Re: Warships

by **Lockey** Tue 02 Mar 2021, 4:36 pm

DND refuses to change course on warship project even as price rises to $77 billion

David Pugliese • Ottawa Citizen
Publishing date: Mar 02, 2021

https://ottawacitizen.com/news/national/defence-watch/dnd-refuses-to-change-course-on-warship-project-even-as-price-rises-to-77-billion

by **Slider** Mon 08 Mar 2021, 9:05 pm

PBO at a loss to explain why cost of new Canadian warship, currently at $77B, keeps rising

David Pugliese • Ottawa Citizen
Publishing date: Mar 08, 2021

https://ottawacitizen.com/news/national/defence-watch/pbo-at-a-loss-to-explain-why-cost-of-new-canadian-warship-currently-at-77b-keeps-rising

by **Joker** Mon 05 Apr 2021, 4:24 pm

No plans to change warships despite cost warning, top official says

Lee Berthiaume · The Canadian Press · Posted: Apr 04, 2021

Warships - Page 2 British-type-26-frigate

https://www.cbc.ca/news/SOMNIA-1.5975443

by **GeminiTeam** Tue 11 May 2021, 4:20 pm

U.S. government announces Canada will spend more than $2 billion on warship radars

David Pugliese • Ottawa Citizen
Publishing date: May 11, 2021

https://ottawacitizen.com/news/national/defence-watch/u-s-government-announces-canada-will-spend-more-than-2-billion-on-warship-radars

by **Replica** Wed 09 Jun 2021, 11:10 am

Government to commit to building first three warships despite budget concerns

David Pugliese • Ottawa Citizen
Publishing date: Jun 08, 2021

https://ottawacitizen.com/news/national/defence-watch/government-to-commit-to-building-first-three-warships-despite-budget-concerns

by **Accer** Mon 14 Jun 2021, 1:38 pm

DM's son works at defence firm behind winning warship bid; DND silent on what guidelines are in place to avoid conflict of interest

David Pugliese • Ottawa Citizen
Publishing date: Jun 14, 2021

https://ottawacitizen.com/news/national/defence-watch/dms-son-works-at-defence-firm-behind-winning-warship-bid-dnd-silent-on-what-guidelines-are-in-place-to-avoid-conflict-of-interest

by Covert Fri 09 Jul 2021, 7:21 am

More delays expected on new navy ships, DND report warns

David Pugliese • Ottawa Citizen
Publishing date: Jul 08, 2021

https://ottawacitizen.com/news/national/defence-watch/more-delays-expected-on-new-navy-ships-dnd-report-warns

by **RunningLight** Thu 05 Aug 2021, 2:30 pm

Government announces contract for in-service support for navy frigates but some details lacking

David Pugliese • Ottawa Citizen
Publishing date: Aug 05, 2021

Defence Watch

by Whiskey Tue 02 Nov 2021, 2:15 pm

Refrain from sending warships through the Taiwan Strait, China tells Canadians

STEVEN CHASESENIOR PARLIAMENTARY REPORTER

ROBERT FIFEOTTAWA BUREAU CHIEF

PUBLISHED NOV 02, 2021

THE GLOBE AND MAIL

by **Spider** Wed 22 Dec 2021, 9:34 am

Military shipbuilding faces fresh delays as a result of COVID-19: procurement chief

Dec 21. 2021

OTTAWA — The Defence Department's top procurement official is warning of fresh delays in the delivery of already overdue warships and other new equipment to the Canadian Armed Forces because of COVID-19.

OTTAWA — The Defence Department's top procurement official is warning of fresh delays in the delivery of already overdue warships and other new equipment to the Canadian Armed Forces because of COVID-19.

Assistant deputy minister of materiel Troy Crosby says the Halifax and Vancouver shipyards building new fleets for Canada's navy and coast guard have been hit particularly hard by lockdowns and supply chain disruptions.

And while the government is working with the shipyards to determine the full extent of the problem, Crosby tells The Canadian Press in an exclusive interview that their already revised delivery schedules will slip yet again.

“The shipbuilding projects ... are the ones where we probably are going to see cumulatively the largest impacts,” he said, adding: “There's going to have to be a schedule adjustment.”

Any schedule slippage will delay delivery of much-needed new ships for the navy's aging fleet, which has seen two support ships and three destroyers retired over the past decade, vessels that still haven't been replaced.

It will also mean even higher costs for the more than 20 navy and coast guard ships currently being built or which have yet to begin, all of which have seen their budgets increase as a result of past delays.

Parliamentary budget officer Yves Giroux laid out the potential cost increases for just one project in a report last week in which he pegged the price tag of the government’s plan to build two polar icebreakers for the coast guard at $7.25 billion.

The budget watchdog’s report estimated a one-year delay would add $235 million to the overall cost, while a two-year delay would result in a $472-million increase. Ottawa initially budgeted $700 million in 2008 to build one icebreaker.

Giroux has also predicted a one-year delay in delivery of 15 new warships for the navy would add $2.3 billion to his current estimated cost of $77 billion, while a two-year delay would result in the fleet costing $4.8 billion more.

Government officials have previously dismissed Giroux’s figure of $77 billion, insisting the warships’ $60-billion budget remains sufficient thanks to built-in contingencies and what they say are errors in his calculations.

But each significant budget overrun sets up a potential debate within government around whether to throw more money into the project or cut back on the number or quality of ships that it plans to buy.

Crosby acknowledged without providing details that cost increases are likely, noting recent stresses on supply chains alone have made it more expensive to buy and transport materials to the shipyards for those vessels currently under construction.

Various lockdowns and other public health measures have also resulted in lost productivity, Crosby said, with the shipyards having to close at different times and implement physical distancing and other measures to prevent the spread of COVID-19.

“More recently, so in the last few months, the shipyards have been reporting that they’re seeing quite a bit of churn, quite a bit of turnover, in their workforce,” he said, adding the problem has been exacerbated by a shortage of qualified college graduates.

Representations for Irving and Seaspan did not immediately respond to requests for comment on Tuesday.

Crosby says other military procurement projects are being affected by the pandemic as well, including the expected delivery of new search-and-rescue aircraft to replace the Royal Canadian Air Force’s ancient fleet of Buffaloes and older-model Hercules.

The new Kingfishers are being built in Spain, and travel restrictions have delayed delivery of several of the aircraft, though the air force says it is pressing ahead with plans to finally retire the 50-year-old Buffalo fleet next month.

Other projects such as the move to buy new fighter jets are moving ahead despite the pandemic, Crosby said, adding the government is still hoping to get the first replacement for Canada’s CF-18s in 2025.

Yet the shipbuilding projects are his top concern, and while the government is working with the shipyards to ease the effects of COVID-19, “whether it’s significant or not is going to depend on whether or not it’s long-term,” he said.

“We’re all waiting to see exactly what the longer-term implications are.”

This report by The Canadian Press was first published Dec. 21, 2021.

The Canadian Press

https://www.alaskahighwaynews.ca/national-news/military-shipbuilding-faces-fresh-delays-as-a-result-of-covid-19-procurement-chief-4887020

by **Zoneforce** Wed 29 Dec 2021, 4:54 pm

Fire on board Canadian warship could have been avoided: Navy commander

Published Wednesday, December 29, 2021

https://www.ctvnews.ca/canada/fire-on-board-canadian-warship-could-have-been-avoided-navy-commander-1.5722351

by **Forcell** Mon 17 Jan 2022, 11:53 am

Government quietly seeks influencers to push out good news about troubled shipbuilding program

Author of the article:David Pugliese • Ottawa Citizen
Publishing date:Jan 17, 2022

Defence Watch

by Armoured Wed 02 Feb 2022, 9:19 pm

Australian defence study warns new warships with same design to be used by Canada are unsafe

The Australian defence department assessment warned that the new Type 26 frigates will be “substantially” slower and have less range than originally intended.

David Pugliese • Ottawa Citizen
Publishing date: Feb 02, 2022

Australia’s new warships, which have the same basic design as the vessels Canada plans to build, are too slow and have been deemed unsafe, according to a new Australian defence assessment.

That report centres around the Type 26 ship of which Canada intends to build 15 in a project the Parliamentary Budget Office estimates will cost up to $77 billion.

The Australian defence department assessment warned that the new Type 26 frigates will be “substantially” slower and have less range than originally intended.

Australia is using the Type 26 design for its Hunter-class frigates. Canada is using the Type 26 design for its Canadian Surface Combatant ships, also known as the CSC.

The November 2021 Australian Defence department “engineering team assessment” of the country’s frigate procurement highlighted concerns about the untested “immature” ship design. The assessment also focused on safety issues for crew members who could become trapped below deck by floodwaters in “credible damage conditions,” The Australian, one of the country’s major newspapers, reported on Tuesday.

The assessment also warned that the ship is heavier than originally planned and that will result in “increased fuel consumption and running costs.” The Australian defence engineering team warned it has “low confidence” the new vessels will meet the Royal Australian Navy’s needs.

Canada’s CSC project has already faced delays and significant increases as the price tag has climbed from an original $14-billion estimate to $26 billion and then upwards.

Parliamentary Budget Officer Yves Giroux noted in a report issued last year that the estimated price tag is now around $77 billion. The PBO also produced several costing scenarios involving changes to the project by buying different warships or having a fleet made up of Type 26 frigates and less costly vessels. Those options could save taxpayers anywhere from $7 billion to $50 billion.

But the Department of National Defence has rejected the PBO figures, instead maintaining that the cost of the program will be between $56 billion and $60 billion. DND officials have insisted the cost will not go up beyond those figures and that it has no intention of changing course or considering anything but the Type 26 design.

The CSC fleet will be built at Irving Shipbuilding in Halifax. Lockheed Martin Canada is the main contractor overseeing the project.

While Canada has committed to the CSC project the construction contract has yet to be signed. Critics say without a contract, the Liberal government can still exit from the increasingly expensive program.

DND noted in a statement Wednesday that the Type 26 ship design “is being evolved to meet Canadian requirements for a single class that meets the RCN’s needs.”

Canadian defence officials are also in regular contact with British and Australian officials involved in the construction of the Type 26 for their respective countries. “It should be recognized, however, that although the three nations are building ships based on a common Type 26 parent design, country-specific requirements are such that the individual designs and design challenges are not always common between the three countries,” the DND added.

“With a base design completed and lessons learned from the build process on other programs, Canada’s overall risk is reduced,” Lockheed Martin added. “It is also important to highlight that Australia and Canada each have unique mission requirements and domestic industrial capabilities. Canada’s adjustments to the base design will meet the Royal Canadian Navy’s unique requirements, such as stealth and survivability, while also benefiting from progress achieved by allied countries using this design.”

The Australian assessment team also challenged claims by companies involved in the project that the Type 26 ship is the most advanced frigate in the world. The first vessel is currently being built in the United Kingdom.

Concerns were also raised that Australian firms were being shut out of providing equipment for the new ships.

Similar issues, including concerns about the increasing weight of the proposed ships and lack of domestic-produced equipment, have also been raised in Canada.

In 2020 then DND deputy minister Jody Thomas admonished industry officials for complaining to their members of parliament that Canadian firms were being shut out of the CSC project.

Analysts point out that the CSC project will be a priority for Defence Minister Anita Anand and recently named deputy minister Bill Matthews.

But critics counter that Anand and Matthews did little to get the CSC costs under control when they were at Public Services and Procurement Canada.

Defence Watch

by **Braven** Thu 19 May 2022, 7:32 pm

Companies involved in warship upgrade project now battling in court

David Pugliese • Ottawa Citizen
May 19, 2022

A B.C. judge has granted a temporary stay of proceedings in the dispute between Lockheed and Victoria Shipyards to allow federal government officials to vet 200,000 pages of documents.

The upgrade of two New Zealand navy frigates that was supposed to showcase Canada’s defence industry to the international market has descended into a legal battle between the companies involved and allegations of negligence.

The 2014 decision by New Zealand to select Lockheed Martin Canada to modernize the combat systems on its frigates was heralded as proof that Canada’s national shipbuilding program was paying dividends. The deal was going to showcase Canadian-made technology and skills, Lockheed Martin officials said then.

But the project in now engulfed in a legal battle between Lockheed Martin Canada and subcontractor Victoria Shipyards, owned by Vancouver-based Seaspan. “Both parties advance breach of contract and negligence claims relating to the Frigate Upgrade and deny the other party’s allegations,” according to a recently released decision by Justice Sandra Wilkinson of the Supreme Court of British Columbia. “The main issues in the action centre on the design, construction and installation of the combat system for the frigates, including allegations of negligent ship design and negligent management of the design and construction process.”

Both Lockheed Martin Canada and Seaspan declined to comment, citing ongoing legal proceedings.

Both are key companies in the federal government’s plans to produce new fleets for the Royal Canadian Navy and the Canadian Coast Guard.

Lockheed Martin Canada is partnered with Irving Shipbuilding to deliver the Royal Canadian Navy’s Arctic and Offshore Patrol Ships. Lockheed is also working with Irving on the Canadian Surface Combatant program, a new fleet to replace the navy’s existing frigates. That project, which was supposed to cost $26 billion, has more than doubled in price. National Defence says it will cost between $56 billion and $60 billion, while the Parliamentary Budget Officer has estimated the price tag for taxpayers is now $77 billion.

Seaspan is building new vessels for the Canadian Coast Guard and supply ships for the Royal Canadian Navy and has seen delays and cost increases.

Wilkinson granted a temporary stay of proceedings in the dispute between Lockheed and Victoria Shipyards over the New Zealand frigate project. That will allow federal government officials to vet 200,000 pages of documents that may contain information that could have an impact on Canada’s defence and national security.

New Zealand’s two frigates, which make up the country’s entire naval combat force, had been sent to British Columbia in 2018 and 2019 so Lockheed Martin Canada could conduct the upgrades. But the return of the warships had been delayed and cost increased beyond the original budget, New Zealand news media outlets have reported. One warship, Te Kaha, was returned in December 2020, while the second, Te Mana, is expected to leave Esquimalt, B.C., shortly.

The New Zealand Herald reported the modernization deal for those frigates was signed in 2014 at a budget of just under half a billion New Zealand dollars, but in 2017 the country’s newly elected Labour-led government was forced to put in another $140 million. “Cost overruns primarily occurred due to project management mistakes in estimating the cost of the installation of equipment and delays resolving the issue, which made an unacceptable situation worse,” then defence minister Ron Mark told Parliament at the time.

Defence Watch

by Covert Thu 02 Jun 2022, 8:36 am

Halifax shipyard warns warship schedule contingent on more federal funding

By The Staff The Canadian Press
Posted June 1, 2022

The company responsible for building Canada’s next fleet of warships says it remains on schedule to cut steel in two years⁠ — as long as Ottawa gives it more cash to upgrade its Halifax shipyard.

Irving Shipbuilding president Kevin Mooney says the shipyard needs several upgrades that were not originally anticipated when the company was selected to build 15 new vessels for the navy back in 2010.

Mooney says that is because the warship envisioned today is bigger and more complex than originally planned when Irving agreed to upgrade the shipyard at its own cost as a condition for winning the contract.

Mooney says Irving is now waiting for Ottawa to respond to its latest proposal, but that the company needs “hard funding” by the end of the year or early next year in order to start work on the first vessel by 2024.

Irving is expected to build 15 new warships based on a British design to replace the navy’s frigate and destroyer fleets over the next two decades.

Ottawa originally earmarked $26 billion for the new vessels, but that figure later rose to $60 billion, and Mooney says the cost is now under review again as a result of skyrocketing inflation and supply-chain issues.

This report by The Canadian Press was first published June 1, 2022.

The Canadian Press

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