Posted on 10/10/2014 9:35:14 PM PDT by sukhoi-30mki
Prime Minister Stephen Harper settled a dispute between Treasury Board and the Defence Department to approve an $800-million, sole-source purchase of next-generation Sea Sparrow missiles for the Royal Canadian Navy’s aging frigates, sources familiar with the situation say.
The decision was taken early this week following a written request earlier this month by three ministers — Industry Minister James Moore, Defence Minister Rob Nicholson and Public Works Minister Diane Finley — that won out over the objections of Treasury Board president Tony Clement, sources say.
The Sea Sparrow is built by U.S.-based Raytheon. The next-generation version, the Evolved Sea Sparrow Missile, is distinct from the existing, older version in that it is “smart,” and can be guided while in flight.
The upshot, if the decision stands, is that the Lockheed-Martin Raytheon group, which is vying for billions in contracts in the building of systems for Canada’s soon-to-be-built new navy, will once again have the inside track in a major defence procurement, with no competitive bidding process, as occurred in the F-35 affair. The F-35 is made by Lockheed-Martin.
The Sea Sparrow purchase would also give Raytheon-Lockheed an edge in billions worth of sub-contracts in the $26-billion national naval building project now underway, sources say, because its updated missiles could also be used on the new vessels.
“It’s identical to the F-35 consortium,” said a defence industry source, referring to the Sea Sparrow consortium, of which Canada is a member. “It’s a move by the United States again to try to keep people within their orbit.”
Until roughly half a decade ago, Raytheon’s Sea Sparrow missile was the undisputed technology leader in ship-borne missile defence systems. However in recent years European-based MBDA has shot ahead and now has technology equal to Raytheon’s, sources say.
(Excerpt) Read more at canada.com ...
Canada Ping!
Harper, release the Kraken! Putin needs it.
Disclaimer: Opinions posted on Free Republic are those of the individual posters and do not necessarily represent the opinion of Free Republic or its management. All materials posted herein are protected by copyright law and the exemption for fair use of copyrighted works.