Alion Canada Sues Over Failed Canadian Surface Combatant Bid

By: Andrea Gunn, The Chronicle Herald
Alion Canada, one of the firms involved in the $60-billion dollar procurement of Canada’s new fleet of warships, has launched a Federal Court appeal to overturn a recent decision to select Lockheed Martin as the preferred bidder.

According to an application for judicial review filed in Ottawa on Friday, Alion Canada, a Nova Scotia-based wholly owned subsidiary of the U.S. parent company, is asking the court to prohibit the federal government and Irving Shipbuilding from entering into a contract with Lockheed Martin Canada on the grounds that Lockheed’s bid was non-compliant.

Last month, Public Services and Procurement Canada announced that after a lengthy, and sensitive competition, Lockheed Martin Canada was selected as the preferred bidder to design replacements for the navy’s frigate and destroyer fleets, beating out two other bids: Alion Canada, which offered up Dutch De Zeven Provinciën Class air defence and command frigate, and Navantia/SAAB’s design based on the F-105 anti-submarine frigate design for the Spanish navy.

But now Alion is alleging that the BAE Systems Type 26 Global Combat Ship design offered by Lockheed, which is currently also being constructed for the U.K. and Australian navies, is incapable of meeting three critical and mandatory requirements of the request for proposals that the firms crafted their bids around: two requirements concern the vessels’ speed, and one deals with the number of crew berths.

An artist's rendering of the Type 26 Global Combat Ship, Lockheed Martin's proposed design for Canada's $60-billion fleet of new warships. - BAE Systems Inc. / Lockheed Martin Canada

But now Alion is alleging that the BAE Systems Type 26 Global Combat Ship design offered by Lockheed, which is currently also being constructed for the U.K. and Australian navies, is incapable of meeting three critical and mandatory requirements of the request for proposals that the firms crafted their bids around: two requirements concern the vessels’ speed, and one deals with the number of crew berths.

“The RFP required (Public Services and Procurement Canada) and Irving to reject Lockheed’s bid because of its non-compliance,” the application reads.

Instead, the document says, the federal government and Halifax-based Irving Shipbuilding announced Lockheed as the preferred bidder and has entered into the conditions precedent period. This is the step immediately prior to awarding the definition subcontract between Irving, the prime contractor and shipbuilder, and Lockheed, the warship designer.

“(Alion) submitted a fully-compliant and conforming bid, at enormous expense, (and) expected that their bid, and the entire procurement process, would be administered in accordance with the terms and conditions in the RFP,” Alion says in the document.

“This was not the case and the applicants have been denied the fair treatment they were owed.”

As such, Alion is asking a federal court to set aside the decision to select Lockheed as the preferred bidder, and to prohibit the government from issuing the necessary approvals to award the Canadian Surface Combatant definition subcontract to Lockheed.

The respondents named in Alion’s application include Irving Shipbuilding, Lockheed Martin Canada, Navantia, SAAB Australia, and the Attorney General of Canada.

Alion’s legal actions come after months of rumblings and speculation from industry about bid-rigging: that the Type 26 was always the preferred ship of the Royal Canadian Navy, and that a number of amendments were made to the RFP to tailor it to Lockheed’s bid. These concerns centred around changes to the RFP that allowed Lockheed to offer a “paper” design that had not yet been in the water, even though Ottawa announced it was streamlining the National Shipbuilding Strategy back in 2016, axing plans for a fully Canadian designed ship and opting instead for a proven, off-the-shelf design to cut costs and mitigate risks.

The amendments, 88 in total, are referenced in Alion’s federal court application.

“While the RFP originally set out a requirement for a relatively mature and proven vessel platform, the amendments to the RFP effectively diluted the requirements and resulted in (PSPC) and Irving being able to accept an increasingly unproven vessel platform, like the one offered by Lockheed,” it reads.

David Perry, senior analyst with the Canadian Global Affairs Institute, told The Chronicle Herald he’s not surprised in the slightest that one of the other bidders is challenging the process in court.

“I mean there’s just far too much money and potential opportunity at stake for it not to be worth anyone’s while to at least try,” he said.

But, Perry said, he does find the premise of Alion’s appeal somewhat strange.

“(Alion) is basically saying that they know what (Lockheed) was able to substantiate better than either than the government/Irving did,” Perry said.

Large military procurements are a very technical and comprehensive process, and Perry said all requirements would have been laid out very clearly in the RFP. Bidders would have had to prove quite clearly to the teams evaluating the bids that they’re able to adequately meet all the requirements.

“Just to get to the point where Lockheed is right now they had to prove that they could do what Alion is saying they couldn’t,” he said.

Furthermore, Perry said it’s highly unlikely that anyone from Alion has managed to get their hands on a full copy of Lockheed’s bid. Because of the money on the line and the amount of incredibly sensitive corporate intelligence contained within a bid like this, Lockheed — one of the world’s biggest defence companies — would have guarded that information pretty closely.

“People in industry talk to each other a lot (and) have a good general idea of what others are doing, but as for if they have seen the bid, I would be astounded if that was the case.”

The Chronicle Herald reached out to Alion, Irving Shipbuilding Lockheed Martin Canada and and Public Services and Procurement Canada and all declined comment while the matter is before the courts.

Lockheed has responded to rumblings that it doesn’t meet all the RFP requirements in the past. In September, before they were announced as the preferred bidder, the Twitter account for the Lockheed/BAE team posted: “BAE System’s Type 26 meets all requirements in the CSC proposal, including speed.”

Both Irving and Public Services and Procurement Canada have expressed numerous times in response to concerns about the Canadian Surface Combatant competition that they are committed to a fair, open and transparent procurement process.

Norway's Experience with F-35 Procurement is a Lesson for Canada

By: Levon Sevunts, Radio Canada International

s the federal government embarks on a much delayed and criticized quest to find a replacement for its ageing fleet of CF-18 Hornet fighter jets, Norway’s saga with the acquisition of F-35 stealth fighters offers Canada a valuable lesson.

The search for a replacement for CF-18 got a new urgency Tuesday after a blistering report by Canada’s auditor general, who lambasted the Liberal government’s handling of the file that could have serious implications for Ottawa’s ability to fulfill its NATO and NORAD obligations.

Just like Ottawa, Oslo was one of the first NATO countries to show interest in the new stealth multirole fighters developed by U.S. defence giant Lockheed Martin.

In June 2009, the Norwegian Parliament decided that the F-35A Lightning II would replace its current fleet of F-16 fighter jets. Unlike Ottawa, despite strong internal opposition, Oslo saw things through.

By 2025, Norway hopes to have a fleet of 52 F-35s. 

No-show at Trident Juncture demonstration

Norwegian F-16s escort a Jet Falcon DA-20 electronic warfare aircraft during an Air Power Capability Demonstration of the NATO exercise Trident Juncture 2018 in Byneset near Trondheim, Norway, October 30, 2018. (Jonathan Nackstrand/AFP/Getty Images)

Norwegian authorities were hoping to showcase their newest and most expensive defence acquisition in the country’s history at a massive display of NATO’s military might during the official launch of Trident Juncture 2018 exercise on Oct. 30.

But much to the chagrin of dozens of journalists, NATO officials and dignitaries that had assembled on the shores of the Trondheim Fjord in central Norway to watch the display of land, sea and air power, the Norwegian F-35s never showed up.

Lt.-Col. Stale Nymoen, commander of the 332 Squadron of the Royal Norwegian Air Force and one of the first Norwegian pilots to learn to fly the F-35s, said strong crosswinds at the Ørland Air Base forced officials to cancel the planned overflight.

The cancellation of the overflight on an otherwise perfect autumn day had nothing to do with the jet’s capabilities, Nymoen said.

“Seen from my perspective, it’s one of the best fighter aircraft out there,” Nymoen told a roomful of journalists during a briefing at the Ørland Air Base in central Norway earlier this month.

But it has taken even experienced pilots like him years to learn to fly the new fighter jets and, just as importantly, unlearn old habits, Nymoen said.

The first three F-35 fighter jets ordered by Norway’s Air Force arrive in Orland Air Base in central Norway Friday Nov. 3, 2017. (Ned Alley/NTB scanpix via AP)

Norway received its first four F-35s in January of 2017. But all of them were stationed at the Luke Air Force Base in Phoenix, Arizona, where Norwegian, U.S. and Italian pilots trained on the new aircraft.

It wasn’t until November of 2017 that the stealth fighter jets actually arrived for service in Norway, at the Ørland Air Base, which is going through a massive infrastructure upgrade to house the new planes.

Operating and flying them in Norway with its harsh North Atlantic and Arctic climate is a whole new experience, Nymoen said.

“What is different from Luke when we train to operate the aircraft here is temperatures, winter, icy and slippery runways, winds,” Nymoen said. “Those are conditions that we don’t necessarily get to train for when we’re training in the United States.”

And the Norwegian air force is taking a very cautious approach to avoid any accidents, he said.

“We have to learn to crawl before we can walk, and we have to learn to walk before we can run,” Nymoen said.

The first squadron of F-35s is expected to reach initial operational capability in 2019 and full operational capability only in 2025, eight years after the aircraft were delivered to Norway.

This timeline would also apply to Canada, if Lockheed Martin were to emerge as the winner of the competition to buy 98 advanced aircraft for the Royal Canadian Air Force announced by the Liberal government last December.

The list of eligible suppliers identified by the federal government also includes France’s Dassault Aviation, Sweden’s SAAB, the U.K.’s Airbus Defense and Space, and the U.S. defence and aerospace giant Boeing.

If the federal government manages to stick to its timetable, a contract award is anticipated in 2022 and the first replacement aircraft delivered in 2025.

This means that the current fleet of Canadian CF-18s and the 18 additional second-hand Australian F-18s the federal government is buying as a stopgap measure will have to operate until at least 2030, experts say.

Auditor General Slams Government Plan to Maintain CF-18 Fleet Until 2032

By: Murray Brewster, CBC News 

Canada's auditor general has shot down the Liberal government's handling of the air force's aging CF-18s in a blistering report that raises questions about national security, and even long-term safety, regarding the viability of the country's frontline fighter jets.

Auditor General Michael Ferguson's fall report, tabled Tuesday, methodically picks apart the recent policy change at the Department of National Defence, which requires the military to have enough warplanes to meet Canada's commitments to both NORAD and NATO at the same time.

Watch Power & Politics take a look at the ups and downs of Canada's fighter jet program

The RCAF is currently facing a shortage of both qualified pilots and technicians. Those pilots the RCAF does have on active roster are struggling to maintain the minimum 140 flight hours per year. 

From the get-go the policy was a non-starter, and the federal government knew it, said Ferguson.

"The fighter force could not meet the requirement because National Defence was already experiencing a shortage in personnel, and the CF-18 was old and increasingly hard to maintain," said the audit.

As of April 2018, the air force's CF-18 squadrons faced a 22 per cent shortage in technical positions — and a startling number of technicians were not fully qualified to do maintenance.

Fighter pilots are also in short supply. The air force is losing more of them than it is training each year; among those who do remain, almost one third do not get the required 140 hours of flying time per year.

At a news conference following the release of the report, Defence Minister Harjit Sajjan conceded that personnel shortages were identified "early on" after the Liberals took over in 2015.

"This is a problem we knew we had," he said, pointing the finger at budget cuts made by the previous Conservative government. "This is what happens when you don't put enough resources into the military."

Watch Defence Minister Harjit Sajjan react to the AG report on fighter jets on Power & Politics


The extent of Liberals' own efforts to boost recruiting and retention of pilots and technicians in the three years since the election was the subject of some confusion Tuesday.

A written statement from Sajjan said the government "will launch new efforts to recruit and retain pilots and technicians."

During the news conference, the minister said the military's top commander had been directed to deal with the problem and that recruiting pilots is "a priority."

Pressed for specifics on recruitment, Sajjan said he's "going to leave it to the experts to figure out."

Proposed solution 'will not help solve' issues

The auditor's report took issue with the Liberal government's strategy to fill the so-called capability gap by buying additional interim aircraft.

The current proposal is to buy used Australian F-18s — of approximately the same vintage as Canada's CF-18s — and convert them for further use until the federal government completes the purchase of brand-new aircraft.

This plan, the auditor's report said, "will not help solve either the personnel shortage or the aging fleet."

Ferguson said an earlier, $6.3 billion plan to buy 18 brand new Super Hornet fighter jets on an interim basis would have been even worse — and the government was told so in no uncertain terms by the air force.

"National Defence's analysis showed that buying the Super Hornet alone would not allow the department to meet the new operational requirement," said the audit.

"The department stated that the Super Hornet would initially decrease, not increase, the daily number of aircraft available because technicians and pilots would have to be pulled away from the CF-18s to train on the new aircraft."

The proposal to buy Super Hornets was scrapped last spring after the manufacturer, Chicago-based Boeing, angered the Trudeau government in a separate trade dispute involving the sale of Bombardier passenger jets.

The Opposition Conservatives have long claimed the 'capability gap' was concocted by the Liberals as a way to push off a decision on a permanent replacement for the CF-18s. In the last election, Prime Minister Justin Trudeau pledged not to buy the F-35 stealth fighter, the preferred option of the Harper government.
Sparring in the House

The report led to sparring in the House of Commons, with the Conservatives seeing the auditor general's assessment as vindication.

"Today's report confirms what we have been saying all along," said James Bezan, the defence critic.

"Justin Trudeau deliberately misled Canadians by manufacturing a 'capability gap' to fulfil a misguided campaign promise, and in the process has put the safety and security of Canadians at risk."

Sajjan, however, believed the report supported the government's position.

"The report confirms what we have always known: The Harper Conservatives mismanaged the fighter jet files and misled Canadians for over a decade," he said.

"The report confirms a capability gap exists, and started under the Conservatives."

In fact, what the report said was that "Canada's fighter force could not meet the government's new operational requirement." It contained objective analysis of how many aircraft would be required to meet various contingencies.
Fleet 'will become more vulnerable'

Meanwhile, the auditor is warning that the Liberal government has no plan to upgrade the combat capabilities of the CF-18s to keep them current over the next decade while the air force waits for replacements.

The last major refurbishment of the war-fighting equipment on the jets happened in 2008, and Department of National Defence planners have done little since because they had been expecting new planes by 2020.

"National Defence did not have a plan to upgrade the combat capability of the CF-18 even though it will now have to fly until 2032," said the audit.

"Without these upgrades, according to the department, the CF-18 will become more vulnerable as advanced combat aircraft and air defence systems continue to be developed and used by other nations."

The fact that the CF-18s are not up to date means they will not be able to operate in certain environments where the risk of surface-to-air missiles or advanced enemy planes is great.

That, in turn, "would limit Canada's contribution to NORAD and NATO operations," Ferguson said.

Sajjan said the department is looking at an upgrade to the combat systems.

"We would love to be able to solve this problem immediately," he said.

CAF & Allies Tested at Canadian Patrol Concentration

Canadian Army Press Release 

The Canadian Patrol Concentration is taking place at Canadian Forces Base Wainwright, Alberta. During the annual training event, which runs until November 25, 2018, Canadian soldiers along with soldiers from six NATO partner nations are conducting a series of long-range patrols while responding to realistic, scenario-based events.

Members of 1st Battalion, Princess Patricia’s Canadian Light Infantry patrol team board a CH-146 Griffon helicopter during the Canadian Patrol Concentration in Wainwright, Alberta on November 24, 2016.

The Canadian Patrol Concentration is planned annually by the Canadian Manoeuvre Training Centre to improve operational readiness and develop our soldiers’ ability to operate with counterparts from Allied nations, in support of Strong, Secure, Engaged: Canada’s Defence Policy.

The event will also improve these soldiers’ ability to adapt as they contend with unpredictable weather and 40 kilometres of unfamiliar terrain which will challenge their soldiering skills, their leadership abilities, their stamina, and their mental resilience.

In addition to 150 Regular Force and Primary Reserve soldiers, participants and observers from Italy, Latvia, the Netherlands, Poland, the United Kingdom, and the United States are attending this year’s iteration of the Canadian Patrol Concentration.

Government Announces Purchase of 6th AOPS

By: Mairin Prentiss · CBC News

The federal government is purchasing another ship to be built in Halifax, the defence minister says a day after Ottawa awarded $7 billion in contracts to three shipyards for work on Royal Canadian Navy frigates — leaving concerns over an 18-month gap in work for Irving Shipyard employees.

The First Arctic and Offshore Patrol Ship assembled at Halifax Shipyard - Irving Shipbuilding

The government will buy a sixth Arctic and offshore patrol ship for the navy, Harjit Sajjan said to a crowd at the Irving Shipyard in Halifax on Friday.

"The women and men of the Irving Shipyard build incredible ships and are essential for enabling the success of the Royal Canadian Navy," said Sajjan.

The government planned to purchase five Arctic and offshore patrol ships — with a possibility of a sixth — after scaling back its original plan of buying between six and eight vessels in 2014.

Public Services and Procurement Canada announced Thursday in a news release that it intends to sign contracts worth $7 billion with Davie in Lévis, Que., Irving Shipbuilding Inc. in Halifax and Seaspan Victoria Shipyards in Victoria for maintenance on 12 Canadian navy ships.

With the maintenance program split between three yards, workers in Halifax feared they would be laid off in between the end of the patrol ships program and the start of the Canadian Surface Combatant program.

Last month, Irving employees held a march in Halifax to protest the Liberal government's intention to split the contracts with other yards, saying it would result in job losses.

Irving Shipyard workers say sharing the work will mean layoffs. (Robert Short/CBC)

Friday's announcement appears to be aimed at allaying those fears.

In a news release, the Department of National Defence said the sixth ship will help sustain hundreds of jobs at Irving shipyards.

"Today's announcement is good news for the Royal Canadian Navy, but it is also good news for Canadians, our economy and the city of Halifax. This is a region with deep ties to our navy," said Sajjan.

"By adding a sixth Arctic and offshore patrol ship, we are ensuring that our Royal Canadian Navy remains an agile and responsive force for years to come, so that Canada can continue to assert and enforce our Arctic sovereignty," he said.

Irving officials had meetings in Ottawa on Thursday where they said they received the news.

But building another ship doesn't mean there won't be layoffs, said Kevin McCoy, the president of Irving Shipbuilding.

"Nothing is guaranteed until we have contracts in hand and I know hearing that might make some folks a little uneasy, but I am encouraged by our discussions yesterday particularly around Halifax class maintenance work. This is a big piece of solving about a three-year problem, but we now have about half the problem solved."

Irving will begin construction on the fourth Arctic and offshore patrol vessel later this year.

Dassault & Rafale Withdraw from CF-18 Replacement

By: Lee Berthiaume, The Canadian Press 

OTTAWA — The long effort to replace Canada’s ageing fighter jets took another surprise twist on Tuesday, as multiple sources revealed that French fighter-jet maker Dassault is pulling out of the multibillion-dollar competition.

Three newly delivered Rafale aircraft to the Egyptian Air Force (2017) 

The decision comes just over a week after the federal government published the military’s requirements for a replacement for Canada’s CF-18s as well as a draft process by which a winning supplier will be chosen.

Dassault had repeatedly pitched its Rafale aircraft to Canada over the years as successive governments in Ottawa have wrestled with selecting a new fighter jet. Dassault’s pitch included significant promises, including that it would assemble the planes in Canada.

But sources tell The Canadian Press that Dassault’s decision to withdraw was related to the fact France is not a member of the Five Eyes intelligence-sharing network, which counts the U.S., Britain, Australia, New Zealand and Canada as members. The five members have very specific requirements for how their equipment works together.

The French government, which had been closely working with Dassault as the most recent iteration of Canada’s fighter-replacement program has inched along over the past year, was preparing to notify Ottawa of the company’s withdrawal.

The move leaves four companies — U.S. aerospace giants Lockheed Martin and Boeing, European competitor Airbus and Swedish firm Saab — competing for the $19-billion contract to replace Canada’s 76 CF-18s with 88 new fighters.

A contract isn’t expected to be awarded until 2021 or 2022, with delivery of the first new aircraft slated for 2025. In the meantime, the government is planning to upgrade its CF-18s and buy 25 used fighters from Australia as a stopgap.

Dassault faced several significant challenges in meeting Canada’s requirements for a new fighter, said defence analyst David Perry of the Canadian Global Affairs Institute, and while they weren’t insurmountable, they would have cost time and money.

Those challenges included meeting those Five-Eyes intelligence-sharing requirements, which Perry said put Dassault at a distinct disadvantage in the competition when compared to Lockheed Martin, Boeing and, to a certain degree, Airbus.

“For any of the non-American companies, solving the Five-Eyes interoperability issues is going to be challenging,” he said, noting that the U.S. in particular is very sensitive about data-sharing.

“And it costs companies a lot of money to mount and pursue bids. So if they think at this point in time that it’s not a realistic prospect, then pulling out is pretty understandable.”

That could explain why Dassault never established a strong presence in Canada during the many years when it was trying to sell the Rafale as a replacement for the CF-18, he added.

The CF-18s are about 35 years old. Canada’s attempts to buy a new fighter jet have dragged on for nearly a decade after the previous Conservative government announced in 2010 that Canada would buy 65 F-35s without a competition, with the first to be delivered in 2015.

But the Tories pushed the reset button in 2012 after the auditor general raised questions about the program and National Defence revealed the jets would cost $46 billion over their lifetimes.

After campaigning on a promise not to buy the F-35s, the Trudeau Liberals announced in November 2016 they would take their time with a competition to replace the CF-18s, and buy 18 “interim” Boeing Super Hornets without a competition because Canada needed more fighter jets badly.

But then Boeing’s trade dispute with Canadian rival Bombardier saw the Liberals scrap their plan to buy Super Hornets and instead begin talks to buy 18 used fighter jets from Australia. A contract for those used planes is expected in the coming weeks.

The formal competition to replace the CF-18s is scheduled to begin next spring.

Canada's Defence Spending Questioned at NATO Meeting

The Canadian Press 

The deputy minister of national defence has told a NATO meeting in Halifax that Canada is satisfied it is spending what it requires to meet its alliance and other military commitments.

Jody Thomas held fast to the government's stance on defence spending on Saturday, despite some pointed questioning about Canada's commitment following her presentation before NATO's defence and security committee, part of the NATO Parliamentary Assembly in Halifax.

U.S. Republican Rep. Michael Turner, the committee's acting chairman, asked whether Canada intends to table a plan for meeting the two per cent of GDP standard for defence spending that was agreed to by alliance members at a summit in Wales in 2014.

"Many of the nations that are here are either meeting their two per cent or have in place a plan to reach the two per cent," said Turner. "Canada is one of those countries who has not yet put forward a commitment to reach the two per cent although that is a commitment that Canada joined in making at Wales."

Thomas stuck to the Liberal government's line, saying Canada intends to increase its defence budget by 1.46 per cent by the end of 2024.

"Canada's defence budget is growing by 70 per cent as a result of Strong, Secure, Engaged (Canada's defence policy)," said Thomas. "We also on the ground are leading a significant number of operations, and we have never not participated in a NATO commitment or operation."

She also reiterated that Canada believes it contributes to the alliance in a "qualitative" way through an active participation in the alliance.

"The defence budget is a significant increase in funding for national defence and our prime minister is very satisfied with that contribution," Thomas said.
'It's not enough'

But Bob Stewart, a member of the United Kingdom delegation, reminded Thomas that Canada agreed to the commitment, adding that it's "crucial" it be honoured.

Stewart, a Conservative MP, then questioned Canada's current defence spending commitment.

"It's something like 1.12 per cent at the moment and honestly, it's not enough," said Stewart. "There are many nations that are not doing enough and I include my own nation ... we have all got to contribute more and help the United States that bears the burden."

Thomas shot back that Canada's funding includes its commitment to North American Air Defence (NORAD) and she stated that there are "inconsistencies" in the way the military budgets of member countries are assessed.

"The fact is that who counts what differs from country to country," she said.
Canadian contributions

Later in the day, Defence Minister Harjit Sajjan said budget numbers don't necessarily reflect a country's actual contributions to NATO.

"The NATO Parliamentary Association may not be fully briefed about what is actually discussed at NATO," he said in an interview with The Canadian Press.

"All of this is useless if you don't make contributions," he said, citing a list of Canadian contributions that include leading a battle group in Latvia, providing air policing over Romania, leading a NATO training mission in Iraq and building a new fleet of Canadian warships.

A report released by NATO ahead of last July's alliance summit in Brussels predicted Canada would spend 1.23 per cent of its GDP on defence this year — less than last year's level of 1.36 per cent. That leaves Canada ranked 18th out of the alliance's 29 members.

The decline is largely attributed to two one-time expenses last year:
a retroactive pay increase for service members that was included in the government's defence policy, and;
a $1.8-billion payment into the account that provides pensions for Forces members and their dependents.

In an interview with The Canadian Press, British Air Chief Marshal Stuart Peach, who is chairman of the NATO Military Committee, praised Canada for its "very strong support for the alliance."

Peach pointed to ongoing naval exercises and Canada's support for NATO's forward deployment in the Baltic states along with its support for the training mission in Iraq.

With regards to the two per cent target he remained diplomatic, saying that NATO officials have maintained there are three elements to the overall funding conversation.

"There is defence spending which is about the money, there's then a description and important modernization adaptation of NATO's capabilities of which Canada plays an important role," Peach said.

"And then there's the question of contributions and I've already set out how pleased we are with the range of Canada's contributions."

Sajjan Confirms - Mali Mission Will Not Be Extended

By: Kathrine Starr, CBC News 

Canada's peacekeeping mission in Mali will end in July as planned, Defence Minister Harjit Sajjan has confirmed.

"The United Nations is working with other nations to look at replacing us," Sajjan told Chris Hall in an interview airing today on CBC Radio's The House. Sajjan spoke to Hall before his speech Friday to the tenth annual Halifax International Security Forum, a gathering of global leaders discussing major security and defence issues.

Sajjan said Canada will have fulfilled its year-long promise to head the Mali mission by July. The Canadian Press reported this week that the UN has quietly asked Canada about extending its role.

"The discussions I've had with other UN security generals has not led to that," Sajjan said.

Canadian troops arrive at a UN base in Gao, Mali, on Monday, June 25, 2018. (Sean Kilpatrick/Canadian Press)

"We've said this for a year. We wanted to offer up support for what the UN wanted to do. One big ask they had was the concept of smart pledges. Nations come, take a yearly responsibility. We have done that."

The minister added that there will be a transition period before Canada leaves Mali, much like the one that occurred when the German-Belgian helicopter mission in Mali was winding down and Canadian personnel were arriving last year.

Although an official announcement has not been made, The Canadian Press is reporting that Romania is expected to take over from Canada, but not until October or November — months after the Canadians have left.

"The UN is on track to be able to find a replacement," Sajjan said. "We will work with whoever steps up."
Most dangerous UN mission

Canada currently has eight helicopters and 250 military members in the sprawling West African nation to rescue injured peacekeepers and UN workers and to transport troops and equipment.

The Mali mission is considered the most dangerous UN mission in the world; 22 peacekeepers were killed this year alone and 177 have been killed since the mission began in 2013. About 15,500 people are part of the Mali mission now, which began after a rebellion in the north and a coup in the capital in 2012 resulted in a surge of violence.

Canadian peacekeepers have so far conducted four emergency evacuations in Mali. The most recent was on Nov. 1, after two civilians were injured when they were attacked with an improvised explosive device while driving.
More permanent presence needed in North

Sajjan also discussed Canada's defence goals in the Arctic, saying that more permanent troops are needed in the North to respond to threats such as increasing Russian aggression and Chinese interest in the region.

"We did identify that we do need to do more," he said, adding that a broader approach to the Arctic is necessary.

"Sovereignty [in the Arctic] isn't strictly about defence. It's about supporting our communities up there. We're looking at this from a whole-of-government approach."

Sajjan pointed to investments in Arctic offshore patrol vessels and satellites with greater coverage as two examples of government efforts to "sustain our ability to respond in the North."

Defence Minister Harjit Sajjan says that with the North growing in strategic importance every day, Canada needs to further develop its Arctic military presence. (Jeff McIntosh/The Canadian Press)

In August and September, Canada's largest annual Arctic sovereignty exercise, Nanook 2018, took place in Northern Labrador, Nunavut and the Northwest Territories. Sajjan himself visited various Canadian Armed Forces installations in the North in August.

With approximately four million square kilometres of Arctic land to keep an eye on — that's about 40 per cent of Canada's total land mass — Canada won't be able to ramp up its polar presence overnight, Sajjan acknowledged.

"We have increased our spending year by year, but it's going to take us a little more time to get to the efficiency we want," he said.

In its updated defence policy released last year, the federal government committed to pushing Canada's defence budget to $32.7 billion annually in the tenth year, with expenditures set to rise the most after the 2019 election.

Specific Arctic investments will include updating Canada's ability to monitor air traffic over all of the 36,000 islands in Canada's Arctic archipelago, and buying ATVs, snowmobiles and other vehicles as part of an $8.8 billion, 20-year commitment to new equipment.

The navy also will receive five to six armed and "ice-capable" ships, meant to keep the government informed of activity in Arctic waters.

Government Rejects Advice to Replace Victoria-Class Submarines

By: David Pugliese, The Ottawa Citizen 

New submarines won’t be part of the future mix for the Royal Canadian Navy, at least in the foreseeable future.

Several years ago there were some suggestions that a possible replacement for the Victoria-class submarines might be in the works. In 2017 a Senate defence committee recommended the subs be replaced.

The Commons defence committee also recently recommended that the Victoria-class subs, bought used in 1998 from the United Kingdom, be replaced with submarines capable of under-ice capabilities.

But the Liberal government has rejected that recommendation. The recommendation was the only one of the 27 made by the Commons defence committee that was rejected outright in a response delivered to the committee last month.

The committee had recommended that the federal government respond to NATO calls to improve the quality of their naval fleets and underwater surveillance capabilities by starting the process of replacing Victoria-class submarines with new boats that have under-ice capabilities. It also recommended increasing the size of that fleet to enhance Canada’s Arctic and North Atlantic defence preparedness.

HMCS VICTORIA sails past the Japanese Ship ISE as she arrives in Pearl Harbor on July 1, 2014 to take part in Exercise Rim of the Pacific (RIMPAC).

But the Liberal government pointed out in its response that it is in the midst of the most intensive and comprehensive fleet modernization and renewal in the peacetime history of the Royal Canadian Navy. Canada is recapitalizing and increasing the size of its surface fleet through investments in 15 Canadian Surface Combatants, two Joint Support Ships, and five to six Arctic and Offshore Patrol Ships, it added. “The government has also committed to modernizing the four Victoria-class submarines to include weapons and sensor upgrades that will enhance the ability of the submarines to conduct Intelligence, Surveillance and Reconnaissance (ISR) and deliver necessary improvements of platform and combat systems to extend operational capability to the mid-2030’s,” the government response noted.

Canada is also engaged in the re-building of the anti-submarine warfare capabilities of the fleet through the introduction of technologies, sensors and weapons while preparing to transition to the fleet of the future, it added. “As part of the NATO S&T Organization, Canada is participating in the Maritime Unmanned Systems S&T Pre-Feasibility Studies that focus on ASW and naval mine warfare capabilities with Allied nations that have the same capability targets,” the government stated. “In addition to increasing existing platform capabilities, the RCN is also in the process of re-vitalising individual and collective ASW training and advancing distributed mission training and synthetic training environments.”

Last year Defence Minister Harjit Sajjan praised the capability submarines provide Canada. “No other platform in the Canadian Armed Forces can do what a submarine can do,” Sajjan said. “No other platform has the stealth, the intelligence-gathering, surveillance and reconnaissance capability and the deterrence to potential adversaries that a sub does.”

Upgrading the Victoria-class subs is more “prudent” than buying new subs, Sajjan said at the time.

Without upgrades, the first of the submarines will reach the end of its life in 2022, according to documents obtained last year through Access to Information by the Canadian Press. The last of the boats would be retired in 2027.

RCAF Members Arrive in Brazil for Exercise CRUZEX FLIGHT

RCAF Press Release 

8 Wing Trenton

Today, members of the Royal Canadian Air Force (RCAF) begin participation in CRUZEX FLIGHT 18, a key South American multinational exercise hosted by the Brazilian Air Force.

The RCAF joins its allies and partners from Brazil, Chile, Colombia, Peru, France, the United States and Uruguay, as they exercise tactical transport missions in conflict and humanitarian relief scenarios in a combined environment, while exchanging information on doctrine.

Two Royal Canadian Air Force CC-130J Hercules from 436 Transport Squadron arrive in Natal, Brazil, for CRUZEX FLIGHT 18, on November 18, 2018. The key South American exercise brings together air forces from eight allied and partner nations to conduct a wide range of training. PHOTO: Able Seaman Paul Green, TN05-2018-0500-001

Two CC-130J Hercules aircraft and more than 35 members of the RCAF from 8 Wing Trenton, Ontario; 1 Canadian Air Division; and RCAF headquarters will be participating in the exercise from November 18 to 30. The two Hercules are from 436 Transport Squadron. Members of the Canadian Army Advanced Warfare Centre will also take part.

In line with Canada’s Defence Policy—Strong, Secure, Engaged—Canada remains committed to working with its allies and partners in the Americas to increase capabilities, foster military professionalization, and encourage interoperability. As such, the RCAF continuously works to nurture and deepen existing partnerships, as well as create new ones. Enhancing defence diplomacy in the Americas serves to strengthen international and regional security, while also supporting continental, NATO and UN led-missions.

“We look forward to our participation in CRUZEX FLIGHT 18,” said Lieutenant-Colonel Andy Bowser, the CRUZEX FLIGHT 18 air task force commander. “In addition to flying tactical missions, the Air Task Force members will also engage in academic discussions regarding Peace Support Operations, thereby building relationships with our partner nations and contributing to capacity building in the region.”

Exercising in unfamiliar environments contributes to the operational readiness of air mobility aircrew and technicians as these personnel may be called upon to fly anywhere in the world to support Canadian Armed Forces operations, including humanitarian relief missions.

Defence diplomacy in the Americas is a key initiative of Strong, Secure, Engaged, and Brazil is one of the Government of Canada’s priorities for engagement in the Western Hemisphere. The RCAF has had a bilateral relationship with the Brazilian Air Force (Força Aérea Brasileira) since 2009 and conducts biennial deputy commander-level staff talks.

Participation in CRUZEX FLIGHT 18 demonstrates Canadian commitment to the Americas and provides an opportunity to demonstrate leadership in areas such as capacity building, humanitarian assistance and disaster response, and support for other government departments in their efforts to counter the illegal movement of drugs, people, weapons, money and other transnational organized crime activity.

The CC-130J is a four-engine, fixed-wing turboprop aircraft that can carry up to 92 combat troops or 128 non-combat passengers. It is used for a wide range of missions, including personnel transport, tactical airlift (both palletized and vehicular cargo) and humanitarian aid delivery.

RCAF - No Documented Fighter "Gap" Evidence

By: David Pugliese, The Ottawa Citizen 

Neither Canada’s top soldier nor the commander of the air force had or produced any records about a fighter jet “capability gap” in the year leading up to the Liberal government’s announcement that such a critical issue had to be dealt with by spending billions to buy aircraft.

Defence Minister Harjit Sajjan used the capability gap argument in November 2016 to justify a $5-billion program to buy new Super Hornet jets, a deal since scuttled, and later a $500-million program to purchase used F-18 planes from Australia.

But in the year leading up to Sajjan’s announcement about the urgent need to acquire such planes, neither Chief of Defence Staff Gen. Jon Vance nor Lt.-Gen. Mike Hood, then head of the Royal Canadian Air Force, produced any documentation indicating there was ever a capability gap, according to Department of National Defence’s Access to Information branch. In addition, no such documents exist among the records of various members of Sajjan’s staff, according to the department.

A Royal Australian Air Force F-18 Hornet performs during the Australian International Airshow in 2015.PAUL CROCK/AFP/GETTY IMAGES

It would be normal practice to have hundreds, if not thousands of pages of records, discussing such a key defence issue or gap if it existed, military insiders tell Postmedia.

But records obtained by Postmedia through the Access law do show that just before Sajjan’s announcement that the 18 jets were needed in the “interim” to deal with the capability gap, the minister was told the existing fleet of CF-18s was in better shape than expected and could keep flying until 2032.


Conservative MPs allege the capability gap didn’t exist and was concocted by the government to delay a larger project to buy new jets, a competition that might end up selecting the F-35 stealth fighter the Liberals vowed never to purchase.

When asked about the lack of documentation about the capability gap, a DND official said the department could not comment.

Taxpayers may get more information Tuesday when the Auditor General’s office releases its examination of the fighter jet plan.

The deal to buy the 18 Super Hornets as “interim” jets eventually collapsed after the aircraft’s U.S. supplier, Boeing, angered the Liberals by complaining to the Trump administration that a Canadian firm was receiving unfair subsidies to build civilian aircraft. Because of that complaint, the government deemed Boeing an unreliable partner and instead struck a deal to buy used F-18 jets from Australia. That project is estimated to cost $500 million.

Those jets are needed on an interim basis not only to help fill the capability gap but because the current fleet of CF-18 fighters is too old, the government has stated.

But nine days before Sajjan held his November 2016 news conference to announce the original Super Hornet interim jet deal, the minister was told the CF-18 fleet was in better shape than expected.

“Analysis over the summer indicates that the structural damage is less than anticipated and that all aircraft can be flown and retired at a predicted rate beyond 2025 without additional investment in structural work,” Sajjan was told by deputy defence minister John Forster. “Doing so would require an investment to 2032 (when the last legacy aircraft would retire).”

Shortly after Sajjan’s news conference, Hood explained to a Senate committee it was the government that brought in a policy change that required the RCAF to meet both its NATO and North American air defence commitments at the same time. That, in turn, created the capability gap.

“That demands a certain number of aircraft that our present CF-18 fleet is unable to meet on its day-to-day serviceability rate,” said Hood, who has since retired. “They’ve (the Liberals) changed the policy of the number of aircraft I have to have.”

Hood said he didn’t know the reason for the change. “I’m not privy to the decisions behind the policy change,” added the general.

In addition, a 2014 report produced by Defence Research and Development Canada recommended against the purchase of such “bridging” aircraft to deal with gaps in capability. “The costs involved with bridging options make them unsuitable for filling capability gaps in the short term,” the report states. “Any short-term investment results in disproportionately high costs during the bridging period.”

That report, which had been in the public domain for years, was removed from the DND website. The DND claimed it was pulled down from its website because the report was found to contain classified information.

Auditor general takes aim at Liberals' fighter-jet plan with new probe

By: Lee Berthiaume, The Canadian Press - Published to BNN Bloomberg 

OTTAWA -- Six years after helping blow up the Harper government's plans to buy F-35 stealth fighters without a competition, auditor general Michael Ferguson is about to release a new report on Canada's tumultuous attempts to buy new fighter jets.

This time, the focus will be on the Trudeau government's handling of the file, which includes adopting several stopgaps while taking its time on a competition to buy new planes for the Canadian Forces.

Ferguson is expected to report specifically on the financial and technological costs of flying Canada's venerable CF-18s -- plus a handful of second-hand Australian jets -- into the early 2030s, when the aircraft will be nearly 50 years old.

The auditor general is also expected to train a spotlight on the air force's problems recruiting and retaining fighter pilots, the question of whether Canada has enough jets to defend itself -- and whether the Liberals followed procurement laws.

Ferguson's report follows several years of criticism over the Trudeau government's decision not to launch an immediate competition to replace the CF-18s, which started flying in the 1980s and were supposed to be retired by 2020.

It has been highly anticipated in political and defence circles given the damage that Ferguson's previous report on fighter jets dealt to the Conservatives and because of the shroud of secrecy that has surrounded the Liberals' decision-making on the file.

The Trudeau government has forced hundreds of federal civil servants and contractors working on the fighter-jet project to sign lifelong non-disclosure agreements, while many documents associated with the issue have been declared cabinet secrets.

Canada's attempts to buy fighter jets have dragged on for nearly a decade since the previous Conservative government announced in 2010 that Canada would buy 65 F-35s without a competition, with the first to be delivered in 2015.

The Tories pushed the reset button in 2012 after Ferguson released a scathing report that found defence officials twisted procurement rules and misled Parliament. National Defence later revealed the jets would cost $46 billion over their lifetimes, much more than the sticker price.

The Trudeau Liberals waded into the issue in the 2015 election when they campaigned on a promise to hold an open and fair competition while at the same time vowing not to buy the F-35s.

But rather than launch a competition right away, as many suggested, the Liberals said in November 2016 that they would wait until 2019. In the meantime, they planned to use a hole in the federal procurement laws to buy 18 "interim" Super Hornets without a competition.

The Liberals said at the time that the Super Hornets were urgently needed because Canada did not have enough CF-18s, but opposition parties and several retired military officers accused the government of bending the rules and wasting taxpayer dollars just to avoid buying the F-35.

They demanded the government launch an immediate competition to replace the CF-18s rather than wait; the government insisted more time was necessary to ensure due diligence and a successful procurement after years of trouble.

The government ultimately scrapped the plan to buy Super Hornets from Boeing for more than $6 billion due to a trade dispute between the U.S. aerospace giant and Montreal rival Bombardier.

But rather than launch a competition, it announced plans to buy 25 second-hand fighter jets from Australia for around $500 million.

The $19-billion competition to replace the CF-18s is slated to begin officially in the spring, though a winner won't be selected until 2021 or 2022. Delivery of the first of 88 planes is scheduled for 2025, with the last due in 2032.

The F-35 has been allowed to compete, despite the Liberals' election promise not to buy it. It is up against the Super Hornet as well as two European designs: the Eurofighter Typhoon and Saab Gripen. A French company with a fifth option dropped out last week.

In the meantime, the government is looking to spend upwards of $1.5 billion to keep the CF-18s and Australian fighters in the air long enough for the new planes to be delivered.

Defence analyst David Perry of the Canadian Global Affairs Institute said they key question leading up to the report's release is what impact it will have on the Liberal government and Canada's attempts to buy a new fighter jet.

"I hope it doesn't set back our fighter program by another 10 years," he said. "Because what the auditor general found -- and the way it was interpreted last time -- set the fighter-jet program back by a decade."