Evidence of meeting #30 for Government Operations and Estimates in the 44th Parliament, 1st Session. (The original version is on Parliament’s site, as are the minutes.) The winning word was gripen.
A recording is available from Parliament.
3:45 p.m.
Conservative
Kelly McCauley Conservative Edmonton West, AB
Thank you.
Very quickly, for the sake of argument, the government changes its mind and chooses Gripen tomorrow. When would delivery start? How fast would the turnaround be?
3:45 p.m.
Executive Vice-President, Head of Saab Technologies Canada, Inc., Saab
Again, as per our commitment during the RFP process, we were committed to the 2025-27 time frame with respect to the initial operating capability and full operating capability by 2031. Really, nothing has changed.
3:45 p.m.
Executive Vice-President, Head of Saab Technologies Canada, Inc., Saab
By 2031, all 88 had to be delivered.
3:45 p.m.
Conservative
Kelly McCauley Conservative Edmonton West, AB
Great. Thanks very much. I'm sorry for the interruption.
3:45 p.m.
Conservative
The Chair Conservative Robert Gordon Kitchen
Thank you very much.
We'll now go to Mr. Bains for six minutes.
3:45 p.m.
Liberal
Parm Bains Liberal Steveston—Richmond East, BC
Thank you, Mr. Chair.
I'd like to recognize that my questions are coming from the traditional territories of the Musqueam and Coast Salish peoples.
My first question is for Mr. Norante.
Recognizing that tomorrow is the National Day for Truth and Reconciliation, the government has been working on reconciliation through many initiatives, including a commitment of ensuring 5% indigenous procurement as a part of its mandate.
Can you please give an example of what your company is doing to help with indigenous procurement in the military sector?
3:45 p.m.
President, Leonardo Canada
I think Leonardo's doing pretty well on that front. We're very proud. We have a memorandum of understanding with indigenous communities in both Manitoba and Saskatchewan. We have also signed an agreement with a fully indigenous-owned catering company and, if we were awarded a contract, there is going to be several hundred million injected into those communities.
We are trying to do it not only particularly for Canadian campaigns but also for other activities we currently have in place. We try to involve indigenous communities in our international supply chain.
3:45 p.m.
Liberal
Parm Bains Liberal Steveston—Richmond East, BC
Thank you for that.
I'm going to shift to November 2020. The federal government deemed Leonardo's proposal for the Cormorant mid-life upgrade unaffordable and began investigating alternative solutions. Leonardo submitted an updated proposal in March 2021.
My question is this: Was the budget the only reason the government provided when they informed you that they would not be moving forward with your proposal?
3:45 p.m.
President, Leonardo Canada
Regarding Cormorants, it's an open negotiation at the moment, so I'm not comfortable or allowed to openly discuss an open competition. What I can say is that we have been working constantly with PSPC and the integrated team. Even when I left the office, the team was working collaboratively on this bid, so I personally think that any hesitancy has been fully responded to with the government.
3:50 p.m.
Liberal
Parm Bains Liberal Steveston—Richmond East, BC
Would you be able to answer how your new submission differs from the one that was refused?
3:50 p.m.
President, Leonardo Canada
Our submission in reality was never refused. They asked for further clarifications, and we answered all of them in terms of requirements, adjustments and so on. It's an ongoing discussion within the team, so it's almost a daily conversation. I think we have achieved what PSPC wanted.
3:50 p.m.
Liberal
Parm Bains Liberal Steveston—Richmond East, BC
You've added some changes to that.
In May 2021, Leonardo Canada and Babcock Canada announced your joint bid for Canada's future aircrew training program, and the contract award is expected in 2023. What exactly will you be procuring for the CAF, and what period of time does the contract cover?
3:50 p.m.
President, Leonardo Canada
Once again, this is another open bid, so I cannot enter into a discussion of what we are submitting.
We are in the final phase of the RFP, and then the contract is going to be awarded in 2024. This is the new training syllabus for the air force. We think that our proposition is really compelling. We will generate an enormous number of benefits for Canada in terms of research and development and job creation in areas where, at the moment, the economy is suffering, so we are very confident in what we're going to submit.
3:50 p.m.
Liberal
Parm Bains Liberal Steveston—Richmond East, BC
Okay. For the training systems and the instructors, do you have a cost estimate for that over the 20-year period?
3:50 p.m.
President, Leonardo Canada
Yes, we have everything, but, as you can imagine, this is sensitive information. We are in an open forum and the competition is not completed yet.
3:50 p.m.
Liberal
Parm Bains Liberal Steveston—Richmond East, BC
Regionally, where will the training facilities be located? Would you be able to share that?
3:50 p.m.
President, Leonardo Canada
Yes. The training facilities are the existing bases, so between Manitoba and Saskatchewan, is where the training activities will happen. This has already been established since the beginning, so it's not going to change.
3:50 p.m.
Liberal
3:50 p.m.
President, Leonardo Canada
In British Columbia we're engaged with all the regional agencies. We are constantly engaging with the supply chain across the country, British Columbia included.
3:50 p.m.
Liberal
Parm Bains Liberal Steveston—Richmond East, BC
Okay. Thank you.
If I have time, I'd like to ask the next question to Mr. Carroll.
Your experience in the navy and working at Saab is extensive. Can you speak about your experience as a warfare officer in the Australian navy and what you feel are the top three important quality factors when using military equipment?
3:50 p.m.
President, Saab
It's obviously a personal experience-based question. I think the top three would include confidence in your equipment and making sure you have good interaction between defence and industry, which I think is probably the number one that I would put as key. Early interaction between defence and industry is critical in making sure not only are the requirements met, but they are understood and shaped correctly. I would put that as the priority. The other thing, from a military perspective, is making sure you know how to use your equipment. Just because you have the equipment doesn't mean you have the capability. I think industry plays an important role in helping our militaries understand how to get the best out of their equipment.