US Firm Alleges CAF Truck Contract Unfair

Published by: David Pugliese, 

A major U.S. defence contractor is alleging a contract worth more than $800 million for new trucks for the Canadian Forces was unfairly awarded.

Oshkosh Defense announced Thursday that it had filed a complaint about the contract with the Canadian International Trade Tribunal. The complaint will now be reviewed by the federal tribunal but no details were available on how long that would take.

The complaint alleges that Public Works and Government Services Canada, now Public Services and Procurement Canada, did not conduct a fair and transparent process to select the new trucks.

In July, then Defence Minister Jason Kenney announced that Mack Defense, LLC, of Allentown, Pennsylvania, had been awarded two contracts to provide standard military pattern trucks and related equipment for the Canadian Forces.

Assembly will take place in a Sainte-Claire, Quebec, plant operated by Prevost, one of the firms partnered with Mack.

The overall contract for the project, known by its military acronym as MSVS SMP, is worth $834 million.

“Following a thorough review during the past five months, Oshkosh has concluded that there are significant questions regarding the conduct of the MSVS SMP testing and evaluation,” Wilson Jones, president and chief executive officer of Oshkosh Corporation, said in a statement.

Public Services and Procurement Canada is limited in what it can say at this point about Oshkosh’s allegations. PSPC “is committed to an open, fair and transparent competition process, department spokesman Pierre-Alain Bujold told The Ottawa Citizen's Defence Watch. “As there is a review underway, it would be inappropriate for PSPC to comment.”

The program to purchase the trucks was originally announced in 2006 by the Conservative government but the acquisition had been dogged by problems.

The first delivery of the trucks and equipment is planned for summer 2017, and deliveries are expected to be completed by fall 2018, according to the federal government’s news release issued at the time. With the ability to carry 9.5 tonnes, the Standard Military Pattern trucks are the backbone of the Canadian Forces truck fleet, the government noted.

Kenney: RCN could receive as few as 11 CSC's

Last week a report came out regarding the $26 billion dollar budget for the Royal Canadian Navy's Canadian Surface Combatant Fleet which is supposed to replace and modernize the 4 HMCS Iroquois destroyers and the 12 HMCS Halifax-Class Frigates.

The initial CSC order called for 16 vessels to be built under the program. That number was later reduced to 15 due to budgetary constraints.

On Friday, October 2, 2015 Defence Minister Jason Kenney confirmed the bottom number possible. Kenney indicated that the government will not just write a blank check to the CSC program to ensure that 15 vessels are built - inflation and planning are taking their toll on the $26 Billion fixed budget, that is loosing close to $1 million per day in delays.

Kenney confirmed Friday that the $26 billion will purchase between 11 - 15 CSC Vessels. So 11 is now the bottom number. Now the Navy is concerned it will not get enough vessels to maintain its current level of operations; both domestically or internationally.

The lowered number does not come as a surprise to many Navy insiders; who have hinted that the fixed budget could produce as few as 8 CSC vessels.

With 8 to 11 CSC the Navy might have to look elsewhere to find more vessels to increase the size of its fleet. It is the only Navy in the world belonging to a country that borders 3 Oceans - and it might be down to 8 major vessels. That is pretty sad for a Navy that was once the third largest in the world (Post World War Two).

Sea King Helicopters not going Quietly

It was earlier this year when Defence Minister Jason Kenney announced that the RCAF would be receiving its first delivery of Sikorsky Cyclone maritime helicopters; and that the RCAF would move forward with the retirement of the dated Sikorsky Sea King helicopters originally purchased in the 1960s. Now it seems that they will be flying until at least 2018; perhaps as long as 2021.

A RCAF CH-124 Sea King Helicopter landing on the USS Pearl Harbor during Exercise PANAMAX 2007. 

The government announced that the Cyclone delivery would mean a 2015 retirement date for much of the Sea King fleet as promised, but that just is not the case. Only 2 of the RCAF's 26 Sea King fleet have been retired, and they were taken out of flying serving a while ago due to damage. Another 4 are set to be retired by March 2016. The remaining 20 will most likely keep flying well into 2018, and perhaps as long as 2021.

Sikorsky has missed several deadlines with the delivery of the Cyclone - and after a renegotiation in 2014, agreed to deliver all 28 helicopters by the end of 2018 - but they would not be fully combat operational until 2021.

Sikorsky is still working on the final combat software needed for the helicopters to work at the full capacity, and the engines earlier this year were considered weaker  than expected. So the Cyclones that are delivered will be limited to training flights, and ground search and rescue. The update due in 2021 will allow the Cyclones to operate at Sea in all weather conditions and partake in Anti-Submarine Warfare; something the Sea King excelled at.

In order to keep the Sea Kings 'current', DND quietly approved a $500,000 update program to the fleets infrared, optic and digital sensor systems. This program is required - especially if Sikorsky falls behind on the final 2021 fully operational deadline. According to the RCAF - more than half that budget has already been spent, and the remainder will be spent on deliveries expected in the next 12 to 18 months; which in it self puts the Sea Kings quietly active into 2017.

Canada was Actively Pursuing Mistral Purchase

A recent report to the Canadian Press the Canadian Government was actively pursuing a purchase of the French built Mistral class helicopter carriers. The plan has been put on hold due to the election.

This 'hold' puts the Royal Canadian Navy in a tough spot - as it might lose an opportunity to bid officially on the Mistral ships, as France has begin taking bids from other interested parties for the 220,000 ton ships.

According to the Canadian Press, Canada has been seriously negotiating at a political level with the French with regards to the two Mistral ships originally built for Russia.

The source spoke on the condition of anonymity because they were not authorized to speak publicly on the matter said that Conservative Minister of Defence Jason Kenney was actively engaged in sounding out the French. This also included a face-to-face exchange at the most recent NATO meeting in June. This has all stopped now since the Election Call.

Saudi Arabia, Egypt, and Singapore have all expressed interest in the two Mistral ships. Canada has long been short listed by many nations as a potential buyer. The issue was France was not able to take monetary bids until the issue with Russia was officially settled. Now that has happened, France can start receiving bids - and Canada is in an Election.

The Two mistrals can sell for anywhere from $1.6 to $1.9 billion - and would then need hundreds of millions of dollars for upgrades to bring them in line with the Royal Canadian Navy Standards. The problem is Egypt and Saudi Arabia are extremely interested and considered in the running to buy them very shortly.

While the Mistrals are technically Heli-carriers, the French Navy has exclusively used theirs for humanitarian and evacuation missions since 2006. This is something the RCN could clearly use. The Mistrals are capable of carrying 16 helicopters, 59 armoured vehicles, and 450 troops (inclusive of its crew).

The Mistral class ships saga continues. What is clear is the Conservative Government has made a serious pitch to the French Government, and has allowed the French shipyard DCNS to set up an office in Ottawa, as they want to be part of the RCN frigate replacement program. Maybe that will be enough for France to hold off selling the Mistrals, and wait for Canada to say yes.

1,650 CAF members heading to Europe

Defence Minister Jason Kenney announced yesterday that Canada will partake in the largest NATO exercise in Europe since the end of the Cold War in 1991.

Operation TRIDENT JUNCTURE-15 will be held in late September to early November in Spain, Portugal, and Italy; and will include more than 25,000 troops from NATO members. Canada will be sending a contingent of 1,650 troops, including elements of the RCAF, RCN, and Land elements, including Special Forces.


The Conservative government, despite not spending the NATO requested 2% of GDP on defence has been a large supporter of NATO's response to Russian aggression in Eastern Europe. Canada is still deciding on how many members (if any) of the CAF it will contribute to the NATO Rapid Reaction Force. However, Ottawa officially offered the RCAF spy planes, tanker aircraft and strategic lift capabilities to the Rapid Reaction Force, which is set to triple in size from the current 13,000 members.

Two weeks ago, the CAF announced that it would provide staff officers to work at the Rapid Reaction Force command centres in Latvia, Lithuania, Estonia, Poland, Bulgaria, and Romania.

Despite Canada's slow decision making process in sending troops to be part of the reaction force, Canada has had 200 infantry rotating through Eastern Europe since the summer of 2014, and according to DND, plans for the continued rotation is set for as far as March 2016.

Opponents are saying that Canada is planning on establishing a permanent presence in Europe, much like it did between 1946 and 1991 in Germany. However, DND says no permanent planning is in the process, as it is not cost-effective and in most cases too expensive.

Navy: Further Delays expected for Joint Support Ships

On a day when Defence Minister Jason Kenney announced that the government has entered into talks with the Quebec Shipyard about converting a civilian supply-ship for the navy as a stop gap - the Navy has come out and announced that they believe more delays are coming for the Joint Supply Ship (JSS) fleet.

Originally supposed to be built and be in the water by 2012, the JSS's current timeline is to being construction by 2017, and be fully operational by 2021. The Navy currently believes the Vancouver Shipyard will not be ready to begin construction by 2017, due to the fact that they are currently building the government's Fisheries Science and Oceanographic Vessels.

On top of the possibility that construction will not begin on time - a review of the budget has found that the JSS project might not even be affordable. There is a concern that with the lack of ship building in Canada over the past two decades, thaat the Vancouver Shipyard will not be able to hire the qualified staff it will require for the JSS. Also there are questions about the $2.6 billion put aside for the project (another $1.9 billion has been set aside for in-service support). Some critics question whether enough money has been put aside.

The Royal Canadian Navy is planing a third party review of the costs - and will make minor changes to its plans if the costs continue to rise - but says it requires the capabilities of the JSS. The Royal Canadian Navy selected the Germany Navy's Berlin-Class design for the ships - so changes will all depend on what those designs allow.

A Germany Navy Berlin-Class Replenishment Ship

Canada in Ukraine: Trainers to be in place by August

Despite the fact that the CAF's mission to the Ukraine was announced in April - very little has taken place to put the CAF on the ground in the Ukraine.

According to DND, a reconnaissance team has only just arrived in the Ukraine according to Lauren Armstrong, a spokeswomen for Defence Minister Kenney. They are scouting a location for the deployment of Canadian trainers.

Some 200 CAF trainers will help train the Ukrainian military in modern tactics. There has been no information given as to the delay in deploying the troops. Now troops will deploy on their two year mission in mid to late August, right in the heat of an Election campaign in Canada, which is set to vote in October 19.

First 6 of 28 CH-148 Cyclones Delivered...sort of

Defence Minister Kenney announced the RCAF's acceptance of the first 6 CH-148 Cyclones in Halifax.
(Photo: Canadian Press)

The RCAF has officially accepted delivery of 6 of the ordered 28 CH-148 Cyclone helicopters, however they are not 100% operational. That will come with further upgrades as more aircraft are delivered. 

The next batch of helicopters will be delivered in 2018, but they too will not be 100% operational, that will not come until the final deliveries are expected in 2021. A full 10 years after the project was supposed to be complete. 

Reports released yesterday are now saying the RCAF is already worried about the amount of engine power the Cyclone is capable of producing. Stating that it produces less than the Operational Requirements called for in a replacement for the Seaking helicopters. Sikoski says the aircraft will be able to do more as upgrades become available. 

So, despite the fact that the RCAF now has 6 new helicopters in its inventory - many are left wondering, was the delivery of helicopters political? How could it not be - why accept helicopters that are not 100% operational to the requirements established in the contract? Oh right...there is an election in October. 

Fingers crossed the RCAF doesn't begin retiring the Seakings before the Cyclones are 100% operational, or SAR may take a hit in Canada. 

Upgrade to the North Warning System in the Works

A report was quietly released back at the bigging of April that the U.S Military is looking at its options when it comes to upgrading the missile sensors in the North Warning System, along the old Distant Early Warning (DEW) Line from the Cold War Era.

The current sensors will be obsolete within the next decade the U.S. Military fears, and are currently only capable of tracking high flying aircraft or ballistic missiles. They currently cannot track low-flying objects - including Cruise missiles, as they cannot see beyond the horizon.

Photo of part of the Hall Beach, Nunavut North Warning System Station (2003) Tropo Dish and Radar Dome Visible. 

U.S. officials say they have approached Canadian officials to begin discussions as to possible upgrade options, for greater visibility in the Arctic. Many feel this is a pressing issue, with the increase in Russian sorties in the Arctic. Russian bombers, tankers, and fighter jets approached North American airspace 17 times last year.

Defence Minister Jason Kenny, recently said the Government is looking at options for the modernizing of the North Warning System, but is still strictly opposed to being part of the US Ballistic Missile Defense (BMD) System, which the government opted out of nearly a decade ago.

The issue is currently still with the House Defence committee under study.

United for Ukraine: CAF to deploy 200 Troops to the Ukraine

Defence Minister Jason Kenney and Chief of Defence Staff General Tom Lawson announced with Prime Minister Stephen Harper that the Canadian Armed Forces and Canada is United for Ukraine; and will deploy approximately 200 troops to the Ukraine to help train local forces, who are fighting the Russian-backed separatists. Approximately 10-12 Military Police will be part of the deployment - to better train the police forces in the region as well.

The CAF members will be deployed both on a sustained and periodic basis, depending on the type of training, which will last until the end of March 2017.

Kenney said that this is yet another step in Canada's efforts to help the Ukraine maintain its territorial integrity against Russian aggression.

It was announced that Canadian troops will be as far removed from the conflict in Eastern Ukraine.

The training mission will begin during the summer of 2015 - and will take place primarily at the NATO training facility in Yavoriv, in Western Ukraine, near the Polish border. Other training will take place at the Ukrainian Defence De-mining Centre  in Kamyanets-Podilsky - also located in Western Ukraine. The Polish border is Canada's exit strategy, should the unthinkable happen, and Canadian troops are required to exit the Ukraine in a hurry.

Since January 2014, Canada has been sending non-lethal aid to the Ukraine, and has continued to refuse lethal aid. The Ukrainian embassy in Canada has said Canada's training assistance is highly appreciated.

Canada in Syria: Correcting Minister Kenney's Comments

I posted last week - as many other news agencies posted, that the United States had pushed for Canada to join the air campaign in Syria because of our precision-guided munitions that our Arab allies do not have - this is false. Both Saudi Arabia and the United Arab Emirates have been deploying precision-guided munitions in Syria against ISIS.

The comments made by Defence Minister Jason Kenney have been shown to be false, and members of DND have no idea why he made them. 

Over the weekend, DND released the following statement, now published on the DND/CF site:

"As stated by the Minister of National Defence, the Royal Canadian Air Force’s precision targeting capabilities make Canada a valuable partner in the fight against ISIL. The weapons that will be employed will be amongst the most advanced precision-guided munitions in the world. These weapons are equipped with laser and GPS guidance systems, giving Canada the ability to strike targets in all types of weather. Currently, only the United States uses these advanced precision-guided munitions in Syria.

Our highly trained pilots can use these advanced precision-guided munitions to strike targets either deliberately, or dynamically. Deliberate targeting occurs where targets are static, while dynamic targets can be identified while flying a mission, and could include, for instance, an ISIL military vehicle or weapon that is moving. This is a significant capability which, currently, only the US employs in Syria.

I applaud the contributions of all our allies in the coalition, and I agree with US Chairman of Joint Chiefs of Staff, General Martin Dempsey’s assertion that our allies operate with skill and precision, and take extensive measures to minimize civilian casualties.

Canadians can be proud of the contribution that their Armed Forces bring to the coalition – both in terms of advanced weaponry, and our expertise deploying it. Our contributions make Canada a highly valued and respected ally in the coalition effort to defeat ISIL."

Statement by:

General Tom Lawson,
Chief of the Defence Staff