Lockheed Martin Admits it didn't enter CC-130J for FWSAR

Four days ago David Pugliese published an article in The Ottawa Citizen that said Lockheed Martin didn't bid on the RCAF's FWSAR program; despite having indicated in June 2015 that it would. 

Today, Pugliese's Defence Watch published the following article about Lockheed admitting it did not bid. 

Lockheed Martin has decided to reverse its questionable public relations strategy and finally confirm what was reported last week – that it did not submit a bid for the Canadian government’s fixed wing search and rescue (FWSAR) program.

Defence Watch, as well as Skies magazine, published the news last week that Lockheed Martin didn’t submit a bid.

But at the time Lockheed Martin was still sticking to its media line: “Out of respect for the procurement process, Lockheed Martin does not comment on competitive tenders that are underway.”

As noted earlier, this statement, which LM had been repeating for months, is laughable. Companies love to talk about their products to the news media and LM’s competitors have been holding press conferences and briefings on their FWSAR submissions.

In fact, for the last couple of years, Lockheed Martin officials had been highlighting how great their C-130J would be for the FWSAR program.

All that changed and the “out of respect for the procurement process” media line materialized when Lockheed’s proposal ran into trouble.

So with the bids in, and news reports from Defence Watch and Skies magazine that Lockheed Martin was a no-show for FWSAR (and queries also coming in from the U.S. media), the firm has decided to change its message.

“Lockheed Martin participated in the FWSAR procurement process as a potential bidder,” the company noted in a new statement Monday to Defence Watch. “After following an extensive and thorough analysis of the RFP’s requirements, we decided to not submit a formal response to Canada’s FWSAR RFP. We remain fully committed to supporting the RCAF and its CC-130J fleet as it continues to perform the tactical transport role in Canada for decades to come.”

Lockheed Martin, however, has not explained why it didn’t bid. But its competitors have toldDefence Watch the firm decided against bidding because the in-service support costs for the C-130J are extremely high, making a proposal a non-starter.

Embraer, Alenia and Airbus all bid on the $3.1 billion FWSAR program.

FWSAR Bids Due Monday

Written by David Pugliese, Ottawa Citizen, Defence Watch 

After more than a decade of delays, aerospace firms will submit their bids next week to provide Canada’s air force with a new fleet of search-and-rescue planes.

So far, three companies have said they plan to bid on the $3.1 billion project.

The bids are due Monday, Pierre-Alain Bujold, spokesman for Public Services and Procurement Canada, said in an email.

Aerospace companies will submit bids proposing a combination of aircraft and in-service support to replace the Canadian military’s existing fleet of Buffalo and Hercules aircraft used for search and rescue, he said.

The Buffalos, first purchased in 1967, are key to search and rescue on the west coast and in parts of the Rockies. Those aircraft are already facing mechanical and technical problems and several years ago, the air force had difficulty obtaining spare propellers.

Airbus Defence and Space plans to offer Canada its C-295 aircraft while Alenia is bidding its C-27J plane.

The Brazilian aerospace firm Embraer has said it will propose its KC-390 aircraft.

Canada released its request for proposals from industry on March 31.

But the Department of National Defence and Canadian Forces first announced the project to buy a new fleet of search-and-rescue aircraft in 2004.

The Conservatives reannounced that project as part of their Canada First Defence Strategy. In 2008, then-defence minister Peter MacKay called the project a top priority and vowed to buy a new fleet of planes by early 2009. That never happened.

In 2011, DND and the Canadian Forces again noted the project was to be one of their top procurement goals over the next three years but the acquisition has continued to limp along.

On Tuesday, a report from the Canadian Global Affairs Institute and the University of Calgary blamed delays in equipment purchases on the turnover of ministers and senior military staff as well as on delays caused by federal elections.

But aerospace industry representatives say that wasn’t the case with the proposed purchase of the fixed-wing search-and-rescue planes. Shortly after the project was launched, various aerospace firms accused the Canadian air force of rigging the contract to favour Alenia’s C-27J. Those accusations, in turn, caused years of delays as government officials painstakingly tried to ensure the process was seen to be fair.

Senior air force officers denied there was any favouritism at play.

But Alan Williams, the Department of National Defence’s former assistant deputy minister for materiel, later testified before a parliamentary committee that the Canadian air force had designed the requirements for the original search-and-rescue aircraft project to favor the C-27J, prompting the complaints to government from companies.

In 2014, the Citizen obtained DND documents that also blamed some of the delay on the Conservative government’s freeze on hiring staff. That resulted in a shortage of personnel in the search-and-rescue aircraft project management office, according to the records.

DND officials acknowledged the freeze had created some problems but noted that it was only temporary and the situation has improved.

During the election campaign, the Liberals promised that their government would “prioritize the acquisition of cost-effective search and rescue aircraft.”

The project originally envisioned buying 17 aircraft. But that has been changed and it will be up to aerospace firms to submit in their bids the numbers of aircraft they believe are needed for Canada to handle the needed search-and-rescue capability.

Embraer to Enter KC-390 in Bid for RCAF FWSAR

By: David Pugliese, Defensenews.com 

OTTAWA, Canada — Embraer is set to shake up the competition to provide Canada with search-and-rescue aircraft as the Brazilian firm seeks export orders for its new KC-390.

The CAN $3.1 billion (US $2.3 billion) search-and-rescue aircraft procurement has long been seen as a competition between Airbus’ C-295 and Alenia’s C-27J. But Embraer officials told Defense News the company will submit its bid in January when Canada requests formal proposals from aerospace firms.

Bids for the Fixed Wing Search and Rescue (FWSAR) program are to be submitted Jan. 11.

The KC-390 conducted its first flight in February 2015 but the aircraft is not expected to enter into service until early 2018.

An artists rendering of the Embraer KC-390 in the SAR Paint Scheme of the RCAF. 

Geraldo Gomes, vice president of business development for Embraer Defense and Security, said the aircraft is well suited for Canada’s search-and-rescue needs. Powered by two jet engines, it has the speed and range to quickly respond to rescue operations, including in the Arctic, he said. In addition, the aircraft has the capability to stay on station for long periods, Gomes said.

Sixty aircraft are on order for Brazil, Chile, Portugal, Argentina, the Czech Republic and Colombia. Gomes said the KC-390 was designed to be a search-and-rescue aircraft and that one of its strong selling points is its low life-cycle costs.

Aerospace industry sources said that selection of the KC-390 would give the company a foothold in the North American market for the aircraft and a high profile customer in the search-and-rescue arena. Canada has the longest coastline in the world, and its search–and-rescue aircraft are also expected to cover the massive Arctic region of the country.

But the industry sources also questioned whether the Brazilian-built plane would be ready in time for the Canadian program.

Gomes said the company does not see any issues with the delivery schedule for the KC-390. The Royal Canadian Air Force has not outlined exactly when the first aircraft would be delivered. A winning bidder is expected to be selected by Canada in late 2016, according to industry representatives. Delivery of the first aircraft is required three years after the contract is signed.

The Canadian government noted in its Defence Acquisition Guide 2015 published May 28 that it expects all aircraft for the FWSAR program to be delivered by 2023.

Both Airbus and Alenia have been courting the Canadian government for more than a decade on FWSAR. Their aircraft are proven and currently flying in search-and-rescue missions.

Asked whether the Embraer bid will change the tone of the competition, Pablo Molina, head of military aircraft for Airbus Defence and Space in Canada, responded, “We remain convinced that we will be able to offer the best solution to Canada with the C295.”

Alenia officials said it is company policy not to comment on a competitor’s bid.

Steve Lucas, a former head of the Royal Canadian Air Force and now an adviser to Alenia, said the firm is in the final stages of preparing its bid.

“We are confident about the aircraft and have put together an excellent team,” he added.

Alenia Aermacchi North America has brought together a team that includes IMP Aerospace, Halifax, NS; General Dynamics Canada, Ottawa; DRS Technologies, Ottawa; and Kelowna Flightcraft, Kelowna, BC.

Airbus Defence and Space has teamed with Provincial Aerospace, St. John’s, Newfoundland; Pratt & Whitney Canada, Longueuil, Quebec; CAE, Montreal; Vector Aerospace, Richmond, BC; and L-3 WESCAM, Burlington, Ontario.

Gomes said Embraer has had initial discussions with Canadian firms but has not settled on any partners for the Canadian bid.

Lockheed Martin was looking at bidding the C-130J for the FWSAR program, but industry sources said Lockheed is now reconsidering.

Asked whether Lockheed Martin Canada would submit a bid, company spokeswoman Cindy Tessier stated in an email that, "out of respect for the procurement process, Lockheed Martin does not comment on competitive tenders that are underway."

The new planes will replace the Royal Canadian Air Force’s 40-year-old Buffalo aircraft and older model C-130s currently assigned to search-and-rescue duties.

The FWSAR project is divided into a contract for the acquisition of the aircraft and another contract for 20 years of in-service support.

FWSAR originally envisioned acquiring 17 aircraft. But that has now changed and will be capability-based, said government officials. The aerospace firms are to submit in their bids the number of aircraft they believe necessary for Canada to handle the needed search-and-rescue capability, they added.