Quirky
Army.ca Veteran
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MilEME09 said:We can't even afford 14 missiles, this ad is misleading
Even if we could, that would take a load crew around 6-8 hours to get them all on. War will be over by then.
MilEME09 said:We can't even afford 14 missiles, this ad is misleading
https://www.cbc.ca/news/politics/lockheed-martin-f35-canadian-economy-1.5676643Lockheed Martin promises $16.9B injection to Canadian economy with F-35s
Fighters up against Boeing's Super Hornet, Saab's Gripen in bid to replace aging warplanes
One of the companies vying to build the air force's next generation of warplanes promises it can inject as much as $16.9 billion into the Canadian economy, even though its pitch to the Liberal government falls somewhat outside traditional boundaries.
Lockheed Martin Canada is offering the F-35, which has a controversial political history in this country, as a potential replacement for the military's nearly 40-year-old fleet of CF-18 jet fighters.
Three bids in the often-delayed $19 billion competition were delivered Friday and the federal government expects to narrow the field to two by next spring, with the first fighters not scheduled for delivery until 2025.
The other contenders are Boeing, which is offering the latest version of its Super Hornet, and Saab with the updated version of its Gripen jet.
Under longstanding federal procurement policy, defence contractors are essentially expected to match the value of the contract and deliver an equal share of benefits to the Canadian economy.
The worldwide F-35 program is different in the sense that partnership in the program means Canadian companies are allowed to bid on fleetwide contracts and there is no dollar-for-dollar guarantee.
Lockheed's pitch
In a slick video presentation Thursday, Lockheed Martin put on display its Canadian partner companies that are already working on the program, supplying a diverse range of parts and systems with testimonials from employees about how proud they are to be working on the F-35.
Steve Callaghan, Lockheed Martin's vice-president of F-35 business development, said he is confident the company has delivered a solid pitch to the Canadian government despite the difference and the possible handicap it faces.
"We're delighted to be part of this competition," he said during a remote media availability on Thursday. "We understand the rules. We understand the way the competition is structured and the requirements."
The company conducted an analysis on the impact of its program in Canada and estimates over the lifetime of the F-35, it will pour $16.9 billion into the gross domestic product and that there is the potential for more as sustainment contracts for the warplane eventually come on stream.
Lorraine Ben, the chief executive officer of Lockheed Martin Canada, said the fighter jet program is important to the country's economic recovery from the pandemic because it delivers high-skilled, high-paying jobs.
Should Canada not choose the F-35, Callaghan said, the existing contracts, which are currently worth $2 billion, would be honoured for the duration of their commitment but might go elsewhere.
"Future contracting would likely be placed using industries and best value for those nations that are procuring the F-35," he said. "Canadian industry is truly embedded in the global supply chain today and brings great value to the program and of course great value to Canada and Canadian industry. We really do look forward to Canadian industry continuing their contribution."
Controversial history
It has been a decade since the former Conservative government set off a political firestorm when it signalled it intended to sole-source the purchase of 65 F-35s.
After searing reports from both the auditor general and the Parliamentary Budget Office, which questioned the cost and how much homework the federal government had done in terms of competition, the plan was shelved.
The Liberals, prior to being elected in 2015, promised not to buy the F-35 and instead purchase a cheaper aircraft and plow the savings into the navy.
The Trudeau government eventually relented and allowed Lockheed Martin into the competition, and even bowed to pressure from the Trump administration to make sure the playing field was level in terms of evaluation of the economic benefits.
Callaghan steered clear of the politics on Thursday.
"We're really focused on this competition and providing the information Canada needs to make its decision," he said.
Critics have often complained that the F-35 — a stealth fighter with advanced sensing technology — will be too expensive to maintain over the long term.
At the moment, it costs $25,000 per hour to fly, according to figures released Thursday by the company.
Callaghan says the plan, using a variety of methods including artificial intelligence and robotics, is to cut that figure in half in the coming few years.
https://www.thechronicleherald.ca/opinion/local-perspectives/alex-mccoll-fudging-f-35-figures-a-lobbyist-stealth-tactic-484927/ALEX McCOLL: Fudging F-35 figures a lobbyist stealth tactic
A CBC report on Aug. 6 contained some revealing remarks from Steve Callaghan, an executive at Lockheed Martin — one of three bidders on the multi-billion-dollar contract to replace Canada’s aging fleet of CF-18 fighter jets.
In touting the merits of his next-generation F-35A stealth aircraft, Lockheed’s vice president of business development said his company’s plan was to reduce the cost per flight hour from $35,000 “to at least $25,000 per flying hour in the coming few years.”
The CBC reported this as if he were speaking in Canadian dollars. He was not.
If a lobbyist omits pertinent details in an interview, and perhaps smirks while the CBC relays a beneficial false assumption, that is legal in Canada.
However, it is illegal in the United States for the chief financial officer (CFO) of a publicly traded company to deliberately mislead institutional investors.
Which makes the following very interesting.
On May 14, Goldman Sachs hosted a webcast with Ken Possenriede, executive vice president and CFO of Lockheed Martin.
The presentation began with a 979-word disclosure slide outlining how his statements were “pursuant to the safe harbour provisions of the Federal Securities Law.”
Early in the presentation, Possenriede outlined the plan to get F-35A costs down “to $25,000 (USD) per flight hour by 2025.”
Possenriede repeated the marketing language multiple times: “We have committed to drive the price of sustaining the airplane per flight hour down to $25,000 (USD) by 2025.” But when it came to long-term revenue growth, the sustainment story started to change: “We see sizable growth opportunities in sustainment.”
The Goldman Sachs moderator wanted to know how the F-35 could become cheaper for the taxpayer while also increasing revenues for Lockheed Martin. Possenriede’s answer should be required reading for anyone who writes about military procurement:
“We still see sustainment growing, and one point I’d make is — not many folks understand this — but that $25,000 per flight hour, that’s in 2012 dollars, and I’m not suggesting that it’s going to ramp up dramatically, but to get to 2025, the benchmark is in 2012 (US) dollars. So, we have to escalate that to some extent to get to current-year dollars and then ultimately then-year dollars. But I think with the modernization, the sparing that’s going to be required, the continued activation and the repairing, with or without a PBL concept, I think you’re going to see sustainment continue to grow.”
Using the United States Bureau of Labor Statistics average annual rate of inflation from 2012 to 2020, one can estimate the 2025 cost per flight hour at just under $31,000 (USD). At current exchange rates, that means a cost per flight hour of over $41,000 Cdn.
In her 2009 book, Ivanka Trump shared the following business advice: “Perception is more important than reality… This doesn’t mean you should be duplicitous or deceitful, but don’t go out of your way to correct a false assumption if it plays to your advantage.”
Do you believe what the salesperson told the CBC, or do you believe what the CFO told investors?
The CBC also reported that Lockheed Martin’s estimate of industrial benefits could be worth “as much as $16.9 billion into the Canadian economy.”
Even if Lockheed Martin delivers “as much as” they claim — doubtful considering how it has delivered only 44 per cent of the investment it promised Italy — at such a high sustainment cost, well over half of all Canadian taxpayer dollars would flow to the United States. All for a jet that must be sent back to Texas for upgrades.
Now let’s look at the competition.
The F-35 bid stands in stark contrast to the full industrial offsets, complete technology transfer, and assembly in Nova Scotia offered by rival Saab on its Gripen-E bid. (Saab recently announced a partnership with IMP to assemble Gripen fighter jets at the Halifax airport if their bid is successful.)
The “Gripen for Canada Team” includes leaders in Canada’s aviation industry that would create jobs across Canada.
While a number of those companies are also component suppliers for the third bidder — Boeing’s Super Hornet — a reliable industry source (not authorized to speak on the record) stated that Boeing’s package — American assembly, only partial technology transfer, and indirect offsets — add up to a more expensive jet that creates fewer supplier jobs in Canada.
It’s worthy of note that the Trump administration has been pressuring Boeing and Lockheed Martin to centralize fighter component manufacturing in the United States.
Boeing includes existing seven-series component jobs as part of their benefits package. Is this really new investment, or is it an unspoken threat that Boeing would close its massive factory in Winnipeg unless Canada buys American?
The Trump administration also re-imposed tariffs on Canadian aluminum exports this month. These are not the actions of an honest trade partner.
Now let’s look at affordability.
The 2018 auditor general report on Canada’s current complement of CF-18 fighter jets made it clear that sustainment funding was insufficient to maintain even the relatively affordable CF-18.
One of the main problems “was the shortage of technicians to maintain the (CF-18).”
F-35 proponents are quick to point to the F-35’s seemingly low flyaway cost. This number is only relevant for estimating the cost of replacing jets lost in accidents. Buying squadrons of fighter jets is not like buying a sports car; it’s like buying a full racing team. One must include the entire cost of weapon-system procurement, including spares, tools, training, weapons, and upgrades to existing facilities. Anyone who focuses on the flyaway cost should be met with the skepticism normally reserved for used car salesmen.
Here’s the bottom line, which should be of great concern to people in Nova Scotia.
The significant increase in costs and the number of technicians required to sustain the F-35A makes the plane utterly unaffordable without sizable cuts to the navy’s new frigate program. Much of that shipbuilding effort is concentrated in Halifax.
Add in the COVID-19 deficit, and it becomes possible that Canadian F-35s would rust on the ground even after slashing the navy into a glorified coast guard.
There are precedents for this.
When Austria replaced its affordable Saab Draken fighter jets with expensive Eurofighters, it did not adequately increase the sustainment budget. With too little funding left over for new missiles, bombs, night vision or key system upgrades, Austria’s Eurofighters are a barely-armed token force of lawn ornaments.
Next door, the Czech Republic has well-trained pilots that fly modernized, well-armed, Saab Gripen-C/D jets that regularly pull their weight on NATO missions.
Canada’s aviation industry has not built a truly cutting-edge fighter jet since the Avro Arrow was cancelled in 1959. Not only does the JAS-39 Gripen-E closely resemble the Arrow, but it shares the Arrow’s ability to fly at twice the speed of sound.
Renamed the CF-39 Arrow II and made in Halifax, the Saab Gripen would represent a major advancement in combat capability, a significant investment in Halifax, and would become a source of national pride for a new generation of Canadians.
Australia’s air force should already be planning to replace the F-35
Australia’s 2020 defence strategic update and accompanying force structure plan outline the next 20 years of development for the Royal Australian Air Force’s strike and air combat capability [see here https://www.abc.net.au/news/2020-07-02/australias-new-defence-strategy-strategic-shift-foreign-policy/12412650]. Some notional funding streams are provided in the force structure plan that define the priorities for capability development and raise some intriguing questions for future planners to consider.
At the centre of the plans for the RAAF, of course, are the F-35A fighter jets, which are due to achieve final operational capability by the end of 2023. The force structure plan also allocates funds for ‘additional air combat capability’ between 2025 and 2030. It doesn’t specify what that additional capability will be, though it says that the government ‘is committed to … support of the F/A-18F Super Hornet strike aircraft, and acquiring enhanced air launched munitions’.
The Super Hornet remains an important capability, given that it will be the initial primary launch platform for the AGM-158C long-range anti-ship missile, or LRASM.
The F/A-18F fleet could be upgraded to ‘Block III’ standard, allowing the jets to remain in service into the mid-2030s. That makes sense from a risk-management perspective, because the government wouldn’t be betting everything on the long-term effectiveness of the F-35’s stealth. China’s continued development of quantum sensors and use of artificial intelligence could erode that advantage in coming years.
Defence’s 2016 integrated investment program contemplated acquiring a fourth squadron of F-35s, stating that:
"the Super Hornet fleet has been extended beyond its initial bridging capability timeline and is now planned to be replaced around 2030. Its replacement could include either a fourth operational squadron of Joint Strike Fighters or possibly a yet to be developed unmanned combat aerial vehicle. The decision on the replacement of this air combat capability will be best undertaken post-2020 when technology and emerging threat trends are better understood [emphasis added]."
The 2020 plan doesn’t mention a fourth F-35 squadron, but elevates support for what it calls ‘teaming air vehicles’. It anticipates their acquisition between 2025 and 2040, which would fit in with decisions being made on the future of the F/A-18F versus an additional squadron of F-35s.
Boeing’s loyal wingman drone for its ‘airpower teaming system’, being developed in Australia, could emerge as a good solution to the RAAF’s long-range-strike requirements by the end of this decade [emphasis added]. It could be evolved into a more capable platform, with greater range, payload and speed, from its current prototype design. It wouldn’t be the equivalent of acquiring the B-21 Raider stealth bomber, but an evolved loyal wingman would represent something closer to a true long-range-strike platform than simply purchasing another squadron of F-35s, without all the political, financial and strategic challenges associated with the B-21.
Alongside achieving final operational capability for the F-35 and teaming vehicles, the force structure plan seems to focus on long-range missiles as the centrepiece of a ‘strike’ option for the RAAF. But thinking needs to go further than simply bolting long-range munitions onto F-35s and F/A-18Fs, and a future strike capability will need to extend beyond the RAAF.
For example, any new capabilities will need to rely heavily on the Defence Intelligence Group, established on 1 July to ensure that platforms have access to the latest intelligence to maximise their combat effectiveness. That could bring in a host of non-airpower capabilities, ranging from unmanned surface vessels equipped for maritime surveillance such as the Ocius Bluebottle, through to surveillance satellites in low-earth orbit that are to be acquired through Defence Project 799, Phase 2 [emphasis added].
The 2020 plan also suggests that the RAAF must consider a replacement for the E/A-18G Growler electronic attack aircraft between the late 2020s and 2040. Keeping the Growlers operating alongside the Super Hornets makes good sense. But if the Super Hornets are retired by the mid-2030s, that would be an ideal time to explore new approaches to electronic warfare and attack. Once again, the sensible solution would be to take full advantage of unmanned systems wherever possible. One option might be for Australia to team up with the United States to develop a stealthy and highly survivable variant of the loyal wingman, with the US supplying the complex and classified electronic warfare payload on board.
Looking further into the future, the plan mentions the period between 2035 and 2040 as the beginning of a process for considering a replacement for the F-35. In fact, something would be amiss if the RAAF weren’t discussing the F-35 replacement right now and thinking about how Australia could work with the US, the UK and other allies on fielding new types of air combat platforms much sooner. For example, the US is no longer speaking about ‘sixth-generation’ fighters, and recognises the risks of slow, decades-long acquisition cycles for a future fighter. The focus of its next-generation air dominance program is now on a ‘digital century series’ approach of rapid development of small numbers of several types of airframes over short periods, as few as five years [emphasis added].
It would be a mistake for the RAAF to embark on another 20-year acquisition project to eventually replace the F-35 from the late 2040s, yet that’s exactly what the force structure plan implies. Waiting until 2035 to begin developing a replacement ignores the clear trends that suggest a desire for faster capability acquisition.
The F-35 has taken two decades to develop, at great expense, and the approach of a common airframe for multiple tasks means it can’t be optimised for a single role. Going back to platforms optimised for a specific role—air dominance, long-range strike and electronic attack, or intelligence, surveillance and reconnaissance—that can be acquired faster might be a better path.
The RAAF shouldn’t wait until 2035 to get started on developing these types of capabilities. Its plans to complement, and then replace, the F-35 can be accelerated, and it would make sense to promote collaboration with the US and the UK in this endeavour to boost the RAAF’s air combat capability sooner.
https://www.aspistrategist.org.au/australias-air-force-should-already-be-planning-to-replace-the-f-35/
suffolkowner said:https://www.canada.ca/en/department-national-defence/news/2020/08/government-awards-design-contract-for-future-fighter-infrastructure-in-cold-lake.html
seems like a quick decision. I wonder how fighter specific they need to be
suffolkowner said:https://www.canada.ca/en/department-national-defence/news/2020/08/government-awards-design-contract-for-future-fighter-infrastructure-in-cold-lake.html
seems like a quick decision. I wonder how fighter specific they need to be
Quirky said:I’m sure the design will be Canadian specific (3x more expensive) that meets our unique requirements than no other country faces, like cold weather. If construction is to start summer 2022 and the aircraft isn’t chosen, then how is the infrastructure supposed to accommodate X aircraft? Will they flip a coin and build a hangar to house the F35 or Super Hornet?
QV said:Trudeau promised to not buy the F35 so that narrows it down. I suppose they’re building hangars for some version of an F18. Whether they’re old Aussie F18s or, if he’s feeling generous maybe a few Super Hornets.
CBH99 said:I always enjoyed the limited opportunities I had to work with air force folks. But that moment was an instant "Oh, wow...we really under-appreciate just how smart these folks are" moment for me
Quirky said:I’m sure the design will be Canadian specific (3x more expensive) that meets our unique requirements than no other country faces, like cold weather. If construction is to start summer 2022 and the aircraft isn’t chosen, then how is the infrastructure supposed to accommodate X aircraft? Will they flip a coin and build a hangar to house the F35 or Super Hornet?
suffolkowner said:are your hangers already using a spray applied cementitious fire proofing?
MilEME09 said:Pick the largest aircraft in the running and build to accommodate it, cover your bases. Hangers usually are not for individual aircraft, from talking to friends in cold lake, multiple aircraft are in one, these are massive buildings. Seems like its more a question of how many will fit rather than if they will fit.
Quirky said:The really thick stuff that's all deyhdrated and falls off when the doors are opened/closed? I think that's
Quirky said:I hope the new plan includes hangarettes on the flightline for flying, while keeping the bulk of the heavy maintenance at the main unit hangar. This is how all the fighter bases in the US operate, we need to run the same style. Towing aircraft in/out every day for flying wastes time and manpower.