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Canada to get Type 26 sub hunter

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Naval Group, Fincantieri join forces in Canada warship tender
By: Pierre Tran and Tom Kington
01.12.2017

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Canada has declared its intention to acquire 15 surface combatant ships. Naval Group and Fincantieri proposed a joint offer based on the FREMM. (Naval Group)

PARIS and ROME — Naval Group and Italian partner Fincantieri have filed a joint bid based on the FREMM multimission frigate in the Canadian tender for 15 warships, a spokesman for the French shipbuilder said Friday.

“We submitted our offer yesterday,” the Naval Group spokesman told Defense News.

The joint offer has “strong support” of the French and Italian governments, the two companies said in a Dec. 1 joint statement.
That bid benefits from the FREMM frigate being sea-proven, interoperable by NATO standards and available off the shelf, all of which cuts stress on the Canadian budget, the spokesman said.

Announcement of that offer marks a turnaround for Fincantieri, which previously objected to the way the tender was set up. The Italian company was unhappy with the Canadian request that a large amount of technical data about the frigate be handed over to the prime contractor, Irving Shipbuilding, before a winner is chosen.
The statement on their joint bid, however, contains a carefully worded paragraph stating that “transfer of technology” would go ahead “should the offer be accepted.”

The declaration of interest hinged on technology transfer in the event of victory, a Fincantieri spokesman said.

“It was unusual that the transfer of a large amount of technical data to a private company was requested at the start of the procurement procedure, before winning,” he said.

“Should the offer be accepted, the future frigates would be built in Canada at Irving Shipbuilding in a very short time, maximizing Canadian industrial participation and job creation locally through a dedicated and comprehensive transfer of technology, as well as integrating Canadian suppliers into the two companies’ global supply chains,” the two companies said in the statement.

The international competition for the Canadian Surface Combatant has sparked close interest and is seen as a test of European industrial consolidation. France and Italy are in negotiations for closer ties between Fincantieri and Naval Group, in an attempt to increase cross-border cooperation.

The two companies and government officials are in talks for a cross-shareholding of 10 percent in the partner firms and creation of a joint venture to pursue export contracts for warships. A deal is expected to be reached next year.

Naval Group and Fincantieri jointly designed and developed the FREMM frigate, which sails with the French and Italian navies. Prior to the FREMM, the two firms worked together on the Horizon, an air-defense frigate with a higher level of common equipment than the former.

https://www.defensenews.com/naval/2017/12/01/naval-group-fincantieri-join-forces-in-canada-warship-tender/?utm_source=Sailthru&utm_medium=email&utm_campaign=DFN DNR 12.01.17&utm_term=Editorial - Daily News Roundup
 

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Canada's Combat Ship Team: BAE Systems, CAE, Lockheed Martin Canada, L3 Technologies, MDA and Ultra Electronics Join Forces to Deliver Canadian Surface Combatant Proposal

OTTAWA, Ontario, Nov. 28, 2017 -- Two days prior to the procurement closure date, Lockheed Martin Canada (NYSE: LMT) has confirmed delivery of the proposal for the Canadian Surface Combatant (CSC) program signifying that the acquisition has moved to the next critical phase.

BAE Systems, CAE, Lockheed Martin Canada, L3 Technologies, MDA and Ultra Electronics are partnering as Canada's Combat Ship Team for the Royal Canadian Navy's future fleet of surface combatants. Canada's Combat Ship Team is offering the most advanced and modern warship design, the Type 26 Global Combat Ship (GCS), with high-tech platform innovations from prominent Canadian companies. The solution includes the internationally renowned Canadian-developed combat management system, CMS 330.

Canada's Combat Ship Team's approach to the CSC project exclusively parallels the Canadian Government's Defence Policy, which is the foundation for the offering: Strong, Secure and Engaged.

STRONG. Canada's Combat Ship Team's approach to the strategic objective STRONG is to provide the right ship for the Royal Canadian Navy that surpasses baseline requirements with minimal change. This solution represents the lowest development risk and is underpinned by Canadian doctrine; interoperability with five-eyes nations and other NATO allies; ability to achieve safety certification and security accreditation; ease of operation, maintenance and sustainment; and ease of upgradeability to address future capabilities.

SECURE. Under the pillar of SECURE, Canada's Combat Ship Team's offering focuses on ensuring successful program execution by bringing together a pan-Canadian team who have proven, demonstrated and current pedigree in performing complex defence contracts in Canada; who have well-established infrastructure, employees, security clearances and facilities in place today; who have demonstrated their commitment and reliability to successfully execute the project by their substantial investments in CSC and in meeting all procurement deadlines; and therefore who are poised to perform the CSC program, Ready on Day One.

ENGAGED. Embodied throughout Canada's Combat Ship Team's offering is our multifaceted approach to achieving the strategic pillar ENGAGED. The underlying principles implemented focus on partnership with all stakeholders and, equally important, maintaining sovereignty of the CSC solution in Canada, which can only be achieved by having the solution and capability developed "at home" by Canadians.

Canada's Combat Ship Team is living proof that capability investments made in Canada result in sustained jobs not only through long term sustainment of its system and products, but also extend to exports which leverage Canada's investments to other nations adding more jobs to Canadian industry. This team recognizes the significant benefits that Canada will receive with the implementation of Canada's Combat Ship Team's strategic objective to bring the jobs "home" to Canada and therefore collectively become the Home Team.

Quotes

"The Type 26 Global Combat Ship is a flexible, next generation warship design which offers a low risk and affordable solution for the Canadian Surface Combatant program. With the UK Type 26 program running ahead of CSC, our Canadian ship will benefit from lessons learnt on the UK program. This schedule also allows Type 26 the opportunity to be the most advanced Canadian Surface Combatant.

Canadian companies such as W.R. Davis Engineering in Ottawa, Rolls-Royce in Peterborough and L3 MAPPS in Montréal have already begun work on delivering high-technology systems for the UK's Type 26, demonstrating the skills and capability available from the Canadian supply chain." Anne Healey, Country Director, Canada, BAE Systems

"Building on our proud Canadian history of more than 70 years, we are honoured to join forces with this pan-Canadian team that has been assembled for CSC. CAE welcomes the opportunity to leverage the strengths of our combined organizations to support the Government of Canada and Irving Shipbuilding to deliver a modern, capable warship with an integrated training system that aligns with the Future Naval Training Strategy. CAE is dedicated to offering customers the most innovative training solutions to achieve the highest levels of operational readiness and performance." Joe Armstrong, Vice President and General Manager - Canada, CAE

"The Defence Policy released earlier this year announced the Government's new vision for the Canadian Armed Forces, and as a Pan-Canadian team, our approach to CSC implements these Defence Policy pillars where we are offering the right ship for the Navy to enable them to be STRONG; we are offering proven, Canadian pedigree of companies to ensure successful program execution is SECURE; and we are offering a solution that ensures sovereignty is maintained by bringing the direct jobs on CSC home to Canada so that we are ENGAGED and able to sustain the CSC ships throughout their lifespan.

Lockheed Martin Canada has been Canada's trusted Combat System Integrator for more than three decades, and our team can be counted on to deliver affordable solutions, sustained job creation, and technology development in Canada for export potential. We'll employ our proven collaborative partnership model to successfully manage the highly complex systems integration process – including integrating our CMS 330 Combat Management System with the Type 26 Global Combat Ship – and leverage the innovation and talent here at home which will ultimately result in unprecedented economic outcome for Canada." Rosemary Chapdelaine, Vice President and General Manager, Lockheed Martin Canada Rotary and Mission Systems

"We are proud to be a member of Canada's Combat Ship Team. With a strong Canadian footprint, we are in a unique position to leverage our established Canadian companies to deliver Canadian marine technologies, systems integration support, and through life in service support to the team in a number of areas including integrated communications, electro optic and infrared sensors, torpedo handling systems, and integrated platform management systems." Mike Greenley, President, L3 WESCAM

"As one of Canada's leading space and defence companies, MDA's participation in this team is very strategic. For MDA, in addition to providing world-class operational CSC capability to the Canadian Forces, this project will be a major enabler in achieving significant future MDA exports from Canada and the resulting growth in jobs and business in Canada – a continuous corporate strategy for MDA since 1969." Dave Hargreaves, Vice President – Aerospace and Defence, Surveillance and Intelligence, MDA

"As a long-time participant in Canada's defence community, Ultra Electronics is delighted to be a member of Canada's Combat Ship Team. It is truly a privilege to be able to provide our world-leading Canadian designed and developed underwater warfare products to this uniquely assembled team to deliver Canada's future surface combatant." Ken Walker, President, Ultra Electronics Canada

Quick Facts

  • In June 2016, following Industry engagement, the Government of Canada announced that it would proceed with a procurement package based on a Total Ship Reference Point. For industry, this meant combining the efforts of a warship designer and combat systems integrator into a consolidated proposal.
  • BAE's Type 26 has been selected by the Royal Navy and steel has been cut on the first of a planned eight ships. Due to its current stage in the lifecycle, there is no obsolescence in the design and it therefore offers the lowest risk to build in Canada.
  • The Type 26 Global Combat Ship can undertake a wide range of roles from high intensity conflict to humanitarian assistance, including anti-submarine warfare and air defence. It is flexible, versatile and highly survivable with an extremely low acoustic signature.
  • Built for the Royal Canadian Navy's doctrine, tactics and operations, Lockheed Martin Canada's innovative Combat Management System – CMS 330 – was developed in Canada as a result of 34 years' experience and knowledge of Canadian and NATO naval operations.
  • Members of Canada's Combat Ship Team are currently delivering on the final stages of Canada's HALIFAX-class Modernization Project.
  • Collectively, our team employs more than 9,000 Canadians in over 40 facilities across the country with an established presence on both coasts. Our collective Canadian supply chain consists of approximately 4,000 contracts Canada-wide.

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Bold move backfires as Canada declines Naval Group-Fincantieri frigate offering
By: Pierre Tran , Tom Kington , and David Pugliese
07 Dec 2017

PARIS, ROME, and VICTORIA, British Columbia — Naval Group and Fincantieri are out of the running to compete in Canada’s program to acquire a fleet of new surface combatants after they failed to submit a bid through the formal process and instead sent a proposal directly to the Canadian government.

The companies had offered Canada a proposal to construct 15 ships at Irving Shipbuilding in Nova Scotia for a fixed cost. But the proposal circumvented the government’s procurement procedure, which required formal bids to be submitted to Irving by Nov. 30. Naval Group and Fincantieri did not follow that requirement.

The Canadian government announced Tuesday it had rejected the proposal from the two firms. “The submission of an unsolicited proposal at the final hour undermines the fair and competitive nature of this procurement suggesting a sole source contracting arrangement,” Public Services and Procurement Canada, or PSPC, which is overseeing the procurement, said in a statement. “Acceptance of such a proposal would break faith with the bidders who invested time and effort to participate in the competitive process, put at risk the Government’s ability to properly equip the Royal Canadian Navy and would establish a harmful precedent for future competitive procurements.”

Canada’s decision effectively removes Naval Group and Fincantieri from taking part in the program since the companies never submitted a formal bid, government officials noted.

Public Services and Procurement Canada declined to say how many bids were received for the Canadian Surface Combatant project. Besides a bid from the BAE-Lockheed Martin Canada consortium for the Type 26 frigate, only two other companies have acknowledged bidding.

A team led by Alion Canada is offering the Dutch De Zeven Provinciën-class air-defense and command frigate. The Spanish shipyard, Navantia, has submitted a bid based on its F-105 frigate design.

Canada expects to make a decision on the winning bid sometime in 2018.

The program to build 15 new warships is estimated to be worth CAN$62 billion (U.S. $49 billion). The program was originally estimated to cost CAN$26 billion, but that figure has been revised a number of times and has been climbing steadily over the last several years.

Fincantieri and Naval Group had hoped the proposal of a fixed price tag of about CAN$30 billion for a new fleet might sway the Liberal government, as it would eliminate much of the risk and would offer a proven warship design. The proposal had the backing of the French and Italian governments and was made directly to Canadian Defence Minister Harjit Sajjan.

Naval Group and Fincantieri took note Canada had rejected their joint bid that filed outside the competition for a frigate fleet, but they were still ready to offer the design of their warship for local assembly, the companies said Wednesday.

“We acknowledge the position expressed by the Public Services and Procurement Canada (PSPC) not to take into consideration the offers submitted outside the process of the Canadian Surface Combatant program (CSC) Request For Proposal (RFP),” Naval Group and Fincantieri said.

“Nevertheless, Naval Group and Fincantieri remain at the disposal of Canada to contribute to the modernization of Canadian forces with a sea-proven warship, currently in service with the French and Italian Navies, that would minimize the scheduling gaps for design and construction of all the ships in Canada and maximize value for money,” the companies said.

Asked on Wednesday how Fincantieri and Naval Group will react to Canada’s rejection, Fincantieri CEO Giuseppe Bono declined to give a direct response but did suggest there might be room for compromise.

“We don’t want to take risks,” he said, adding: “we need to see what makes sense” and “the customer is always right.”
In addition, he said the design of the ship offered to Canada would be more similar to the Italian version than the French.
“We have made a joint offer of a FREMM, which is close to the Italian version if only because Italy has an anti-submarine warfare version,” he said.

The terms of the Canadian competition posed a problem as the tender required bidders to hand over intellectual property and there was danger it might end up in the wrong hands, an analyst said.

“The problem from the outset is how the Liberals have set the competition,” said Robbin Laird, of consultancy International Communications and Strategic Assessments, based in Paris and the Washington, D.C., area.

“One would think that with … the U.S. and Australia launching new frigates as well as the French and Italians working on a new frigate program, the approach would be to leverage the allied global recapitalization effort,” he added. “Yet what the Canadian government has focused upon is simply forcing competitors to provide intellectual property to their own Canadian shipyard without any real protection against leakage of that technology to China or to other competitors.”

In their direct bid to the Canadian government, the European partners offered a speedy start of shipbuilding in 2019, which they said would help sustain local jobs. A frigate generally takes about four years to build.

The Franco-Italian frigate was offered with the Thales Sea Fire radar, a multifunction digital system, an industry executive said. Naval Group offered its Senit combat management system, with Fincantieri delivering the ship design.

Thales developed the flat-paneled Sea Fire for the FTI, an intermediate frigate ordered for the French Navy and aimed mainly for export markets.

Anti-submarine systems included Thales Captas hull-mounted and towed array sonars, specialist website Mer et Marine reported. The weapons could include a 127mm gun and two vertical launchers for surface-to-air missiles, which would likely be Aster but would also be available for American weapons.

https://www.defensenews.com/industry/2017/12/06/bold-move-backfires-as-canada-declines-naval-group-fincantieri-frigate-offering/?utm_source=Sailthru&utm_medium=email&utm_campaign=DFN DNR 12.06.17&utm_term=Editorial - Daily News Roundup
 

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The Canadian government announced mid-October that a team led by Lockheed Martin Canada had been selected as the “preferred designer.” That team was offering up British defense firm BAE Systems’ Type 26 design.


A rendering of the Canadian Type 26, on track to win Canada's frigate competition.

But the Arctic nation’s selection of a ship that is a purpose-built sub hunter could be a sign that it is willing to accept those risks because of the strategic threat Russia poses to Canada’s interests at the rapidly thawing top of the world.

“For the Canadians, anti-submarine warfare is a big deal,” said Bryan Clark, a retired U.S. submarine officer and analyst with the Center for Strategic and Budgetary Assessments. “If you are worried about the Russian sub threat and the air threat, then, yeah, the Type 26 makes sense.”

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Lockheed contracts OSI for Canadian Type 26 integrated bridge design
April 18, 2019

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Artist's rendering of the Canadian Surface Combatant design. Photo: RCN

The integrated bridge and navigation system (IBNS) for the Royal Canadian Navy’s Type 26 surface combatants will be designed and delivered by OSI Maritime Systems.

OSI said the contract was awarded by Lockheed Martin Canada, who is working with Irving Shipbuilding to deliver a fleet of 15 warships under a contract from February 2019.

The CSC project, which is part of the National Shipbuilding Strategy, will replace both the Iroquois-class destroyers and the Halifax-class multi-role patrol frigates with a single class of ship capable of meeting multiple threats on both the open ocean and the highly complex coastal environment.
OSI’s IBNS is also known as an integrated navigation and tactical system. Centered around the company’s ECPINS, the system integrates selected radars and navigation sensors, providing a comprehensive military IBNS.

In addition to the new CSC contract, OSI has built six systems for the RCN’s Arctic Offshore Patrol Ships program, as well as recently being awarded a contract to provide IBNSs to the RCN’s new Joint Support Ships program.

Lockheed contracts OSI for Canadian Type 26 integrated bridge design
 

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Canada’s surface combatant project will cost C$4.6B per ship, new report finds
25 June 2019

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Photo: Royal Canadian Navy

An updated estimate of the Canadian Surface Combatant (CSC) program indicates that the Canadian government is poised to pay C$8 billion more than initially expected to acquire a fleet of 15 new frigates.
According to the government’s new budget officer report, the total cost of the CSC program is C$69.8 billion (US$52.7 billion) over 26 years.

As outlined, the cost includes $5.3 billion for pre-production efforts, $53.2 billion for the construction of ships and $11.4 billion in project-wide costs.
When divided over a fleet of 15 new Type 26 frigates, the cost of a single ship is brought to $4.6 billion.

For comparison, the 2017 PBO report estimated a total program cost of $61.8 billion, $8 billion less than the updated estimation. PBO said the difference in these estimates is due to the fact that ship construction would begin later (increasing inflation costs), in addition to the ship being larger than assumed in the previous report. The cost of spares beyond the initial two years was also excluded, reducing real program costs.

The primary cost driver, as explained in the report, is the weight of the ship. Ship displacement represents the primary factor in the model’s cost estimating relationships. The 2017 PBO report estimated project costs based on a 5,400 ton lightship weight, which was an estimate based on available designs for the CSC project at the time.
With the announced selection of the Type 26 design, a displacement of 6,790 tons represents a significant increase.

The report further stated that a one-year delay would increase the total program cost by almost $2.2 billion, a three percent increase, while a two-year delay would increase the total cost by almost $4.5 billion, representing a six percent increase.

The cost increases are not finite, however, as there is still possibility for cost overruns as the project enters the construction phase.

The Canadian government expects to start building the ships in the early 2020s, as the Halifax-class are set to start retiring in the 2030s. The Canadian Surface Combatants are being built as a replacement for the Canadian Navy’s Halifax-class frigates and Iroquis-class destroyers.

By selecting the BAE Systems’ Type 26 frigate design, Canada joined the UK and Australia, who are procuring eight and nine Type 26 ships, respectively.
You can read the entire Parliamentary Budget Report here.

 

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