BUILDING A STRONGER ECONOMY TOGETHER. Leveraging Defence Procurement: Aerospace Outlook
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1 BUILDING A STRONGER ECONOMY TOGETHER Leveraging Defence Prcurement: Aerspace Outlk
2 Presentatin Outline Leveraging industrial benefits frm defence and majr Canadian Cast Guard investments Canada s Defence Plicy Aerspace future capabilities & prcurements Marine prjects/ prcurements (separate presentatin) 2
3 Leveraging Industrial Benefits frm Defence Prcurement Defence Requirements Supprting Ecnmic Grwth Canadian Frces require dmestic capabilities in fur areas: ü Maintenance, repair and verhaul (MRO) ü Shipbuilding ü Training ü Ammunitin Industrial and Technlgical Benefits (ITB) Plicy (including Value Prpsitin) 3
4 Canada s Defence Plicy Canada s new Defence Plicy released June 2017 Strng at hme, Secure in Nrth America, and Engaged in the wrld. Fully funded plicy identifies prjects and capability areas required t fulfill Gvernment f Canada bjectives. $20.1 billin ver the next 20 years fr 17 new equipment prjects fr the Ryal Canadian Air Frce Innvatin fr Defence Excellence and Security new prgram t generate slutins 4
5 Aerspace Future Capability Requirements Replace the CF-18 fleet with 88 advanced fighter aircraft, thrugh an pen and transparent cmpetitin, t imprve CAF air cntrl and air attack capability Recapitalize next generatin strategic air-t-air tanker-transprt capability (CC-150 Plaris replacement) Invest in medium altitude remtely pilted systems 5
6 Aerspace Future Capability Requirements (2) Sustain dmestic search and rescue capability, t include life extensin f existing systems Acquire next generatin multi-missin aircraft (CP-140 Aurra maritime patrl aircraft replacement) Replace utility transprt aircraft (CC-138 Twin Otter replacement) 6
7 Aerspace Prcurements CT-114 Tutr Trainer Engine (J85) Prpulsin Grup Sustainment LOI clsed in May 2017 LOI (2) Fall 2017 (TBC) Expected t be cmpeted FY 18 (TBC) Budget: TBC Crmrant Mid-Life Upgrade (MLU) 7 Optins Analysis phase -currently extend the all-weather rtary wing search and rescue capability t at least 2040 Return full SAR capability t the Trentn main perating base Prvide capability imprvements t enhance its verall missin effectiveness. Value is estimated $800M (TBC) Future Aircrew Training (FAcT) Prject Optins Analysis/ Definitin Apprval 2018/19 Cntract Award 2021 Budget: TBC
8 Aerspace Prcurements Fixed-Wing Search and Rescue Aircraft Replacement (FWSAR) Prject Cntract awarded t Airbus Defence (and PAL Aerspace) n December Cntract includes: - delivery f 16 C295W aircraft - infrastructure and set-up activities, such as training and engineering services - cnstructin f a new simulatr-equipped training centre in. Cmx, British Clumbia - maintenance and supprt services - cntract fr the initial perid f 11 years is valued at $2.4 billin Mercury Glbal Strategic Deplyed Terminals T acquire grund statins t supprt Canada s participatin in the U.S. led Mercury Glbal prgram. This will prvide interperability and strategic SATCOM wideband cmmunicatins capabilities Cntract award: fall 2017/ early 2018 (TBC) 8
9 BUILDING A STRONGER ECONOMY TOGETHER Leveraging Defence Prcurement: Marine Outlk
10 Marine Prcurements NSS Cmbat Wrk Package (Irving Shipbuilding) Arctic Offshre Patrl Ships (AOPS) Acquisitin f up t six Arctic Offshre Patrl Ships t cnduct armed sea-brne surveillance in Canada's waters, including the Arctic Key sub-cntractrs Lckheed Martin Canada, General Electric, Odense Marine Technlgy, Fleetway, Llyd s Register September 2015 cnstructin began with cutting f steel at ISI August 2016 shipyard cut steel n secnd vessel First vessel delivery expected in 2018 Prject Budget: $3.5B Canadian Surface Cmbatants (CSC) Acquisitin f up t 15 warships t replace the Canadian Navy s destryers and frigates 12 cmpanies have been prequalified t bid n the prcurement RFP released t pre-qualified bidders in Octber 2016 Once the bid perid has clsed, Canada and Irving Shipbuilding Inc. will evaluate the prpsals. Selectin f the design will be cmpleted in 2018 Prject Budget: Under Review 10
11 Marine Prcurements NSS Nn-Cmbat Vessels Wrk Package (Vancuver Shipyard) Offshre Science Vessels Acquisitin f 3 Offshre Fisheries Science Vessels (OFSV) and 1 Offshre Oceangraphic Science Vessel (OOSV) The vessels will prvide a platfrm fr scientific research and ecsystem-based management. OFSV - First OFSV delivery anticipated fr late Cnstructin began in June Prject Budget: $687M OOSV - Build cntract t be awarded in Anticipated delivery date is Prject Budget: Under Review 11
12 Marine Prcurements NSS Nn-Cmbat Vessels Wrk Package (Vancuver Shipyard) Jint Supprt Ships Acquisitin f 2-3 supprt ships t prvide refueling and replenishing f ships at sea Design cntract awarded t TKMS in 2013 First vessel t be delivered in 2021 Prject Budget: Under Review Plar Ice Breaker Replacement f the CCGS Luis S. St-Laurent with a new ice breaker that will enhance n-water capability in the Arctic year-rund Cntract award expected in 2021 Anticipated delivery 2023 Prject Budget: $1.3B 12
13 Marine Prcurements Small Ship Cnstructin Vessels at less than 1,000 tnnes displacement. Cmpetitive prcess excluding Irving & Seaspan in rder t spread mre wrk thrughut the shipbuilding sectr. DND t prcure large tugs and small tugs Cast Guard t prcure new vessels f varius classes including: Channel Survey and Sunding Vessels (2) Near-Shre Fishery Research Vessels (2) Search and Rescue (SAR) Lifebats (12-15) Specialty Vessels (3) Special Nav-Aid Vessels (2) Mid-Shre Science Vessels (2) Vessel Repair, Refit and Maintenance $500M-$600M annually fr repair, refit and maintenance requirements 13
14 Marine Prcurements Other Marine Prjects Victria In Service Supprt Cntract (VISSC) In-Service Supprt (ISS) fr fur Victria Class Submarines Cntract Awarded t Babcck Canada in 2008 fr 5 years f ISS (up t 15 years renewal) Cntract renewed fr additinal 5 years n July 4, 2013 Arctic/Offshre Patrl Ship and Jint Supprt Ship In Service Supprt (AJISS) In-service supprt fr the tw classes f naval ships: AOPS & JSS fr up t 35 years. Cntract Award expected in Fall 2017 Estimated Cntract Value: $5.2B 14
15 Marine Prcurements Other Marine Prjects Interim Auxiliary Oiler Replenishment (AOR) - Prject Reslve Prject Reslve will prvide ne fully perated AOR ship fr the Navy fr an interim slutin t the Jint Supprt Ships Cntract awarded Fall 2015 t Chantier Davie/Federal Fleet Services Delivery f the vessel is anticipated fr Fall 2017 Halifax Class In-Service Supprt Lng-term supprt fr the Canadian Navy s 12 Frigates beynd 2018 fr up t 18 years. Prject cnsists f 3 separate cntracts: Design Agent ISS Cmbat Systems ISS Wrk Perid ISS Industry engagement currently nging RFPs anticipated in 2017/
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