Canadian Military News, Reports, Data, etc.

Jura said:

Oct 20, 2018
and
Legal challenge filed over $60B high-stakes competition to design Canada's new warships
U.S. defence giant Lockheed Martin beat out two rivals in the long and extremely sensitive competition to design replacements for the navy's frigates and destroyers

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Jura said:

Thursday at 6:25 AMwhile no body cares here,

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Feds ordered to postpone award of $60B contract because warship may not meet requirements such as speed
Irving and the federal government were hoping to have negotiations wrapped up with Lockheed Martin Canada by early next year

November 28, 2018

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Jura said:

Thursday at 6:25 AMwhile no body cares here, ...

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A legal challenge by a U.S. defense firm has resulted in a near unprecedented order for the Canadian government to put on hold awarding a contract to Lockheed Martin for a new fleet of warships that are to form the backbone of the future Canadian Navy.

The Canadian International Trade Tribunal issued the order Nov. 27 on the 60 billion Canadian dollar ($45.2 billion) Canadian Surface Combatant project after Alion Science of McLean, Virginia, complained the ship being proposed by Lockheed Martin Canada did not meet the Royal Canadian Navy requirements.

Lockheed Martin Canada, which offered the BAE Type 26 warship, was named by the Canadian government as the “preferred bidder” on the surface combatant program on Oct. 19. Negotiations were underway with Canadian government officials to sign a contract in early 2019.

In response, Alion went to Federal Court of Canada on Nov. 16 to request a judicial review of the decision to name Lockheed Martin the top bidder. On Nov. 21, it went to the Canadian International Trade Tribunal with its complaint that the Type 26 is not only unproven but does not meet the government’s stated requirements in the area of speed. The details about surface combatant speed requirements were removed from the complaint because of national security reasons.

Alion’s request for a judicial review could take some time. The company’s position, however, received a boost when the Canadian International Trade Tribunal issued an order to put a halt to any awarding of a contract to Lockheed Martin until the tribunal could examine the validity of Alion’s complaint. Canadian defense industry sources told Seapower that firms often ask the tribunal to put a defense contract on hold but it is rarely done, if ever.

Rania Haddad, a spokeswoman for Public Services and Procurement Canada, the federal department overseeing the surface combatant program, declined to comment.

“As this matter is the subject of a complaint which has just been accepted for inquiry by the Canadian International Trade Tribunal and is also the subject of litigation in the Federal Court, comments cannot be provided at this time,” she said Nov. 28.

Cindy Tessier, a spokeswoman for Lockheed Martin Canada, said the firm is not commenting as the case is before the courts.

The Canadian Surface Combatant project is the largest procurement in Canadian history.

A Department of National Defence source said work on the surface combatant project is on hold for now until it can be determined whether the Canadian government will go to court to challenge the tribunal’s order. That decision is expected in a week or so.

Alion has offered Canada the Dutch De Zeven Provinciën Air Defense and Command frigate, which the firm said meets all of Canada’s requirements.

The Canadian Surface Combatants will be constructed at Irving Shipbuilding in Halifax, Nova Scotia. The Type 26 is currently under construction for the U.K. Royal Navy and in late June Australia’s government selected the Type 26 design as its future frigate for the country’s navy.

The Canadian government has committed to building 15 surface combatants.

“This is probably the largest and most complex procurement in the history of Canada,” André Fillion, an assistant deputy minister at Public Services and Procurement Canada, told Seapower in October.

The new ships will replace the existing Halifax-class frigates and form the backbone of the Royal Canadian Navy for the next generation.

The Canadian government had expected to sign a contract with Lockheed Martin Canada sometime between January and March. If those negotiations fail, the government will go to its next highest-rated bidder on the program. That could be Alion or Navantia of Spain, whose proposal is based on the F-105 frigate design, a ship in service with the Spanish navy. Neither firm knows whether it has the second highest-ranking design.

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Jura said:

... here's a kinda summary: Canadian Surface Combatant Contract Award on Hold Pending Challenge

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The Defence department has acknowledged the government’s choice for a $60-billion warship program has a propulsion system that has been plagued by problems, at times shutting down entirely while at sea.

But the department says it is confident the Type 26 ship, designed by the British firm BAE, meets all the requirements necessary for the Royal Canadian Navy’s future fleet.

The acknowledgement of the problems is contained in a Department of National Defence fact sheet that outlines potential issues with the selection of Lockheed Martin Canada, with its bid of the BAE Type 26 vessel, as the “preferred bidder” for the Canadian Surface Combatant program.

That $60-billion CSC program, the largest single government purchase in Canadian history, will see the construction of 15 warships at Irving Shipbuilding in Halifax.

Among the issues addressed by the DND was an outline of some potential problems with the Type 26 warship. “The British Navy has had serious issues with the propulsion system in their BAE Type 45s, both in the generator — which has caused near-total power failures — and the engines themselves,” the DND document noted. “Given it uses the same propulsion system, will this affect the CSC too?”

But in the document, the DND also expressed confidence in the Type 26, adding that a design that didn’t meet all the requirements would not have been considered. Until negotiations with the preferred bidder are completed, the DND can’t discuss specific elements of the warship design, the department’s response pointed out.

Over the years, the BAE Type 45 destroyers have been plagued by problems, with the propulsion system conking out during operations and exercises. In March the British government awarded a contract to BAE worth more than $200 million to fix the problems, with the first ship to be overhauled by 2021.

But a representative of the Lockheed Martin Canada-BAE team noted in an email to Postmedia that the propulsion system for the Type 26 “is fundamentally different to the Type 45 propulsion system.”

“The T26 design therefore offers more propulsion options, both mechanical and electrical, and is underpinned by a greater number of propulsion engines, providing greater redundancy,” the email noted. “We are confident that the Type 26 design is the right solution for the Royal Canadian Navy and meets the requirements for the Canadian Surface Combatant.”

Officials with the consortium expressed surprise at the suggestion the Type 45 issues could be linked to the Type 26 design.

Negotiations with Lockheed Martin Canada on the surface combatant program have already hit a roadblock after the Canadian International Trade Tribunal ordered the Canadian government on Nov. 27 to postpone the awarding of a contract while it investigates claims the Type 26 doesn’t meet the military’s needs.

That came after Alion, one of the firms that submitted a bid on the CSC project, filed a complaint with the trade tribunal. Alion, a U.S. firm, has also filed a legal challenge in federal court, asking for a judicial review of the decision by Irving and the Canadian government to select Lockheed Martin and the BAE design. Alion argues the Type 26 cannot meet the stated mandatory requirements, including speed, that Canada set out for the new warship and because of that should be disqualified.

Alion had offered Canada the Dutch De Zeven Provinciën Air Defence and Command frigate, which the firm says meets all of Canada’s requirements.

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

But that criteria was changed and the government and Irving accepted the BAE design, though at the time it existed only on the drawing board. Construction began on the first Type 26 frigate in the summer of 2017 for Britain’s Royal Navy, but it has not yet been completed.

Company claims about what the Type 26 ship can do, including how fast it can go, are based on simulations or projections. The two other bidders in the Canadian program have ships actually in service with other navies so their capabilities are known.

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Jura said:

Nov 29, 2018
and in the meantime
‘Near total power failure’: Questions about propulsion system on new Canadian warship
The Defence department admits its choice for a $60-billion warship program has a propulsion system that at times shuts down entirely at sea

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Jura said:

Nov 29, 2018
and in the meantime
‘Near total power failure’: Questions about propulsion system on new Canadian warship
The Defence department admits its choice for a $60-billion warship program has a propulsion system that at times shuts down entirely at sea

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The Canadian International Trade Tribunal previously ordered the government to postpone the deal while it investigated claims Lockheed Martin’s vessel doesn’t meet the military’s needs

A federal trade tribunal has rescinded its order preventing the federal government from awarding a contract to Lockheed Martin Canada for a new fleet of warships for the Canadian navy.

The Canadian International Trade Tribunal ordered the government on Nov. 27 to postpone the awarding of the contract for the $60 billion Canadian Surface Combatant project while it investigated claims that Lockheed Martin’s proposed vessel doesn’t meet the military’s needs.

The firm is offering Canada the Type 26 warship designed by BAE in the

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.

Alion, one of the companies that submitted a bid on the project, filed a complaint with the trade tribunal alleging the process was flawed and that BAE’s Type 26 can’t meet Canadian requirements. Alion has also filed a legal challenge in federal court, asking for a judicial review of the decision by Irving and the government to select the BAE design. Alion argues the Type 26 cannot meet the stated mandatory requirements, including speed, that Canada set out for the new warship, so it should be disqualified.

But on Monday the CITT lifted its order, even though it has determined it will examine the Alion complaint. Mélanie Lalonde, CITT’s deputy director of communications, said Tuesday that the tribunal cannot comment on ongoing proceedings.

But the decision came after Andre Fillion, an assistant deputy minister at Public Services and Procurement Canada, wrote to request the order be removed. He noted that “the procurement of goods and services to which the Alion Complaint pertains is urgent, and that a delay in awarding contracts would be contrary to the public interest.”

Alion’s legal team objected, noting that “no reasons, nor any justifications, are provided to support this claim.”

The CSC program, the largest single government purchase in Canadian history, will see the eventual construction of 15 warships at Irving Shipbuilding in Halifax. Lockheed Martin Canada says the Type 26 will meet all of Canada’s requirements. The government hopes to be in a position to have a contract ready for signature by early next year.

The CITT hearings into the Alion complaint could take as long as 90 days.

Alion had offered Canada the Dutch De Zeven Provinciën Air Defence and Command frigate, which the firm says meets all of Canada’s requirements. It also noted in its court application that the requirements and other parameters of the surface combatant project were altered 88 times during the process and that the changes diluted the requirements for a new warship, allowing the government and Irving to pick “an unproven design platform.”

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

But that criteria was changed and the Liberal government and Irving accepted the BAE design in the process, though at the time it existed only on the drawing board. Construction began on the first Type 26 frigate in the summer of 2017 for Britain’s Royal Navy, but it has not been completed.

Company claims about what the Type 26 ship can do, including how fast it can go, are based on simulations or projections.

The two other bidders in the surface combatant program have ships actually in service with other navies so their capabilities are known.

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Jura said:

Dec 6, 2018
while now
Government gets OK to give warship contract to Lockheed Martin as trade tribunal backtracks

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Jura said:

Dec 6, 2018
while now
Government gets OK to give warship contract to Lockheed Martin as trade tribunal backtracks

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The awarding of a contract for a new warship fleet moved one step closer to reality after a trade tribunal rejected a complaint from one of the bidders that the process was flawed.

The Canadian government hopes to award the contract to Lockheed Martin Canada in the coming months for the Canadian Surface Combatant. That $60 billion project will see the construction of 15 warships in the largest single government purchase in Canadian history.

Lockheed is offering Canada the Type 26 warship designed by BAE in the United Kingdom.

But last year, Alion, one of the companies that submitted a bid on the project, filed a complaint with the Canadian International Trade Tribunal alleging the process was flawed and that BAE’s Type 26 can’t meet Canadian requirements. Alion has also filed a legal challenge in federal court, asking for a judicial review of the decision by Irving and the government to select the BAE design. Alion argues the Type 26 cannot meet the stated mandatory requirements, including speed, that Canada set out for the new warship, so it should be disqualified.

The CITT, however, has now rejected that complaint. “The Canadian International Trade Tribunal has determined that Alion Science and Technology Canada Corporation and Alion Science and Technology Corporation do not have standing to file a complaint before the Canadian International Trade Tribunal,” it noted in a statement.

The CITT did not explain how it determined the firm did not have standing to file a complaint. Sources say the issue may be linked to trade relations with the U.S. and what the CITT is allowed to examine.

The CITT will issue more details about its decision in the coming weeks.

Lockheed Martin Canada says the Type 26 will meet all of Canada’s requirements.

But the entry of the BAE Type 26 warship in the competition was controversial from the start. Previously, the government had said only mature existing designs or designs of ships already in service with other navies would be accepted for the bidding process, on the grounds they could be built faster and would be less risky — unproven designs can face challenges as problems are found once the vessel is in the water and operating.

But that criteria was changed and the Liberal government and Irving accepted the BAE design in the process, though at the time it existed only on the drawing board. Construction began on the first Type 26 frigate in the summer of 2017 for Britain’s Royal Navy, but it has not been completed.

Company claims about what the Type 26 ship can do, including how fast it can go, are based on simulations or projections.

The two other bidders in the surface combatant program have ships actually in service with other navies so their capabilities are known.

Alion had offered Canada the Dutch De Zeven Provinciën Air Defence and Command frigate, which the firm says meets all of Canada’s requirements. It also noted in its court application that the requirements and other parameters of the surface combatant project were altered 88 times during the process and that the changes diluted the requirements for a new warship, allowing the government and Irving to pick “an unproven design platform.”

Public Services and Procurement Canada released a statement Friday noting that it was pleased with the decision. “We have full confidence in our process, and continue to work toward awarding a contract for the design and design team for the future Canadian Surface Combatants,” the statement added.

The new ships will be constructed at Irving Shipbuilding in Halifax.

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Jura said:

Dec 14, 2018related:
Complaint about Canada's warship procurement dismissed

Updated: February 1, 2019

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The Canadian government has officially signed a contract with Irving Shipbuiding and the BAE Systems-Lockheed Martin team for the construction of Canada’s future surface combatants.

The contract was signed on February 7 after the BAE Systems’ Type 26 Global Combat Ship design was selected in October 2018.

Negotiations between the government and Irving Shipbuilder as prime contractor and the BAE-Lockheed team were completed even as CSC contender Alion Science challenged the decision in federal court.

Alion urged the court to determine whether the Type 26 design met the government’s requirements. One of the reasons for this claim was the fact that the government said only existing designs of ships already in service would be considered. The first Type 26 frigate is still under construction in the UK and is expected to take to the sea in 2023.

Following Alion’s challenge, the Canadian International Trade Tribunal in December 2018 gave the government green light to award the warship contract to BAE Systems and Lockheed Martin.

First Type 26 CSC contract
While the overall project is valued at between CA$56 and $60 billion, the initial contract with Irving Shipbuilding is valued at $185 million (including taxes) and will increase as design work progresses.

Construction on the Canadian Surface Combatants is scheduled to begin in the early 2020s.

Lockheed Martin Canada’s winning bid includes BAE Systems, CAE, L3 Technologies, MDA and Ultra Electronics Maritime Systems.

A total of 15 Canadian Surface Combatants will be built to replace Canada’s Iroquois-class destroyers and Halifax-class frigates.

“Our government is providing the Royal Canadian Navy with the ships it needs to do its important work of protecting Canadians,” Carla Qualtrough, minister of public services and procurement and accessibility, commented. “This procurement process for Canada’s future fleet of Canadian Surface Combatants was conducted in an open, fair and transparent manner that yielded the best ship design, and design team, to meet our needs for many years to come.”

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