CAE Awarded Contract to Support MQ-9B SkyGuardian® Remotely Piloted Aircraft Systems for Canada';s Defence Forces

Rhea-AI Summary

CAE announced a contract from General Atomics Aeronautical Systems to support the MQ-9B SkyGuardian® Remotely Piloted Aircraft Systems (RPAS) acquired by the Government of Canada. The contract, valued at a minimum of $250M for the first 9 years, includes additional option years. CAE will provide aircrew and maintenance training, supporting devices, and courseware, alongside experienced maintenance technicians to augment the Royal Canadian Air Force staff. The agreement also covers aircraft maintenance, IT, cybersecurity, and publications management. CAE aims to support intelligence, reconnaissance, and surveillance operations, integrated with NORAD, FVEY, and NATO missions. The contract aligns with Canada's Industrial and Technological Benefits Policy, promoting Canadian industry growth.

Positive

• Contract value of at least $250M for the initial 9 years.
• Potential for additional option years, expanding the contract duration.
• Includes aircrew and maintenance technician training, enhancing CAE's training expertise.
• Broader In-Service Support (ISS) capabilities, covering aircraft maintenance, IT, and cybersecurity.
• Supports integration with NORAD, FVEY, and NATO, reinforcing CAE's international collaboration.
• Encourages Canadian innovation and economic growth, creating high-value jobs.
• Part of Team SkyGuardian Canada, showcasing CAE's leadership in RPAS development.

Negative

• Long-term contract commitments can pose financial risks if not managed carefully.
• Dependency on government contracts might expose CAE to budget cuts or policy changes.
• Potential high costs associated with maintaining advanced technology and training standards.
• Any delays in project implementation could impact revenue and reputation.

OTTAWA, ON, May 30, 2024 /PRNewswire/ - (NYSE: CAE) (TSX: CAE) CAE today announced that CAE Defense & Security has been awarded a contract from General Atomics Aeronautical Systems, Inc. (GA-ASI) to support the MQ-9B SkyGuardian^® Remotely Piloted Aircraft Systems (RPAS) acquired by the Government of Canada.

The minimum contract value is $250M for the initial 9 years with additional option years over the total period of performance. Under the terms of the contract, CAE will deliver aircrew and maintenance technician training, supporting training devices and courseware to meet Canada's RPAS requirements. CAE will also provide experienced maintenance technicians to augment the Royal Canadian Air Force maintenance staff in Canada and deployed.

The agreement includes broader In-Service Support (ISS) capabilities, including aircraft maintenance, IT and cybersecurity at the RPAS operating sites, and publications management. CAE will also leverage comprehensive maintenance and support solutions to support the RPAS capability across multiple domains.

"CAE is dedicated to advancing innovative solutions to support Canada's defence and the ongoing modernization of the Royal Canadian Air Force," said Marc Parent, CAE's President and Chief Executive Officer. "Our long-standing collaboration with GA-ASI delivers best-in-class training technologies, systems, and services to Canada's Armed Forces with critical devices and support to enable intelligence, reconnaissance, and surveillance (ISR) operations." 

The MQ-9B SkyGuardian is interoperable with Canada's domestic missions and its continental defence missions through NORAD, as well as with Canada's closest allies – including the Five Eyes Alliance (FVEY) and NATO – for seamless integration with current and future Canadian defence, civil air, and ground assets.

"GA-ASI is pleased to expand its work with CAE, who has been a proven and trusted partner for many years, including as a member of Team SkyGuardian (TSG) Canada," said GA-ASI President, David R. Alexander. "We've enjoyed a long-standing industry partnership with the SkyGuardian and Predator Mission Trainers, which have become important training tools for preparing RPAS crews. Together, we will ensure that the Canadian Armed Forces are well equipped for their RPAS Program."

As a member of Team SkyGuardian Canada, CAE is part of the coalition of leading Canadian businesses working with GA-ASI on MQ-9B development, delivery, and sustainment. Canada's investments in the RPAS Project are a direct reflection of Canada's vested domestic interest in pursuing leading-edge RPAS technologies.

"This contract is an excellent example of how Canada's Industrial and Technological Benefits Policy can be leveraged through defence procurement to support Canadian businesses. This represents more than just another demonstration of CAE's leadership in the defence and aerospace sector; it will also drive Canadian innovation, generate high-value jobs, and bolster economic growth in Canada," said The Honourable François-Philippe Champagne, Minister of Innovation, Science and Industry.

The Industrial and Technological Benefits (ITB) Policy and Value Proposition applied to the RPAS contract, requires investments in Canada equal to the contract value.  As part of its RPAS contract award GA-ASI committed to providing investments to Canadian industry to support the growth of the aerospace and defence sectors.

About CAE

At CAE, we equip people in critical roles with the expertise and solutions to create a safer world. As a technology company, we digitalize the physical world, deploying software-based simulation training and critical operations support solutions. Above all else, we empower pilots, cabin crew, maintenance technicians, airlines, business aviation operators, and defence and security forces to perform at their best every day and when the stakes are the highest. Around the globe, we're everywhere customers need us to be with approximately 13,000 employees in more than 240 sites and training locations in over 40 countries. CAE represents more than 75 years of industry firsts—the highest-fidelity flight and mission simulators as well as training programs powered by digital technologies. We embed sustainability in everything we do. Today and tomorrow, we'll make sure our customers are ready for the moments that matter.

Read our FY23 Global Annual Activity and Sustainability Report.

Follow us on Twitter: @CAE_Inc
Facebook: www.facebook.com/cae.inc
LinkedIn: www.linkedin.com/company/cae
Hashtags: #CAE; #CAEpilot

CAE Contacts: 

General Media:
Samantha Golinski, Vice President, Public Affairs & Global Communications
+1-438-805-5856, samantha.golinski@cae.com

Investor Relations:
Andrew Arnovitz, Senior Vice President, Investor Relations and Enterprise Risk Management
+1-514-734-5760, andrew.arnovitz@cae.com

Trade Media:
Wendy Stough, Director, Marketing and Communications, CAE Defense & Security
+1-813-233-6409, wendy.stough@caemilusa.com

View original content:https://www.prnewswire.com/news-releases/cae-awarded-contract-to-support-mq-9b-skyguardian-remotely-piloted-aircraft-systems-for-canadas-defence-forces-302159580.html

SOURCE CAE Inc.

FAQ

What is the value of the CAE contract for supporting MQ-9B SkyGuardian®?

The minimum value of the contract is $250M for the initial 9 years.

What will CAE provide under the MQ-9B SkyGuardian® contract?

CAE will offer aircrew and maintenance technician training, supporting devices, courseware, and experienced technicians.

How does the MQ-9B SkyGuardian® contract benefit Canada?

The contract supports Canadian innovation, creates high-value jobs, and promotes economic growth.

Which alliances will the MQ-9B SkyGuardian® integrate with?

The MQ-9B SkyGuardian® will integrate with NORAD, FVEY, and NATO missions.

What is included in CAE's broader In-Service Support capabilities?

It includes aircraft maintenance, IT, cybersecurity, and publications management.