7 décembre 2018 | Local, Naval

Sole-sourced contracts can be 'raw deal', top officials said in navy ship case

Lee Berthiaume / The Canadian Press

OTTAWA — New court documents show public servants discussing the risk to taxpayers as successive federal governments have turned to sole-source contracts to buy desperately needed equipment for the Canadian Forces and others.

The documents were filed on behalf of suspended Vice-Admiral Mark Norman, who is charged with breach of trust in connection with one such contract. They land amid frustrations with Canada's military procurement system — including because of political mismanagement — that have led to the need for quick fixes.

Prime Minister Justin Trudeau's government has chosen to sign several sole-source contracts to bolster the coast guard's aging icebreaking fleet and the country's fighter-jet force, buying time to find permanent replacements.

Sole-sourcing does make sense in many cases, said defence analyst David Perry of the Canadian Global Affairs Institute, particularly where there is an emergency or it's clear that only one company can meet the government's needs.

"But if you're sole-sourcing to fill a capability gap, that's the result of mismanaging a procurement to the point where you are out of options and have no alternative," Perry said. "That's not really a good reason to be sole-sourcing."

The Tories under Stephen Harper once intended to buy a fleet of F-35 fighter jets on an untendered contract, but aborted that plan in 2012 once the full price became known.

Then the Trudeau government planned to spend about $6 billion on 18 sole-sourced "interim" Super Hornets from Boeing because it said Canada needed more fighter jets to support its aging CF-18s until replacements could be purchased through a competition.

The Super Hornets deal eventually fell apart because of a trade dispute with Boeing. So the government is buying 25 second-hand Australian fighter jets, also without a competition. Canada isn't expected to get new fighter jets until at least 2025.

The Liberals also recently bought three second-hand icebreakers from Quebec-based Davie Shipbuilding for the coast guard, whose existing fleet is on average 35 years old — with no immediate plan to replace it on the horizon.

Suspended as the military's second-in-command in January 2017, Norman was charged in March 2018 with one count of breach of trust for allegedly leaking cabinet secrets to Davie over a different contract. He has denied any wrongdoing and vowed to fight the charge.

The case against Norman centres on a sole-sourced deal negotiated between Davie and the previous Conservative government in 2015, in which the Quebec shipyard proposed converting a civilian cargo ship into a temporary support vessel for the navy.

The $700-million contract with Davie was not finalized before that year's federal election. Although the newly elected Liberals at first wanted to delay it for a closer review, they signed off on the deal a short time later.

Before Liberal ministers agreed to buy the converted ship, bureaucrats from the Privy Council Office, the government's top department, wrote a secret briefing note in November 2015 that discussed the problems with not holding a competition.

"The risk inherent with a sole-source contract is that much of the leverage in the contract negotiation resides with the company," the bureaucrats wrote, even as they noted that the Conservatives had exempted the deal from the usual oversight for such projects.

Despite these concerns, the officials recommended the government approve the deal. Partly because they had assessed that "risk mitigation measures" were in place, but mostly because the navy urgently needed a support ship for faraway operations.

The court documents, none of which have been filed as exhibits or tested in court, include RCMP interviews with civil servants that suggest politicians' desire for votes in Quebec also played a role in the decisions about the ship. But the navy's need for the vessel was real.

The navy at the time had just retired its 50-year-old support ships and while replacements are being built in Vancouver through the government's national shipbuilding plan, numerous delays and problems mean they won't be ready until the 2020s.

The navy had originally expected to get new support ships in 2012.

The briefing note said a competition could have been held to find another, perhaps cheaper, solution, but "a competitive process would take longer to deliver a solution — likely 10-14 months for a contract award, and then more time for the service to be ready."

RCMP interviews with several senior civil servants raise similar concerns about awarding a contract to Davie without a competition while also alluding to the sense of urgency in getting new support ships.

The Defence Department's head of procurement, Patrick Finn, told the Mounties that other companies were clamouring to compete to supply a temporary support ship in late 2014, and that "the information existed to say that this could be done competitively."

But Finn noted that Davie had already found a ship that it could convert for the navy, which "at that point had no replenishment ships."

Melissa Burke, an analyst with the Privy Council Office who attended various cabinet meetings about Davie's proposal in 2015, told the RCMP that federal procurement officials were unhappy because "they felt the taxpayers were getting a raw deal."

https://www.timescolonist.com/sole-sourced-contracts-can-be-raw-deal-top-officials-said-in-navy-ship-case-1.23516431

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10 mars 2020 | Local, C4ISR, Sécurité

Patriot One Secures Contract for Correctional Service Canada from Innovative Solutions Canada
Program to fund deployment and evaluation of PATSCAN Platform, including its video fight detection module TORONTO, ON (March 9, 2020) – Patriot One Technologies Inc. (TSX: PAT) (OTCQX: PTOTF) (FRANKFURT: 0PL) (“Patriot One” or the “Company”), is pleased to announce it has been awarded a contract for the PATSCAN Multi-Sensor Covert Threat Detection Platform (the “PATSCAN Platform”) by Innovation Solutions Canada (ISC) for Correctional Service Canada (CSC). The contract will include the purchase, deployment and evaluation of the PATSCAN Platform, including the video fight and disturbance detection module. Deployment of the PATSCAN Platform will begin with Correctional Service Canada (CSC) in March 2020 at an undisclosed location. The contract from Innovative Solution Canada (ISC), was awarded to Patriot One for its PATSCAN Platform, with specific interest around the Video Object Recognition Software (VRS) solution for the detection of visible make-shift knives, cellphones, as well as disturbances and fights, all of which have been issues with correction facilities and their management teams. The Platform was evaluated and pre-qualified under the ISC's Testing Stream, formerly named the Build in Canada Innovation Program (BCIP). The Testing Stream helps connect Canadian innovators with federal government departments that are willing to test their innovation and provide innovators with valuable testing feedback. “We've been working with Innovative Solutions Canada Program, formerly BCIP, on this project, prior to being acquired by Patriot One in December 2018,” shared Dr. James Stewart, SVP Video Analytics at Patriot One. “We are excited to be part of the program to demonstrate our capabilities to not only detect concealed and visible threat objects with our PATSCAN Platform, but also help correctional facility management and guards quickly detect fights and disturbances that at times breakout between inmates.” Patriot One's business development and engineering teams have begun work with teams at ISC and Correctional Service Canada (CSC) on the production of the PATSCAN Platform, which will be delivered for installation and deployment at an undisclosed facility beginning March 2020. Following onsite testing and evaluation, Patriot One, and CSC will discuss the possibility of expanding the Platform deployment across Canada. Respectfully “Martin Cronin” Martin Cronin, CEO About Patriot One Technologies Inc. Patriot Ones' mission is to deliver innovative threat detection and counter-terrorism solutions for safer communities. Our PATSCAN™ Multi-Sensor Covert Threat Detection Platform provides a network of advanced sensor technologies with powerful next generation AI/machine learning software. The network can be covertly deployed from far perimeter to interiors across multiple weapons-restricted facilities. The PATSCAN™ platform identifies and reports threats wherever required; car park, building approach, employee & public entryways and inside the facilities. Each solution in the platform identifies weapons, related threats or disturbances for immediate security response. Our motto Deter, Detect and Defend is based on the belief that widespread use of the PATSCAN™ platform will act as an effective deterrent to diminish the epidemic of active threats around the globe. For more information, visit: www.patriot1tech.comor follow us on Twitter and Facebook. About Innovative Solutions Canada (ISC) Innovative Solutions Canada helps Canadian innovators by funding R&D and testing prototypes in real-life settings. The program operates two streams with a combined funding of over $140 million dedicated to Canadian innovators who want to start, grow, and get to market. For further information, please contact: Patriot One Technologies Inquiries info@patriot1tech.com www.patriot1tech.com Investor Relations John Martin, Patriot One Technologies +1 (888) 728-1332 johnm@patriot1tech.com Media Contacts: Scott Ledingham, Patriot One Technologies +1-613-806-7135 scott@prmedianow.com Innovation Solutions Canada (ISED) Ottawa Headquarters Telephone: 343-291-1777 Business hours: 7:30 a.m. to 5:30 p.m media relations team. CAUTIONARY DISCLAIMER STATEMENT: No securities exchange has reviewed nor accepts responsibility for the adequacy or accuracy of the content of this news release. This news release contains forward-looking statements relating to system sales, product development, licensing, commercialization and regulatory compliance issues and other statements that are not historical facts. Forward-looking statements are often identified by terms such as “will”, “may”, “should”, “anticipate”, “expects”,” believes”, and similar expressions. All statements other than statements of historical fact, included in this release are forward-looking statements that involve risks and uncertainties. There can be no assurance that such statements will prove to be accurate and actual results and future events could differ materially from those anticipated in such statements. Important factors that could cause actual results to differ materially from the Company's expectations include counterparty default and other risks detailed from time to time in the filings made by the Company with securities regulations. The reader is cautioned that assumptions used in the preparation of any forward-looking information may prove to be incorrect. Events or circumstances may cause actual results to differ materially from those predicted, as a result of numerous known and unknown risks, uncertainties, and other factors, many of which are beyond the control of the Company. The reader is cautioned not to place undue reliance on any forward-looking information. Such information, although considered reasonable by management at the time of preparation, may prove to be incorrect and actual results may differ materially from those anticipated. Forward-looking statements contained in this news release are expressly qualified by this cautionary statement. The forward-looking statements contained in this news release are made as of the date of this news release and the Company will update or revise publicly any of the included forward-looking statements only as expressly required by applicable law. Neither the Toronto Stock Exchange (TSX) nor its Regulation Services Provider (as that term is defined in policies of the TSX) accepts responsibility for the adequacy or accuracy of this release. https://patriot1tech.com/corporate-news/patriot-one-secures-contract-for-correctional-service-canada-from-innovative-solutions-canada/
4 octobre 2018 | Local, Aérospatial

Sea King disposal underway
by Lisa Gordon The 55-year reign of the Canadian Sea King is coming to a close. In December, a crew from 443 Maritime Helicopter Squadron in Patricia Bay, B.C., will fly the CH-124 Sea King on its last flight for the Royal Canadian Air Force (RCAF). Earlier this year, their counterparts at 423 Maritime Helicopter Squadron in Shearwater, N.S., marked the aircraft's final East Coast mission on Jan. 26, 2018. While five helicopters are still operational until the end of the year in B.C., Canada's remaining 23 Sea Kings have been retired and are currently making their way through the fleet disposal process. Administered by the Department of National Defence (DND) and Public Services and Procurement Canada (PSPC), this process aims to repurpose, sell or otherwise dispose of the old helicopters in a safe and environmentally responsible manner. While final arrangements for the aircraft are subject to change, DND told Skies on Oct. 2 that eight of the 28 remaining aircraft will be publicly displayed by the Canadian Armed Forces at various military bases and museums across the country. Another airframe will be retained by the Royal Canadian Air Force (RCAF) as a training aid, and one will be displayed at the Canada Aviation and Space Museum in Ottawa. Three aircraft were demilitarized and scrapped due to their poor condition, with components being recycled where possible. The remaining 15 Sea Kings and their associated parts — 12 are currently located at 12 Wing Shearwater and three are at Patricia Bay — are now for sale, a process that is being administered by PSPC. “Essentially, we have a website that is used to source interest for controlled and sensitive assets that are for sale,” explained Josée Doucet, manager of the GCMil group at PSPC, which deals with the disposal of surplus Canadian military goods. “In this case, we put the Sea Kings up for sale. Once we had expressions of interest, we held a bidders' conference on Sept. 26 in Shearwater, to showcase those aircraft. It gave bidders the chance to look at them, ask questions regarding the assets, and gave them an idea of what they are bidding on.” The helicopters are being sold in “as is, where is” condition. Doucet said she was very pleased by the number of potential bidders who attended the Shearwater event. “Now, the interested parties will receive a package from my office and be invited to submit a bid. There will be a timeline as to when we will start reviewing offers.” While Doucet said that timeline has not yet been finalized with DND, she indicated the goal would be to have a purchase agreement in place by the time the Sea Kings cease flying on Dec. 31. “It's a very aggressive timeline, so the offer to purchase dates will respect that.” Preparing for Sale Before the Sea Kings went on the market, controlled goods and military equipment were removed from the airframes wherever possible. Doucet said all Canadian bidders must be registered in the Controlled Goods Program. Interested foreign purchasers must be enrolled in their nation's equivalent program, which allows them to view military assets. “We have a number of processes. We only deal with registered Canadian companies, pre-approved foreign governments or authorized representatives of original equipment manufacturers. Only then would they be allowed to bid.” While Doucet declined to estimate the Sea Kings' worth, she said a myriad of factors are considered when selecting the winning bid. These include single-asset or full-lot bids, depreciation, condition of the fleet, and the costs to DND to maintain the helicopters as they await sale. “We also look to see if a bidder has an approved clear end use for the helicopters. What is the likelihood of obtaining export approval, as well as third-party approval from the country of acquisition — in this case the United States. We look at all that, because we don't want to exert efforts in an area that would not be fruitful.” Ultimately, she said fleet value will be driven by market demand. “I would have to say that from a commercial application perspective, the Sea King fleet has a lot of life left in it. Whether the fleet will be used as a gap measure, or to refurbish and resell, or to convert to commercial applications, the value will be subject to its intended end use.” A Lasting Legacy Canada accepted its first CH-124 Sea King at the Sikorsky plant in Connecticut on May 24, 1963. Since then, the maritime helicopter has earned its legendary status in the Canadian Armed Forces, serving with distinction on Her Majesty's Canadian Ship Bonaventure (the country's last aircraft carrier, retired in 1970), as well as on St. Laurent-class destroyer escorts, Iroquois-class destroyers, auxiliary oiler replenishment ships, and Halifax-class frigates. No other aircraft in Canadian service has ever commanded such a lasting multi-generational legacy. While 15 Sea Kings are destined for new homes, nine will remain on public display to ensure its story will never be forgotten. It's a fitting tribute to a King that ruled the waves for more than half a century. https://www.skiesmag.com/news/sea-king-disposal-underway
20 décembre 2019 | Local, Aérospatial

Canada needs updated anti-aircraft systems for the modern battlefield, says army commander
Murray Brewster The audacious attack on Saudi Arabia's Abqaiq refinery and the Khurais oil field last September sent shivers down the spines of some Canadian military planners. The stunning damage caused by a swarm of drones and cruise missiles — launched either from Iraqi or Iranian territory — proved to be an almost perfect illustration of the kind of vulnerability the Canadian Army faces in the rapidly evolving modern battlefield. It's been seven years since the army retired the last of its ground-based air defence systems. By all indications, it will be another eight years before the Department of National Defence acquires a replacement system. The Liberal government's defence policy talks about buying new anti-aircraft equipment — and perhaps now anti-drone technology — but the project is still only in what defence officials call the "options analysis" phase. The commander of Canada's army said restoring that anti-aircraft defence is one of his top priorities. "Air defence is right at the top of the pile of stuff I want to get in," Lt.-Gen. Wayne Eyre told CBC News earlier this month. "It is a capability shortfall right now. And as you see the emerging threats out there, it is one that concerns me." 'An emerging threat' Eyre, who recently served as deputy commander of the United Nations Command in Korea, described the technology used to attack the Saudi facilities as "an emerging threat" that Canada's soldiers need to be prepared for, especially "the swarming tactics of unmanned aerial vehicles." For more than 15 years, Canadian military planners — hip-deep in fighting a counter-insurgency war in Afghanistan — were unconcerned about updating Cold War-era equipment meant to shoot down low-flying aircraft. The Taliban had no air force. The last of the Canadian army's air defence equipment — the Oerlikon Air Defence Anti-Tank System (ADATS) — was retired in 2012 after an aborted attempt to modernize the vehicles. At the time, the federal government under then-prime minister Stephen Harper was cutting $2.1 billion out of the defence budget. But the threat picture for Canadian soldiers changed dramatically when Russia annexed Crimea in 2014. That event launched a new era of state-to-state tensions — one where Canadian troops again face attack from the air. At the moment, the Canadian Forces' solution for deployments — such as the current mission in Latvia — is to pair Canadians with allied forces that have air defence capabilities. "We do it as part of a coalition to make sure somebody has that capability, but [the threat] is constantly evolving and we need to be on top of that," said Eyre. A.I. and the next generation of drones The use of drones in the Saudi attack — and the prospect of artificial intelligence linking unmanned vehicles into a more lethal swarm in the near future — is not something Canadian military planners were looking at until fairly recently. "One of the stressors in the security environment is the acceleration of technological change. How do we stay abreast of that?" said Eyre. "How do we get equipment into the hands of our soldiers that is advanced as some of our potential adversaries might be?" https://www.cbc.ca/news/politics/anti-aircraft-canadian-forces-1.5399461

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