 2020 2:45 PM The Liberal government has awarded a $2.4 billion contract to finish the overall construction of the navy's long-awaited supply ships. Today's announcement moves forward a Joint Support Ship program over a decade-and-a-half in the making. It also appears to signal the federal government remains committed to its multi-billion shipbuilding program despite record levels of pandemic-driven federal deficit spending. The contract, with Seaspan's Vancouver Shipyards, is for the construction of two replenishment vessels, Public Services and Procurement Canada said in a statement. Now that the construction deal has been signed, the overall price tag of the program — including design — is expected to be $4.1 billion, up from an earlier estimate of $3.4 billion. Seven years ago, the Parliamentary Budget Office (PBO) predicted the cost would end up where it has — an estimate that was roundly criticized and dismissed by the Conservatives, who were in power at the time. "The government announcement today did not have a whole ton of detail, so it's hard to do an exact comparison, but I certainly think that PBO estimate from a long time ago has held up pretty well over time," said Dave Perry, an expert in defence procurement and vice president of the Canadian Global Affairs Institute. The first supply ship is to be delivered in 2023, and the second vessel is supposed to arrive two years later. The yard started construction on certain portions of the first ship in 2018, while final design work was still underway — something that alarmed and even baffled some defence and shipbuilding experts. 'Business as usual' With the federal deficit expected to swell to over $252.1 billion because of COVID-19 relief measures, many in the defence community had been speculating that existing spending plans for the supply ships would be curtailed or scaled back. In a statement, federal Public Services Minister Anita Anand suggested the Liberal government is committed to staying the course. "This contract award is yet another example of our ongoing commitment to the National Shipbuilding Strategy, which is supporting a strong and sustainable marine sector in Canada," she said. Perry said he takes it as a sign the Liberals intend to proceed with their defence construction plans in the face of fiscal and economic uncertainty. "It is an indicator that, despite being business under some very unusual circumstances, it is still government business-as-usual under COVID," he said. In the same government statement, Defence Minister Harjit Sajjan pointed out that an enormous amount of preparation work has been done already and he's pleased the project is moving forward. "An impressive amount of work has already gone into the construction of these new ships, and I look forward to their arrival in the coming years." said Sajjan. Construction during COVID-19 A senior executive at Seaspan said work to adapt the design from the original German plan (the Canadian ship is based on the German Navy's Berlin-Class replenishment vessel) was completed last year and work on the superstructure of the first Joint Support Ship — started in 2018 — has been proceeding apace, even through the pandemic. "It is well advanced," said Amy MacLeod, the company's vice-president of corporate affairs. "We are ready to continue. We're very, very happy with the quality of the ship, the progress of the ship, the momentum that we have and the expertise we have gained." The shipyard did not pause construction due to the pandemic — but it did have to figure out ways to carry on under strict physical distancing rules. "We, like everybody else, had to understand how to run a business in a pandemic," said MacLeod. "We made a lot of changes on how we build our ships." Turnstiles to enter and exit the yard were eliminated and the company went high-tech with a "heat map" that shows where everyone is working and how much space there is between individual workers. "And where we couldn't ensure appropriate social distancing because of COVID, we stopped that work." Perry said the gap between the construction of the two supply ships worries him to a degree. Seaspan intends to construct an ocean science vessel for the coast guard under a plan agreed to with the Liberal government in 2019. Any delay or hiccup in the construction of that ship could mean the delivery of the second naval vessel is pushed back even further, Perry said. Extending the navy's range News of the contract will come as a relief to the navy. Having replenishment ships to refuel and rearm frigates would allow the navy to deploy entire task groups to far-flung parts of the world. "With these warships, the Royal Canadian Navy will be able to operate with even greater flexibility and endurance," said Vice-Admiral Art McDonald, commander of the navy. "These ships will not only form part of the core of our naval task groups, they also represent a vital and strategic national asset that will enable the Navy to maintain its global reach and staying power." A tortured history It was 1994 when the replacement program was first discussed. The deficit-slashing years of that decade meant the plan was shelved. Resurrected in 2004, the Liberal government of former prime minister Paul Martin hoped to have the ships in the water by 2008 to replace the three-decade-old supply ships the navy had been operating. Faced with cost estimates well over what they had expected, the Conservative government of former prime minister Stephen Harper shelved the Liberal plan on the eve of the 2008 federal election. More than five years later, the navy was forced to retire both aging supply ships after one of them was crippled by a devastating fire. The absence of replenishment capability led the Harper government to lease a converted civilian supply ship from a private company, Federal Fleet Services, which operates out of the Davie Shipyard in Levis, Que. That plan led to a political and legal scandal when the former commander of the navy, Vice-Admiral Mark Norman, was accused of leaking cabinet secrets related to the plan. The Crown withdrew the charge a year ago after a protracted pre-trial court battle. https://www.cbc.ca/news/politics/supply-ship-navy-seaspan-1.5612770

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  7 avril 2023 | Local, C4ISR

  Canada ups Arctic surveillance capabilities to protect North America

  The country is searching for sites along its border with the U.S. to install a new long-range radar designed to protect the continent.