Manitoba Govt Air Services to be Privatised

[FighterPilot]

Also heard they’re going to announce Fire suppression, general transportation then the air ambulance in that order. Likely delays between the announcements.

[angry inch]

https://news.gov.mb.ca/news/index.html? ... 2018-11-29

MANITOBA ENTERS INTO AGREEMENT FOR SUPPRESSION OF WILDFIRES

The government of Manitoba has entered into an agreement with Babcock Canada Inc. to provide services for the suppression of wildfires, including the use of water bombers, Infrastructure Minister Ron Schuler announced today. The transaction is the result of a competitive request for proposal (RFP) process initiated earlier this year.

“Our government is committed to protecting Manitobans from wildfires and that’s what this agreement delivers,” said Schuler. “It will ensure faster response times, enhanced safety and a superior aircraft maintenance program. It will make Manitoba’s wildfire suppression system even better.”

Babcock has over 30 years of fixed and rotary wing aerial firefighting experience throughout Europe. For Manitoba, it will work in partnership with Air Spray, an experienced, safe and effective provider of fire-suppression services with long-term contracts in a number of Canadian provinces and the United States, the minister said.

In accordance with the terms of the RFP, the Manitoba government will retain ownership of its seven active water bombers. The deployment of those key pieces of the wildfire suppression system will remain under the direction of Manitoba Wildfire Program staff.

“The aircraft will always serve Manitoba’s needs first, and may only be deployed outside the province with the government’s consent and direction,” said Schuler.

Through long-term and existing mutual assistance agreements, neighbouring jurisdictions have access to Manitoba’s water bombers, pending availability and approval from the Manitoba Wildfire Program. In turn, Manitoba has access to other aircraft for fire-suppression emergencies. The minister noted the majority of Canadian provinces use private carriers for all wildfire suppression services. Manitoba’s Wildfire Program currently uses private carriers for some bird-dog services, helicopters and crew transportation services.

Representatives of Babcock will be meeting with affected government employees in the very near future to discuss employment opportunities under the new operating structure, Schuler said.

An RFP process remains underway for both general transportation air services and for air ambulance services, the minister noted, adding that once those RFP processes are completed, all air services agreements will be publicly disclosed.

[shaune]

Never heard of this Babcock.
I disagree that the "majority of Canadian provinces use private carriers for all wildfire suppression services". I count Sask, Ontario, Quebec and NFLD, and until now Manitoba which made 5. B.C. Ab, Territories and NB are private.
I really can't see this being a win for the province of Manitoba. It cost X to run those airplanes. Now it will be X plus profit. Where will the profit come from ? Cut staff ? Cut wages ? They say the service won't be cut. The costs are off the Manitoba books I guess but the bill will still need to be paid. HUH, I dunno.

[fish4life]

My guess is the ability to run the aircraft year round will yield the cost savings.

[Pacqing]

Is it part of the Bond UK helicopter group?

[goldeneagle]

Never heard of Babcock, so, plug the name into google

https://babcockcanada.com/what-we-do/av ... efighting/

Wildfires are becoming a serious global issue, increasing in their frequency and impact to our lives, with seasonal patterns that affect different world regions throughout the year. Babcock delivers a fully integrated and professional aerial firefighting management service, underpinned by our own proprietary technology investments and internally delivered mission specialist pilot training, in order to be the leader of market transformation. We operate both fixed-wing and rotary-wing aircraft throughout Europe and Australia making Babcock arguably the world’s largest aerial firefighting business.

Looks like that equipment will operate summer in the northern hemisphere, then spend the winter in Australia....

[shaune]

Yes so I see they are a huge multi corporation, seems they have the know how to operate such an operation. Good luck to the folks on the hangar floor that were all let go. Hopefully they get hired back on.

[greygoose]

Hoping Babcock doesn’t also take General Transport or Air Ambulance service. Would be a shame for that work to go to a large multinational and not a local company. I know the firefighting side is sort of unique in that Mb doesn’t have any local fire operators. Mb does however have at least a couple private carriers capable of doing the other stuff and is experienced in it, so fingers crossed that work doesn’t get handed off to the big guys from across the pond. I’m guessing they offered a discount for the services if they won the whole lot, hopefully the local guys put in a competitive bid!

[bobcaygeon]

Never heard of this Babcock.
I disagree that the "majority of Canadian provinces use private carriers for all wildfire suppression services". I count Sask, Ontario, Quebec and NFLD, and until now Manitoba which made 5. B.C. Ab, Territories and NB are private.
I really can't see this being a win for the province of Manitoba. It cost X to run those airplanes. Now it will be X plus profit. Where will the profit come from ? Cut staff ? Cut wages ? They say the service won't be cut. The costs are off the Manitoba books I guess but the bill will still need to be paid. HUH, I dunno.

Sorry but that just isn't the case. With only 4 CL415's you're dreaming if you think they get a deal on anything from their suppliers. How often would they do a hot section or overhaul on those Pratt's? Never mind the wide range of TBO times an operator can get depending on their experience with an engine. PT-28 TBO approved by TC ranges from 2500-8500 hrs based on the operators demonstrated history with that engine type. (Economically speaking getting an engine to 8500 hrs may not be practical but it's legal.)

For a seasonal business there's going to be lots of overhead that isn't utilized for at least a few months a year. You can process payroll from anywhere on the planet.
Our biggest customer in Canada uses a travel agency in Australia to book employee flights online. They are a world wide organization so it makes sense.

[Probes Down]

I came across a press release of Babcocks stating the contract was worth 100M British pounds over ten years or at current exchange $169 million Canadian.

[planett]

No wonder the governing party repealed the Taxpayer Transparency Act. If that contract value provided by Babcock is true, then that's roughly $16.9 million per year CAD for the Tanker Program Alone. That's more than the entire cost for MGAS in a single year. The total cost for MGAS needs to include Fire Suppression, Life Flight, Southern Air Ambulance, and General Transport. The entire cost is provided in the July 2018 report by Breakwater Group. I quote directly from the text below.

"MGAS operates on a cost recovery basis for the services it provides to or through other government entities. In 2016/17 the total expenditures for MGAS was $15.294 million with a total recovery of $14.195 million (Manitoba Infrastructure, 2017a p.21)."

Even before the other portions of this contract are awarded, the claim of privatization for savings is dubious.

[digits_]

Ot they got awarded the whole thing and communicated it before MB government did...?

[Probes Down]

Babcock has been awarded a new 10-year contract for aerial firefighting by the Government of Manitoba, Canada. This is the first firefighting work the Group has won outside of Europe and marks the continuing successful international expansion of Babcock’s aerial emergency services business.

The Wildfire Suppression Services contract, awarded by the Government of Manitoba, is worth around £100 million (CAD$170 million) and will begin in April 2019. Babcock will manage, maintain and operate Manitoba’s fleet of seven firefighting fixed-wing Canadair water-bomber amphibious aircraft, supported by three Babcock Twin Commander aircraft. The Group has a decades-long track record of successfully operating and maintaining a fleet of 19 Canadair firefighting aircraft for the Italian Government. The operations will cover the entire province, helping to protect communities across an area twice the size of the UK.

Babcock Chief Executive Archie Bethel said:

“This marks our first aviation emergency services contract in Canada, and we are delighted to be trusted to deliver this critical service. We have over 30 years’ experience of aerial firefighting, and this new contract positions us well for any future opportunities in the North American market. We look forward to building on the excellent reputation Babcock has achieved in Canada’s marine sector with this new opportunity to serve the communities of Manitoba from the air.”

The agreement to provide vital support to the Government of Manitoba represents the Group’s first step in accessing the large market for aerial emergency services in the North American continent. The total North American addressable market for aerial firefighting is estimated to be around £1.4 billion, including around £1.1 billion in the United States which is accessible to companies operating in Canada. It also provides a platform for the Group to pursue aerial emergency medical service opportunities in Canada, which represents a further addressable market of over £300 million.

[rigpiggy]

What did i say earlier"follow the money"

[bobcaygeon]

What did i say earlier"follow the money"

I did follow the money for 16 years and sat immediately behind the NDP gravy train. I am very well off thanks to that but I sure wouldn't run my business that way. Its not sustainable.

[nothingbeatsflying]

Anyone hear of what's going on with the ambulance service contract? The media, gov't and docs have gone quiet.

[digits_]

Rumor is that they were swamped with applications which causes delays.

[greygoose]

Apparently "spring" is the new ETA. Im guessing they have a lot of paperwork to comb through and a lot of numbers to crunch. I've even heard that some of the companies putting bids in put together multiple proposals to try and cover all angles as they couldn't submit multiple options in just one bid. I think theres a chance we'll see more of the aboriginal involvement play a role in this phase too as the government allocated bonus points for that in the RFP. The 2 companies that won the other parts of the contract didn't include any of that to my knowledge but I do know there are more than one company with majority aboriginal ownership going after the air ambulance side.

[mmm..bacon]

It does make for interesting speculation...does the contract go to EIC cos of the ties between Filmon and the current government? Aboriginal money/interest would make great political optics, and going with the existing Babcock group could make sense given their presence in aeromedical operations worldwide, and the fact that they already have the air tanker contract...

[dstechnical]

Having worked in Ontario as a contractor for 30yrs mostly on helicopters in mostly on forest fires. I have seen the Ontario air force mostly the omnr at work. Manitoba can't help but save money if their gov't run air services are run like Ontario's.