Canadian Army trains with Allied Forces in Romania during Exercise SABER GUARDIAN

DND Press Release:

Starting today until August 7, approximately 45 Canadian Army soldiers will be participating in Exercise SABER GUARDIAN 2016, a U.S.-led joint, multinational, regional exercise, in Cincu, Romania. In support of allied and partner nations, more than 2,500 soldiers from 11 countries will partake in the exercise designed to improve interoperability within a multinational brigade. The Canadian Army welcomes opportunities to train regularly with its closest allies to enhance cooperation and expand interoperability between forces.

Exercise SABER GUARDIAN 2016 will feature a computer-simulated exercise combined with a field training portion, leading up to a joint live-fire event. The Canadian Army will be taking a leadership role in the exercise, with key personnel overseeing combat support planning, as well as information and knowledge management processes.

Participation in SABER GUARDIAN contributes to the operational readiness of the Canadian Armed Forces, allowing the CAF to meet the likely tasks that the Government of Canada will assign.

“Canada will continue to prioritize building defence capabilities and nurturing partnerships in Central and Eastern Europe. Our participation in Exercise SABER GUARDIAN enables us to support our allies and help strengthen the resiliency of the region.”Harjit S. Sajjan, Defence Minister

Exercise SABER GUARDIAN 2016 is an opportunity for the Canadian Army to further strengthen its relationship with both its American counterparts and NATO regional partners. This type of training supports the Canadian Army’s broader engagement strategy for the European continent.
The Canadian Army contingent participating in Exercise SABER GUARDIAN includes approximately 45 infantry soldiers from the Operation REASSURANCE Land Task Force currently based in Poland, as well as personnel from 5th Canadian Division in Atlantic Canada. The Canadian platoon will be integrated within a Romanian battalion.

Exercise SABER GUARDIAN is an annual, multinational exercise that rotates between locations in Romania, Bulgaria, and Ukraine.

Canadian and Polish Armed Forces members take a knee after exiting a helicopter during a fast rope exercise at Nowa Dęba Training Center in Nowa Dęba, Poland, on December 4, 2015, during Operation REASSURANCE. Photo: Corporal Nathan Moulton, Land Task Force Imagery, OP REASSURANCE

Ottawa faces revolt among ship designers over intellectual property demand

By: Murray Brewster, CBC News

A key behind-the-scenes battle, which could affect the future of the Trudeau government's multi-billion dollar frigate replacement program for decades, has been fought this week in the backrooms of Ottawa.

It relates to an overarching demand by National Defence and Public Services for ship designers to hand over virtually all their intellectual property data for the complex combat systems that would be installed on the warships.

A copy of the draft request for proposals, obtained by CBC News, shows the federal government is asking companies competing to design Canada's next generation of warships for all their foreground and background data.

Related:

Liberals noncommittal on number of frigates
Canadians won't see price tag until 2019
Warship designers, government huddle

The government will be the owner the information — including critical software coding — but will license it to Irving Shipbuilding, the prime contractor on the project.

An expert in defence procurement calls it an outrageous blunder by the former Conservative government that the Liberals urgently need to correct.

"The bureaucrats that have proposed this have gotten themselves in a bind here, and no minister should tolerate this," said Alan Williams, who used to be procurement boss at National Defence.

A series of closed-door meetings took place this week involving federal officials, Irving representatives and ship designers who want to bid on the Canadian Surface Combatant program, which is expected to cost $30 billion or more.

Among the companies in line to provide an off-the-shelf design include British-based BAE Systems Inc.; DCNS, the French warship-maker; and U.S. defence giant Lockheed Martin.
High stakes for taxpayers

The intellectual property issue is "huge," according to several government and industry sources who spoke to CBC News on background because they were not authorized to discuss the matter publicly.

The data is crucial not only for ship construction, but for the lucrative long-term maintenance contracts that will follow.

If the government doesn't get the negotiation just right, it could cost taxpayers untold hundreds of millions of dollars down the road in licencing fees, and even restrict the military's ability to update and use its own equipment.
'They might say: It's not worth it; I'm just not going to bid.'— Alan Williams, former DND procurement director

Williams said the growing disagreement could see a significant number of designers and combat systems companies bow out of the competition even before the government issues a request for proposals.

That tender call could come in late August or early September, according to sources who have knowledge of the file.

"They might say: 'It's not worth it; I'm just not going to bid,'" said Williams. "Every company is going through this soul-searching exercise, asking themselves, 'How badly do we want this? And how much of our business are we willing to compromise in order to get it?'"
Who gets access to data?

The fear among bidders is not necessarily what Irving might do with data as much as who among the shipyard's partners and consultants — including the U.S. naval warship architecture firm Gibbs & Cox — will have access to the licenced information.

Irving Shipbuilding has negotiated a 25-year property deal with Halifax concerning the new property where Canadian navy ships will be built. (Paul Palmeter/CBC)

In a statement, Irving Shipbuilding said it was committed to safeguarding the data.

"For the CSC program, discussions with Canada have only contemplated that any long-term IP rights will flow to Canada, with Irving Shipbuilding having a right to use CSC IP to the extent required to satisfy its CSC design and build contracts," said spokesman Sean Lewis.

"There has been nothing discussed that would put Irving Shipbuilding at an unfair advantage or unique position during the operational life of the ships."
Liberal commitment to technology

For a Liberal government committed to innovation and growing the economy, the intellectual property issue playing out this summer is not inconsequential.

The government has been under enormous pressure for the frigate replacement program to deliver technology transfers for Canadian companies.

Some defence industry sources say the issue is not so much about Irving's management of the information, but more about how the federal government is asking for too much data from the bidders.

Williams says federal lawyers assigned to the file should be more sophisticated and that the issue is being handled in an amateur fashion.

It also, in his estimation, speaks to the pitfalls of the Conservative government's decision to name Irving as the prime contractor.

"This kind of nonsensical situation could have been easily foreseen," he said.

Recent published reports have raised separate concerns about how much sway Irving Shipbuilding has in the process.

Companies wanting to bid on the frigate replacement program have been told that, if they win, they can't lobby the federal government without written approval from the East Coast shipyard.

Liberals pay $33 million to stay in F-35 program

By: Lee Berthiaume, The Canadian Press

OTTAWA — Canada has so far forked over more than $311 million to develop the F-35 — without any guarantee it will actually buy the multibillion-dollar stealth fighter.

The most recent instalment was made June 24, when the Liberal government quietly paid $32.9 million to the U.S. program office overseeing development of the warplane, despite having promised during last year's election campaign not to buy the F-35.

The contribution keeps Canada at the table as one of the nine partners in the project for the next year. Partners get a discount when purchasing the stealth fighter, and have access to billions of dollars in contracts associated with producing the plane.

Those potential industrial benefits are a big part of the reason why Canada continues to pay into the program, said Jordan Owens, a spokeswoman for Defence Minister Harjit Sajjan. The government says Canadian companies have secured US$812 million in contracts since Canada's first F-35 payment in 1997.

"New skills and technologies gained through access to the program have helped position Canadian industry to take advantage of other advanced aerospace and defence projects," Owens added in an email.

Being a partner, however, does not guarantee future work.

U.S. defence giant Lockheed Martin, which makes the F-35, warned last month that future work would be directed to other countries if Canada chooses not to buy the stealth fighter.

Remaining at the table makes sense if there is a chance Canada will buy the plane, said former Defence Department procurement chief Alan Williams.

"But if they've already made up their mind that they're going to buy something else, then it's a waste of money."

During the campaign, the Liberals promised not to buy the F-35 and to hold a competition to replace the existing fleet of aging CF-18 fighters. Experts say that has put the government in a bind, since there's a real chance the fighter would come out on top in an open and fair competition.

The government recently launched consultations with jet fighter manufacturers to address what Sajjan has described as a shortage of available CF-18s. But some worry the consultations are more about giving the Liberals political cover to buy a plane other than the F-35 without holding a competition.

Owens said no decisions have been made in replacing the CF-18s. The five companies involved in the consultations are to submit details about their aircraft by Friday.

Canadian troops headed to Alaska for Exercise Arctic Anvil

By: David Pugliese, Defence Watch

Over 100 members from the 1st Battalion, Princess Patricia’s Canadian Light Infantry will take part in Exercise ARCTIC ANVIL at Fort Greely and Fort Wainwright training areas in Alaska, from July 23 to August 3, the Canadian Army says.

Exercise ARCTIC ANVIL is a joint, multi-national effort and will consist of live-fire and force-on-force training.

More details from the Army:

As of July 2016, 1 Canadian Mechanized Brigade Group (1 CMBG) has been the Canadian Army’s High Readiness Brigade, and is ready to respond to emergencies and situations as directed by the Government of Canada.

Exercise ARCTIC ANVIL will prepare and confirm the U.S. 1st Stryker Brigade Combat Team for its rotation at the National Training Center at Fort Irwin, California, in early 2017, where they will focus on finalizing readiness capabilities. This exercise will include approximately 8,000 participants from U.S. Army Alaska, Alaska National Guard, Iowa National Guard, and the U.S. Air Force.

Canada Requests for information from Boeing, Lockheed-Martin, Saab, Dassault and Eurofighter in CF-18 Replacement

By: DefenseWorld.Net

Canada has issued a request for information to Boeing, Lockheed-Martin, Saab, Dassault and Eurofighter earlier this month seeking information by the end of July in order to design an acquisition process to replace Ottawa’s CF-18 fighters.

Amidst reports that Lockheed Martin’s F-18 stands at an advantage in Canada’s fighter aircraft competition, the Canadian MoD has issued a document stating “all procurement options are being considered,” Defence Minister Harjit Sajjan was quoted as saying by the globe and mail earlier this month.

The Department of National Defence predicts that its fleet of CF-18s will be able to fly into the next decade, even as Defence Minister Harjit Sajjan ramps up his calls for an urgent purchase of new fighter jets to ward off an eventual “capability loss.”

“Some aircraft could begin to be retired beginning in 2023. Over all, the Canadian Armed Forces are working to “extend the fleet to 2025” as part of a series of upgrades,” said a document provided at the start of this month to the five aircraft manufacturers in the race to offer new fighter jets.

He added that the Canadian Forces have adopted a risk-management strategy to deal with the scarcity of available aircraft, and he wants to put an end to the practice. Because of maintenance issues, he said, only about half the fleet of 77 fighter jets is available at any given time.

Conservative MP James Bezan said the government seems to be looking for a way to fulfill its promise to buy an aircraft other than the F-35.

“This is about setting the narrative to go to a sole-source [acquisition of Super Hornets],” he said.

Bezan said the government could simply launch an open competition and quickly obtain the best product for the Canadian Forces at the best price for taxpayers.

“There’s no question that planes are available,” he said, explaining that both Super Hornets and F-35s are currently in production. “They can go through this very methodically and still come to the right decision, rather than try to rig the process.”

Asked to expand on the capability gap, Sajjan’s office said the 2023 timeline for the retirement of the first aircraft “doesn’t take into consideration any of the issues that could come up with our fleet,” such as crashes, being used for parts, or other commitments for deployment to NATO or peacekeeping missions that would add flying hours.

The government sent a 38-page questionnaire last week to five aircraft manufacturers that are in the running to replace the CF-18s.

The acquisition process will be unveiled as early as September. The questions include acquisition and life-cycle costs, current and planned production numbers, and potential industrial and technological benefits for Canada.

Canada has issued a request for information to Boeing, Lockheed-Martin, Saab, Dassault and Eurofighter earlier this month seeking information by the end of July in order to design an acquisition process to replace Ottawa’s CF-18 fighters.

Amidst reports that Lockheed Martin’s F-18 stands at an advantage in Canada’s fighter aircraft competition, the Canadian MoD has issued a document stating “all procurement options are being considered,” Defence Minister Harjit Sajjan was quoted as saying by the globe and mail earlier this month.

The Department of National Defence predicts that its fleet of CF-18s will be able to fly into the next decade, even as Defence Minister Harjit Sajjan ramps up his calls for an urgent purchase of new fighter jets to ward off an eventual “capability loss.”

“Some aircraft could begin to be retired beginning in 2023. Over all, the Canadian Armed Forces are working to “extend the fleet to 2025” as part of a series of upgrades,” said a document provided at the start of this month to the five aircraft manufacturers in the race to offer new fighter jets.

He added that the Canadian Forces have adopted a risk-management strategy to deal with the scarcity of available aircraft, and he wants to put an end to the practice. Because of maintenance issues, he said, only about half the fleet of 77 fighter jets is available at any given time.

Conservative MP James Bezan said the government seems to be looking for a way to fulfill its promise to buy an aircraft other than the F-35. “This is about setting the narrative to go to a sole-source [acquisition of Super Hornets],” he said.

Bezan said the government could simply launch an open competition and quickly obtain the best product for the Canadian Forces at the best price for taxpayers.

“There’s no question that planes are available,” he said, explaining that both Super Hornets and F-35s are currently in production. “They can go through this very methodically and still come to the right decision, rather than try to rig the process.”

Asked to expand on the capability gap, Mr. Sajjan’s office said the 2023 timeline for the retirement of the first aircraft “doesn’t take into consideration any of the issues that could come up with our fleet,” such as crashes, being used for parts, or other commitments for deployment to NATO or peacekeeping missions that would add flying hours.

The government sent a 38-page questionnaire last week to five aircraft manufacturers that are in the running to replace the CF-18s.

The acquisition process will be unveiled as early as September. The questions include acquisition and life-cycle costs, current and planned production numbers, and potential industrial and technological benefits for Canada.