There is growing concern about the lack of Canadian-made equipment on board the Canadian Surface Combatants (Lockheed Martin supplied image)
By Tim Ryan
The erratic behaviour of U.S. President Donald Trump is starting to raise concerns about the Royal Canadian Navy’s largest shipbuilding program – the Canadian Surface Combatant.
The CSC will see 15 ships built to replace the Halifax-class frigates but major storms are already appearing on the horizon. Most of the key elements of the CSC warships are U.S.-built and U.S. controlled. Canadian suppliers and Canadian defence companies have little presence on the estimated $100 billion program.
The Ottawa Citizen revealed Feb. 14, 2025 that defence industry officials have raised warnings about the level of American control and the possibility the Americans will hold this country hostage over future upgrades or even the provision of spare parts for the Canadian Surface Combatants.
Retired Vice Admiral Mark Norman, the former commander of the Royal Canadian Navy, has sounded the alarm that having an American-controlled command system running Canada’s new warships poses a serious risk, particularly at a time when the U.S. is openly hostile to this country.
The U.S. already controls much of the technology used by the Canadian military, but previously that was not seen as an issue as the Americans were viewed as close allies, the Ottawa Citizen reported. But, with Trump in office, the situation has radically changed. The American president has talked about seizing Greenland and the Panama Canal as well as destroying Canada’s economy and making it into the 51st state. Trump’s America has also become significantly closer to Russia and there are growing concerns about whether NATO will survive a Trump presidency.
There are a number of concerns about the lack of Canadian equipment on the CSCs but the key one centers on the command management system, which controls weapons, radars and other intelligence-gathering equipment. Originally that high-tech system on board the CSCs was supposed to be Canadian-made and under the full control of the Canadian government.
But that system was switched out for made-in-the-U.S. technology called Aegis, allowing the Americans full control.
Vice Admiral Norman took to social media Feb. 14 to denounce the move as a “real and serious risk.”
“Even if everything was rosy and there was no risk, we’ve given up any down-stream autonomy in pursuit of a less capable system,” Norman wrote on X about the U.S.-built Aegis. “Someone needs to answer for this.”
Norman questioned whether Canada should move as soon as possible to using a new command system for the CSC fleet that is not under American control.
But the Department of National Defence and the Royal Canadian Navy has rejected that option. “While the Government of Canada is closely monitoring the trade situation in the United States, Canada’s procurement of the AEGIS system through the US government is proceeding as planned,” DND spokesperson Kened Sadiku stated in an email.
How did all of this come about?
When the CSC team was unveiled in November 2017, Lockheed Martin Canada, a subsidiary of the U.S. defence giant, highlighted that its proposal included the Canadian-built command and control system known as CMS-330. The firm pointed out that the maximum focus was to get Canadian content on the new warships.
But DND spokesperson Sadiku explained to the Ottawa Citizen that shortly after the design selection and contract were awarded for the CSC in 2019, it was only then that discussions began in earnest. It was soon realized that the Canadian-made equipment that had been contracted for was a “suboptimal solution and introduced significant developmental, cost and schedule risk,” he claimed.
Further discussions were held with industry and government officials and it was decided to instead use the Aegis system from the U.S. “This was assessed as a vital and very significant risk reduction decision,” Sadiku stated.
Glenn Copeland, general manager, Lockheed Martin Canada Rotary and Mission Systems, noted in an emailed statement that Canada chose the Aegis system in a government-to-government transaction with the U.S. The statement pointed out the Aegis system was being used on the surface combatants and would be combined with a tactical interface being derived from the CMS-330.
But let’s examine the official DND/Canadian Forces claim made to the Ottawa Citizen. The DND and Canadian government picked the Lockheed Martin proposal but then realized what had been proposed was “suboptimal.”
This raises significant concerns about how the actual evaluation of bids was done. It would seem like the proper examination of the proposals wasn’t done effectively. And if the Lockheed Martin bid had elements that, in retrospect, were “suboptimal” then why wasn’t the contract cancelled?
The problem about the U.S. control over CSC systems and the lack of Canadian equipment on board the warships had been flagged before. The Ottawa Citizen reported in December 2020 that Canadian defence industry officials had previously warned Jody Thomas, then the deputy minister at DND, and Bill Matthews, then deputy minister at the procurement department, about the potential dangers of U.S.-controlled technology and the lack of Canadian content onboard the CSCs.
Officials with various firms had been complaining to politicians and media outlets that the Canadian Surface Combatant project has fallen far short on its promises of creating domestic employment. There was little work for Canadian firms, besides Irving shipbuilding.
But Thomas told the executives that they are hindering the project and she characterized their efforts as being those of sore losers. “I think there’s still too much noise from unsuccessful bidders that makes my job and Bill’s job very difficult,” she said, referring to Matthews, deputy minister at Public Services and Procurement Canada.
Interestingly, that the now retired Thomas seems to have a different view. During an interview with CBC The Current on April 1, 2025, Thomas stated that more emphasis should be placed on buying Canadian systems, instead of American equipment. “We obviously need to be interoperable with the United States,” she said. “NATO is interoperable with the United States, but we don't need to be quite as integrated as we are.”
“I also think we need to see where we're going to invest in Canadian capacity in Canadian industry,” she added in her CBC interview. “We're never going to have the defence industrial base that the United States has, but we do have some niche areas where we are really, really technically advanced, and I think that's where we should be investing in Canadian technology and anywhere where we can see an opportunity to accelerate existing programs.”
One of those niche areas, according to domestic firms, is the CMS-330.
The CMS-330 technology was so successful that it was installed on board Canada’s Arctic and Offshore Patrol Ships, Halifax-class frigates and the new joint supply ships being built. CMS-330 technology is also on Chilean and New Zealand navy ships.
Germany, Portugal and Taiwan are also considering purchasing the CMS-330 systems, according to a Jan. 29, 2025 report from Janes, the international defence publication.
It is unclear why Canada and other nations are still keen to use the CMS-330 technology despite the DND’s claim that the equipment is “sub-optimal.”
CMS-330 is not the only unique piece of Canadian-built equipment that won’t be going into the CSCs.
A number of Canadian firms repeatedly tried to warn ministers and deputy ministers at the Department of National Defence, Public Services and Procurement Canada as well as Innovation, Science and Economic Development Canada that they were being shut out of the Canadian Surface Combatant project.
Those concerns were ignored. Instead, Canada left it up to the winning consortium, in this case, the U.S.-controlled Lockheed Martin Canada and BAE of the United Kingdom to determine the equipment that would make up key components of the CSC fleet.
By selecting the consortium’s Type 26 warship design for the CSC, the Royal Canadian Navy automatically agreed to what Lockheed Martin had determined was the best equipment for it to use.
At the time, the DND defended its choice that shut out inclusion on the CSC of Canadian-made propulsion systems, sonar and communication systems, as well as radar. The Canadian-based firms that build those systems employ hundreds of people in the high-tech sector.
“By selecting the design, Canada has selected the associated equipment,” DND spokeswoman Jessica Lamirande said at the time. She noted DND is “confident that we have competitively selected the best design to meet Canada’s needs.”
As a result, a radar built by Lockheed Martin in the U.S., which in 2020 hadn’t yet been certified for naval operations, is going to be installed on the CSC. Passed over was a state-of-the art naval radar developed with the help of Thales Canada in Nepean. Canadian taxpayers contributed $54 million to the development of that radar, which is now being used on German, Danish and Dutch warships.
Also shut out of the CSC competition was SHINCOM, a naval communications system built by DRS Technologies of Ottawa and considered one of the top such systems in the world, according to the Ottawa Citizen. SHINCOM is in service on other Royal Canadian Navy vessels as well as 150 warships of allied navies around the world, including Australia, the U.S., Japan, New Zealand and South Korea. It was originally developed for Canada’s Halifax-class frigates and Canadian taxpayers have poured millions of dollars into its development.
Steve Zuber, then vice president of DRS Technologies, wrote on Aug. 31, 2016 to alert then innovation minister Navdeep Bains that the way the CSC procurement was designed would work against Canadian firms. “The CSC procurement approach may actually disadvantage Canadian companies,” Zuber warned. “The current evaluation approach puts our world-class Canadian solutions at serious risk of not being selected for Canada.”
General Dynamics Missions Systems Canada also tried to warn government officials in November 2019 that the lack of competition shut out high-tech Canadian systems developed over the years with both private and tax dollars. Company vice president David Ibbetson told then navy commander Vice Adm. Art McDonald, DND deputy minister Jody Thomas, PSPC deputy minister Bill Matthews and ISED deputy minister Simon Kennedy about the lack of competition on the CSC anti-submarine warfare systems. That resulted in a “largely foreign solution with only limited Canadian content,” he warned.
Bureaucrats at ISED pushed back against such concerns by pointing out that the CSC program will include equipment from other firms such as L-3 and CAE in Quebec and MDA in B.C. Lockheed Martin has also committed to invest in priority areas such as cybersecurity, clean technology and the marine sector, innovation minister Bains was told.
Then there was the issue in November 2019 when the Lockheed Martin Canada executive responsible for delivering on the industrial commitments admitted the system had major problems. Walt Nolan said the policy the Canadian government developed had prompted defence firms to significantly overcommit on the jobs and industry benefits they claim they can deliver on the CSC.
Fast forward to 2025 where the failure by federal bureaucrats to heed the warnings about U.S. equipment on board CSC have now come home to roost.
But some defence industry executives say changes can still be made. Canada has only committed to the first three CSCs. With the remaining 12 ships there should be a concerted effort to buy Canadian, they argue. Failing to do so will continue to allow a key Canadian military asset under the full control of the U.S., an ally that can no longer be fully trusted.
In an April 8, 2025 opinion article in the Globe and Mail, political scientists Jamie Levin and Simon Pratt called on the Canadian government to use a Canadian command and control system for the CSCs as well as weapons systems built by domestic or non-U.S. foreign companies. “The ink is barely dry on Canada’s naval outfitting contract with Lockheed Martin, and there is still time to back out,” they wrote.
(With files from David Pugliese)
Additional reading:
https://ottawacitizen.com/news/national/defence-watch/u-s-system-canadas-war-ships