NEW TECHNOLOGY TO BE FEATURED IN NORAD RENEWAL – $40 BILLION TO BE SPENT

Two CF-18 Hornets from 401 Tactical Fighter Squadron in Cold Lake, Alberta prepare to conduct air-to-air refueling operations over the Canadian Arctic during the NORAD Exercise AMALGAM DART 21-2, on March 23, 2021. (NATIONAL DEFENCE PHOTO)

By David Pugliese

THE ANNOUNCEMENT WAS made June 20 by Defence Minister Anita Anand. An initial $4.9 billion will be spent over the next six years for the improvement of sensor and detection capabilities of the North American Aerospace Defence Command. The improvements to that U.S.-Canadian alliance are needed because of the increasing threat from new cruise missiles and hypersonic missiles, according to Anand.

A total of $40 billion will be spent over 20 years on improving continental de- fence, she added. “NORAD has continually adapted and evolved in responses to new threats. Today, we turn another page and begin NORAD’s next chapter,” Anand said.

Many details still need to be worked out but the improvements will include space-based sensors as well as a new system called “Cross- bow.” That will involve early warning sensors.

Also key to the modernization initiative is what is being called the Arctic over-the-horizon radar system.

On April 7 defence firm representatives meeting in Ottawa were told the Liberal government plans to spend $1 billion for that new radar system to protect major population centres in North America. The radar system would be built in southern Canada, according to the briefing presented at a seminar hosted by the Canadian Association of Defence and Security Industries. The new system would keep watch on Arctic airspace to detect threats against major U.S. or Canadian cities.

Prime Minister Justin Trudeau visited NORAD headquarters in Colorado June 7 to see firsthand the operations of the joint U.S.-Canada alliance to defend the continent. (NORAD PHOTO)

The Arctic Over-the-Horizon Radar as it is called would “provide long-range surveillance of northern approaches to the major population centers in North America by establishing a northward-aimed high frequency over-the-horizon radar system in southern Canada,” according to the briefing. The radar would start operating in 2028. The preliminary cost estimate for the system is $1 billion, but military officials say that could go higher.

Anand claimed the $40 billion modernization plan would create tens of thousands of Canadian jobs but she did not provide any data to back up those claims.

The more pressing problem for both the U.S. and Canada is determining what to do about the North Warning System, which is estimated to be obsolete starting around 2025. The system’s radar sites were constructed between 1986 and 1992 and are mainly designed to track Russian bombers approaching North America.

Anand declined at her June 20 news conference to provide a date on when that system would be replaced.

The Liberal government is using the Russian invasion of Ukraine, which started Feb. 24, as justification to the public to move forward on improvements to continental defence. Anand has noted the invasion at her news conference and her previous statements about the upcoming purchase of the F-35 fighter jet.

Anand specifically mentioned the threat from cruise missiles and hypersonic missiles being developed by Canada’s “competitors.”

The Liberal government has recognized it has to do something about what it calls the capability gaps in the North Warning System or NWS. “While the current NWS is approaching the end of its life expectancy from a technological and functional perspective, unfortunately the range of potential threats to the continent, such as that posed by adversarial cruise missiles and ballistic missiles, has become more complex and increasingly difficult to detect,” the government’s defence strategy, released in 2017, pointed out.

Canada is currently responsible for 40 per cent of the cost of the North Warning System, with the remaining 60 per cent falling to the Americans. Canada owns the sites and provides the site operations and maintenance while the U.S. owns the radars and communications equipment.

Research contracts have already been awarded as the Liberal government examines different technologies for use in the Arctic or to protect the continent.

In February 2019, National Defence, through Public Services and Procurement Canada, awarded two contracts to Raytheon Canada Limited and the University of Toronto Institute for Aero- space Studies’ Space Flight Lab (UTIAS SFL) under the All Domain Situational Awareness Science & Technology Program. The contracts totaled $46.2 million.

A $15 million contract went to UTIAS SFL for the development of a prototype of a multipurpose microsatellite equipped with state-of-the-art sensor technology for air and maritime surveil- lance. The UTIAS SFL microsatellites would allow for quick and timely detection and identification of surface or airborne targets.

Raytheon Canada Limited’s contract was for $31.2 million for the construction of transmit and receive electronics for a study of over-the-horizon radar detection at long range. The primary objective of that project was to demonstrate the feasibility of sky-wave radar technology for the detection of air targets at all altitudes beyond the radar’s horizon. That involves reflecting signals off of the ionosphere and back to a receiving station located beyond the line of site, according to the Department of National Defence. Once operational, the system could be used in conjunction with other systems to further understand the effect of the Aurora Borealis on target detection beyond the horizon.

Anand emphasized that the NORAD modernization will be done with a focus on co-operation with northern residents. She pointed out the Canadian government has awarded a contract to Nasittuq Corporation, an Inuit owned company, for the operation and maintenance of the North Warning System. This new contract is for an initial period of seven years and is valued at $592 million. The contract also includes four two-year option periods for a total estimated value of $1.3 billion.

Under the contract, Nasittuq will be responsible for preventative and corrective maintenance for the NWS, and ensuring that NWS radar data is always available in support of NORAD and Canadian Armed Forces operations. This includes full logistics support, infrastructure and environmental stewardship, engineer- ing and life cycle material management, and general program and project management.

A transition period between the existing contractor, Raytheon Canada Limited, and Nasittuq began in April and is expected to be completed by September 30, 2022.

Radars are linked by a satellite communications network and are remotely monitored and controlled by NORAD from the Canadian Air Defence Sector, located at 22 Wing, North Bay, Ontario.

RCAF IN THE MIDST OF MAJOR EQUIPMENT ACQUISITION DRIVE

By David Pugliese

The Royal Canadian Air Force is re-equipping with major projects about to deliver over the next two years. (CANADIAN FORCES PHOTO)

OVER THE NEXT two years announcements are expected to be made on signed contracts for new fighter jets, refueling aircraft and drones. In addition, a contract will be signed within that period for a new training provider for the RCAF.

Here is a rundown of what is soon to be acquired.

F35

A deal is expected by the end of this year or early 2023 for the acquisition of 88 F-35 aircraft. Negotiations are ongoing between Canada, the U.S. government and Lockheed Martin.

The Liberal government announced March 28 it was entering into the negotiations to buy the F-35, retreating on Justin Trudeau’s promise Canada would never acquire the aircraft he claimed didn’t work and wasn’t needed. Although federal govern- ment officials have recently claimed that this is not a done deal, essentially it is. There is no turning back now that the F-35 has been selected.

Defence Minister Anita Anand told analysts during a confer- ence May 10 that the U.S. government is more than happy with Canada’s selection of the Lockheed Martin stealth fighter. The F-35 acquisition by Canada guarantees more American jobs, and to a lesser extent domestic work. “(In) our discussions with the U.S., they are very pleased that we are going to be working on the same footing with regards to the future fighter capability,” Anand said.

In addition, the Liberal government has used the Russian invasion of Ukraine to justify its purchase of fighter.

But there could be problems on the horizon. Pentagon officials have raised concerns about the high cost to operate the F-35.

An April 28 U.S. Government Accountability Office report also warned about the aircraft’s reliability. “The F-35 continues to not meet its targets for mission capable rates—a measure of the readiness of an aircraft fleet—or its reliability and maintain- ability metrics,” the GOA reported.

The RCAF is planning for the eventual replacement for the CP-140 Aurora aircraft. Dubbed the Canadian Multi-Mission Aircraft (CMMA), a request for information was released to the aerospace industry in February. (CANADIAN FORCES PHOTO)

Dan Grazier, an F-35 critic at the Project on Government Oversight in the U.S., has written that neither the Russians or other adversaries need to be worried about from the stealth fighter. To make his point, Grazier cited an internal Pentagon report warn- ing about repeated F-35 breakdowns and a lack of spare parts. “Despite more than 20 years and approximately $62.5 billion spent so far on research and development alone, program officials still haven’t been able to deliver an aircraft that can fly as often as needed or to demonstrate its ability to perform in combat, which places military personnel in jeopardy,” Grazier wrote in a report for POGO last month.

RPAS

In February the Canadian government officially requested bids for its remotely piloted aircraft system (RPAS) project.

Two firms have been approved to bid on the RPAS project.

Team Artemis, led by L3Harris Technologies, located in Mirabel, Quebec, and Israel Aerospace Industries (IAI), has a Canadian organization of four companies. Those firms include Airbus Defence and Space Canada, located in Ontario; ATCO Frontec, Canadian UAVs and Lockheed Martin CDL Systems, located in Alberta. Two key Canadian suppliers, L3Harris in Ontario and Pratt & Whitney Canada in Quebec will provide crucial components of the system.

The second bidder will be Team SkyGuardian. General Atomics Aeronautical Systems, Inc. CAE, MDA, and L3 Harris are part of that team that is offering the MQ-9B SkyGuardian to fulfill Canada’s RPAS requirements.

RPAS will provide the Canadian Armed Forces with the ability to conduct long endurance surveillance missions over long dis- tances, using a variety of sensors. This will help support airborne intelligence, surveillance, and reconnaissance, with near-real time information to inform senior leadership.

At home, the capability will help the military monitor Canada’s large territory and long coastline. It will also support special security events such as international summits like the G8 and Canadian Armed Forces operations in aid of civil authority, like responses to forest fires and floods.

In deployed operations, an RPAS will provide commanders an overview of operational situations with near-real time information, according to the CAF. The system will be capable of detect- ing, recognizing, identifying, and tracking targets of interest in complex environments.

While the RPAS will be a medium-altitude long-endurance (MALE) system with a precision strike capability, it will only be armed when necessary for the assigned task, National Defence officials told Esprit de Corps. At all times, employment of precision strike capability will adhere to the Law of Armed Conflict (LOAC), as well as any other applicable domestic or international laws. Use of force will be applied following rules of engagement (ROE) applicable to the CAF.

The number of RPAS will be based on the ability to support three simultaneous lines of tasking. Bidders are to propose how many air vehicles will be required to support the three lines of tasking.

The estimated RPAS procurement cost is $1 billion to $4.99 billion dollars. That includes RPAS acquisition, initial set-up of training and maintenance services, associated equipment, infra- structure, and set-up to enable the aircraft to enter into service.

Significant economic benefits for Canadian industry are a key element in this procurement and National Defence officials say the RPAS project presents a unique opportunity to ensure a high level of Canadian industrial participation and ensure support for the Canadian aerospace and defence sectors. Given the size and scope of the RPAS project, there are considerable leveraging opportunities to contribute to jobs, innovation and economic growth across the country, they added.

The aircraft will be stationed at 14 Wing Greenwood, NS, and 19 Wing Comox, BC. The aircraft will also be operated out of a Forward Operating Location at Yellowknife, NWT when supporting missions in northern Canada. The ground control centre, which will house the aircraft cockpits, will be located in the Ottawa area.

A formal request for proposal or RFP was issued Feb. 11, 2022.

These are expected timelines:
• Contract award: fiscal year 2023/24
• First delivery: fiscal year 2025/26 to 2026/27
• Initial operational capability: fiscal year 2027/28 to 2029/30 • Full operational capability: fiscal year 2030/31 to 2032/33

STRATEGIC TANKER TRANSPORT CAPABILITY

The Strategic Tanker Transport Capability is also critical to the RCAF. Interestingly, it is the highlighted in Defence Minister Anita Anand’s Mandate Letter from Prime Minister Justin Trudeau.

Anand’s press secretary, Daniel Minden, said the project is about acquiring a new fleet of aircraft to replace the CC-150 Polaris. The new fleet will conduct multiple tasks, such as in- flight refuelling of other aircraft, military personnel and cargo airlift, medical evacuations, and strategic transport of Canadian government officials, Minden said.

In April 2021, Airbus emerged as the only qualified supplier for that new fleet of Canadian Forces refueling planes and VIP aircraft. The aircraft deemed to be qualified for the job is the Airbus A330 MRTT, which is a dual-role refueling and transport plane.

The A330 MRTT, a military variant of a civilian airliner, can carry up to 111 tonnes of fuel. Canada hopes to have a contract in place by before spring 2024, with the first A330 MRTT expected to be operational in 2028. RCAF officers remain confident that the Canadian military can, until then, rely on the existing fleet of CC-150 Polaris aircraft.

The Canadian Forces has been using the Polaris since 1994.

AIRCREW TRAINING

Bids are being prepared by companies for the Future Aircrew Training (FaCT) project. The request for proposals was released Feb. 11 and is set to close in October.

Two candidates are in the running for the contract: SkyAlyne, a partnership between Canadian companies KF Aerospace and CAE; and the Babcock Leonardo Canadian Aircrew Training team.

The government expects to award the multi-billion-dollar FAcT contract in 2023. Now that the RFP has been released, both bid- ders are hard at work crafting proposals that will meet the stated requirements and provide the next generation of RCAF aircrews with a solid foundation for their operational careers.

On December 16, 2020, the Canadian government released the draft Request to Proposals to the three qualified suppliers: Babcock Canada Inc., Leonardo Canada, and SkyAlyne Canada Limited Partnership. On Aug. 11, 2021, Babcock Canada Inc. and Leonardo Canada announced a new joint-venture called ‘Babcock Leonardo Canadian Aircrew Training’. They signed a Teaming Agreement that will see Babcock Canada and Leonardo Canada come together to be considered for Future Aircrew Training program.

FaCT will replace existing pilot training programs, as well as other RCAF programs for training Air Combat Systems Officers and Airborne Electronic Sensor Operators trades. This is being done in order to advance the effectiveness and efficiencies through what the RCAF calls “a common, more holistic approach to training aircrew.”

The RCAF has determined that the basing solution for the Future Aircrew Training program will remain status quo. Ab-initio pilot training will be delivered in Moose Jaw and Southport. Ab-initio training for Air Combat Systems Officers and Airborne Electronic Sensor Operators will be delivered in Winnipeg.

FWSAR

The Airbus C-295 was selected as the RCAF’s new fixed wing search and rescue aircraft. The RCAF will call the plane, the Kingfisher.

The Canadian Armed Forces has four Kingfisher aircraft in the country and another six aircraft have been accepted in Spain. These aircraft are not operationally ready upon acceptance as there remains outstanding certification and qualification work, followed by operational testing.

The existing Airbus C295 aircraft has been certified by civilian and military agencies for airworthiness. However, in order to meet the Canadian requirements for search and rescue and as part of their initial proposal, Airbus included over thirty design changes to the base model for the C-295 Kingfisher, according to National Defence officials. These changes have resulted in a requirement for additional certifications. Along with this, and challenges created by the COVID-19 pandemic, the volume and sequencing of work by Airbus and by the Canadian Armed Forces requires more time, contributing to delays. Because of that, the initial operational capability for the C-295 has been delayed from this summer to 2025. Full operational capability will be reached in fiscal year 2029-30, according to the RCAF.

AURORA REPLACEMENT

Farther out is the acquisition of an eventual replacement for the CP-140 Aurora aircraft. Dubbed the Canadian Multi-Mission Aircraft (CMMA), a request for information was released to the aerospace industry in February.

The current Aurora fleet consists of 14 aircraft which have been in service since the 1980s. However, those planes have been over the years significantly upgraded.

The funding for the CMMA project is estimated at more than $5 billion. Options analysis for the CMMA will start this year, with the project in full swing in 2027. The initial delivery of the first aircraft is estimated to take place in 2032 and final delivery in 2037.

The request for information is intended to be a starting point for the project, according to federal government officials. Public Services and Procurement Canada, on behalf of the Department of National Defence, is seeking input from industry on the manda- tory requirements and capability requirements.

Minimum operational capabilities will include the following: Search and Rescue (SAR); Command, Control, Communications, Computers (C4), Intelligence, Surveillance and Reconnaissance (ISR) (C4ISR); Anti-Submarine Warfare (ASW); Anti-Surface Warfare (ASuW); Communications Relay; Network Extension; and Overland Intelligence, Surveillance, Target Acquisition and Reconnaissance.

The CMMA options to be studied by the RCAF provide a wide range of possibilities. They are:

Buy Military Off The Shelf (MOTS) aircraft – A single new manned Military Off The Shelf (MOTS) aircraft fleet would be procured with minimal or no modification required.

Buy and Modify MOTS. A single new manned MOTS aircraft fleet would be procured that meets all high level requirements, with moderate change or modification required.

Buy Civilian Off the Shelf (COTS) and Develop into MOTS

– A single new manned Civilian off-the-Shelf (COTS) aircraft fleet would be procured, with the idea those planes could be developed into a military platform that meets all needed requirements.

Buy Two fleets of MOTS – Two fleets of new manned MOTS aircraft that share a common airframe but have different configurations would be procured.

Buy MOTS and UAS – A fleet of new manned MOTS aircraft and a fleet of new Unmanned Air Systems (UAS) would be purchased. Together this mixed fleet would meet all RCAF requirements.

PR INITIATIVE LAUNCHES AS QUEST FOR NEW SUBMARINES BEGINS

by David Pugliese

THE ROYAL CANADIAN NAVY wants new submarines to replace its Victoria-class boats and has already embarked on a communications plan to convince the public to support that multi-billion dollar program.

Canada will eventually have to replace the aging Victoria class submarines currently in service with the RCN.

In the early summer of 2021 the word went out among some in the defence industry that the RCN would launch a public rela- tions drive to put the purchase of new submarines on the Liberal government’s agenda.

What occurred in the following six months was a testament to the RCN’s use of “stakeholders” and military-friendly journalists to try to shape the defence agenda in Canada.

The campaign kicked off in July when “defence officials revealed” to Lee Berthiaume, a journalist with the Canadian Press, that the RCN was establishing a submarine project office to “inform timely governmental decision-making about a potential replacement class of submarines.”

For good measure Berthiaume quoted David Perry of the Can- adian Global Affairs Institute, an organization closely aligned with the Department of National Defence and one that has received both DND and defence industry funding. In Berthiaume’s July 14 article Perry said the RCN’s need for new submarines could be justified given Russia and China had both ramped up their underwater capabilities in recent years.

The same day Evan Solomon, the popular and pro-military host of shows on both CTV and CFRA radio station, was ready to add to the communications initiative. Solomon had retired Vice Admiral Mark Norman, the former RCN commander, on his radio show to talk about the critical need for the subs to be replaced.

“If the pandemic taught us that you’ve got to be ready for the next threat, you’ve got to be ready,” Solomon told his listeners. “We didn’t have enough PPE. We didn’t have enough vaccines. Then when you’re in the threat people say, ‘Oh my God, We weren’t ready.’ Subs are the very same thing. The next threat is not here but you’ve gotta have that insurance policy. If there’s a threat and you don’t have the subs it’s like having no PPE during the pandemic. It’s nuts.”

Not unsurprisingly, Norman enthusiastically agreed.

Also on that same day, the Ottawa Citizen newspaper pub- lished an opinion column by Robert Smol in which the retired Canadian Forces member lamented about the aging Victoria-class subs. Canada, Smol warned, was lagging behind allies who were all buying new boats.

On July 23, the Globe and Mail newspaper carried an opinion piece by naval historian Alexander Howlett. Howlett claimed Canada could not claim Arctic sovereignty unless it buys new submarines. For good measure he warned that both China and Russia were expanding their influence in the Arctic.

In mid-September the RCN’s submarine PR push hit a new high with the Sept. 15 announcement that Australia would be purchasing nuclear submarines from the U.S., with participation from the United Kingdom. The subs were the centrepiece of a new defence alliance between the three nations.

RCN supporters immediately characterized the development as a significant snub to Canada and the result of the Liberal government not spending enough on defence. David Perry argued Canada was being left out of the “club” because it wasn’t pulling its weight militarily. Stephanie Carvin and Thomas Juneau, both academics with close ties to the DND, also used the Australian- U.S.-UK alliance to support their often-repeated argument that Canada needed to invest more into defence.

In reality, the three-nation alliance was needed because of the exchange of highly sensitive nuclear technology and the fact Australia planned to spend billions buying the new boats from the Americans. The deal was initially estimated to cost $71 billion but there are already estimates the purchase price tag will be more than $170 billion. Whatever the cost, the deal supports a lot of American jobs and buys a lot of good will from the U.S.

What was supposed to be one of the key milestones in the RCN’s public relations campaign came on Sept. 23 when the Macdonald-Laurier Institute released a report by Jeffrey Collins, an assistant professor at the University of Prince Edward Island and a fellow at Perry’s Canadian Global Affairs Institute. That paper called for the Canadian government to purchase new sub- marines but did not provide a price tag. Collins did acknowledge any acquisition would cost more than the several billion dollars the RCN estimated years ago.

VISSC was awarded in 2008 to the Canadian Submarine Management Group, now known as Babcock Canada Inc. to assist the Department of National Defence in delivering on the requirement to sustain and perform in-service support to meet the Royal Canadian Navy’s operational mandates.

The original life expectancy of the Victoria-class Subma- rines was the mid-to late-2020s. However, with the release of Canada’s Defence Policy, Strong, Secure, Engaged in June 2017, Canada has committed to operating and modernizing the Victoria-class submarines to ensure their continued ef- fectiveness out to the mid-2030s.

The Victoria-class submarines operate in open-ocean and deep-sea environments, where they are exposed to pressure-induced stresses resulting from changes in depth, extreme weather conditions, and the corrosive properties of seawater on an on-going basis, the National Defence noted. As such, these vessels, like all submarines, face significant wear and tear, which necessitates a rigorous in-service maintenance schedule to assure the safety of the crew and the submarine, department officials pointed out.

NATIONAL SHIPBUILDING UPDATE: Work on Icebreakers Underway, Construction of CSC Expected Next Year

By Dvid Pugliese

THE LIBERAL GOVERNMENT recently outlined to parliamentarians the way forward for the Canadian Surface Combatant (CSC) and other elements of the National Shipbuilding Strategy. National Defence estimates that the construction period for the first CSC will be approximately seven-and-a-half years and that efficiencies will shorten the build schedules for subsequent ships.

Full operational capability of the 15-vessel CSC fleet is expected in late 2040 following delivery and final acceptance of the last warship. Timelines for the acceptance of individual ships weren’t available to parliamentarians as those will be updated as the project moves towards implementation and construction contracts are awarded.

National Defence officials say the CSC ship design requires minimal changes to the hull, mechanical, and electrical systems from the parent Type 26-design. These changes will allow the ship to accommodate capabilities, including helicopters, and a degaussing system that will reduce the ship’s magnetic signature. Additionally, National Defence is currently assessing modifications to the combat systems, including amendments to weapons systems, sensors, torpedoes, and radar.

National Defence has insisted the cost of CSC is still in the range of $56 billion to $60 billion.

But already there are indications that cost is going to increase significantly.

During a March 23 meeting of the House of Commons defence committee, Conservative MP Todd Doherty asked Defence Minister Anita Anand about the increase of the CSC to an estimated $100 billion. Doherty wanted to know if the government had given any thought to instead purchasing proven, off-the-shelf foreign ships. Anand didn’t reject that $100 billion price tag but said the Liberal government was continuing with its CSC project as outlined.

The Royal Canadian Navy wants new submarines to replace its Victoria-class boats and has already embarked on a communications plan to convince the public to support that multi-billion dollar program.

Doherty also raised concerns Canada’s new warship is becoming too heavy, with the design going from 5,000 tonnes to 10,000 tonnes. Extra weight will likely drive up costs of operations as well as the equipment needed on board.

National Defence deputy minister Bill Matthews responded that it is too premature to discuss the weight issue. “What I would say is that with the initial design versus where we are now, it’s certainly heavier,” he confirmed. “I wouldn’t confirm the exact weight at this stage. There are some ongoing discussions.” The Royal Canadian Navy is working to identify requirements and key contractors – Irving, BAE and Lockheed – are in the midst of nailing down exact requirements, Matthews added.

The deputy minister said National Defence will have a better idea in the coming months of what the actual weight might be for the CSC.

Doherty also raised concerns that the CSC only has a speed of 27 knots and won’t be able to keep up with U.S. Navy carrier groups which travel at 30 knots. Once again, Matthews retreated to the position that the actual CSC design requirements still have to be determined, even as construction is set to begin next year. “in terms of studies on speed, we’ll know more as time passes on,” he told MPs.

Doherty also raised concerns that Irving and Lockheed Martin have recruited British and Americans to work on the program and that Canadians have been frozen out. But Matthews defended the companies, arguing that that bringing in expertise from foreign countries such as the United Kingdom is important. “The sharing is actually a really good thing,” he explained. “It’s not an all or nothing; it’s about learning from our colleagues.”

In the meantime, the Canadian Surface Combatant project will see the construction of a land-based testing facility (LBTF) on a portion of DND-owned land near Shearwater, Nova Scotia.

This infrastructure will be critical in testing the new CSC ships’ combat systems and will ensure the new ships are sea-ready once delivered, according to federal government officials.

The LBTF is expected to be approximately 9000-square metres across several floors, and will accommodate 120 full-time staff, including members of the Royal Canadian Navy, National Defence employees, and contractors. Additional infrastructure will be required at CFB Halifax to support the CSC project and further details will be confirmed as the project progresses, according to the federal government.

The proposed site at Hartlen Point is DND-owned, meets government security requirements, and provides adequate space for all of the facility’s systems in one location. This location is also directly on the coastline and allows 130 degree live transmission of emitters out over the ocean, which is essential for the CSC testing requirements, according to the federal government.

Meanwhile, work is proceeding on the RCN’s Joint Support Ships. The JSS project at Seaspan in Vancouver is currently in the implementation phase. Construction of the first ship is well underway, and construction of the second ship is set to begin in later this year, according to the federal government. National Defence anticipates the delivery of the first ship in 2023, and the second in 2025. Following successful completion of post-acceptance tests, trials, and support activities, National Defence expects full operational capability in 2026, although the department acknowledged the timelines are under review because of potential delays caused by COVID-19 and supply chain issues.

Work on Canadian Coast Guard ships under the National Shipbuilding Strategy also continues to progress. On April 9 Davie Shipbuilding welcomed the arrival of the CCGS Louis S. St-Laurent, Canada’s largest icebreaker.

The CCGS Louis S. St-Laurent will undergo major Vessel Life Extension (VLE) refit work for three months before re-entering service. This represents the first phase of the VLE program for the CCGS Louis S. St-Laurent, which will keep the ship operating until the new Polar Class icebreakers, announced by the Canadian government in May 2021, enter service beginning in 2030. On March 8 the Canadian government awarded a $14.36 million contract to Chantier Davie for the VLE work on the CCGS Louis S. St-Laurent. The shipyard was identified as the only facility in Eastern Canada with a dry dock large enough to perform this work. Work will include inspections, as well as auxiliary equipment renewals, propeller renewal, exhaust lagging renewal, piping renewal, and hull and superstructure painting.

In addition, Davie Shipbuilding announced March 25 that CCGS Vincent Massey was floated out of the Champlain drydock. The firm noted that event represented another major milestone towards the commissioning of this medium class icebreaker (MIB) by Davie for the Canadian Coast Guard.

The final phase of the conversion work on CCGS Vincent Massey will be completed whilst alongside Davie’s Murphy’s Quay. The icebreaker is expected to be delivered to the Coast Guard later this year. The CCGS Vincent Massey will join its two sister vessels, CCGS Captain Molly Kool and CCGS Jean Goodwill which are already providing icebreaking services in Canada. “The converted ships are a testimony to Davies’s ability to deliver complex, mission-critical projects when Can- ada needs them most,” James Davies, President and Chief Executive Officer, Davie Shipbuilding Canada Inc. noted in a statement.

Originally built in 2000, CCGS Vincent Massey was acquired in 2018 by the Coast Guard to be upgraded as part of the MIB class of vessels.

On the Victoria-class submarine front, the Canadian government announced in March an amendment to the Victoria-class In-Service Support Contract (VISSC) with Babcock Canada Inc. The contract amendment increases the contract period by two years, taking VISSC up to June 30, 2025. The contract amendment also includes irrevocable options to extend the contract period to June 30, 2027. The total value of the amendment is $263.8 million, according to the federal government.

WAR IN UKRAINE HIGHLIGHTS CANADIAN ARMY EQUIPMENT GAPS

The war in Ukraine has highlighted the gaps in the Canadian Army’s equipment inventory. The Army lost its air defence capability after taking the ADATS out of service. (CANADIAN FORCES PHOTO)

by David Pugliese

Russia’s invasion of Ukraine has put the spotlight on the lack of some specific equipment in the Canadian Army. As other nations were rushing anti-tank missiles and air defence systems to Ukraine, the Canadian Army could only offer up 100 Carl Gustaf 84mm recoilless rifle and 2,000 rounds of ammunition as well as 4,500 M72 Light Armoured Weapons.

As a result of the Ukraine war, the Canadian Army’s lack of air defence and limited capabilities in anti-tank systems was on full display. (The Army removed its anti-tank Eryx system as well as ADATS from service years ago. The Army is also without a shoulder-fired surface to air missile)

In Latvia on March 8, 2022 Prime Minister Justin Trudeau was asked whether his government would commit to an urgent purchase of new anti-tank weapons and an air defence system for the Canadian Army. In addition Trudeau was asked whether his government would commit to the NATO standard of two per cent of GDP for defence spending.

Trudeau avoided the questions about anti-tank weapons and an air defence system, noting somewhat disingenuously that such “weapons are much more useful right now and in the coming weeks in the hands of Ukrainian soldiers fighting for their lives than they would be in Canadian hands.”

But he did state such weapons would be quickly replaced in Canadian military inventory.

That, however, is not entirely true. The Army will replace the 2,000 rounds of ammunition for the Carl Gustaf through the normal munitions resupply process. However, Department of National Defence officials confirmed to Esprit de Corps that the 100 Carl Gustaf launchers (M2 model) and the M72s will not be replaced as the Army has enough of those in stock.

Trudeau said that his government continues to invest in the Canadian Forces and that he discussed with NATO Secretary General Jens Stoltenberg that day “about indeed our approach to continuing to invest in our military and making sure Canada is always there to stand up.”

The lack of Army capability caught the attention of some members of parliament. On March 2, 2022 Bloc Quebecois MP Christine Normandin, who is on the Commons defence commit- tee, said that MPs, during their visits to troops, have noticed some of the Canadian Army’s equipment is outdated. She tried to get answers from Vice-Admiral Bob Auchterlonie, the Commander of Canadian Joint Operations Command.

Auchterlonie’s answers provide a master-class in obfuscation:

Normandin: Does Canada have what it needs to undertake a conventional war if necessary?

Auchterlonie: It’s a great question. Canada’s providing significant aid. You’ve seen the aid we’ve provided, both lethal and non-lethal, and that has been provided to Ukraine already with two deliveries that I think has been publicly broadcast. In addition right now, we are looking at other options to provide further military equipment that is within our arsenal, that is modern and capable to defeat the Russian Forces, if used by the Ukrainians. So this is something the government’s looking at right now. I have to say this is not in isola- tion. Working with our allies and partners globally, I think you’ve seen the allies and partners all looking to provide Ukraine with capable equipment, capabilities that they need to support their sovereignty.

Normandin: But my question is more to do with Canada. Is it able to undertake a conventional war? Are our resources inade- quate to undertake a conventional war or do we have everything we need for conventional warfare?

Auchterlonie: I think we’re talking about the capabilities and we’re talking about whether they’re sufficient to support the Ukrainians and they are. And that’s why we’re offering those capabilities and as well as our allies.

Normandin: With all due respect Vice-Admiral, my question isn’t about whether we have everything we need to support the Ukrainians. My question is: Do we have everything we need for conventional warfare ourselves.

Auchterlonie: “Exactly. So we are looking not only to support the Ukrainians but ensuring that we have the capabilities within our brigades and with our Armed Forces moving forward and we do. So we have identified equipment in order to support the Ukrainians, at the same time ensuring that we have the capabilities available for Canada.

WILL THE CANADIAN ARMY GET MORE MONEY TO BOOST ITS CAPABILITIES?

By David Pugliese

In the period up to 2025 the Army plans to begin early investment in what it is calling the Digital Army, including command, control, communications, computers, intel- ligence, surveillance, and reconnaissance (C4ISR), and key sustainment platforms. Concept testing, research, modeling, and experimentation to inform the way forward will also be integral. “During this build, the Canadian Army will make difficult decisions regarding which capabilities to divest to make room for more relevant ones,” it noted in the strategy released last February. “It will also continue to assess the strategic environment and the changing character of war to ensure these decisions are relevant to the situation.”

During the second phase, or Build 2, this period from 2025-2030 will see a digital Army unfold through the fielding of modern C4ISR, soldier, protection, and “combat-enabling” capa- bilities. Build 2 will continue to make investment, re-organization, and divestment decisions but continue to emphasize research and experimentation with which to inform future modernization efforts, the strategy pointed out.

Those are lofty goals but will the Army receive the funding to make this possible?

The Liberal government, under pressure from the U.S. and NATO in the wake of Russia’s invasion of Ukraine has promised more funding for the Canadian Armed Forces.

As future spending has already been earmarked for the Royal Canadian Navy and Royal Canadian Air Force for its big ticket acquisitions of ships and aircraft, the Army has been largely on the sidelines in regards to high-profile major acquisitions. That is the situation so far.

But Russia’s invasion of Ukraine has been largely a land of- fensive. The emerging lessons learned so far have focused on the need for armour, counter-armour capabilities, air defence, logistics and a well-trained land force.

In the coming months the Army will find out if the Liberal government will include it in a significant way as part of its future plans.

The Army, however, isn’t entirely lacking in equipment renewal projects in the process of moving forward.

The request for bids for the Logistics Vehicle Modernization Project was released to industry on Dec. 9, 2021. The LVM project will modernize and improve the Canadian Army’s light and heavy logistics vehicle capabilities.

The project will, among other things, see the acquisition of a replacement for the Light Support and Heavy Logistics Vehicle Wheeled fleets (LSVW and HLVW). It will involve the purchase of new light trucks and trailers of a 4 to 5 tonne cargo capacity as well as modules to mount on the trucks and trailers that will provide accommodation space to conduct various tasks (such as office space and workshops).

The project will also deliver a heavy truck and trailer system with a 16.5 tonne cargo capacity, trailers for engineer construction equipment and to transport a main battle tank, modules for accom- modation and specialized cargo (such as fuel) and an armoured protection kit for the cab. This fleet of trucks will be supported by an in-service support arrangement that provides for parts and sustainment for the planned 20 to 30 year life of the vehicles.

Initial operating capability for LVM is scheduled for around 2026 with full operating capability in 2029, according to Department of National Defence spokesman Dan Le Bouthillier.

The cost of the LVM project is officially estimated to be between $1 billion to $4.99 billion but the DND has declined to narrow down that wide range of costs.

Going into the bid request (RFP release), the list of qualified suppliers included the following: General Dynamics Land Systems – Canada Corporation, General Dynamics Land Systems, Incor- porated, and Daimler AG; Iveco Defence Vehicles; Mack Defence LLC and ARQUUS; Oshkosh Defence Canada Incorporated and Oshkosh Defence, LLC; and Rheinmetall Canada Inc. and Rheinmetall MAN Military Vehicles GmbH.

Daimler Truck AG originally qualified but withdrew as a qualified supplier in September 2020 to participate as part of the General Dynamics team. Navistar Defence LLC withdrew in September 2021 to participate as part of the Rheinmetall team.s

While there will be fewer vehicles in CAF service, the specific quantity of trucks has not been outlined, according to the DND.

The Canadian Army also has plans to improve its anti-tank capabilities with a new generation system as well as giving the M72 Light Anti-Tank Armour Weapon more punch and a new role.
Maj. Carl Gendron, who is responsible for soldier systems weapons and ammunition within the Army’s Directorate for Land Requirements, says the service wants a fifth generation anti-tank system. The new weapon would be non-line-of-sight and could be operated in a fire-and- forget mode, he explained in an interview with Esprit de Corps magazine. The range would be 4,000 to 5,000 metres and the system would be carried by two soldiers.

The aim of the Anti-Tank Guided Missile (ATGM) program would be to find a replacement for the legacy Tube-Launched, Optically Tracked, Wire-Guided (TOW) anti-tank weapon system.

The Army’s schedule is for options analysis for the project to start next year. Acquisition would be in 2027 with the first systems arriving in 2028-2029 timeframe. Final delivery would take place in 2032-2033.

he acquisition of the ATGM would have other ramifications for the Army. “We’re looking at the Carl Gustaf as well because if we introduce the ATGM replacement at the platoon level - which is the aim right now – then what do we do with the Carl Gustaf?,” said Gendron. “Do we decentralize that at the section level because the section level lacks anti-tank punch?”

Gendron said the Army is also looking at moving the M72 into a new role with a new warhead.

In other welcome news for the Army, the procurement of a new pistol is back on. A new bid package was issued to companies on Feb. 18, Department of National Defence spokesperson Jessica Lamirande said.

She said 7,000 pistols would be initially purchased for the Canadian Army. Options to buy additional handguns for the Army, the Royal Canadian Air Force and the Royal Canadian Navy will be acted upon later. In total, up to 16,500 pistols will be bought. “We expect a contract award in the next six months, with first deliveries anticipated in early 2023,” Lamirande said.

In addition, the Canadian Army is seeing the arrival of new armoured vehicles. The new Armoured Combat Support Vehicle are being produced at General Dynamics Land Systems-Canada. The second variant of ACSV (Ambulance) was accepted at the factory by Canada in July of last year.

The project will deliver 360 vehicles, based on the Light Ar- moured Vehicle (LAV) 6.0 chassis, according to Army officers. The eight variants include: command post; ambulance; repair; recovery; fitter/cargo; engineer; electronic warfare; and troop carrier. As the project continues, initial operational capability is expected in 2023.

Also on the horizon is the LAV Specialist Variant Enhancements or LAV SVE. That project will acquire and integrate a new Target- ting Independent Viewer or TIV for the 47 LAV 6.0 Observation Post Variants. The TIV will possess state of the art optics including a laser designator for the Joint Terminal Attack Controller.

The project will also modernize the Target Observation and Fire Control System (TOFCS) for 47 vehicles. TOFCS would be precise enough for modern artillery requirements and useable at every crew station in the LAV 6.0. The project will be implemented in 2023, with first deliveries in 2025. The cost is estimated to be between $100 million and $249 million.

WAR IN UKRAINE: Lessons For Canada’s Military and Defence Industries

By David Pugliese

Ukraine is unique in some ways as it involves the first time in decades that a major land war between two adversaries using modern conventional weapons has been waged.

Counter-insurgency operations in Iraq and Afghanistan have, for the most part, dominated western military operations since 2001.

Canadian military leaders haven’t publicly talked about the lessons they are gathering from the war in Ukraine. 

In contrast, however, Christine Wormuth, Secretary of the US Army, has highlighted a series of lessons already being gathered from the battlefield. Among those are the importance of leadership, discipline and training as well as the value of having a top-notch logistics system in place, noted Wormuth at a conference several months ago. In addition she pointed to the need for a strong military industrial base, defences against drones and the ongoing maintenance of large stockpiles of munitions.

Although some of these lessons, such as accumulating large amounts of ammunition, would be difficult to accomplish for Canada because of the cost, other lessons could be seen as potentially important for the future.

ARTILLERY STILL DOMINATES THE BATTLEFIELD

In 1944 near the end of the Second World War, Russian dictator Joseph Stalin said in a speech that artillery was “the god of war.” The conflict between Ukraine and Russia almost 80 years later has shown that little has changed. 

“This is an artillery war now,” Vadym Skibitsky, deputy head of Ukraine’s military intelligence told the Guardian newspaper June 10.

Ukrainian government officials say a continued supply of artillery shells is critical to their war effort. Russia has large stocks of artillery and ammunition for its guns. Ukraine is firing between 5,000 and 6,000 artillery rounds a day at Russian positions, its military officials say.

But Ukrainian officials and defence analysts estimate Russia is firing an estimated 20,000 artillery rounds a day. Some Ukrainian government officials claim that figure is as high as 60,000 rounds but those numbers can’t be confirmed.

Canada has a modest artillery component of modern M-777 howitzers, originally purchased for the war against the Taliban in Afghanistan. Shortly after the Russian invasion started in late February, the Liberal government sent Ukraine four of the 37 M-777 howitzers owned by the Canadian Army. 

Providing Ukraine with ammunition for the 155mm artillery has been a little more challenging. Canada financed the purchase of 20,000 rounds at a cost of $98 million. The artillery shells are coming from the U.S. 

In addition, Canadian officials have been in discussions with their counterparts in South Korea since May to acquire the 100,000 rounds of 155mm artillery ammunition. Canada would then provide that ammunition – to come from South Korea’s stockpile – to Ukraine.

AIR DEFENCE

Russia’s invasion of Ukraine has shown the value of modern air defence systems. Ukraine has been able to prevent Russia’s air force from controlling the skies over the battlefield using a variety of anti-aircraft missiles and weapons. 

The war has also highlighted a major gap in the Canadian military’s capabilities as it has been without an air defence system for the past decade.

The Canadian Army was outfitted in 1989 with a then state-of-the art air defence anti-tank system known as ADATS. It was purchased to protect bases in Germany against attack by the Russians, but, shortly after ADATS was delivered, the Cold War ended and the systems were shipped back to Canada. ADATS was occasionally used for domestic security, including to provide protection from potential air threats during the G8 summit in Alberta in 2002.

But, faced with budget cuts ordered by the Conservative government, the Canadian Army announced it was removing ADATS from service in 2012. The move left the Canadian Forces without a primary air defence system. Army officers acknowledged at the time that decision was risky, but the service had determined it was acceptable in the short term.

But the gap has been anything but short term. A new air defence system is on the books but a contact isn’t expected to be awarded until 2026. The first systems would be in place in 2027, defence industry officials have been told. 

That means the “short term gap” will have been at least 15 years.

Canadian Army officers say a new air defence system will be focused on dealing with incoming rockets, artillery and mortar munitions, as well as remotely piloted aircraft systems (aka drones/ UAVs). 

Having defensive capabilities against drones has become particularly important during fighting in Ukraine. Both sides are using the UAVs for reconnaissance or to spot targets for artillery. Armed drones have also been used to take out tanks. “Drones and other unmanned systems are going to pose significant challenges for us, again, part of why we’re looking at modernizing our air and missile defense system,” Wormuth said of the U.S. Army’s lessons learned initiative.

ANTI-TANK WEAPONS

Tanks have played a major role in this war. And anti-tank systems have emerged as being equally as critical to destroying armoured vehicles.

Ukraine claims to have destroyed at 2,000 Russian tanks, although some sources put the number at about half of that. Destruction of other Russian armoured vehicles has been put at more than 3,000.

Whatever, the actual numbers, the war has highlighted the value of effective anti-tank systems on the modern battlefield. Such weapons have become so critical in the conflict that a popular Internet meme from Ukraine depicts a saint-like figure holding a Javelin anti-tank missile.

The conflict has also highlighted Canada’s gap in such weapons. In news media interviews, retired Chief of the Defence Staff Gen. Rick Hillier complained about the Canadian Army’s reliance on aging Carl Gustaf anti-tank systems and its lack of modern anti-tank weapons.

What Hillier neglected to mention was that when he was CDS, the then Liberal government had approved $194 million for the purchase of either the Javelin or the Israeli-made Spike missile system. Companies put their bids in to provide 840 missiles and more than 100 firing systems. Test firings of both weapons was conducted. But a year later the bids were rejected as the Army determined it didn’t have enough information to figure out whether the weapons would be effective on the battlefield. The project then went by the wayside.

There are, however, new initiatives under way for the Canadian Army. It has plans to improve its anti-tank capabilities with a new generation system as well as giving the M72 Light Anti-Tank Armour Weapon more punch and a new role. The Army wants a fifth generation anti-tank system. The new weapon would be non-line-of-sight and could be operated in a fire-and- forget mode. The range would be 4,000 to 5,000 metres and the system would be carried by two soldiers. The aim of the Anti-Tank Guided Missile (ATGM) program would be to find a replacement for the legacy Tube-Launched, Optically Tracked, Wire-Guided (TOW) anti-tank weapon system.

Acquisition would be in 2027 with the first systems arriving in 2028-2029 timeframe, according to the Army. Final delivery would take place in 2032-2033. 

A NEED FOR CHEAPER HIGH TECH EQUIPMENT

The war of attrition between Ukraine and Russia has highlighted the need for more cost effective high-tech military equipment. Nowhere is that more evident than in the selection of drones being used during the fighting.

Ukraine has relied on the low cost, Turkish-built Bayraktar TB2 UAV. Because of the low cost, countries operating such equipment can afford higher rates of attrition, particularly when compared to the higher-end systems on the market. A TB2 is said to cost between $1 million and $2 million. Compare that to $20 million for similar U.S.-made aircraft. “The TB2 and its accompanying munitions combine technical abilities with an affordability that means their commanders can tolerate some attrition while presenting real challenges to the enemy,” noted Britain’s defence minister Ben Wallace.

Ukraine has reportedly lost 8 of its TB2 drones. Russia is said to have lost hundreds of drones and is now looking at purchasing lower cost UAVs from Iran.

THE ACHILLES’ HEEL OF MODERN CONVENTIONAL WAR

The conflict in Ukraine has exposed the Achilles’ heel of modern militaries fighting a conventional war with a near peer enemy. That weakness is the destruction of massive amounts of high tech equipment which require a lengthy process to replace.

Russia invaded Ukraine on Feb. 24. The losses on both sides are staggering. Ukraine is believed to have destroyed some 170 Russian helicopters and 800 drones. Russia has almost run out of precision-guided munitions. 

Ukraine has faced the destruction of a large number of tanks and armoured vehicles and depletion of ammunition stocks. That has forced it to beg NATO nations to resupply its military forces. The U.S. and other NATO nations have rushed to Ukraine large amounts of Javelin anti-tank missiles, Stinger missiles, ammunition, and armoured vehicles.

But now NATO nations are becoming more reluctant to part with their equipment as shortages in their own stockpiles emerge.

“Some allies are now raising the issue of whether these stocks are depleted too much,” NATO Secretary General Jens Stoltenberg acknowledged to journalists on Sept. 9. He did not outline which allies have raised concerns.

The problem is that many modern weapons are highly reliant on sophisticated electronics and other components now in high demand. In addition, the pandemic has also created issues with supply chains and the availability of workers.

Lockheed Martin’s chief executive Jim Taiclet told CBS on May 8 that the firm is boosting Javelin production from 2,100 missiles a year to 4,000 per year. Getting to that goal, however, will take as long as two years because of supply chain problems, he added.

Greg Hayes, Raytheon’s chief executive, told investment analysts April 26 that the firm may not be able to produce more Stingers until at least 2023 due to parts shortages. That is because some Stinger components are no longer being made, forcing Raytheon to use other electronics.

Another issue is that the U.S. Department of Defense stopped buying Stingers some 18 years ago. That, in turn, limited production as the firm relied on smaller orders from international customers.

Even when orders are placed, it still takes time to fill them. Saab announced Sept. 7 that it had received from the U.S. military an $81 million order for Carl Gustaf ammunition and AT4s, a single shot shoulder fired weapon. But even though the U.S. Marines and special forces have had an umbrella agreement in place with Saab since 2019 for such munitions and weapons, the gear won’t arrive until 2024.

In Canada, the situation is exacerbated by military leaders and politicians who clearly don’t understand how the defence marketplace works.

Defence Minister Anita Anand has been pushing the message about “getting the defence industry onside” in arming Ukraine. “There is a continued need to provide equipment and military aid to Ukraine, and governments across this world only have so much inventory,” Anand told CBC in June. “And therefore the next step is for industry to see itself as having a role.”

Chief of the Defence Staff Gen. Wayne Eyre says the war between Ukraine and Russia should be the catalyst for such a major shift in defence industrial capacity. “I think what this has shown though is we need to increase the capacity of defence industry,” Eyre told the CBC in May. “Given the deteriorating world situation, we need the defence industry to go into a wartime footing and increase their production lines to be able to support the requirements that are out there, whether it’s ammunition, artillery, rockets, you name it. There’s a huge demand out there.”

But Alan Williams, the former assistant deputy minister of materiel at National Defence, said such comments ignore a basic point. Defence firms, he noted, don’t build equipment out of the goodness of their hearts. “They are in it for profit,” Williams said. They have shareholders to satisfy. They want contacts – their attitude is if you want equipment, then sign those contracts.”

If Anand and Eyre want the defence industry to jump in and arm Ukraine then the Canadian government, as well as other NATO nations, will have to directly finance those contracts. Even then, as defence company executives have warned, building modern weapons takes time.  

Defence Purchases and Projects Could Help in Economic Recovery, Industry Says

By David Pugliese

In mid-September Defence Minister Harjit Sajjan said the Liberal government was looking to speed up military procurements as a way to jump-start job creation. The plan would be to fast-track parts of the government’s defence policy, Strong, Secure, Engaged, to help fuel the economic recovery in the wake of the COVID-19 pandemic.

But when Esprit de Corps asked for the names of some of the projects that the Minister would like to see fast-tracked, Sajjan could only reply: “We are committed to our fully funded Defence Policy; Strong, Secure, and Engaged. Procuring the women and men of the Canadian Armed Forces the equipment they need to do the important work we ask of them is one of our Government’s top priorities.”

That response was a not a good sign for those interested in a robust Canadian Armed Forces and a strong defence industry capability. Sources tell Esprit de Corps there is no list of projects to be fast-tracked, at least at this point.

In addition, the Sept. 23 Throne Speech, which outlined the Liberal government’s priorities for the future, had not one reference to defence or foreign affairs.

So far, Sajjan is trying to put a positive spin on the current situation for the Canadian Forces and Department of National Defence. He has claimed the Liberals have no intention of cutting back on its defence policy which calls for tens of billions of dollars to be spent on buying new equipment.

“We’re going do a very thorough analysis, just like we did in the past, make a good case about it and then make a decision of where we want to go,” he told the Canadian Press news service Sept. 15. “But absolutely, the SSE funding is secure. We’re continuing on with SSE investments.” 

Whether that is true remains to be seen.

Christyn Cianfarani, president of the Canadian Association of Defence and Security Industries or CADSI, says the country’s defence industry can play an important role in the federal government’s economic recovery plan.

Canada’s defence industry actually fared better than other economic sectors during the pandemic, she told Esprit de Corps. There were no significant layoffs and most firms have been able to continue operations and production. “It actually does tell you that it does function in a crisis situation,” Cianfarani said. “Because it was there so many of the companies were able to pivot their commercial lines of business where they weren’t getting work and to do things that supported the pandemic (response).”

She pointed out that CAE started producing ventilators when its work with the commercial airline industry dwindled because of the pandemic. “The defence side stayed stable,” added Cianfarani.

CADSI also noted that foreign sales, which account for 60 percent of Canadian defence industry revenue, have not yet been adversely affected by the pandemic and the associated global recession.

The association has recommended a series of measure to the federal government that would help the industry and let it contribute to economic recovery. Cianfarani said there are already billions of dollars earmarked for Canadian Armed Forces procurement so the government should use that to create what she termed high-paying defence jobs. According to CADSI some 60,000 jobs are tied to Canada’s defence industrial base.

Among CADSI’s recommendations is to accelerate equipment project approvals, favour Canadian firms and supply chains as much as possible and use National Security Exemptions to buy capabilities that can already be provided by Canadian industry. In addition, the association recommends the federal government aggressively apply industrial regional benefits to all defence procurement projects between $20 million and $100 million, as well as favour Canadian-based cyber firms for associated purchases as the government moves its employees to more remote work.

Cianfarani noted that having Canadians gainfully employed and earning a good pay cheque in a defence and security-related job is better than having workers laid off and collecting employment insurance.

Another potential area of revenue and job creation, according to CADSI, is the $2 billion in defence-related contracts for foreign sales which are backlogged in the government’s approval process. The backlog has been building for at least a year and eliminating this backlog will allow these contracts to proceed.

Whether the federal government follows such advice is not yet clear. The Liberal government’s Throne Speech on Sept. 23 focused on COVID-19 emergency measures to support businesses and health care as well as longer term goals of a national child care strategy and improving education. There was also talk about green initiatives such as planting of trees, modernizing police training and tackling systemic racism.

Interestingly, the Liberals made no mention of its efforts to have Canada play more of a role in overseas operations led by the United Nations or other alliances.

Prime Minister Justin Trudeau’s government has promised a campaign to create one million jobs, noting that there will be “direct investments in the social sector and infrastructure, immediate training to quickly skill up workers, and incentives for employers to hire and retain workers.” Part of the Liberal government recover plan includes a promise to funnel $10 billion into infrastructure programs. 

The funding would come from the Canada Infrastructure Bank and the initiatives are expected to create 60,000 jobs, according to the Liberal government. The initiative will include funding for clean power and connecting approximately 750,000 homes and small businesses to broadband in underserved communities; $2 billion to invest in large-scale building retrofits to increase energy efficiency and help make communities more sustainable; $1.5 billion for agriculture irrigation projects to help the agriculture sector enhance production, strengthen Canada’s food security, and expand export opportunities; and $1.5 billion to accelerate the adoption of zero-emission buses and charging infrastructure.

No funds were earmarked for the aerospace, defence or security sectors.

Although CADSI has made its representations to the federal government, individual defence firms have been relatively quiet in outlining what role, if any, they could play in Canada’s economic recovery. Not so with other industries, which have launched advertising campaigns to push the federal government to direct funding their way.

The defence industry is also facing a challenge from activist groups who are campaigning against tying up federal money in military purchases, particularly the proposed acquisition of new fighter jets. The first protests were launched July 24 one week before the bids were due for the fighter jets. Protesters showed up at the offices of 22 MPs. A second protest was held Oct. 2. Demonstrations were staged outside the officers of 25 MPs including Conservative leader Erin O’Toole, Defence Minister Harjit Sajjan and others. The aim of the campaign is to redirect funding for military equipment into a national childcare program as well as other programs to assist women.

In the Canadian Forces view, the need for new capabilities and equipment is not going to go away. In fact, such as need will significantly increase, military officers say. On Aug. 11, Brig. Gen. Colin Keiver, director general air and space force development, outlined to industry executives that the Royal Canadian Air Forces has 17 large projects it needs to get underway. Those range from the acquisition of the new fighter jets to replace the CF-18s to the acquisition of space capabilities to improve situational awareness and targeting, the purchase of new command and control and communications systems, the replacement of the air-to-air tankers and the acquisition of a fleet of medium altitude remotely piloted systems. The RCAF’s 17 large projects account for $46.4 billion, according to Keiver. That makes up just less than half of the future funding proposed the Liberal government’s 2017 defence policy paper Strong, Secure, Engaged.

The Royal Canadian Navy’s share of that is also expected to be substantial. As Commodore Chris Robinson, director general naval force development, pointed out Sept. 28 in a CADSI presentation, the Royal Canadian Navy is undertaking an unprecedented peace time naval fleet recapitalization while simultaneously preparing for the expansion of missions in the Arctic ocean. Where this all leaves the Canadian Army in the future – and what its share of the funding pie will be – is an open question.

The Liberals, who could be heading into an election in the coming year, want results that can quickly put Canadians back to work. That most likely means shovel-ready infrastructure projects. With bases and facilities across the country the Department of National Defence could provide the government with some of the projects they want. Sources inside National Defence Headquarters in Ottawa say each of the military services have been scanning their infrastructure needs to see if they can fast-track some of those.

In a December 2019 response to a query from a Conservative MP, the DND presented to Parliament a list of 117 defence procurement projects that are currently delayed. Interestingly, 64 of the projects were for infrastructure at bases and facilities.

Cianfarani noted pushing ahead on infrastructure projects can provide much needed employment for workers and a lifeline to businesses. Much of the base infrastructure is also supported by smaller firms, who do everything from maintenance to plowing snow, she added.

The DND has recently issued news releases on infrastructure projects but that was clearly a public relations strategy to support the Liberal government as some of the contracts have finished or are so far in the future that job creation won’t come for a number of years. For example, on Oct. 13 the DND issued a news release announcing that the construction of an integrated logistics section at CFB Kingston had been completed. But that was done back in June. The $48.5-million project generated about 180 jobs during construction but there was no word if employees were kept on at various companies after the construction was finished.

Sajjan’s reassurances that there won’t be cuts to defence spending might also be short-lived. 

With the federal deficit currently estimated to be near $400 billion, the Liberal government has suggested spending will be reduced once the pandemic is over. “Absolutely, once we are through this pandemic, it is going to be extremely
important to be fiscally responsible and sustainable,” Trudeau told parliamentarians.

Parliamentary Budget Office Yves Giroux has also warned current spending for emergency relief programs to deal with the pandemic can only go on for so long. If spending isn’t curtailed then taxes will have to be increased, he said. That is something no government looks forward to, particularly if they are facing an election.

There is also the issue of whether Sajjan will stay on as Defence Minister long enough to keep his promise of no major spending cuts. There have been suggestions that a new Defence Minister might be put in place in the coming year.

For now, Treasury Board President Jean-Yves Duclos says spending overall can’t be reduced without harming the economy and pushing Canada towards a depression. He was mainly talking about the various emergency relief programs in place. But the Liberal government has signaled that also means public service jobs (including military personnel) and department spending are fine for now.

How long that continues is an open question.

RCAF Modernization Takes Flight

By David Pugliese

As the Royal Canadian Air Force prepares for the future several key equipment programs are taking precedent and moving towards being implemented.

The most high profile is the future fighter jet project which is valued at between $15 billion and $19 billion. The Canadian government received bids July 31 from all three suppliers that were eligible to participate. Those included the Swedish Government—SAAB AB with its partners Diehl Defence GmbH & Co. KG, MBDA UK Ltd., and RAFAEL Advanced Defence Systems Ltd; the U.S government with Lockheed Martin Corporation and its partner Pratt and Whitney; and the U.S. government with The Boeing Company, along with its partners Peraton Canada Corp., CAE Inc., L3 Technologies MAS Inc., GE Canada and Raytheon Canada Limited Services and Support Division.

Eighty-eight aircraft will be purchased to replace the current CF-18 fleet. The proposals will be evaluated on elements of capability (worth 60 per cent of the evaluation), cost (20 per cent of the evaluation) and economic benefits (20 per cent of the evaluation), according to Canadian government officials. 

During the evaluation process, a phased bid compliance process will be used to ensure that bidders have an opportunity to address non-compliance related to mandatory criteria in their proposals, Public Services and Procurement Canada
noted.

The initial evaluation of proposals is anticipated to be completed by spring 2021. The Canadian government will finalize terms with the preferred bidder prior to the contract award, which is anticipated in 2022. Delivery of the first aircraft is expected as early as 2025.

Saab is offering Canada its Gripen E fighter aircraft along with a comprehensive support and training package and an industrial and technological benefits program. Saab officials say they are committed to delivering an industrial program that has been designed to generate long-lasting, high-tech employment opportunities, and business opportunities across all regions of Canada. “Saab’s Gripen fighter is designed to operate in harsh environments and defeat the most advanced global threats,” explained Jonas Hjelm, Senior Vice President and head of Saab business area Aeronautics.

He noted that a unique element of the avionics design is that Gripen E’s system can be updated quickly, maintaining technological superiority against any adversary. “With Saab and Gripen, the Royal Canadian Air Force will have full control of its fighter system,” said Hjelm. “A guarantee to share key technology, in-country production, support and through-life enhancements will ensure that Canada’s sovereignty is enhanced for decades.”

Saab has formed the Gripen for Canada Team which consists of IMP Aerospace & Defence, CAE, Peraton Canada and GE Aviation.

Sweden and Brazil have already ordered Gripen E aircraft, with the first planes already delivered. Brazil has also ordered the dual-seat Gripen F and will be the sixth nation to operate Gripen, along with Sweden, the Czech Republic, Hungary, South Africa, and Thailand. Additionally, the UK Empire Test Pilots School uses Gripen for test pilot training, the company noted.

Boeing is offering the Block 111 Super Hornet. Boeing noted that the aircraft is compatible with existing CF-18 infrastructure and the current RCAF air refueling tankers, making transition to the aircraft less expensive and relatively easy. The firm has also highlighted that the Super Hornet production line is continuing well into the future, with the U.S. Navy confirmed it is purchasing 78 of the aircraft which are equipped with a new computer, sensors and data links to boost the amount of information that can be received or transmitted. The aircraft also has satellite communications, which is important for Arctic operations, Boeing noted. Some stealth aspects have also been added and Boeing says it has been able to increase the life of the aircraft from 6,000 flight hours to 10,000 flight hours.

It is also pitching the new Super Hornet as less costly to maintain. The aircraft costs about $18,000 U.S. an hour to operate compared to the F-35 which costs $35,000 U.S. Boeing has also highlighted its long-term commitment to Canada and its track record of meeting or exceeding industrial benefits obligations. Jim Barnes, Boeing’s director for Canada Fighter Sales, pointed out that the firm has had a partnership with Canada for more than 100 years. The response the company submitted to the future fighter program builds on that legacy and “allows us to continue to bring the best of Boeing to Canada and the best of Canada to Boeing,” he noted.

Lockheed Martin is highlighting the fifth generation fighter technology of the F-35, making it the only such aircraft in the Canadian competition. In addition the company is hoping in the coming years to drop the cost of operating the stealth fighter to around $25,000 U.S. an hour.

Lockheed, as well, is highlighting the program’s value to Canadian industry. An analysis commissioned by the company claims that 150,000 new jobs will be created over the life of the program if Canada purchases the F-35. More than 110 Canadian firms already have contracts to supply components to the F-35 program and that has generated around $2 billion in contracts. For instance Pratt & Whitney’s F135 engine is used in all three variants of the F-35. Curtis Wright builds rugged high performance processor modules and other computer components.

The downside of not selecting the F-35 could involve Canadian firms no longer building systems for the allied nations operating the aircraft. Lockheed Martin officials say if the F-35 is rejected by Canada then existing contracts would be honoured but that future contracts would likely be placed using industries in the nations that are buying the F-35.

The Canadian Armed Forces is already preparing for the new infrastructure needed for the next generation fighter jets. On Aug. 27 the federal government announced a $9.2-million contract to EllisDon Construction Services Inc., of Edmonton, Alta., for the design of a new fighter jet facility at 4 Wing Cold Lake, one of two main operating bases for Canada’s future fighter aircraft. A second facility and contract award is also planned for 3 Wing Bagotville in Quebec. Combined, the infrastructure will support the long-term maintenance and operation of the 88 new aircraft. The Cold Lake facility will host two tactical fighter squadrons and will cover approximately 19,300 square metres, providing space for daily operations, maintenance, administration, mission planning, and simulator training, according to the federal government. It will also house operational and support training squadrons and their training facilities. Construction is estimated to begin at both bases in summer 2022 and finish up by 2025. 

Both design contracts will also include options for the contractors to build the new facilities, and any additional infrastructure once the future fighter is selected, should Canada decide to exercise these follow-on options, the federal government noted.

Construction costs for the new fighter jet facilities are currently estimated at $272 million for Cold Lake and $250 million for Bagotville.

In the meantime, the RCAF will receive new weaponry for the CF-18 fleet as it prepares to continue operating those aircraft while it awaits the delivery of the future fighters and proceeds with the transition to that fleet. Raytheon Corporation, El Segundo, CA; General Dynamics Mission Systems, Marion, VA; The Boeing Company, St. Louis, MO; and Collins Aerospace, Cedar Rapids, IA will all be involved in providing the RCAF with new weapons and various other systems for the fleet in a deal worth more than $1 billion.

The U.S. State Department approved the sale for the 50 Sidewinder AIM-9X Block II Tactical missiles, radars and other various weapons. “This sale will provide Canada a 2-squadron bridge of enhanced F/A-18A aircraft to continue meeting NORAD and NATO commitments while it gradually introduces new advanced aircraft via the Future Fighter Capability Program between 2025 and 2035,” the Defense Security Cooperation Agency in the U.S. said.

Canada is acquiring 50 Sidewinder AIM-9X Block II Tactical missiles; 50 Sidewinder AIM-9X Block II Captive Air Training Missiles; 10 Sidewinder AIM-9X Block II Special Air Training Missiles; 10 Sidewinder AIM-9X Block II Tactical Guidance Units; 10 Sidewinder AIM-9X Block II CATM Guidance Units; 38 APG-79(V)4 Active Electronically Scanned Array (AESA) radar units; 38 APG-79(V)4 AESA Radar A1 kits; 20 Joint Standoff Weapon (JSOW) C, AGM-154C; and 46 F/A-18A Wide Band RADOMEs.

Also included are additional technical and logistics support for the AESA radar; upgrades to the Advanced Distributed Combat Training System (ADCTS) to ensure flight trainers remain current with the new technologies; software development to integrate the systems listed into the F/A-18A airframe as well as other equipment.

The RCAF expects some of the new weaponry will be of use on the future fighter aircraft as well.

Another focus for the RCAF is the eventual introduction of a remotely piloted aircraft system or RPAS. The RPAS project is a new name for what used to be called the Joint Unmanned Surveillance and Target Acquisition System or JUSTAS, which began in 2007.

An internal DND audit released in 2014 noted that the JUSTAS operational requirements lacked clarity and consistency to ensure that all of the Canadian military’s capability deficiencies would be addressed by the acquisition. 

But this time around the project has advanced significantly. The RPAS project entered the definition phase on April 5, 2019.  As a result of an Invitation to Qualify process, Public Services and Procurement Canada selected L3 Technologies MAS Inc.; and the United States Government and General Atomics Aeronautical Systems, Inc. as the two bidders for the project, said Department of National Defence spokeswoman Jessica Lamirande.

Under the ITQ process, L3 Technologies MAS Inc. proposed the Heron TP aircraft from IAI while the United States Government and General Atomics Aeronautical Systems, Inc. qualified with the MQ-9 aircraft, added Lamirande.

“The project team officially initiated engagement with qualified suppliers in July 2019 as part of the Refine & Review Requirements (RRR) phase,” she said. “As part of the RRR phase, the project team will continue to engage Qualified Suppliers and develop a Request For Proposal for release anticipated in Fiscal Year 20/21.”

Project approval to enter implementation phase is anticipated in Fiscal Year 22/23, Lamirande told Esprit de Corps.

The RPAS project will procure a fleet of armed, medium altitude, long endurance remotely piloted aircraft and related equipment capable of intelligence, surveillance and reconnaissance and precision strike in support of Canadian Armed Forces operations. The RPAS fleet will complement existing capabilities within the Canadian military, such as the CP-140 and the CF-18 fighter aircraft. 

“This capability will be integrated into a network of systems to enable near real-time flow of information essential to CAF operations, and to support domestic law enforcement and civilian authorities, Lamirande said. “Additionally, it will significantly expand Canada’s ability to contribute to joint intelligence, surveillance and reconnaissance operations with its allies.”

Team SkyGuardian consists of General Atomics (GA-ASI), CAE, L3 Harris and MDA. The team notes its multi-mission aircraft, the MQ-9B SkyGuardian and its nine hardpoints offer unmatched configurability to meet Canada’s mission requirements. MQ-9B SkyGuardian is the best solution to deliver multi-mission capability, a sustainable Arctic presence, interoperability with existing Royal Canadian Air Force assets and Five Eyes and NATO allies, all with low acquisition cost and sustainment, according to the team. GA-ASI has also noted it is involving Canadian industry in sustainment of the system and development of new capabilities for MQ-9B and other Predator series systems.

The second consortium, known as Team Artemis, is offering an enhanced Canadian version of IAI’s Heron TP platform. L3 Harris’ division in Mirabel, Que., has teamed with Israel Aerospace Industries to adapt the Heron TP for Canada’s specific requirements, the companies point out. The Artemis system uses the Canadian-made 1,200 shaft horsepower Pratt & Whitney Turbo-Prop PT6 engine, which allows the system to be capable of speeds, climb rates and altitudes that are unmatched in the medium altitude long endurance category, according to the team. The aircraft will be outfitted with an anti-icing system and capable of altitude greater than 45,000 feet. The aircraft will also be outfitted with the anti-jam GPS system provided by NovAtel of Calgary.

If Team Artemis wins the RPAS project the aircraft will be assembled by L3 Harris in Mirabel.

RCN Strategic Capability: Victoria-class Submarine Sustainment Top Priority for Royal Canadian Navy

By David Pugliese

Canada’s Victoria-class submarines are seen as key elements to the Liberal government’s defence policy, Strong, Secure, Engaged.

With that in mind, one of the Royal Canadian Navy’s top priorities is a new sustainment plan for the four submarines.

Dubbed the Victoria-class In-Service Support Contract 2 or VISSC2 the project will address continued upkeep of the submarines into the mid-2030s. “VISSC2 is going to be a critical enabler” for the government defence policy, Capt.(N) Keith Coffen, Director Maritime Equipment Program Management – Submarines, told Esprit de Corps.

“Sustainment is a key industrial capability (and we) aim to grow and develop that capability in Canada,” he added.

Submarines are among the world’s most technically complex machines and they operate in an unforgiving environment, the RCN points out. The Victoria-class submarines operate in open-ocean and deep-sea environments where they experience pressure-induced stresses from changes in depth, extreme weather conditions, and the corrosive effects of seawater.

A strict in-service maintenance program is required to ensure the safety of the crew and mission success. It also helps develop and sustain a highly-skilled Canadian marine workforce with expertise in a specific domain, according to the Department of National Defence.

Upkeep of the Victoria-class boats is provided via a combination of Royal Canadian Navy and contracted maintenance resources. Coffen noted that DND’s fleet maintenance facilities in both Halifax, NS and Esquimalt, BC are involved in submarine sustainment.

But the main player is private industry.

A contract for maintenance support of the Victoria-class was originally awarded to Babcock Canada Inc. (formerly the Canadian Submarine Management Group Inc.) in 2008. This contract is currently approved for a total value of approximately $2.9 billion and a maximum duration of 15 years if all options are exercised.

“We’re partnered up with Babcock Canada to deliver deep maintenance for the class,” Coffen explained. “As well (the contract) delivers core support tasks to manage technical data, integrate new systems, to understand the state of each individual submarine at any given time and to understand the state of the supply chain.”

The Victoria-class In-Service Support Contract or VISSC is the largest naval in-service support contract in Canada and includes project management, refits and maintenance, capability upgrades, logistics, configuration/safety records and engineering support. The main contract covers core work and tasking with deep maintenance periods – termed Extended Docking Work Periods (EDWPs), included as required by the submarine operating schedules.

The work is done in Victoria (Esquimalt), BC.

In May 2018 the Department of National Defence extended the existing submarine support contract with Babcock. That extension is out to June 2021 and will see a team of more than 400 Babcock engineers, project managers and specialist support staff continue to support all four submarines in refit and in-service, the firm noted.

Babcock Canada is recognized as a leading naval in -service support specialist with the ability to leverage international best practices from a wide range of similar navies and vessels around the world.

Since its inception in 2008 Babcock Canada has continued to grow and has now established facilities in Victoria, Halifax, and Ottawa, the company added.

Prior to the end of this current Victoria-class In-Service Support Contract, the Canadian government has been holding meetings with industry on the development of a request for proposal for the follow-on contract – VISSC2 - to ensure a smooth transition between maintenance contracts. 

VISSC2 will address continued upkeep of the submarines into the mid-2030s, while a new capital initiative – the Victoria Class Modernization – will ensure that the Victoria-class submarines remain operationally relevant to the end of their intended service lives, according to the RCN.

The decision to modernize and operate the four submarines until the mid-2030s was contained in the Liberal government’s 2017 defence policy.

Invitations to Qualify for the future VISSC2 contract were issued by the Canadian government in August 2019 and December 2019. Pre-qualified bidders, including Babcock, will be invited to participate in the development of the future contract.

That involves a study by the RCN to examine how to improve sustainment of the Victoria-class submarines. Industry will contribute their ideas and those will be written into a request for proposals for VISSC2, said Coffen.

“It will take a while to get through the study,” he explained. “We’ve initiated a process called the Sustainment Business Case Analysis which looks at all of our new sustainment activities.”

Performance, flexibility, value for money and economic benefits are being examined. “That process is underway now,” Coffen said.

Areas where sustainment for the Victoria-class can be further improved will be examined and those will be written into the request for proposals. The RCN is interested in improving its schedule for deep maintenance activities and coming up with a plan where it can stick to that schedule.

The present intention is to award VISSC2 through a competitive process and to ensure a smooth transition between maintenance contracts.

Coffen declined to get into milestones for the process, noting that the original VISSC can be extended to 2023 if necessary.

But previously Department of National Defence officials stated that it was hoped the request for proposals would be issued by the end of the year and a contract awarded before mid-2022. Industry representatives have been told that bid evaluations would take place between July 2021 and September 2021 and the contract awarded in May 2022.

But that was before the COVID-19 pandemic so it is difficult to say whether the federal government and the DND will stick to that schedule.

The current annual recurring maintenance cost for the four Victoria-class submarines, including expenditures under the original VISSC, is in the range of $300 million to $350 million per year.  The final value for the VISSC2 contract will depend on the number of years the contract is active and the scope of work, added DND spokeswoman Jessica Lamirande.

The company winning the VISSC2 will be required to have an office in Ottawa and facilities on the east and west coast. All intensive third-line maintenance periods will take place at the Esquimalt Graving Dockyard in Victoria, BC.

The evaluation criteria for the winning bid will focus on demonstrated submarine sustainment and maintenance experience, access to an available and skilled workforce, ability to meet the criteria to become a tenant of the government owned submarine repair facilities at Esquimalt Graving Dock and capability to support industrial benefits and value proposition initiatives.

The industrial and technological benefits and value proposition set up requires companies awarded defence procurement contracts to undertake business activity in Canada equal to the value of the contracts. Key industrial capabilities including critical industrial services as defined by the Canadian government. Those include marine ship-borne mission systems, sonar and acoustic systems, munitions, electro-optical support, training and simulation, armour, shipbuilding, design and engineering services and aerospace systems.

Babcock has pointed out that since the inception of the original VISSC, the company has contributed over $1.8 billion to the Canadian economy and has developed a domestic supply chain network that is now an integral part of Canada’s strategic submarine sustainment capability. The vast majority of Babcock’s Canadian submarine expertise is domestically based, the firm added. It now has over 330 suppliers from coast to coast, annually sustaining over 2,000 Canadian jobs.

The sustainment plan for VISSC2 calls for two submarines at high readiness, one available as required and one in Extended Docking Work Period or EDWP. First and second line maintenance will be done primarily in-house. Third line maintenance will rest with industry.

The Royal Canadian Navy wants a 9 plus 3 Victoria-class operating cycle. The submarines would be involved in operations for a nine-year period, followed by a EDWP of three years.

Increasing cost of Canadian Surface Combatant project to be examined

By David Pugliese

As the Canadian Surface Combatant project moves slowly forward more questions are starting to be asked about its ballooning cost and why other nations seem to be acquiring frigates at a much lower acquisition price.

In August the House of Commons Government Operations Committee voted to request the Parliamentary Budget Officer examine the estimated $60 billion project cost of the Canadian Surface Combatant.

That project proposes the acquisition of 15 Type 26 frigates, the largest single government purchase in Canadian history. Last year the Liberal government signed a deal that would start the process for the acquisition of the initial vessel in a Canadianized version. Lockheed Martin offered Canada the Type 26 warship designed by BAE in the United Kingdom as its bid for the Canadian Surface Combatant (CSC) project. Irving is the prime contractor and the vessels will be built at its shipyard in Halifax, Nova Scotia.

Construction of the first Canadian Type 26 isn’t expected to begin until the early 2020s. The ships would replace the Halifax-class frigates.

The Government Operations Committee requested that Parliamentary Budget Officer Yves Giroux not only examine the cost of the Canadian Surface Combatant project but in addition take a look at the cost of two other types of warships, the FREMM and the Type 31.

Babcock is to build five Type 31s for the Royal Navy in the United Kingdom.

The average cost of those ships are to be less than $500 million each.

Jeremy Quin, the UK’s Minister of Defence Procurement, said steel will be cut for the Type 31 next year, with the first ship in the water by 2023. The Royal Navy will operate Type 26 ships as well as Type 31s.

The FREMM is the other type of warship the Government Operations Committee is interested in having the PBO examine. The FREMM is a multi-purpose frigate designed by Naval Group and Fincantieri for the French and Italian navies. The frigates are also used by Egypt and Morocco.

But in a significant development the FREMM designed has now been selected by the U.S. Navy, which expects to order 10 such warships.

What has caught the interest of some on the Government Operations Committee is the cost the U.S. is paying for its new frigates. The U.S. will spend $1.2 billion ($1.6 billion Canadian) for the first ship. That price includes both the design work to enable the vessel to carry U.S.-specific equipment, as well as to prepare a domestic shipyard to build the vessel. 

After that the price per ship isn’t expected to be no more than $1.3 billion (Canadian) each, according to James Geurts, the Assistant Secretary of the U.S. Navy for Research, Development and Acquisition.

Canada is expected to pay $36 billion for 15 Canadian Surface Combatants, or around $2.4 billion per ship. (The rest of the CSC project – an estimated $24 billion – is for some training, contingency costs, and shore infrastructure and project management costs at the DND).

Parliamentarians are interested in understanding why the U.S. cost per warship is much lower than what Canada expects to pay.

In December 2017 the French and Italian governments already proposed a plan in which Canada could build the FREMM frigate at Irving in Halifax. Those governments offered to guarantee the cost of the 15 ships at a fixed $30 billion but that was rejected by the Canadian government.

Sloane Mask, spokeswoman for the Parliamentary Budget Office, said the analysis requested by the Government Operations Committee will be ready by Oct. 22. “The analytical work is currently underway,” she added.

The Canadian Surface Combatant program has seen steadily increasing costs over the years. In 2008 the then-Conservative government estimated the project would cost roughly $26 billion. But in 2015, Vice-Admiral Mark Norman, then commander of the navy, voiced concern that taxpayers may not have been given all the information about the program, publicly predicting the cost for the warships alone would approach $30 billion.

“Approximately one-half of the CSC build cost is comprised of labour in the (Irving’s) Halifax yard and materials,” according to federal government documents obtained through the Access the Information law.

Some Canadian parliamentarians are privately worried that the CSC project cost will continue rising to $70 billion or $80 billion by the time the program is finished. They have suggested that since a contract has yet to be signed committing Canada to anything more than one ship, the government could withdraw from the Type 26 deal and go for a less expensive alternative.

The entry of the BAE Type 26 warship in the Canadian competition was controversial from the start and sparked complaints the procurement process was skewed to favour that vessel. Previously the Liberal government had said only mature existing designs or designs of ships already in service with other navies would be accepted, on the grounds they could be built faster and would be less risky. Unproven designs can face challenges as problems are found once the vessel is in the water and operating.

But the criteria was changed and the government and Irving accepted the BAE design, though at the time it existed only on the drawing board. Construction began on the first Type 26 frigate in the summer of 2017 for Britain’s Royal Navy but the vessel has yet to be finished.

ANALYSIS: Is It Time To Open Canadian Military Small Arms Contracts To Competition?

: It’s been nine years since the Canadian Forces plan to acquire new handguns to replace the Browning Hi-Power (shown here being used in Afghanistan) was derailed. Some inside the Canadian military blame the Small Arms Strategic Source program for the ongoing failure to provide pistols to CAF personnel. (Canadian Forces photo)

By David Pugliese

In a flurry of sole-source contracts over the last several months the Canadian military has embarked on a series of purchases of small arms from Colt Canada.

Colt is the country’s Small Arms Strategic Source and Centre of Excellence and the sole source deals maintain the 100-member workforce at the company’s facilities in Kitchener, Ontario.

But questions have been raised in industry circles and in the Canadian Armed Forces on whether having such a strategic small arms capability makes sense for the military and for taxpayers.

 Stéfanie Hamel, a spokeswoman for Public Services and Procurement Canada, told Esprit de Corps that the federal government’s program has allowed the production of quality firearms by Colt for decades. “DND successfully procured multiple small arm fleets through Colt Canada over the years and has the capacity to sustain those fleets during the entire life cycles, including access to sustainment programs, parts, and technical expertise,” Hamel explained. “This stable Canadian small arms manufacturing and maintenance capacity is considered key for the constant readiness of the CAF for domestic and international operations.”

But critics correctly point out that having Colt assume such a role has been costly to taxpayers and has created excessive delays over the years in getting pistols, rifles and machine-guns into the hands of Canadian Armed Forces personnel.

Those who argue against the small arms strategic source concept point out that the days of viewing firearms as a strategic source is no longer valid in a world awash in small arms and companies eager to provide quality weapons at reasonable prices.

Colt produced firearms are seen as quality products by the federal government but that comes with a steep price. In late January Defence Minister Harjit Sajjan announced that the government was purchasing more than 3,600 new C6AI FLEX General Purpose Machine Guns from the company. The $96 million order was a follow-on deal to the 2017 contract for 1,148 of the same machine guns. Some spare parts are included along with cleaning kits and carrying slings in the purchase.

Critics point out that the design of the gun is pretty much the same a previous C6s (based on the FN MAG) but there have been cosmetic changes such as the installation of a top rail and the replacement of the wooden butt stock with a polymer one.

What is different is the cost. The cost of each gun works out to around $27,000, at least twice the amount that other militaries are spending.

In February and April the federal government quietly awarded two other contracts to Colt to produce a semi-automatic rifle in 7.62 calibre to be used by sniper teams as an auxiliary weapon.

The process to acquire what is being called the C20 has been interesting. The acquisition will cost taxpayers $8.5 million for 272 rifles and spare parts.

The federal government initially awarded a $2 million contact to Colt Canada in Kitchener on February 28 to establish a production line to see if it could produce the C20 weapon. That contract also included an initial delivery of 10 of the C20 rifles. That early production run was to ensure Colt had the technical proficiency to deliver the new weapon, according to the Department of National Defence.

The federal government then awarded a $6.5 million contract to Colt Canada on April 17 to produce 262 additional C20 rifles, associated equipment and spare parts.

Canadian Rangers use their new rifles provided by Colt Canada but based on a rifle produced by Sako of Finland. Questions have been raised whether it makes financial sense to spend up to $4,000 for a
bolt-action rifle. (Canadian Forces photo)

The awarding of the contracts were not announced by the DND. The department says it does not have details on the per unit cost of the rifles. But officials acknowledge that taxpayers are paying a premium to have the guns manufactured in Canada under what is called the Munitions Supply Program (that includes the stipulation that Colt is the small arms strategic source). Critics point out that each rifle is costing taxpayers more than $24,000 each.

Probably the most glaring examples of the problems associated with having a small arms strategic source are the lengthy acquisition programs for the Canadian Ranger rifle and the still delayed project to buy new handguns to replace the military’s Browning Hi-Power pistols.

In 2011, the Canadian Armed Forces announced its plan to buy the new pistols and Ranger rifles and then went looking for prices from industry. Approximately 10,000 handguns were to be bought with deliveries to start in the fall of 2015. 

Ten thousand Ranger rifles would also be acquired, with deliveries to start in 2014. 

Foreign firms would bid their weapons for the contracts but in both cases the guns would be built by Colt Canada.

The main problem, according to industry representatives, was the stipulation that the firms provide a Technical Data Package – essentially proprietary information about the firearms – to the Canadian government, with the understanding that would be passed to Colt Canada. Using that information Colt, in turn, would build the guns in Kitchener.

The companies, including some who saw Colt as a competitor, essentially balked at that plan, leaving Canada with no one interested in its competition.

Industry representatives told Esprit de Corps that since the numbers of pistols Canada was buying were relatively small, companies were not inclined to turn over their technical data to Colt. Similar comments were received from the manufacturers of bolt action long guns who might have competed their weapons in the competition to acquire new Ranger rifles.

Colt officials pointed out at the time that the concerns expressed by the firms were unfounded as Colt Canada successfully maintained foreign-made machineguns purchased by the Canadian Forces (C-6s and C-9s) without any major concerns expressed by manufacturers.

Even still, just months later, the Canadian government retreated on its small arms purchases, cancelling its 2011 request to the companies for information about prices and availability. The programs went into limbo as the government tried to figure out what to do.

Besides concerns about Colt as a potential competitor, various small arms companies pointed out the other difficulty with the acquisitions. The numbers of weapons being purchased by Canada were so small that it simply made more sense to place a direct order through the Canadian distributors for those guns. (In some cases, handgun orders to police forces in large U.S. metropolitan centres dwarfed what the Canadian military wanted.) It didn’t make economic sense to have Colt manufacture the guns in Canada or even to have parts shipped to Colt so the guns could be assembled in Canada, industry representatives argued.

In 2016 the Canadian Forces outlined to defence industry representatives – once again – how the replacement for the Browning Hi-Powers would move forward. Industry officials were told then that between 15,000 and 25,000 handguns were needed, with the Canadian military estimating the project would cost around $50 million. Deliveries of the new General Service Pistol would start in 2022-2023.

But sources inside National Defence headquarters in Ottawa say the stumbling block to moving forward continues to be the insistence by DND bureaucrats to have the guns built in Kitchener by Colt Canada.

The Ranger Rifle program did move forward, albeit slowly. The Tikka T3 by Sako of Finland was selected. Colt assembled the rifles but the first weapons didn’t get into the hands of the Rangers until 2018. The Canadian Forces put the price tag for each bolt action rifle at about $4,000. As one small arms industry official pointed out: “That’s pretty expensive for a bolt action rifle which is used mainly for hunting seals.”

Ironically, Sako now markets the same rifle in Canada as the Tika T3x Arctic but the cost to the public is only $2,800. Those specific rifles are made in Finland and were available to the Canadian public even before the Rangers started receiving their weapons.

Ultimately, buying small arms “off the shelf” can be done and something the Canadian Armed Forces has admitted can be accomplished.

The DND and Procurement Canada plan to hold a competition among small arms firms to provide the CAF with 229 C21 rifles. The C21 will be a bolt action medium-range sniper rifle. 

So why didn’t Colt receive that contract? “A Munition Supply Program Business Case Analysis was conducted and it was determined that it would be more cost effective to compete the procurement of the C21 as opposed to have Colt Canada perform the work,” the DND noted. “Creating a new production line at Colt Canada was estimated to be more expensive than leveraging existing production lines currently manufacturing modern multi-calibre sniper rifles through a competitive procurement process.”

There was no explanation, however, why it made economic sense to hold a competition for 229 C21 rifles but it didn’t make financial sense to hold a similar competition for the purchase of 272 C20 rifles, the deal handed to Colt on a sole-source basis.

What will the future hold for the Canadian small arms market? 

The federal government is obviously committed to Colt as the Centre of Small Arms Excellence. “With Colt Canada as the strategic source of supply and centre of excellence for small arms, the Government of Canada has the ability to produce small arms domestically, ensuring the development of a viable and internationally competitive industry that gives Canada long-term industrial and economic benefits,” explained Hamel, the spokeswoman for Public Services and Procurement Canada. But she added: “The government can compete small arms procurements when it is determined to be better value for Canada.”

That statement may hold out hope for Canadian Armed Forces personnel who have been waiting a decade for a new handgun. 

It will now be up to defence firms to lobby the Liberal government MPs to allow for an open competition, taking into account the savings to taxpayers and the speedy acquisition for new handguns for the troops. And it will be up to the politicians to follow through on what is best for Canadian Armed Forces personnel.

Canadian Army Looking For New Tactical Assault Vest – Bids Expected This Fall

By David Pugliese

The Canadian Army is looking for a new tactical assault vest/load carriage system as it strives to improve the gear its soldiers are issued. 

A Request for Proposals is expected to be issued to industry sometime in the fall, Army officials told Esprit de Corps.

The current tactical assault vest was originally designed based on the Canadian Armed Forces’ experiences in the Balkans in the 1990s. That design assumed soldiers would carry minimal equipment in a standardized fashion but it is common knowledge that the current vest is not well liked by troops, who – in response - often purchase their own such kit.

Lt.-Col. Ray Corby, who served as Director of Soldier Systems for the Canadian Army’s Directorate of Land Requirements before leaving the post in July, readily acknowledged the current vest is no longer sufficient to meet soldiers’ needs. In fact, surveys conducted by Defence Research and Develop Canada show that the tactical vest is at the top of the list of equipment that soldiers would like to see replaced, Army officials point out. Most soldiers cite the lack of modularity with the current vest as the main cause of their complaints.

The Requests for Proposals for the new load carriage system will be specifically written in a way to encourage creativity on behalf of industry, according to Canadian Army officials. The bid package will outline what soldiers need to do, what they carry and where they operate, as well as provide industry with flexibility to determine how those roles can be accomplished by a new system. Delivery of the new equipment is expected to begin in 2022.

Corby noted that small amounts of equipment could be purchased at first, with modifications made later. “We want to prove that we as an Army can quickly and efficiently trial and select equipment so that going forward we can capitalize on industry’s advances,” he explained. “We are not looking for a 20 to 30-year solution. We want a bit of the best every five years or so for those who need to retain the advantage on the battlefield.”

Selection trials of new load carriage systems are currently scheduled for next summer, which will see industry prototypes evaluated by a cross-section of soldiers from a range of Canadian Army trades. The goal is a modular system that will give soldiers more flexibility to configure their equipment according to occupation and body type, Army officials say. Besides modularity, the other major factor to consider is that of “burden management”, a reference to the weight of all the combined equipment a soldier needs to carry. Too much weight has the unintended effect of slowing soldiers down.

The Canadian Army, however, has yet to announce the results of its testing of a new camoflague pattern. In September 2019, trials began of a new prototype disruptive pattern involving troops with 2nd Canadian Mechanized Brigade Group in Petawawa, with the soldiers mostly belonging to the 3rd Battalion, Royal Canadian Regiment. The majority of soldiers wore a pattern called “Prototype “J.”

The trial lasted approximately six months and ended in February 2020 and produced a wealth of useful data, according to the Canadian Army. In addition, members of the Battalion continue to wear Prototype J.

The troops involved in the Prototype J camouflage tests were issued with uniforms, a soft field cap, helmet covers and fragmentation vest covers.

Some of the tests used uninhabited aerial vehicles to determine the extent the new pattern can be seen from such drones.

The Army has stated that a final decision on the new camouflage is expected no later than 2022. A full roll out of a new camouflage uniform would take place in 2027.

SITUATION REPORT: Canadian Army Commander Lt.-Gen. Wayne Eyre Shares His Vision Of The Future Army

Interview by David Pugliese

Earlier this year Esprit de Corps magazine interviewed Canadian Army commander Lt.-Gen. Wayne Eyre about his views on the state of the land force, its procurement needs and where he sees the service moving in the future.
Eyre assumed the position of Commander of the Canadian Army in August 2019. He has served in a variety of command and staff appointments including command of 3rd Battalion Princess Patricia’s Canadian Light Infantry, 2 Canadian Mechanized Brigade Group, 3rd Canadian Division and Joint Task Force West, Deputy Commanding General – Operations for XVIII (US) Airborne Corps, and as Commander Military Personnel Command. He was also the first non-American Deputy Commander of United Nations Command, the multinational force supporting the Republic of Korea since 1950. The Canadian Army is the largest element of the Canadian Armed Forces, consisting of 23,000 full-time soldiers in the Regular Force; 19,000 part-time soldiers in the Reserve Force; 5,300 Canadian Rangers who serve in sparsely settled northern, coastal and isolated areas of Canada; and 3,300 civilian employees who support the Army.
The following interview has been edited for length:

Esprit de Corps: What direction do you plan for the Canadian Army in the future?
Eyre: The world is going to be a dangerous place so the demands being placed on the Army aren’t going to go down. If anything it will increase. I think we have a confluence of stressors happening on the global stage. You have the resurgence of great power competition. That’s always dangerous. You’ve got global climate change as well as an acceleration in technological change. You’ve got changes in demographics and the rise of populism. So all of these are creating stressors in the security environment. We can’t really forecast what the future is going to bring other than it will be pretty dangerous and uncertain. But I don’t see the role of land power diminishing. That’s the philosophy I’ve been sharing. It’s really underpinning where I want to take the Army. I’m calling it the Army modernization strategy.
I want to carry on with a number of initiatives my predecessors put in place, really integrate them, tie them together and provide some priority. Right now one of our biggest limiting factors is one of resources and the most important one is people who can execute the change. That is where the prioritization comes in.
Esprit de Corps: What areas will be prioritized?
Eyre: In our modernization we’re going to look at a number of things. We’re going to look at readiness. So how do we get forces ready for operations? How do we increase the overall availability of forces? How do we train our forces? How do we bring in modern training techniques that really reflect some of the cutting edge learning procedures and systems out there?
The second piece is the Reserves. We are going to continue to strengthen the Army Reserves, continue to reinforce them and make sure they will be really able to provide operational capability to the Army as a whole?
The other areas are people, targeted investments, and concepts and capabilities. So do we need to take a look at how we’re selecting people for different positions?
The targeted investment piece examines what capital investments should we put our efforts into. Concepts and capabilities is to look at the question of how we fight in this new environment. How does the Army maneuver in the space of just below the level of violent conflict? We also need to take a look at our force structure to make sure we have that right. Then we will look at what capabilities we need to flesh out in terms of being able to operate in areas like the Arctic because I believe that is going to be of increasing importance for the Army.
Esprit de Corps: What’s your current assessment of the Army’s capabilities for the Arctic?
Eyre: We have five challenges in this area. How do we get ourselves up there? How do we sustain ourselves? How do we move when we are there? How do we survive? And the final challenge is how do we fight? So where are we in all of this? Well, we have a ways to go. We’re not going to be able to get up there by ourselves so we need to work with the Air Force on that. In terms of tactical mobility we’re working on that. One of the equipment projects we have on the books is our Domestic Arctic Mobility Enhancement program, which is really a Bv-206 replacement. The survive piece concerns me. It’s really about the longer term survive and sustain up there. Our infrastructure density in the Arctic is very very low. What happens if we have to respond to something that is in between infrastructure nodes? These are the nuts we need to crack. The basic soldier skills are relatively easy. That’s stuff we have continued to focus on and at the soldier level I think we’re okay. It’s the higher-level concepts that support everything around that which need a lot of work.
Esprit de Corps: Are there technologies that you are focused on or where you want industry to focus on to better support the Army?
Eyre: We want to harvest ideas from industry. For instance, how would be get a land force up to an area that has no infrastructure? This is maybe where we refocus our parachute capability, much as it was the same as in the 1950s and 1960s. So our ability to rapidly get boots on the ground in the Arctic could be by parachute. So these are the types of ideas we are exploring.
Esprit de Corps: Are there particular areas of interest when it comes to procurement for the Army?
Eyre: As part of the modernization strategy I want to lay out project by project and by priority. We are going to be a LAV-based Army for the next two decades. So the question now is how do we protect these LAVs? My top priority is our C4ISR (Command, Control, Communications, Computers Intelligence, Surveillance and Reconnaissance) projects. How do we ensure they can take advantage of the huge amount of data that is out there and connect them to be able to operate in this modern environment.
The second priority I would say would be ground-based air defence. We see the evolving threat from drones, from rockets, and other forms of indirect fire. We have to be able to protect ourselves. We need to look at Joint Fires Modernization. That’s somewhat tied to the C4ISR piece so we have to look at how we tap into the joint fires available, not only from the Air Force but from our coalition allies. We need to ensure we are interoperable and able to access the range of capabilities that are available.
Another priority is figuring out how we sustain ourselves. So this is where trucks come in, and projects such as the Logistics Vehicle Modernization, as well as some of combat support capabilities such as modernizing our bridge and gap capability. There’s probably another 15 or so projects that would be just below this list I just gave you.
Esprit de Corps: Many of these projects are farther out in terms of when they are expected to materialize. Can you advance some of these procurement programs?
Eyre: We are pushing these ones as fast as we can and as fast as the investment portfolio allows for. These ones definitely have my attention.
Esprit de Corps: Have you made any decisions on the requirements for ground-based air defence? For instance, will the system be outfitted on a LAV chassis?
Eyre: We haven’t got that far into it. We know there will be a number of components that will be key, particularly the fire direction centre that can tap into all of the different sensors out there. That would gather information from not just our own sensors but joint and allied ones as well. Such a centre would also tap into other shooters. Conceivably one of our radars could pick up a target and that information goes through the fire direction centre and is connected to a navy asset which then fires a navy missile. That’s where we really want to go. We want to have the brains of this piece right. That’s where the C4ISR piece comes in. The network that will be so
important.
Esprit de Corps: Can you provide examples of where you want to go with C4ISR?
Eyre: Interoperability is a huge piece. So as part of the Australia-Canada-Britain-US-New Zealand (alliance), we have some pretty intense Army interoperability forums where we sit down a number of times each year and talk about the specifications needed to drive the technical interoperability. So we are talking about the ability to put a battalion in each other’s brigades, a brigade in each other’s divisions and seamlessly share data back and forth. That is what we’re aiming for. Our projects will have a huge part of that. The other challenge with the C4ISR piece is changing the way we procure. So the spiral procurement – fielding a little bit of the capability at a time because technology is advancing so fast. We need to be agile to get these capabilities in the hands of our soldiers so what we’re fielding is not absolute.
Esprit de Corps: But won’t you end up with an Army equipped with a variety of various systems doing the same role?
Eyre: I told my staff I am fine with an asymmetric Army that is constantly fielding updated versions of equipment so we can keep that technological edge. If we fail, we fail and we revert back to the old systems. We have to take some risk because our potential adversaries are doing it. They are rapidly fielding new technologies. What we need to have is a culture of continuous change. We introduce new capabilities and learn very rapidly how to incorporate them and employ them.
Esprit de Corps: Most big organizations have an aversion to risk. Won’t the challenge be that others might not feel the same way about accepting risk?
Eyre: But if we don’t we’ll be irrelevant. We’re not the only ones wrestling with this. Every military in the west is facing this challenge.
Esprit de Corps: What is your assessment of the current status of the Army procurement system?
Eyre: I take a look at the projects currently in the pipe and I think back to times in the 1990s. Some of my predecessors would be somewhat jealous to see the number of projects now coming through the system. That being said, no Army in history has ever had all the equipment and all of the capabilities that it wanted, or in some cases, needed. But relative to certain periods of our history I think we’re doing fairly well. Could we do better? Absolutely.
Esprit de Corps: I’m always puzzled when I see defence analysts claiming the Army is in dire straits when it now operates a wide range of modern equipment, including some of the most modern Leopard tanks, the new TAPVs and recently delivered upgraded LAVs. The Army, when it comes to equipment, seems to be in pretty good condition.
Eyre: Yes, but you could probably notice the Canadian proclivity to look at our navels and beat ourselves up.

Interview by David Pugliese
Part 2 of the interview with Lt.-Gen. Wayne Eyre will
appear in next month’s issue of Esprit de Corps.

Major Shift In National Shipbuilding Strategy As Third Yard To Be Selected

By David Pugliese

The Federal Government’s decision to add a third shipyard to the nation’s shipbuilding program and shift construction of the Polar-class icebreaker to that facility is a major shift in policy.

Seaspan was originally named to build the icebreaker – the CCGS John G. Diefenbaker – for the Canadian Coast Guard but the start date for construction of that vessel has been continually delayed.

But in the latest development, Fisheries Minister Jonathan Wilkinson’s office announced that Seaspan will no longer build the icebreaker. Instead it will build 16 new multipurpose vessels for the Canadian Coast Guard.

No decision has been made on who will construct the Polar-class icebreaker.

But the decision to remove construction of the icebreaker from Seaspan comes shortly after Prime Minister Justin Trudeau announced that the federal government will select a third shipyard to also build federal vessels. That shipyard would be in addition to Irving and Seaspan who are constructing vessels for the federal fleet.

Chantier Davie, the largest yard in the country, has stated it will pursue that third shipyard designation, prompting suggestions that it is a strong contender.

The government has stated it will move forward with a competitive process to select the third shipyard in the coming months. But Trudeau also hinted that Davie could become that third shipyard. “We recognize that it’s an opportunity for Davie to apply to become that third shipbuilding facility because there will be a tremendous amount of work in the coming years for workers in our shipbuilding industry right across the country from coast, to coast, to coast,” Trudeau said at a news conference in May.

Davie spokesman Frederik Boisvert also noted that the yard is the only one in Canada that has the capacity and ability to deliver the new icebreaker.

That Polar-class icebreaker would replace the aging CCGS Louis S. St-Laurent, which is currently at Davie in drydock as the firm works on a life extension for the vessel.

Seaspan is still trying to determine various details with the federal government on both the multipurpose vessels and the situation with the Polar-class icebreaker. The government has stated that the 16 Multi-Purpose Vessels will support a variety of missions, including light icebreaking, environmental response, and offshore search and rescue. It will also proceed through a competitive process with the design of the new class.

“We are in the process of seeking clarification from the Government of Canada regarding any decisions that have been made to alter the scope of Seaspan’s work under the NSS (National Shipbuilding Strategy),” Seaspan communications advisor James Mitchell told Esprit de Corps.

Davie has been lobbying the federal government for years to be let into the national shipbuilding plan. It has already received work to provide interim icebreakers.

On December 14, 2018, the Canadian Coast Guard accepted the first of three interim icebreakers being converted by Chantier Davie as part of a $610-million contract awarded in August 2018. The three icebreakers were acquired to supplement the Coast Guard’s existing fleet during vessel life extension and repair periods, providing continuous on-water capability during scheduled maintenance periods, the government has noted.

The Liberal government’s decision to change the National Shipbuilding Strategy to include a third yard – presumably Davie – comes as a federal election looms. A third yard to build the Polar-class icebreaker would not only provide the Canadian Coast Guard with such a vessel on a much faster basis but could also earn the Liberals votes in Quebec.

If the Conservatives form the next government will they follow through with the plan for a third shipyard? The Conservatives have indeed voiced concern about the delays related to the Polar-class icebreaker. In fact, Conservative MP Todd Doherty, has warned that the icebreaker wouldn’t be delivered until 2030.

A Conservative government could be hard pressed to jettison the plan for a third shipyard to build the Polar-class icebreaker.

DOWN TO THE SEA IN SHIPS: Heady Days For Canadian Naval Procurement

(Volume 25 Issue 3)

By David Pugliese

There’s a good chance that this year’s CANSEC will be easily dominated by companies hoping to sell naval defence products to Canada.

With the federal government’s shipbuilding program in full swing – and a number of related major projects waiting in the wings – potential suppliers for the Royal Canadian Navy can use CANSEC 2018 as the premier vehicle to highlight their systems.

The defence and security trade show will be held this year on May 30-31 at its usual location at the EY Centre, near Ottawa’s international airport.

The future prize of Canada’s naval defence procurement is unquestionably the Canadian Surface Combatant (CSC), a $60 billion project estimated to provide years of work for as many as 80 domestic companies and whichever consortium is selected as the winning team.

Many of those firms will be highlighting their potential role in CSC at CANSEC 2018.

Three bids have been submitted to the Canadian government and Irving Shipbuilding for the CSC program.

rving will soon be launching the first Arctic Offshore Patrol Ship. (Photo courtesy Irving)

Among the formal bids is the one from Lockheed Martin Canada, who will be the prime on the team that includes BAE Systems, CAE, L3 Technologies, MDA, and Ultra Electronics.

The team is offering the BAE Type 26 warship for the Canadian program.

The proposal includes Lockheed Martin Canada’s combat management system, CMS 330, which is currently on board the modernized Halifax-class frigates. A scaled down version of the system will be used on the Royal Canadian Navy’s new Arctic Offshore Patrol Ship fleet.

At its CANSEC 2018 booth, Lockheed plans to have a large-scale model of the Type 26 on display, company officials say. The firm sees the Type 26 as very low risk and is adaptable to accept various systems including the CMS 330.

Lockheed’s CSC team will also be emphasized at the trade show. CAE is involved in training, MDA has engineering and manufacturing capability, Ultra provides underwater warfare systems and L3 has a range of defence and electronic products.

In addition, Canadian companies such as W.R. Davis Engineering in Ottawa, Rolls-Royce in Peterborough and L3 MAPPS in Montreal have already begun work on delivering high-technology systems for the UK’s Type 26.

Alion Science and Technology, along with its subsidiary Alion Canada, submitted their proposal based on the Dutch De Zeven Provinciën Air Defence and Command (LCF) frigate. That frigate is a proven NATO vessel built by Damen Schelde Naval Shipbuilding.

Underlying the Alion offering is its focus on affordability, risk reduction and Canadian content, grounded in nearly 50 years of experience designing and producing combatants.

Alion’s combat system solution to be highlighted at CANSEC 2018, is based on the world-class capabilities of ATLAS-Elektronik and Hensoldt Sensors. ATLAS brings a renowned open architecture Combat Management System that readily accepts new and evolving technologies, officials with the team point out. Hensoldt’s capability and experience in developing and fielding state-of-the art radars was central to meeting the unique Canadian requirements with a fielded, non-developmental radar. Other key suppliers for the team include L3 Technologies Canada, Raytheon Canada Limited, DRS Technologies Canada Limited (DRS TCL) and Rheinmetall Canada Inc.

ATLAS- Elektronik Canada of Victoria, BC is also promoting its SeaSpider system, which can be offered to the RCN as an Anti-Torpedo-Torpedo. The company points out that SeaSpider is the world’s first dedicated Anti-Torpedo-Torpedo (ATT) and is capable of being used to counter threats against submarines or ships. It can operate in both deep and shallow water; the company also points out that the weapon system is deliberately designed to be affordable for navies in procurement and operation.

Navantia of Spain is leading a team that includes Saab Australia and CEA Technologies. Its proposal is based on the F-105 frigate design, a ship in service with the Spanish navy.

Saab, which would provide the combat management system, has support on the CSC program from Lockheed Martin (Moorestown, New Jersey), General Dynamic Mission Systems - Canada, DRS Technologies Limited Canada, OSI Maritime Service and Rheinmetall Canada, according to Navantia.

Fincantieri of Italy and Naval Group of France offered Canada the consortium’s FREMM frigate design. But the firms did not submit a bid to Irving via the CSC procurement process. Instead the companies made their proposal direct to the Canadian government, noting that they could save significant amounts of money because their ship is in production and the production costs are well established. That proposal was rejected by the Liberal government.

Naval Group (formerly DCNS) nonetheless continues to maintain a significant presence in Canada.

Davie Shipbuilding and its affiliate Federal Fleet Services have had a run of successful ventures to highlight at CANSEC 2018.

Their Project Resolve, the program to provide an interim refueling and supply vessel for the Royal Canadian Navy, rolled out without any hitches.

Canadian sailors have trained on the Motor Vessel (MV) Asterix and a crew provided by Federal Fleet Services will operate the 26,000-tonne Asterix. Navy personnel will be on board to handle maritime operations such as refueling warships at sea.

Raytheon Canada Limited is overhauling and providing in-service support for the Phalanx Close-In Weapon Systems operated by the Royal Canadian Navy. Raytheon has promoted its Phalanx system and its capabilities over the years at CANSEC. (DND photo)

By the time CANSEC 2018 has started the Asterix will already be accompanying Canadian warships on international operations, with preparations for addition missions such as the U.S.-led Rim of the Pacific exercise scheduled to start in July.

As of press time, the companies are also in negotiations with the federal government about a plan to convert several former oil industry vessels into icebreakers for the Canadian Coast Guard.

Under the proposal the icebreakers, originally built for Shell and other companies for use in Arctic operations, would be brought to Davie shipyards for upgrades to allow them to be used by the Coast Guard.

MV Aiviq, Polar-class icebreaker, was originally built in the US and the other three, built in Norway, are considered medium icebreakers.

If the deal goes through expect it to be a highlight at CANSEC 2018.

Irving will soon be unveiling the first Arctic Offshore Patrol Ship (AOPS), an opportunity for some CANSEC exhibitors to point out their achievements on the project. GE’s Marine Solutions business in Peterborough, Ont. has a multi-year contract with Irving to provide electrical power, propulsion systems, installation and commissioning services for the AOPS. GE’s power and propulsion systems will position the new vessels amongst the highest performance in their class worldwide, company officials point out. 

CANSEC exhibitor Seaspan Shipyards is riding high on its successful launch of the first large vessel to be designed and built under the Canadian government’s National Shipbuilding Strategy. OFSV1 is the first of three Offshore Fisheries Science Vessels (OFSV) to be built by Seaspan. OFSV1 is a 63-metre Canadian Coast Guard fisheries research vessel. The ship will be used to gain a better understanding of the health of fish stocks and their ocean environment. OFSV1 is the first of three OFSV ships built by Seaspan, with considerable progress made on the remaining two ships.  Seaspan, of course, is well known in the Canadian defence industry as it has been selected to build the Joint Supply Ships for the RCN and a new Polar-class icebreaker for the Canadian Coast Guard.

Rheinmetall Canada is known for its land-based defence systems, particularly its fully digital and stabilized remotely controlled weapon stations. But it also has a footprint in the naval realm. The Nanuk weapon station produced for the Canadian Army’s LAV-111s has been navalized for the RCN. One prototype has been installed and tested successfully on board HMCS Goose Bay.

CANSEC exhibitor MBDA has and continues to promote its Aster missile system as an air defence option for the CSC.
If selected the firm has noted it would offer a manufacturing and production facility in Canada. Aster 15 is a short to medium range missile and Aster 30 is a short to long range, so the company has various options for the RCN. In addition, MBDA offers CAMM-ER (Common Anti-air Modular Missile Extended Range).

Other firms in Canada’s defence industry have recent successful export deals to highlight. NovAtel of Calgary has had success with its unique technology on the international naval market. It recently announced that its GPS Anti-Jam Technology or GAJT has been selected for the United Kingdom’s Type 26 frigates to meet a requirement as part of a protected navigation system. GAJT protects GPS-based navigation and precise timing receivers from intentional jamming and accidental interference, ensuring that the satellite signals necessary to compute position and time are always available. It is a commercial off-the-shelf product, and comes in versions suitable for land, sea, fixed installations and smaller platforms such as unmanned aerial vehicles (UAVs).

Rolls-Royce Canada also has its latest win on the international stage to highlight at CANSEC.  It has won a contract with BAE Systems for its mission bay handling technology for the UK Royal Navy’s Type 26 frigates. The contract covers the first three ships - the first of which is currently under construction at the BAE Systems Glasgow shipyard, Scotland, according to Rolls-Royce Canada.

Equipment designed for the Royal Canadian Navy has also sparked export orders. Leonardo DRS, Inc. has highlighted that its Canadian subsidiary, DRS Technologies Canada, Ltd., has been awarded a contract by the U.S. Navy to provide four additional Integrated Voice Communications Systems (IVCS) for their Aegis cruisers and destroyers. The award is part of the U.S. Navy’s larger IVCS contract.

The IVCS, also known as the Shipboard Integrated Communications System, or SHINCOM, on board various RCN vessels.

CANSEC exhibitor Raytheon Canada Limited has a new contract to highlight at the trade show. Raytheon Canada is overhauling and providing in-service support for the Phalanx Close-In Weapon Systems operated by the Royal Canadian Navy.   

Raytheon produces Phalanx, a rapid-fire, computer-controlled radar and 20mm gun system that automatically acquires, tracks and destroys enemy threats that have penetrated other ship defense systems. More than 890 systems have been built for navies around the world.

“The Phalanx CIWS is an integral element of the Canadian Navy’s defence,” Terry Manion, RCL vice-president and general manager, said in a statement. “This contract supports modernization work that will keep these systems ready and relevant well into the future.”

Under the $330 million contract by Public Services and Procurement Canada, RCL, working with Raytheon Intelligence, Information and Services, will provide maintenance, fleet technical support, repair and overhaul services on the Phalanx mounts which will ensure the systems are ready to address current and emerging threats.

Work under the contract, valid until late 2037, was announced in late January by Defence Minister Harjit Sajjan. It will be conducted in Raytheon Canada Limited›s Calgary facilities.

The contract will update all 21 Phalanx CIWS and provide engineering services, project management, support and disposal services, as well as the procurement of spares and test equipment.

Pension For Life?

An injured soldier is rushed off the battlefield and onto a CH-146 Griffon helicopter following a firefight in a mock Afghan village during Exercise MAPLE GUARDIAN at CFB Wainright in 2008. Unfortunately, this scenario played out all too often on the real battlefield of Afghanistan. (Cpl Jasper Schwartz, Army News Montreal)

(Volume 25-01)

By Sean Bruyea & Robert Smol

Everything Veterans Wanted to Know About the Liberals’ Pension for Life Plan …
And Should Not Be Afraid to Ask

Changes to the Pension Act resulting from the New Veterans Charter led to a demand for a new benefits plan for injured soldiers. Will the Liberals’ proposed Pension for Life plan bring about the desired reforms needed?

If there is any praise worthy of the Trudeau Liberals, it would be their ever so sharp appreciation and application of political spin, evasion and deception. No doubt should this government’s anaemic feint at implementing life-long pension actually come into effect in 2019 (an election year), they will claim that they had fulfilled their sacred obligation to Canada’s disabled veterans.

But the reality is that this revised pension scheme is a pale reflection and a clear reduction when compared to the lifelong monthly pension Justin Trudeau personally promised. Monetarily, it does not go anywhere near corresponding pension amounts given to those who, ironically, were lucky enough to “take a bullet for Canada” before 2006.

Prime Minister Justin Trudeau speaks with Canadian Armed Forces members participating in Operation LENTUS in Lamèque, New Brunswick on February 3,  2017. As with most election promises, keeping them once in power is always difficult to do. (wo jerry kean, dnd)

As with any “new and improved” marketing campaign, this alleged attempt at bringing back disability pensions for veterans must be aggressively scrutinized, not just for the actual content of the pension plan but also for the manner and circumstances in which it was presented.

Indeed, the manner, time and location of the Liberals’ new pension announcement says much about how the government itself feels about what they are doing to today’s disabled veterans. When the Liberals promised to bring back lifelong pensions, it was done very publicly at the height of the 2015 election.

Disconcertingly, the announcement of the much-anticipated return of these pensions in late December 2017 was made neither in a public venue nor even a Veterans Affairs facility but in a high security, claustrophobic basement room in National Defence Headquarters. Injured military, veterans and family members were not welcome. Nor could Parliament ask questions on the proposals since the Liberals waited until the House rose, making the announcement only days before Christmas. Government clearly was not proud of these proposed programs knowing full well how vulnerable the plan is to scrutiny and criticism.

Before we look at the announced details of the plan, let’s take a look at how military members and veterans are compensated for their injuries.

When Canadian Armed Forces (CAF) members suffer a service-related disability, government has the legal obligation to compensate for both pain and suffering through tax-free amounts as well as taxable compensation for lost income. But let’s be frank, this is no magnanimous gesture of appreciation to our military veterans. Indeed, this legal obligation is no different than court awards or most provincial workplace insurance programs. Simply put, military veterans were historically the first employment group in Canada to be compensated for lifelong injuries.

In September 2010, then MND Peter MacKay and then MVA Jean-Pierre Blackburn announced that the Government of Canada would allocate $52.5 million over five years in additional support to establish a legacy of care for seriously injured Canadian Forces personnel and their families. However, the legislative amendments to deal with shortcomings identified in the New Veterans Charter have yet to be fully ratified. (dnd)

The creation of the 1919 Pension Act after the Great War is widely seen as the origin of this way of recognizing wartime sacrifice on behalf of Canada. In fact, lifelong recognition of pain and suffering as well as compensating for lost income dates back to the War of 1812, when the first comprehensive plan for disabled Canadian veterans was implemented in 1816 and 1817. Government provided lifelong pensions with additional amounts for spouses and children as well as assistance in re-establishing the individual, such as land and farm supplies.

Re-establishment and retraining support was expanded to all returning Second World War and Korean War veterans, whether injured or not. However, CAF veterans after this period did not fare so well. Beyond the oft-ridiculed Second Career Assistance Network (SCAN) seminars, releasing members received absolutely no assistance. Only recently have they started receiving some limited help beyond SCAN. The injured did not receive universal rehabilitation and retraining assistance until the CAF made the Service Income Security Insurance Plans (SISIP) for lost income and rehabilitation mandatory in 1982.

At least all injured CAF members and veterans, under the Pension Act, were eligible for lifelong monthly payments plus amounts for spouses and children.

However, back in 2005, it was the Liberal government under Paul Martin that introduced the legislation eliminating lifelong pensions. At the time, this plan had the full support of the Conservatives, the Bloc Québécois, as well as the NDP. This so-called “New Veterans Charter” replaced the lifelong disability pension with a one-time lump sum payment as part of a hodgepodge repackaging of already existing programs. Persistent complaints under the Harper Conservatives and calls to change these programs were met with bureaucratic stonewalling and political insouciance.

The latest programs announced by the Liberals are to take effect in April 2019 and will bring some changes that can be divided under pain and suffering as well as income loss. Veterans, undergoing retraining or if unable to fully return to work due to their lifelong injury, will continue to receive an income loss paying 90 per cent of their military salary until age 65. They also will continue to receive retraining if able to work.

There is nothing new here. However, positive announcements include raising the minimum income loss to just over $48,000 annually, allowing veterans to receive employment income up to $20,000 annually without penalty, and collecting up to 70 per cent of their military salary, “less offsets,” after age 65.

The positive news ends there. Unlike court awards and most workplace insurance schemes, the new Liberal program for lost income will not fully recognize lost career progression but provides a token one per cent annual increase per year for every year less than 20 years that the veteran served in the military. Considering that current Deputy Minister of Veterans Affairs Walter Natynczyk and Veterans Ombudsman Guy Parent have approximately 40 and 50 years respectively of career progression while collecting full military pensions and top public service salaries without “offsets,” disabled veterans are being grossly short-changed on this one.

Under the category of pain and suffering, an existing taxable allowance for those with severe injuries will be replaced with a lower-paying non-taxable allowance of up to $1,500 monthly. A currently available taxable supplement of $1,100 monthly will be eliminated with no replacement.

Furthermore, under the same category of non-taxable benefits for pain and suffering, injured veterans will have a choice between a lump-sum payment of up to $360,000 and a monthly “Pension for Life” up to a maximum of $1,150 to compensate for their injuries. There are no additional amounts for spouses or children. The average “Pension for Life” likely will be around $200 per month. For the 60,000 veteran recipients still receiving the Pension Act, they are paid an average of $680 per month plus amounts for spouses and children.

For a government aggressively branding itself as gender equal, it is ludicrous that female veterans will receive less each month in pain and suffering payments than males because “sex is a factor of life expectancy.” Imagine corporate Canada or the civil service under our current prime minister paying their female employees less with the justification they will live longer in the job than their male counterparts. If there were to be any discrepancy based on gender, women should be paid more given the hyper-macho culture of harassment and abuse they have long endured.

As for family members, frustratingly, they can only collect income benefits if the disabled veteran dies as a result of the military injury. Lifelong suffering benefits will be paid out only if there is “any residual amount” to be paid to the deceased veteran. Years of sacrifice caring for a veteran living with severe psychological suffering or multiple amputations mean nothing if the veteran dies of a heart attack or car accident. No such restriction exists for the recipients who got coverage under the old Pension Act. Survivor benefits are paid throughout their remaining life at their full, not “residual” amounts.

Certainly veterans will be severely anxious and perplexed by the complexity of the new program and its murky criteria to qualify. But military veterans, and indeed all Canadians, should be beyond furious at the fact that civilian government employees disabled in a flying accident and all RCMP members can continue to apply for the lifelong Pension Act programs, but we veterans, for whom the program was specifically designed in 1919, cannot?

Why the discrimination in favour of other government employees and against those who volunteer to wear the military uniform? This is the question our veteran community needs to ask again and again at every campaign rally and at every town hall between now and the next election.

Indeed, comparisons between Pension Act recipients and this new program is where veterans will likely condemn this new program, and any political party that supports it. If the program is so much better than the Pension Act, why are Pension Act veterans denied access to the new program?

Predictably, government is clearly hoping that the “soldier on” “carry on” “yes Sir” conformity and deference to authority we may have learned in the Forces will somehow manifest itself again in our post-service life. As bureaucrats and politicians bide their time while older generations of veterans die off, is it their intention we lose touch with the better benefits that our fathers’ and grandfathers’ generations received in decades past? Callously, government is counting on their endless rhetoric and accolades to avoid providing the same level of support to differing groups of veterans based upon arbitrary application and release dates.

Many questions will gnaw at the honour and dignity of Canada’s proud veterans. Guy Parent has repeatedly voiced his own empty rhetoric for “one veteran, one standard,” which is also a key commitment in the Liberal mandate letters. The ombudsman’s silence on this new program is not merely deafening, it demonstrates his fear to bite the enriched hands that feed him.

“I won’t go back to the Pension Act of 1919,” said Veterans Affairs Minister Seamus O’Regan in a recent interview with CBC. “It did not meet the needs of our veterans.”

Really?! Of course, like any disability compensation program, there were those who did not get quite what they thought they deserved from the old Pension Act. But the reality is that, before 2006, there was nothing even remotely resembling the widespread anger, desperation, and sense of betrayal seen among disabled veterans in the last decade.

Our men and women in uniform fulfill their debt to serve and sacrifice at a moment’s notice. How can governments perennially string along vulnerable disabled veterans and their families? Politicians of all stripes dance around repaying that debt until the next election campaign begins, claiming there’s not enough money in the federal till. They wait until the public outcry has become unbearable, and then make only token gestures even when tragic veteran suicides blanket the news.

Meanwhile, Canadians know our veterans, disabled or not, should and must not wait until politicians and bureaucrats exhaust their bag of excuses to honour lifelong sacrifice with equitable and dignified lifelong compensation.

FIGHTER JETS COMING: CF-18 Replacement Project Takes Off

Royal Canadian Air Force CF-18 fighter jets taxi on the runway in Kuwait during Operation IMPACT on November 13, 2014. The start of the competition to replace the current fleet of 76 modernized fighter aircraft has officially begun, although a decision on the winning bid will not be announced until at least 2019. (Canadian Forces Combat Camera, DND)

(Volume 25-1)

By David Pugliese

The competition to supply Canada with a new fighter jet is officially on.

Liberal ministers announced the start of the competition on December 12, 2017 and plans are moving forward on the process.

The Liberal government has committed to buying 88 aircraft.

Senior government officials said the finalized solicitation documents will be released beginning in spring 2019 and that these will result in the selection of a permanent replacement fighter aircraft fleet by 2022. The first plane would arrive in 2025.

The new fleet will be continuing in service beyond 2060.

So how will the process unfold?

The Canadian government held what it called a Future Fighter Industry Day on January 22 in Ottawa.

The objective of the event was to present foreign governments and industry with the information required for them to make an informed decision about whether they will participate in the procurement. In addition, the event provided an opportunity for Canadian industry to network with foreign governments and fighter aircraft manufacturers.

The industry day went for four hours and involved 200 participants from foreign governments as well as Canadian and foreign industry, Troy Crosby, Director General, Defence Major Projects Sector for Public Services and Procurement Canada, told Esprit de Corps. “Our objective, and I think it was fairly successful based on the feedback we got, was to ensure the potential suppliers have the information they need,” he said. That information, Crosby noted, will allow participants to “understand what it is this procurement is out to achieve.”

Canada will establish a list of suppliers as a first step in this procurement. The list will be comprised of foreign governments and fighter aircraft manufacturers that have demonstrated their ability to meet Canada’s needs, according to the federal government. Responses from those who want to be on the suppliers’ list have to be submitted by February 9.

Once the list is formalized, only suppliers on the list will be invited to “subsequent engagement activities and to submit proposals for this procurement,” the Canadian government has noted.

Proposals will be rigorously assessed on elements of cost, technical requirements and economic benefits.

At the same time, the ministers also announced a change to the standard procurement process. The new provision appears aimed directly at Boeing, which complained to the Trump administration that its Quebec-based competitor Bombardier was receiving unfair government subsidies on the production of its C-Series civilian passenger aircraft. The U.S. ruled in favour of Boeing, resulting in Bombardier facing duties of almost 300 per cent on sales of its C-Series planes in America.

The Liberal government retaliated against Boeing’s complaint by cancelling plans to buy 18 of the company’s Super Hornet fighter jets at a cost of around $6 billion.

And as part of the competition for the new fighter jets, Canada will assess a company’s “economic behaviour” in previous years — a provision that effectively serves notice to Boeing that it will be at a disadvantage in competing for the new program as long as the U.S. duties against Bombardier stand.

The provision was immediately dubbed by the news media as the “Boeing clause.”

Navdeep Bains, the Minister of Innovation, Science and Economic Development, said at the news conference to announce the competition that any company is welcome in the process. But the new policy is designed to protect the Canadian economy and key sectors such as aerospace, he added. “If they (a company) cause economic harm they will be at a distinct disadvantage,” Bains said.

Bains and Defence Minister Harjit Sajjan said Canada was looking for a “trusted partner” to provide it with new fighter jets. In the ongoing battle with Boeing, cabinet ministers continued to state that Boeing was no longer a trusted partner.

But procurement minister Carla Qualtrough left the door open for Boeing to change its stance. She said that the evaluation of bids will be done in several years and the provision will be enforced based on a company’s situation at that time. That allows Boeing a chance to drop its complaint against Bombardier, government officials privately noted.

But is the so-called Boeing clause even legal? Public Services and Procurement Canada received a legal analysis about this potentially controversial policy and Qualtrough indicated she was confident the clause could stand any test. Although she said that there are no guarantees Canada would not be sued, Qualtrough added, “We are confident this policy is appropriate.”

The policy would be applied to all future procurements, she added.

What was missing from the news conference was an explanation and proposed criteria on how the federal government would determine whether a company has harmed Canada’s economy.

Boeing officials have repeatedly pointed out that the company is a trusted partner to Canada as it employs thousands of people in the country and has been a presence in the domestic aerospace market for decades. Boeing would also be able to point to its operations in Canada and how it has successfully met all offset requirements from previous defence contracts.

So, which firms are expected to be interested in the new fighter procurement? The list is the same as it has been for the last ten years, when the Conservative government looked at replacing the CF-188 Hornet fleet. The potential contenders include:

LOCKHEED MARTIN F-35

Lockheed Martin has in the past not only highlighted the advanced fifth generation capabilities and stealth technology of its F-35 but it has been promoting the fact that the aircraft is now operational. It expects the cost to come down as more aircraft are produced for Canada’s allies. In addition, Canadian industrial participation in the F-35 program has reached $1 billion (..) as more than 110 Canadian firms have landed contracts related to the aircraft program. That will be key for Lockheed Martin to highlight to Canadian government officials.

Interoperability with Canada’s allies is also a key factor since many will be operating the F-35 far into the future.

To address concerns about the plane’s ability to operate in the Arctic, Lockheed Martin officials point out that F-35 customers – the U.S., Denmark and Norway – will all be using the aircraft in Arctic operations.

BOEING SUPER HORNET

Boeing officials have pointed out their aircraft is combat proven, less expensive than the F-35 and will be operating for more than another 20 years. They have also highlighted the fact that its two engines provide added safety for Arctic flights.

The jet has its landing gear designed to take the pounding of short landings on aircraft carriers, a design that works nicely with the forward operating locations in Canada’s Arctic, company officials have noted in the past.

Another feature is that the Super Hornet can act as a refueller for other Super Hornets, extending its range significantly.

With the so-called “Boeing clause” as part of the selection criteria expect the company to highlight the work Canadian firms do on a variety of its aircraft. In all, some 2,000 Canadians are employed by Boeing.

In addition, since the RCAF already operates the CF-18 Hornet, there should be a smooth training transition for the Super Hornet. The aircraft can also make use of Canada’s existing infrastructure.

SAAB GRIPEN

Saab’s Gripen is known for its reasonable acquisition price tag and its low maintenance costs.

The aircraft has a proven track record in a cold weather environment and is compatible with weapon systems used by Canada.

In addition, the aircraft is designed to take off from short runways and can be outfitted with Link 16 for communications with NATO and U.S. allies.

In the past, Saab has indicated its willingness to assemble aircraft in Canada if that is something Canada’s government is interested in having done. In its recent deal with Brazil, Saab showed a flexibility to work with domestic firms. Brazil’s government selected the Gripen NG over the Dassault Rafale and Boeing Super Hornet.

EUROFIGHTER TYPHOON

The consortium promoting the Eurofighter Typhoon has pointed out that the aircraft is less expensive than the F-35. Any purchase by Canada could also include technology sharing and final assembly in Canada. The combat-tested aircraft is also compatible with U.S.-made weapons that are used by Canada.

The Typhoon has both the speed and the range for Canada, Eurofighter test pilot Christian Worning has told Canadian parliamentarians.

The Eurofighter consortium can also promote the fact that the aircraft has two engines, providing it with added safety while flying on Arctic operations.

DASSAULT RAFALE

Dassault, as part of its previous sales pitch to Canada, promised to transfer fighter jet technology/intellectual property to Canada. The aircraft has two engines and has been combat tested in Libya and Mali. Dassault has noted that the aircraft — or parts of it — could also be assembled in Canada.

NSS Report Card

With the Resolve-class MV Asterix preparing to enter service in 2018 followed by the first arctic offshore patrol vessel (AOPV) —
HMCS Harry DeWolf — a new dawn is about to break on the Royal Canadian Navy. (Corporal J.W.S. Houck, Formation Imaging Services)

(Volume 24-11)

By David Pugliese

After years of delays there is now some solid movement on the National Shipbuilding Procurement Strategy (NSPS).

The initiative, now referred to by the federal government as the National Shipbuilding Strategy or NSS, is the largest maritime building program since the Second World War and represents a massive amount of work for potentially large numbers of Canadian companies.

Irving Shipbuilding has been selected by the government to construct 21 combat vessels under the NSS, while Seaspan will build the non-combat vessel work package of 7 vessels in total.

The first-ever large vessel designed and built under the NSS — one of the Canadian Coast Guard’s Offshore Fisheries Science Vessels (OFSVs) — is expected to be launched in December by Seaspan’s Vancouver Shipyard. That ship is the Sir John Franklin.

An event to celebrate the launch will be held December 8, noted Tim Page, vice president of government relations for Seaspan Shipyards. A second as-yet-unnamed OFSV will be launched in April 2018 and the final one in November of that same year.

The Canadian Surface Combatant (CSC) project, also part of NSS, is moving forward, although arguably slower than first expected.

Under the National Shipbuilding Strategy, Seaspan Shipyards will build up to 17 ships for the CCG and RCN. This package of non-combat ships includes the three Offshore Fisheries Science Vessels that are currently under construction at the company’s Vancouver Shipyards. (seaspan)

Bids for the ships, which will be eventually constructed at Irving Shipbuilding Inc. in Halifax, were submitted on November 30. The CSC is the largest, most complex procurement undertaken by the government, according to Public Services and Procurement Canada.

Bidding and construction have been delayed a number of times so far. At one point, construction of the vessels was supposed to start in 2018 but that milestone now seems to be a distant thought.

The ships being built will form the backbone of the Royal Canadian Navy. Fifteen are to be constructed.

Lisa Campbell, Assistant Deputy Minister for Defence and Marine Procurement at Public Services and Procurement Canada, said bids will be evaluated in early 2018 and the winner is to be determined later that year. Construction of vessels is expected to begin in the early 2020s, she added.

The cost of the program is almost $62-billion, according to a study released in June by the Parliamentary Budget Officer.

There is also work being done on the Joint Support Ship or JSS, another vessel to be built under NSS.

Seaspan is buying long-lead items for JSS as it prepares for the construction of the vessels. “We’re using a supply base that is as Canadian as it can be so the ship can be efficiently maintained over its lifecycle,” said Brian Carter, president of Seaspan Shipyards. “As we buy new pieces of equipment those are reflected in the design and detail. That is a large part of the effort.”

Canada selected the German Navy’s Berlin-class design for the JSS fleet.

Carter noted there are currently 1,200 employees at Vancouver Shipyards, where the non-combat vessels are being constructed. But he said that number would increase by another 300 once construction of the JSS fleet is underway.

In the meantime, there are about 200 Seaspan staff dedicated to the JSS program at this point.

The Department of National Defence has noted there has been a slight slippage in the delivery of the ships. In the 2014–2015 Departmental Performance Report, the target date for first delivery of the Joint Support Ships was in the last quarter of 2020.

As a result of challenges associated with completing the detailed design and organizing the entire supply chain, the JSS first delivery date slipped by a number of months to early 2021, DND has pointed out.

At the same time, the union representing workers at the Seaspan Shipyards is warning that some of those employees could be facing layoffs because of downtime in the federal government’s shipbuilding program.

There is expected to be a gap between the end of construction of the third and fourth federal government vessels.

Seaspan’s Page said the company is trying to drum up new work from the federal government and other commercial sources to deal with the gap.

“We do anticipate a production gap and while clearly not welcome, swings in a shipyard’s workforce is not unusual around the world,” Page explained. “We’re doing everything we can to mitigate that gap through work that we’re competitively and aggressively competing for in both the commercial and the government environments.”

At Irving, besides dealing with the bids on the Canadian Surface Combatant project, the company is preparing the first Arctic Offshore Patrol Ship (AOPS) for launch. That is expected to come sometime in 2018.

In mid-October the MV Asterix, a containership that was converted into an auxiliary oiler replenishment (AOR) ship by Davie Shipbuilding — was launched. The vessel, which will be leased by the Royal Canadian Navy, began its sea trials on November 16, 2017. Overseen by Lloyds Register, the trials will test the ship’s safety, quality, systems and functionality against the high military standards and specifications it was built to. (davie)

But Irving has also been dealing with growing anger in some quarters over its use of foreign workers on the NSS.

In February, news reports detailed how the union representing shipyard workers was upset that Irving was hiring outside of Canada for various positions. There was recruitment in Poland as well as a subcontract Irving had with the Spanish firm Gabadi LC, which involved Spanish carpenters being brought in to work on the AOPS in Halifax.

Irving responded that specific shipbuilding expertise did not exist in Canada and, under special circumstances, skilled workers had to be sought internationally. Union officials responded that they found it difficult to believe that no one in Canada could fill the needed positions on AOPS.

On October 20 the Halifax Chronicle Herald published a new article about union complaints that 27 ironworkers had been hired from Lithuania and Romania for NSS. Unifor Marine Workers Federation Local 1, which represents employees at the company’s Halifax shipyards, told the newspaper that Irving had not provided proper justification for the hiring of the foreign workers.

The issue is a thorny one since one of the main goals of the NSS is the creation of long-term shipbuilding jobs in Canada.

On the sidelines of the NSS, but very much having an effect on the strategy, is the interim auxiliary oiler replenishment (AOR) ship that has been built by Davie shipyards for the Royal Canadian Navy. MV Asterix was unveiled on July 20 and will soon be ready for RCN operations.

The $670-million project will provide the RCN for the first time since 2015 with its own capability to refuel and resupply its warships at sea. Since the retirement of its own aging resupply vessels (HMC Ships Protecteur and Preserver), Canada has leased the services of Chilean and Spanish navy supply ships at various times.

MV Asterix, known as a Resolve-class naval support ship, will be the largest naval platform in service with the RCN for the foreseeable future and will provide a wide range of functions from at-sea replenishment of fuels and cargo to aviation support, fleet medical support, and humanitarian and disaster relief, Davie officials point out. The project involved the conversion of a modern, European-built containership into an auxiliary oiler replenishment ship, a process that was accomplished in about 18 months.

The ship is expected to be deployed as early as the spring of 2018 to support RCN missions in the Pacific Ocean. In a November 4 editorial, the National Post newspaper called the project “a military procurement triumph.”

In 2011, when Irving and Seaspan were selected under the shipbuilding strategy to construct new federal government fleets, Davie was in financial trouble. But the firm is now back on its feet and wants a share of the action in federal shipbuilding.

Davie is looking for additional similar work and has proposed to convert another commercial ship as an RCN supply vessel, as well as provide an icebreaker and a humanitarian support ship. Such initiatives are seen by federal bureaucrats as a threat to NSS, but Davie argues that isn’t the case. In addition, the federal government has put out requests for information about smaller icebreakers. Davie has those vessels already to go, according to a Davie representative.

The company also has political support from some federal Quebec MPs and the Quebec government. On November 8, members of the National Assembly of Quebec unanimously passed a motion calling on the Trudeau government to amend what it was calling the faltering National Shipbuilding Strategy to include Quebec. Such a move would save 1,200 middle-class shipbuilding jobs, according to the politicians.

Not surprisingly, officials at Davie greeted the support with thanks. “The federal government is going to invest almost $100-billion over the next 20 to 30 years on its fleet renewal,” Alex Vicefield, chairman of Davie Shipbuilding, explained in a statement. “Quebec represents 50 per cent of Canada’s shipbuilding capacity and 23 per cent of Canada’s tax base, yet it is receiving less than one per cent of federal spending on shipbuilding.”

Vicefield said Quebec is at risk of losing a significant number of middle-class jobs due to what he called “bureaucratic intransigence and roadblocks within a broken procurement system, despite the clear and obvious need for Canada to urgently renew the entirety of its fleet.”

He noted that the federal government has acknowledged that its ship fleet is rusting out faster than it can be replaced. Davie argued that the National Shipbuilding Strategy is costing taxpayers too much and is slow to produce vessels.

Vicefield argues the shipbuilding strategy only covers a certain number and types of ships that would be built by Irving and Seaspan. But there are many more vessels that need to be constructed and that Davie should be given a chance to bid on those, company officials argue.

Sources close to Davie say the Quebec government and unions are trying to mobilize Quebec Liberal MPs to put pressure on their government to change the shipbuilding strategy.

But whether the Liberal government alters NSS to deal with concerns from Quebec and Davie remains to be seen.

TRAINING FOR THE FUTURE RCAF

One of Leonardo’s newest pilot trainer, the M-345, is being marketed to Canada and other Allied nations as a replacement aircraft for primary flight training. Italy is expected to purchase 45 M-345s to use in both a training role and for Frecce Tricolori, Italy’s aerobatic team. Could it also be a replacement for the Snowbirds’ CT-114 Tutor? (Leonardo)

(Volume 24-10)

By David Pugliese

It has become the modern trend to increase the cost effectiveness of aircrew training through simulation — and the outsourcing of training flights to private contractors. David Pugliese examines what is in store for the next generation of RCAF pilots.

The Royal Canadian Air Force’s future air training needs promises billions of dollars of work for aerospace firms. RCAF leaders have pointed to the need to acquire everything from new simulators to new aircraft for pilot training.

The RCAF future simulation strategy has outlined the need to purchase simulators for the service’s CC-177 Globemaster III and CC-150 Polaris transport aircraft and CH-149 search and rescue helicopters. Those acquisitions would eliminate the need for the service to send personnel overseas for such pilot training, according to RCAF officers.

The full cost of implementing the simulation strategy is estimated at $544-million, with the potential for $2-billion in savings over the coming years.

In 2015, Canada’s military also started work on a multibillion-dollar program designed to train its future pilots.

Industry representatives have been asked for feedback on the Future Pilot Training (FPT) project, expected to be worth at least $4-billion. The project will be put in place over the next five years and is expected to cover a 20-year period.

In the meantime, the Canadian government has extended CAE’s existing contract for the NATO Flying Training in Canada Program through at least 2023 while the RCAF sorts out its training needs.

Military officers eventually hope to combine two existing programs, including the NATO Flying Training in Canada Program, which deals with advanced and lead-in fighter training. Besides training RCAF pilots, the program is open to other NATO and allied nations. Past participants have included aviators from Denmark, the United Kingdom, Singapore, Italy, Hungary, Austria, Saudi Arabia and the United Arab Emirates.

In 2027, a program dubbed Contracted Flying Training and Support, which will provide the Canadian Forces with primary flight training and specialized helicopter and multi-engine, fixed-wing pilot training, also will be brought under the FPT umbrella. Numerous firms are expected to be interested in the potential work.

For instance, Leonardo has already started marketing the Aermacchi M-345 jet as a solution for the whole range of the RCAF’s training needs. The Italian Air Force has already ordered a first batch of five M-345 aircraft, which Leonardo describes as having costs comparable to those of a high-power turboprop aircraft but with a higher performance level. The first delivery of the planes for the Italian Air Force is expected by 2019.

The engine is a turbofan Williams FJ44-4M-34 for military and aerobatic use, according to the company. The cockpit is equipped with HOTAS (hands on throttle-and-stick) commands, digital displays with three-colour touch screen MFD (multi-function display) and a head-up display (HUD), which in the rear seat is replaced by a display repeater of images of the front HUD.

Life cycle cost reduction is driven by long fatigue life and two-level maintenance, Leonardo added.

Italy is expected to purchase 45 M-345s to replace the Aermacchi MB-339. The aircraft would be used in both a training role and for Frecce Tricolori, Italy’s aerobatic team.

The M-345 training system Leonardo is marketing includes a complete ground-based training system comprised of e-learning and computer-based training components as well as an operational flight trainer, with a 180° wide-screen display and a life-like cockpit where the student pilots can use the same controls they will find on the actual aircraft. (leonardo)

That last role could set the aircraft up as a potential replacement for the Snowbirds’ CT-114 Tutor aircraft.

While the purchase of new training aircraft for the RCAF might still be some ways off, the awarding of another training contract is expected shortly.

The winner of the $1.5-billion Contracted Airborne Training (CATS) contract was supposed to be selected in December 2016, but it has been delayed somewhat by shortages of procurement specialists in the federal government.

Discovery Air Defence from Montreal has been providing such services for the Canadian military since 2005. It has also expanded in operations internationally and was recently hired to provide similar services to Germany.

Discovery Air is up against CAE, which has allied itself with Draken, a U.S. firm.

Public Services and Procurement Canada official Nicholas Boucher said the plan is to still award the contract sometime in the “fall of 2017” although no specific date has been provided.

The existing bids, however, are valid until October 31, 2017. As of press time, Boucher told Esprit de Corps that “a bid validity extension has not been requested,” meaning that it is expected a winner will have been selected by the end of October.

CATS will provide aircraft to the Canadian Forces to simulate hostile threats for ground and naval forces as well as fighter pilots. The winning firm also provides aircraft to tow targets and carry electronic warfare systems for various training scenarios, according to the information supplied by Public Services and Procurement Canada.

CATS will run over an initial 10-year period, followed by the option to continue for another five years. The winning bidder is required not only to provide planes and pilots but also maintenance crews and engineering support. The Canadian government estimates that aircraft operated by the winning bidder will have to fly between 2,500 and 3,500 hours a year.

The majority of services will be provided in Victoria, B.C.; Cold Lake, Alberta; Bagotville, Quebec; and Halifax, Nova Scotia. Other training flights could take place outside Canada, including in the U.S. and Mexico.

Discovery Air has taken its skills developed on the Canadian program and is now applying them to other programs in foreign countries.

It has teamed with Leonardo and Inzpire Ltd. to develop and deliver what the firms are calling a customer-centred, low-risk, live air training solution for the UK Ministry of Defence’s Air Support to Defence Operational Training (ASDOT) Program. The companies will combine their capabilities, expertise and experience in live air aggressor training, air warfare training, electronic warfare, and airborne systems integration to deliver a highly capable and scalable solution to support ASDOT’s live fly tactical training needs through the mid-2030s, the firms noted in a statement. This support would be for RAF Typhoon and F-35 Lightning II aircraft.

Discovery Air had an earlier alliance with Inzpire but it has been expanded to include Leonardo, the firms noted in a September 12 announcement.

With extensive experience in working with the RAF on their Typhoon and Tornado aircraft, providing advanced technology, training, services and support, Discovery Air noted that Leonardo is well placed to understand the end user requirements for ASDOT and offer the best mix of simulation, networked and integrated training capabilities to train British combat jet pilots in the most effective and efficient way possible.