In Policy U-Turn, Canada Allows Boeing, Lockheed to Compete for Future Fighter contract

OTTAWA, Ontario --- Canada has taken another step towards building a highly capable, flexible military with the ability to operate closely with allies and partners and to protect the safety and security of Canadians.

Today, the Government of Canada published a list of eligible suppliers that will be invited to submit proposals under the competition to replace Canada’s fighter fleet.

The suppliers consist of foreign governments and fighter aircraft manufacturers that will be invited to participate in formal engagement activities over the coming months. This competition was launched ‎in December 2017 and the activities will continue until spring 2019, when the Government of Canada will invite eligible suppliers to submit proposals. Only those suppliers on the list published today will be eligible to submit proposals.

Proposals will be rigorously assessed on cost, technical requirements and economic benefits. The Industrial and Technological Benefits Policy will also be applied, requiring the winning supplier to make investments in Canada equal to the value of the contract.

The evaluation of bids will also include an assessment of bidders’ impact on Canada’s economic interests. Engagement with stakeholders and industry on this new criteria, as well as guidelines for its application as an ongoing procurement tool for major projects, are being conducted through separate consultations. Officials have already met with aerospace and defence industry associations and will continue to engage with various stakeholders on further refining this criteria over the coming months.

This procurement project represents the most significant investment in the Royal Canadian Air Force in more than 30 years.

Quotes

“We are pleased with the responses received from foreign governments and commercial entities that have the ability to meet Canada’s needs. Our government is confident this will result in a robust competition, providing good value to Canadians and the Canadian economy,” said Carla Qualtrough, Minister of Public Services and Procurement.

“Our women and men in uniform must be provided with the necessary equipment to fulfill their demanding, and sometimes dangerous, missions. The work we have done and the work we continue to do on the future fighter procurement helps ensure we get the right equipment at the right price to support these important missions,” said Harjit S. Sajjan, Minister of National Defence.

“The Government of Canada is leveraging procurement to create jobs, drive innovation and grow small businesses. Thanks to the Industrial and Technological Benefits Policy, winning suppliers will make investments in Canada equal to the value of the contract. This is a once-in-a-generation opportunity to drive investment in innovation and research across all sectors of our economy, including with post-secondary institutions,” said Navdeep Bains, Minister of Innovation, Science and Economic Development.

Quick Facts

-- On December 12, 2017, the Government of Canada launched an open and transparent competition to permanently replace Canada’s fighter fleet. Canada will purchase 88 advanced fighter aircraft, as outlined in Strong, Secure, Engaged: Canada’s Defence Policy.

-- A contract award is anticipated in the 2021 or 2022, with the first replacement aircraft expected to be delivered in 2025. These timelines are consistent with international experience for a procurement of this size and complexity.

-- Other entities may be added to supplier teams on the list at any time during the process, subject to approval by the Government of Canada.

-- Canada will continue to engage industry stakeholders to gather and share general information related to this procurement. This will ensure the Canadian aerospace and defence industries are well-positioned to participate.

-- Aerospace is one of the most innovative and export-driven industries in Canada and adds $28 billion annually in gross domestic product to Canada’s economy. Together, Canada’s aerospace and defence industries contribute more than 240,000 quality jobs.

Associated Links

-- Replacing and supplementing Canada's fighters

-- CF-18 replacement

-- List of eligible suppliers

(EDITOR’S NOTE: Several interesting points are raised by this statement.
First of all, Canada has selected governments as suppliers, and not companies alone.
Secondly, and despite the controversy caused by Boeing’s attack on Bombardier’s CSeries airliner, the company is being allowed to compete for this contract.
The only proviso is that “The evaluation of bids will also include an assessment of bidders’ impact on Canada’s economic interests,” which seems to be aimed specifically at Boeing.
Lockheed Martin is also being allowed to compete, despite many statements by Prime Minister Justin Trudeau and other members of his Liberal government that Canada would never buy the F-35, and would not even allow it to compete, because of the shenanigans that resulted in Canada’s ordering the F-35 without a competition during the government of former Prime Minister Stephen Harper.)

(ends)

Publication of the names of entities forming the Suppliers on the Suppliers List

This notice is provided in accordance with article 4.2 of the Suppliers List Invitation to publish the names of the entities forming the Suppliers on the Suppliers List.

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