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Article by Marcia Mills and Paul Burbank Capital Perspectives Last Updated: January 3 2020 The issues surrounding defence acquisition took a backseat in the run up to the 2019 federal election. As noted by the Canadian Global Affairs Institute, this occurred despite the fact that two of the largest defence procurements in Canadian history – the Canadian Surface Combatants (warships) project and the Future Fighter Capability Program (fighter jets) – are in active procurement mode, spending is falling short of forecast and roughly 70 per cent of the approved projects under the 2017 implementation of the Strong, Secure, Engaged Defence Policy have seen schedule delays 1. Canadian defence procurement is a many-layered affair. Spread across three departments and a central agency (the Department of National Defence; Public Procurement and Services Canada; Innovation, Science and Economic Development; and Treasury Board, respectively), the need to coordinate and align this much bureaucracy is often viewed as one of the significant problems in defence procurement. The two main political parties offered very different solutions to these issues during the election, but provided few details. The Platforms The Conservatives focused on the need to "de-politicize" the procurement process, which would in turn deliver greater value for money and better resources for the Canadian military. To accomplish this, new oversight mechanisms, both in Cabinet and in the Privy Council Office, would be created. 2 Major defence procurements are already subject to oversight by the Defence Procurement Secretariat, a Deputy Ministers Governance Committee and a Ministers Working Group. It is not entirely clear how additional layers of oversight would reduce delay and improve efficiencies, unless the new mechanisms replaced all or some of the current oversight layers. The Liberal platform included a portion on defence procurement that pointed to the creation of "Defence Procurement Canada," to ensure defence projects were delivered on time and with greater transparency. The structure of Defence Procurement Canada was not explained. A bit of speculation is now in order as to what this could mean for defence procurement. The New Cabinet The Liberals formed a minority government and announced their new Cabinet on Nov. 20. While the Ministers of Defence (Harjit Sajjan) and Innovation, Science and Economic Development (Navdeep Bains) remain the same, Treasury Board has a new President and Public Services and Procurement Canada (PSPC) has a new Minister – Jean-Yves Duclos and Anita Anand, respectively. Treasury Board President Duclos moves from a smaller, specific portfolio within Employment and Social Development Canada to now preside over one of the federal government's most powerful central agencies and cabinet committees. He will have a considerable role in ensuring effective financial management and government spending. Minister Anand is a new face in Cabinet and a first-time Member of Parliament for the riding of Oakville, Ont. She is assuming responsibility for, amongst other things, the two single largest purchasing organizations in the federal government (PSPC and Shared Services Canada (SSC)). Going Forward Defence procurement in Canada follows a general ebb and flow – resources are increased during times of conflict and are reduced in times of peace. Restructuring occurs in response to these influences, as well as perceived redundancies, desired efficiencies and the odd scandal or two. Various Minsters and departments have been responsible for defence procurement and production over the past 100 years, including boards or commissions set up during times of war. A new independent department for defence procurement would result in three different departments (SSC, PSPC and the Defence Procurement Canada) managing the vast majority of federal acquisition. This approach would be similar to the stand up of the Department of Defence Production in the '50s. The DDP had a short life. Established in 1951, it was expanded to become the central purchasing organization in 1963 as an interim measure, then disbanded in 1969 with the establishment of the Department of Supply and Services. The amalgamations of various entities continued until 1993, with the creation of the Department of Public Works and Government Services (a.k.a. PSPC). PSPC operates as a central purchasing agent for the government, with exclusive authority under the Defence Production Act to acquire defence supplies for DND. If Defence Procurement Canada is to exist as a departmental corporation or agency, the government would want to launch this new entity early in its mandate so that it can lay claim to any degree of efficiency or success achieved. If so, the new entity would likely remain within PSPC, as the Minister has existing statutory authority to create a supporting departmental corporation or agency under the Defence Production Act. Creating this entity outside of PSPC's current authority would require a significant reorganization of the public service and change to the operations of government of a magnitude greater than that required to establish Shared Services Canada – this would include deciding whether to maintain or decentralize the functions of defence procurement and defence production, as well as significant statutory amendments to provide or reduce, as required, the authority of all Ministers involved. Ministerial mandate letters, which were released in mid-December, shed no additional light on the specific operational structure or corporate identity that Defence Procurement Canada is expected to take. Notable in these letters, however, is a prevailing theme: Minister Anand has the clear responsibility for bringing forward options to Cabinet, but that effort will be supported by a host of respected, senior ministers, including Minister Sajjan (National Defence), Minister Jordan (Fisheries & Oceans and the Canadian Coast Guard), and Minister Bains (Innovation, Science and Industry). As all of these Ministries are already involved in defence procurement, their continued support is not surprising. Throughout the history of defence acquisition and production in Canada, large-scale reorganization has been predicated by one of three events: war, post-war reconstruction or scandal. Absent one of these triggers, a minority government may have little appetite (or be able to drum up support from any other party) to stand up a wholly new department, or even a departmental corporation or agency within PSPC itself, on the basis of efficiency and economy alone, particularly in light of the on-going Phoenix debacle and the continued issues at Shared Services Canada. As no new Minister for Defence Procurement Canada was named in the new Cabinet nor were any Additional Ministers within PSPC named for defence or Defence Procurement Canada, it appears that, at least for now, any defence acquisition reorganization is likely to remain on the backburner. Marcia Mills is procurement counsel with the Fasken Ottawa office and has 20+ years of private and public sector experience. She provides clients with legal and strategic advice for all aspects of government procurement, as well as advice on government policies and procurement processes. Paul Burbank is an associate with the Fasken Ottawa office. He works with the Communications Law group to provide advice on telecommunications and broadcasting in Canada. Paul also works with Fasken's Government Relations and Political Law group on strategy and compliance matters. Footnotes 1 The Defence Procurement Outlook for Canada's 43rd Parliament by David Perry, The Global Exchange, 2019 Volume XVII, Issue III; Canadian Global Affairs Institute 2 Global News: With billions at risk, federal parties promise to fix defence, procurement

by Chris Thatcher; Skies Magazine Posted on December 24, 2019 When the Aerospace Industries Association of Canada in June released its blueprint for the next five years, Vision 2025: Charting a New Course, support for small- and medium-sized enterprises (SMEs) was one of its core themes. Small companies make up over 90 per cent of the sector and the report argued for greater government support to help them scale up, generate more jobs, and enhance their global competitiveness. That could include new funding to pursue digital business transformation, a reduction in the complexity of government contracting, and greater priority in the value propositions of prime contractors chasing defence procurements. “If our small- and mid-sized companies are left at risk, the negative impacts will be felt across Canada's aerospace industry as a whole,” according to the report, prepared by Jean Charest, a former premier of Quebec and deputy prime minister of Canada. Small companies are viewed as the prime creators of aerospace jobs and, in a sector buffeted by changing technology and new players, many may be more agile and better able to adapt than larger counterparts that must answer to corporate headquarters outside of Canada. But support from original equipment manufacturers (OEMs) and governments is essential to their survival, according to a panel of SMEs at the Canadian Aerospace Summit in November. There is no one-size-fits-all to helping SMEs scale up. Companies at different stages of growth require different types of support, they noted. But help with skilled labour shortages and easier access to government programs are common challenges for all. A solid position on a major platform is critical to initial success, but long-term growth requires diversification, observed Barney Bangs, chief executive officer of Tulmar Safety Systems. Located between Ottawa and Montreal in the small community of Hawkesbury, Ont., the company manufactures protective and safety equipment, associated components and in-flight training products. Traditionally, its focus has been 80 per cent defence — Tulmar has been a supplier to a military platform for over 25 years and benefitted from a strong aftermarket. In recent years, though, the company has sought a better balance between military and commercial customers. “As of last year, we were 65 per cent defence and 35 per cent (civilian) aerospace,” he said. Tulmar has also become more of what he called “a solution provider,” integrating components from other suppliers to provide an OEM with a final, certified piece of equipment such as an aircraft seat rather than just the safety harness or seatbelt. “We are doing more in-house and saving customer-costs for the OEM,” said Bangs. Diversification has also been a priority for Apex Industries, a machining, components, subassembly and structures manufacturer in Moncton, N.B. Twelve years ago, its aerospace business was five per cent defence and 95 per cent civil, much of it geared to Bell Helicopter and Bombardier. “We made a conscious effort to diversify into the military side a lot more,” said vice-president Keith Donaldson. “We are very conscious of not allowing our sales to go too high on one platform or with one customer.” Challenged by cost-savings pressures in commercial aviation contracts, military platforms offer a company like APEX “good visibility,” he said. However, militaries have long been trading quantity for technological superiority, meaning fewer platforms and a relatively short production cycle. And ramping up quickly with people and equipment to meet tight delivery schedules is a challenge for small businesses that need other options to justify and sustain the investment when the contract ends. “It is very tough for a SME like ourselves to invest.” However, defence procurement and government programs can go a long way to supporting the scale-up of SMEs, said Patrick Mann, president of Patlon Aircraft & Industries, a technical sales force for global manufacturers of custom components and systems. The scale-up program must be run by single entity within government committed to the Canadian SME community that would be “funded, independent and have the authority to make decisions.” Mann suggested coping what has worked well in other jurisdictions, noting the success of the United States Small Business Administration's set-aside program. “Within that, there is a small business innovation research program which has been highly successful in scaling up SMEs,” he said. The Vision 2025 report called for a federal scale-up program to “provide advice, coaching, networking, value proposition development and consortium-building support to incentivize growth and build capacity–helping firms expand their global footprints and giving them the means and maturity to support OEMs effectively.” The report recommended the Office of Small and Medium Enterprises (OSME) within Public Services and Procurement Canada shoulder that responsibility. “Having OSME at the table as a contributor to the development of government procurement strategies and as a champion of small and medium-sized business interests will help ensure government policies and programs recognize the unique characteristics of small firms,” it stated. “We are a pretty good example of a scale-up of an SME using competitive bid government procurement as a mechanism,” said Mann. However, developments over the past 10 years such as single point of accountability and bundling, where multiple small contracts are combined in one larger procurement that is awarded to one contractor, have been “devasting” to smaller suppliers. “It has been a real issue for us. Again, it is an issue where (OSME) can play a role.” OEMs can bolster government programs by mentoring small companies within their supplier base on management and production processes, especially around digitization, added Donaldson. “OEMs have a lot of that knowledge ... [but] I don't think [they] do enough of that.” He and Bangs both cautioned that the ability to scale up will be contingent on resolving talent shortages. Developing and attracting skilled labour is a chronic problem affecting the entire sector, but it is particularly acute for SMEs in more remote locations that don't have the resources to recruit as widely or navigate the immigration system. “Before we launch a scale-up program with support for financing and working capital, we have to make sure we have our skills done first,” said Donaldson. However the Liberal government opts to respond to the Vision 2025 report, the value of investing in SMEs should be clear. Viking Air, KF Aerospace or IMP Aerospace & Defence were once small companies and are “now thriving global participants,” said Mann. “That is the reason why todays SMEs are an important part of our industry.”

By: Eric Lofgren In 2015, Congress passed middle tier acquisition, or MTA, authorities for rapid prototyping and rapid fielding. Lawmakers expected detailed guidance to follow shortly after. By June 2019, the Government Accountability Office found little clarity on documentation and authority. Congress reacted by threatening to withhold 75 percent of MTA funding in 2020 until the Pentagon released guidance. Dangle the purse strings and compliance follows. The undersecretary for acquisition and sustainment, or USD(A&S), released Department of Defense Instruction 5000.80 on Dec. 30, 2019. The MTA guidance, however, is more likely to pump the brakes on rapid acquisition than propel it forward. Programs designated “middle tier” do not have to follow regulatory processes for requirements and milestone reviews. That can shave years off a program schedule. In return, the prototype must be completed — or system fully fielded — within five years. As of March 2019, there were 35 middle tier programs. The term “middle tier” is perhaps misleading considering nearly half of them exceed the cost thresholds for major weapon systems — roughly $200 million for prototyping or $1 billion for fielding. Many questions remained unanswered until the new policy. How big was a middle tier? What documentation does it require? What is the role of oversight and USD(A&S)? Authority For several years, acquisition authority had been delegated down to the services. While the services only managed 48 percent of major programs in 2014, the figure grew to 90 percent in 2019. DoDI 5000.80 reverses the trend. While the services can approve MTA for non-major programs, only USD(A&S) may approve major programs. Moreover, major programs have far more entrance documentation than non-majors, including approved requirements, an acquisition strategy and a cost estimate. The services may avoid some documentation by disaggregating major systems into multiple MTA programs. For example, two of the Navy's non-major programs are components to Standard Missile-6 Block 1B. The same is true of the Air Force's Airborne Warning and Control System. USD(A&S), however, can still disapprove any MTA program, whether major or non-major. With advisers from all around the Office of the Secretary of Defense, there will be will numerous potential veto points. Each official may extract concessions from MTA programs managed by the services. Even though 31 out of 35 MTA programs are rapid prototyping efforts, the undersecretary for research and engineering, or USD(R&E), has been relegated to a secondary position. All MTA authority rests with USD(A&S). Almost as an affront to USD(R&E), he was given control over a rapid prototyping fund that Congress stopped funding. The outcome reflects a broader weakening of USD(R&E). Congress has reacted negatively to the undersecretary's effort to move fast and reallocate funds to higher value uses. USD(R&E) may lose control of the Missile Defense Agency to USD(A&S). Documentation While MTA exempts programs from traditional requirements and milestone processes, documentation abounds. Each service must create its own requirements process with approval in six months. Joint service requirements are discouraged from using MTA pathways. MTA requirements, however, must still meet the needs determined by four-star generals in the Joint Chiefs of Staff and combatant commands. This may in effect bring the same approvals from the Joint Capabilities Integration and Development System process back into MTA. Many of the DoDI 5000.02 processes also apply. Still required are system analyses, sustainment plans, test strategies, cybersecurity, risk assessments, cost estimates and more. Contractors performing on MTA programs must still report cost data. No exemption was made for earned value management systems. Sidestepping many contract regulations — for example, with other transactions authorities — remains a separate process. Most importantly, Congress requires detailed justification in the budget for every MTA program. That means the services must start justifying MTAs at least two years in advance of funding receipt. Many of today's MTA programs spun off existing, budgeted line items. New programs may find a hard time finding funds. The present situation is reminiscent of the time David Packard attempted rapid acquisition between 1969 and 1971. A couple years later, new layers of bureaucracy descended. Similarly, MTA has built within it the seeds of another slow-paced bureaucratic order. Adm. Hyman Rickover's skepticism to the reforms nearly 50 years ago rings true today. As Rickover wrote to Packard in a memo: “My experience has been that when a directive such as the one you propose is issued, most of the effort goes into the creation of additional management systems and reports and the preparation of large numbers of documents within the Service to ‘prove' that the requirements of the directive are being met in order to justify funds for the Service. “So long as the bureaucracy consists of a large number of people who consider that they are properly performing their function of approval and evaluation by requiring detailed information to be submitted through the bureaucracy, program managers will never be found who can in fact effectively manage their jobs.” https://www.defensenews.com/opinion/commentary/2020/01/02/too-many-cooks-in-the-dod-new-policy-may-suppress-rapid-acquisition/

DAVID PUGLIESE, OTTAWA CITIZEN The month of December saw movement on two major defence and security related equipment programs. The RCAF announced it accepted the first Fixed Wing Search and Rescue aircraft from Airbus even as the military tried to work out issues with technical manuals for the C-295 plane. “We will continue to work with Airbus to ensure the acceptability of remaining work, including revision of technical manuals, completing training for the initial RCAF crews and conducting initial operational testing and evaluation in Spain in the first half of 2020,” explained Department of National Defence spokesman Jessica Lamirande. “The aircraft will be flying in Spain by the spring of 2020 with the completion of qualification work and training for RCAF personnel. It will only fly in Canada when it arrives in mid-2020.” Seaspan Shipyards announced Dec. 10 that it completed the delivery of CCGS Capt. Jacques Cartier, the Canadian Coast Guard's newest Offshore Fisheries Science Vessel or OFSV. It is the second OFSV delivered by Seaspan, which was her sister ship, the CCGS Sir John Franklin. These two ships are the first large vessels delivered under the National Shipbuilding Strategy. More than 600 Canadian firms were involved in the project, reported Esprit de Corps military magazine. Equipped to support Fisheries and Ocean scientists in the collection and analysis of data on Canada's marine ecosystems and the impacts of climate change, the vessel features a full suite of modern systems, including high-tech fishing trawls and four science labs — a wet lab, a dry lab, an ocean lab and a control lab, Seaspan noted. The OFSV also has a deployable drop keel, loaded with a wide array of sensors to support the vessel's research mandate. The CCGS Capt. Jacques Cartier will also support search and rescue operations and environmental response. A third OFSV under construction at Seaspan Shipyards is structurally complete and on schedule to be delivered in August 2020, Seaspan added. In the meantime, Collins Aerospace Systems used the Dubai Air Show to highlight the fact that the new C-295 aircraft come equipped with the firm's state-of-the-art Pro Line Fusion flight deck, Esprit de Corps military magazine reported. That will significantly advance the capabilities of C-295 operators, according to Collins Aerospace Systems. The selection marks the first fixed-wing search and rescue platform to include Pro Line Fusion among its standard equipment. The Pro Line Fusion flight deck designed for the C-295 includes Collins touchscreen displays to provide a more intuitive interface for pilots to interact and customize their information on the flight deck; night-vision goggle capability; Head-Up Displays that enable the pilot to keep their eyes up for enhanced situational awareness; Enhanced Vision System (EVS) sensor that allows pilots to see in low-visibility conditions; overlaid weather radar that shows a graphical depiction of weather along the flight plan for easy viewing; Integrated Terrain Awareness and Warning System that enables high-resolution 3D obstacle depiction and enhances mission safety, and fully integrated Mission Flight Management Systems supporting Search and Rescue patterns, Computed Air Release Points and High Altitude Release Points. L3Harris Technologies delivered two F/A-18 Hornet aircraft to NASA in November after successfully completing depot-level modifications and repair work. The two aircraft were delivered to NASA by L3Harris Canadian Fighter Center of Excellence in Quebec. Vertex Aerospace LLC selected L3Harris to work on the NASA F/A-18 Hornet aircraft in 2018. As part of the scheduled maintenance work, L3Harris addressed structural modifications, while maximizing the availability of the aircraft for operational use. The work involved structural modifications to eliminate flight and landing restrictions. L3Harris has specialized in developing and implementing F/A-18 structural modification and life extension solutions, having already completed structural programs for the Royal Canadian Air Force and the Royal Australian Air Force, and assisting other F/A-18 users, including the Swiss Air Force, the Finnish Air Force, and the U.S. Navy. https://ottawacitizen.com/news/national/defence-watch/industry-updates-new-search-and-rescue-aircraft-to-fly-in-canada-in-mid-2020-second-offshore-fisheries-science-vessel-delivered

Fort Worth, Texas, December 30, 2019 /PRNewswire/ -- Lockheed Martin (NYSE: LMT) delivered the 134(th) F-35 aircraft for the year today, exceeding the joint government and industry 2019 delivery goal of 131 aircraft. One hundred and thirty-four deliveries represent a 47% increase from 2018 and nearly a 200 percent production increase from 2016. Next year, Lockheed Martin plans to deliver 141 F-35s and is prepared to increase production volume year-over-year to hit peak production in 2023. "This achievement is a testament to the readiness of the full F-35 enterprise to ramp to full-rate production and we continue to focus on improving on-time deliveries across the entire weapons system," said Greg Ulmer, Lockheed Martin vice president and general manager of the F-35 program. "We have met our annual delivery targets three years in a row and continue to increase production rates, improve efficiencies and reduce costs. The F-35 is the most capable fighter jet in the world, and we're now delivering the 5(th) Generation weapon system at a cost equal to or lower than a less capable 4th Generation legacy aircraft." The 134(th) aircraft is a Short Takeoff and Vertical Landing (STOVL) model for the United States Marine Corps. In 2019, deliveries included 81 F-35s for the United States, 30 for international partner nations and 23 for Foreign Military Sales customers. Unit and Sustainment Costs Decrease, Readiness Improving Using lessons learned, process efficiencies, production automation, facility and tooling upgrades, supply chain initiatives and more - the F-35 enterprise continues to significantly improve efficiency and reduce costs. The price of an F-35A is now $77.9 million, meeting the $80 million goal a year earlier than planned. The F-35's mission readiness and sustainment costs continue to improve with the global fleet averaging greater than 65% mission capable rates, and operational squadrons consistently performing near 75%. Lockheed Martin's sustainment cost per aircraft per year has also decreased four consecutive years, and more than 35% since 2015. Program Maturity and Economic Impact With more than 490 aircraft operating from 21 bases around the globe, the F-35 plays a critical role in today's global security environment. Today, 975 pilots and 8,585 maintainers are trained, and the F-35 fleet has surpassed more than 240,000 cumulative flight hours. Eight nations have F-35s operating from a base on their home soil, eight services have declared Initial Operating Capability and four services have employed F-35s in combat operations. In addition to strengthening global security and partnerships, the F-35 provides economic stability to the U.S. and international partners by creating jobs, commerce and security, and contributing to the global trade balance. Thousands of men and women in the U.S. and around the world build the F-35. With more than 1,400 suppliers in 47 states and Puerto Rico, the F-35 Program supports more than 220,000 jobs. For additional information, visit www.f35.com. About Lockheed Martin Headquartered in Bethesda, Maryland, Lockheed Martin is a global security and aerospace company that employs approximately 105,000 people worldwide and is principally engaged in the research, design, development, manufacture, integration and sustainment of advanced technology systems, products and services. View original content to download multimedia:http://www.prnewswire.com/news-releases/lockheed-martin-delivers-134-f-35s-in-2019-exceeding-annual-commitment-300979931.html SOURCE Lockheed Martin Aeronautics Company

DAVID PUGLIESE, OTTAWA CITIZEN Canada's RADARSAT Constellation Mission is now operational and federal government departments will start receiving data from the surveillance and earth observation satellites. The RADARSAT Constellation Mission, or RCM, was launched June 12 aboard a SpaceX Falcon 9 rocket from Vandenberg Air Force Base in California. The constellation of three satellites will provide daily images of Canada's territory and maritime approaches, as well as images of the Arctic, up to four times a day, according to the Canadian Space Agency. It will have daily access to 90 per cent of the world's surface. The RCM is also equipped with an Automatic Identification System (AIS), allowing improved detection and tracking of ships, including those conducting illegal fishing, the CSA noted. The constellation is orbiting Earth at an altitude of 600 km. Each of the satellites has a life expectancy of seven years. The Canadian government owns the satellites. The three spacecraft were assembled in the Montreal area by the prime contractor MDA. Over a dozen federal government departments and agencies will use RCM images. It is estimated that the Canadian government will use approximately 250,000 images from the satellite constellation every year. That represents a fiftyfold increase from the days of the first RADARSAT-1 system, according to the Canadian government. The majority of the data transmitted from RCM is expected to be used by the Canadian Forces and the Department of National Defence. RCM follows the highly successful RADARSAT-1, launched by NASA in 1995, and RADARSAT-2, put into orbit by the Russians in 2007. Initial work on RCM began in 2005. The project cost an estimated $975 million. The RCM project was led by the Canadian Space Agency and supported by its principal users: the Department of National Defence, Fisheries and Oceans Canada, Agriculture and Agri-Food Canada, Environment Canada, Natural Resources Canada and Public Safety Canada. https://ottawacitizen.com/news/national/defence-watch/canadian-surveillance-satellite-system-now-operational

By: Nathan Strout Congress wants the Air Force to develop a prototype receiver capable of using navigation signals provided by other countries, which could increase the resilience of the military's position, navigation and timing equipment. The primary source of the military's PNT data is the Global Positioning System, a satellite system operated by the Air Force. But with adversaries developing GPS jamming technology and anti-satellite weapons that could potentially knock out one or more of those satellites, Congress wants a receiver capable of utilizing other global navigation satellite systems. The annual defense policy bill, which was passed by both chambers of the legislature this week, calls on the Air Force to develop a prototype receiver capable of utilizing multiple global navigation satellite systems in addition to GPS, such as the European Union's Galileo and Japan's QZSS satellites. The belief is that if the GPS signal is degraded or denied, war fighters could switch to one of those other systems to get the PNT data they need. According to Brian Weeden, director of program planning at the Secure World Foundation, the provision represents an evolution from the Department of Defense's stance on foreign GNSS signals from 15 years ago. “When Galileo was first announced, there was a big debate within the Pentagon about whether to cooperate with the Europeans or try and kill it,” Weeden wrote to C4ISRNET in a Dec. 18 email. “The big driver there was that the Europeans were going to park their protected signal on top of M-code and then sell their service as being unjammable by the Americans (assuming that the US couldn't jam the protected Galileo signal without also interfering with M-Code).” Efforts to kill Galileo ultimately died, Weeden noted, although the EU did move their protected GNSS signal off of M-Code, a more secure military version of the GPS signal that is in development. That concession and the subsequent development of GPS jamming capabilities by Russia and China has changed the thinking on Galileo and other GNSS signals. “It seems the Pentagon has decided that leveraging Galileo will make their PNT capabilities more robust as Russia or China would need to jam both of the separate military signals,” said Weeden. “There's some engineering and technical wizardry still to be worked out to create a good multi-GNSS receiver but it's doable.” Congress wants the Air Force to report on the benefits and risks of each potential GNSS signal, and it fences 90 percent of the funding for the Military GPS User Equipment Program until lawmakers receive that report. https://www.c4isrnet.com/battlefield-tech/space/2019/12/19/the-air-force-will-need-terminals-that-work-with-more-than-gps

By: Bradley Bowman and Andrew Gabel The North Atlantic Treaty Organization recently declared that space is an “operational domain” for the alliance. Though much work remains to actualize an integrated NATO space posture, the affirmation is an important benchmark as NATO scrambles to meet rapidly evolving space and counter-space threats. Today, space-based assets are an Achilles' heel of U.S. military operations, representing a vital enabling mechanism upon which success often depends. In addition, great power adversaries could target civilian space assets to wreak havoc on the homeland in ways that redound far beyond the military realm. America's enemies have taken notice. “Foreign governments are developing capabilities that threaten others' ability to use space,” according to a 2019 U.S. Defense Intelligence Agency assessment. “China and Russia, in particular, have taken steps to challenge the United States.” Russia has spent decades building up its counter-space arsenal, from cutting-edge electronic warfare capabilities to probable ground-launched anti-satellite weapons. Moscow believes that “achieving supremacy in space” can enable victory in future conflicts. China's People's Liberation Army apparently agrees. Beijing has also identified space superiority — and space denial — as essential planks in its modern “informatized” military strategy. Indeed, China “continues to improve its counterspace weapons capabilities and has enacted military reforms to better integrate cyberspace, space, and EW into joint military operations,” the DIA assessment read. These threats are already materializing. Russia is suspected to be behind nearly 10,000 GPS spoofing incidents — affecting over 1,300 civilian navigation systems — according to a report by C4ADS released last June. China has also targeted America's vulnerability in space, notoriously hacking U.S. weather systems and satellite networks in 2014, after testing an anti-satellite weapon in 2007, which generated a cloud of hazardous space debris. Fortunately, NATO is beginning to respond. In June 2019, NATO approved a new space policy, which NATO Secretary General Jens Stoltenberg has described as an acknowledgment of NATO's reliance upon satellites for a range of fundamental military functions. These include, for example, communications, tracking, early warning, surveillance and navigation. Though only a “framework” for now, it is an important start. Today the U.S. shares space situational awareness data with its NATO allies and vice versa. Yet, there is potential for deeper collaboration in additional areas such as hosted payloads on satellites and communications. And while there is disagreement within the alliance with respect to space weaponization, this tension should not prevent the alliance from forging ahead on a number of important initiatives. Examples include general space-asset resilience (including within the electromagnetic spectrum), space-reliant communication, synchronized threat warning, command and control, and surveillance and reconnaissance. A space sensor layer, for instance, will be critical to tracking and intercepting Russian hypersonic missiles, an emerging threat against which there is currently no adequate defense. NATO must take swift action to redress these areas of exposure. But how? To begin with, NATO could publish a publicly available strategy document analogous to the U.S.-produced National Defense Strategy. This would provide multiyear strategic signposts and, because of its public availability, outside accountability. As proposed by others, NATO could also run annual “Space Flag” exercises akin to the current “Red Flag” exercises, which today help hone large-scale, multinational joint air operations. “Space Flag” could likewise be used to systematically develop and refine space contingencies against red cell adversaries. In addition, NATO could explore co-developing NATO-specific space assets from inception, tailored for NATO's mission and permanently integrated into NATO's command structure. The United States and Europe's combined space experience and infrastructure is a comparative advantage vis-a-vis Russia and China. If put to proper use, it could give NATO's space dominance efforts a significant leg up. Finally, NATO could entertain the formation of a combined NATO-operated space assets pool, to which existing current member states could contribute existing capacity. A study conducted by the NATO-sponsored Joint Air Power Competence Centre found it “demonstrably feasible” to complete multination, multi-satellite constellations. The study suggested such an approach could emulate NATO partnerships related to the E-3A, C-17 and A-400M platforms but would be “potentially conducive to additional flexibility and innovation.” The same report cites the Disaster Monitoring Constellation, or DMC, program — an existing multinational satellite-monitoring program used for disaster relief — as an existing example of effectively marshaling space assets. DMC's shared capabilities “reduce cost, enable sharing, and can be upgraded and expanded to address emerging concerns.” So, too, might a NATO constellation. Officially recognizing space as an operational domain and establishing a framework for a unified space policy are laudable steps forward for NATO — necessary to counter both present and future threats. But waking up to the threat is not enough. Now is the time for tangible and urgent collective action to secure the ultimate high ground. Bradley Bowman is senior director for the Center on Military and Political Power with the Foundation for Defense of Democracies, where Andrew Gabel is a research analyst. https://www.defensenews.com/opinion/commentary/2019/12/16/nato-declares-space-operational-domain-but-more-work-remains

DAVID PUGLIESE, OTTAWA CITIZEN Canadians won't be allowed to work on parts of the country's new surveillance aircraft because they contain sensitive American-made equipment that can only be handled by U.S. citizens. Maintenance of the equipment, installed in new planes that will be operated by Canadian special forces, will be off-limits both to Canadian military personnel and Canadian aerospace workers. Instead, the gear or the aircraft will have to be sent to the U.S. for maintenance or U.S. government staff will have to travel to Canada to work on the planes. The equipment is subject to strict U.S. security regulations. Canadian special forces are to receive three surveillance aircraft from the U.S. government. The planes are expected to arrive in spring 2022. The Beechcraft King Air planes, to be based at CFB Trenton, will be outfitted with sensors and equipment to intercept cellphone and other electronic transmissions, and track individuals and vehicles on the ground. Canadian special forces and, potentially, other federal government departments and the RCMP will use the aircraft for missions overseas and in Canada. Canada is paying the U.S. government $188 million for the aircraft. The overall value of the project is estimated to be $247 million. The funding includes the acquisition of the aircraft and prime mission equipment from the U.S., and an initial portion of the associated in-service support of the planes. The main contractor is Beechcraft in Wichita, Kan. The maintenance plan for the sensitive equipment that only Americans can work on has yet to be put in place, but the Canadian military is hoping it won't disrupt aircraft operations too much. “Arrangements for the maintenance of certain specialized equipment are not yet in-place; therefore, details and costs are not known at this time,” Public Services and Procurement Canada spokeswoman Stéfanie Hamel noted in an email. “However, Canada will ensure the sustainment strategy supports continued operations while maintenance is underway.” The government has not provided details on what parts of the aircraft are covered by the U.S. security regulations. Another in-service support contract, for the aircraft themselves and related mechanical equipment, will also be put in place. Canadians will be able to do that work. A request for proposals from Canadian firms for that work is expected to be issued in January or February. The contract would cover maintenance and support over a 20-year period. Canadian aerospace firms had originally wanted to provide the aircraft and on-board equipment, and in 2013 a number of companies responded when the federal government initially outlined its need for such planes. But the Canadian military decided it needed the planes more quickly than they believed Canadian companies could deliver. The military was also concerned there could be delays if the on-board sensor equipment used was subject to U.S. security regulations. The Canadian companies, however, felt they could meet the military's needs with Canadian-made equipment that wouldn't be covered by U.S. regulations, allowing Canada more flexibility. But the Canadian government instead opted for the American-made solution, which had also been used by Canadian special forces in Afghanistan. The agreement for the aircraft was finalized on April 26, 2019 with the U.S. government. Canadian special forces personnel recently trained with similar surveillance aircraft operated by the U.S. In mid-November members of 427 Special Operations Aviation Squadron and the Canadian Special Operations Regiment, both based in Petawawa, conducted an exercise supported by one of the American aircraft. The U.S. plane operated from the Ottawa airport, and flights occurred between Petawawa and Mansfield-et-Pontefract, Que., according to Canadian special forces. “The intent was to conduct a training and needs assessment to ensure the appropriate personnel are trained and equipped to support the arrival of three Beechcraft King Air 350ER as part of the command's Manned Airborne Intelligence, Surveillance and Reconnaissance project,” Maj. Amber Bineau, spokesperson for Canadian Special Operations Forces Command, said in an email. https://ottawacitizen.com/news/national/defence-watch/canadians-wont-be-allowed-to-work-on-portions-of-new-canadian-spy-planes-because-of-u-s-security-regulations