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Not sure where to post this. Considering this is going to effect me, anyone have any comments on this piece of news?
Martin's billion-dollar dilemma
DND training contract could go to B.C. or Quebec, but PM can't make both happy
a journalist
The Ottawa Citizen
Saturday, December 18, 2004
The Canadian government is poised to award a billion-dollar contract to the embattled Bombardier Inc. or to a British Columbia-based consortium in a hotly contested program to provide military pilots with training for the next 20 years.
Kelowna Flightcraft is going head-to-head against Bombardier of Montreal for a contract to build a new pilot training centre at Portage La Prairie, Man., and provide ground training there on helicopters and multi-engine fixed-wing aircraft for Canadian Forces pilots. The contract, expected to be worth slightly more than $1 billion, will cover training for the next two decades and is seen as a key program in the military's privatization efforts.
Aerospace industry executives expect the winner to be announced by the end of January. Defence officials will only say the contract is to be awarded some time early in the new year.
But that announcement could give Prime Minister Paul Martin's government a major political headache. Pressure is intensifying from Quebec Liberals for federal help in bailing out the financially ailing Bombardier. But Mr. Martin is also trying to make inroads with Western voters and passing over a major B.C. aviation firm in favour of the Quebec-based aerospace giant could hurt his party at the polls.
A team made up federal bureaucrats will determine the winner, but that selection will be reviewed by cabinet because of the value of the contract.
Defence analyst Martin Shadwick said cabinet will be carefully looking over the air training contract, particularly in light of Bombardier's financial problems. Bombardier shares tumbled by almost 19 per cent earlier this week, raising concerns about the future of one of the world's largest aerospace companies.
"Even if Bombardier is clearly the winner in this program, the optics will look bad," said Mr. Shadwick, a strategic studies professor at York University. "It will be perceived as a gift to Bombardier. It will be a Bristol-type of thing all over again."
He was referring to the controversy that erupted when former prime minister Brian Mulroney awarded Canadair of Montreal a CF-18 maintenance contract even though its competitor, Bristol Aerospace of Winnipeg, had a lower bid.
Jim Rogers, who is overseeing Kelowna Flightcraft's bid, said the company has put together a strong package involving industrial partners in B.C., Alberta, Ontario and Quebec. But he acknowledged that Bombardier is a formidable competitor.
"Any time you're competing against Bombardier, it's a little bit of David and Goliath," Mr. Rogers said in an interview done before this week's announcement that Bombardier had run into financial problems.
"We have strong points they don't have and they have strong points we don't have. They're probably stronger politically, but theoretically that doesn't enter into it. We'll just have to see how it comes out."
Bombardier is running the flight training project, but that contract expires next summer. In its place, the Canadian Forces plans a much more elaborate program.
The winning bidder will build a new training centre and will provide new flight simulators and more advanced aircraft. The winner will also deal with all support activities, including ground training, weather services, emergency response and air traffic control.
The Canadian military will continue to provide instructors for the actual flying training, as well as monitor how the contractor provides services.
"It's called a re-tendering of the training services," said Canadian Forces Lt.-Col. Randy Palmer. "But the scope of the training programs are so substantially new that I would consider it a new training program."
David Jurkowski, vice-president of government relations for Bombardier Military Aviation Training, said the company brings with it more than a decade of experience in pilot training. It can also provide a smooth transition from the current program to the new one, he added.
"If the customer wants a certain thing we've got a really solid handle on what it's going to cost," said Mr. Jurkowski.
Bombardier has also put together a team of suppliers from across the country.
The issue of Western Canadian aerospace firms being snubbed by the federal government was an issue this summer after the awarding of a $5-billion contract for new Canadian Forces maritime helicopters to a U.S. firm. Western Canadian companies will only be in line to receive $390 million worth of work from that project. The lion's share of the helicopter program work -- $2 billion -- will go to Ontario firms. Another $2 billion is being divided up between Quebec and Atlantic Canada companies.
Martin's billion-dollar dilemma
DND training contract could go to B.C. or Quebec, but PM can't make both happy
a journalist
The Ottawa Citizen
Saturday, December 18, 2004
The Canadian government is poised to award a billion-dollar contract to the embattled Bombardier Inc. or to a British Columbia-based consortium in a hotly contested program to provide military pilots with training for the next 20 years.
Kelowna Flightcraft is going head-to-head against Bombardier of Montreal for a contract to build a new pilot training centre at Portage La Prairie, Man., and provide ground training there on helicopters and multi-engine fixed-wing aircraft for Canadian Forces pilots. The contract, expected to be worth slightly more than $1 billion, will cover training for the next two decades and is seen as a key program in the military's privatization efforts.
Aerospace industry executives expect the winner to be announced by the end of January. Defence officials will only say the contract is to be awarded some time early in the new year.
But that announcement could give Prime Minister Paul Martin's government a major political headache. Pressure is intensifying from Quebec Liberals for federal help in bailing out the financially ailing Bombardier. But Mr. Martin is also trying to make inroads with Western voters and passing over a major B.C. aviation firm in favour of the Quebec-based aerospace giant could hurt his party at the polls.
A team made up federal bureaucrats will determine the winner, but that selection will be reviewed by cabinet because of the value of the contract.
Defence analyst Martin Shadwick said cabinet will be carefully looking over the air training contract, particularly in light of Bombardier's financial problems. Bombardier shares tumbled by almost 19 per cent earlier this week, raising concerns about the future of one of the world's largest aerospace companies.
"Even if Bombardier is clearly the winner in this program, the optics will look bad," said Mr. Shadwick, a strategic studies professor at York University. "It will be perceived as a gift to Bombardier. It will be a Bristol-type of thing all over again."
He was referring to the controversy that erupted when former prime minister Brian Mulroney awarded Canadair of Montreal a CF-18 maintenance contract even though its competitor, Bristol Aerospace of Winnipeg, had a lower bid.
Jim Rogers, who is overseeing Kelowna Flightcraft's bid, said the company has put together a strong package involving industrial partners in B.C., Alberta, Ontario and Quebec. But he acknowledged that Bombardier is a formidable competitor.
"Any time you're competing against Bombardier, it's a little bit of David and Goliath," Mr. Rogers said in an interview done before this week's announcement that Bombardier had run into financial problems.
"We have strong points they don't have and they have strong points we don't have. They're probably stronger politically, but theoretically that doesn't enter into it. We'll just have to see how it comes out."
Bombardier is running the flight training project, but that contract expires next summer. In its place, the Canadian Forces plans a much more elaborate program.
The winning bidder will build a new training centre and will provide new flight simulators and more advanced aircraft. The winner will also deal with all support activities, including ground training, weather services, emergency response and air traffic control.
The Canadian military will continue to provide instructors for the actual flying training, as well as monitor how the contractor provides services.
"It's called a re-tendering of the training services," said Canadian Forces Lt.-Col. Randy Palmer. "But the scope of the training programs are so substantially new that I would consider it a new training program."
David Jurkowski, vice-president of government relations for Bombardier Military Aviation Training, said the company brings with it more than a decade of experience in pilot training. It can also provide a smooth transition from the current program to the new one, he added.
"If the customer wants a certain thing we've got a really solid handle on what it's going to cost," said Mr. Jurkowski.
Bombardier has also put together a team of suppliers from across the country.
The issue of Western Canadian aerospace firms being snubbed by the federal government was an issue this summer after the awarding of a $5-billion contract for new Canadian Forces maritime helicopters to a U.S. firm. Western Canadian companies will only be in line to receive $390 million worth of work from that project. The lion's share of the helicopter program work -- $2 billion -- will go to Ontario firms. Another $2 billion is being divided up between Quebec and Atlantic Canada companies.
