Cdn. defence department claims Boeing was ‘the only choice’

The federal government is buying at least 14 Boeing surveillance planes from the United States to replace the aging CP-140 Aurora fleet, cabinet ministers had announced on Nov. 30.

The deal costs more than $10.3 billion in total, including US$5.9 billion for the jets themselves, and the planes are expected to be delivered in 2026 and 2027.

“These aircraft are not just planes. They are complex weapons systems. And the Poseidon has a proven capability with a track record of success,” Defence Minister Bill Blair said at a news conference in Ottawa.

The Aurora fleet, already more than four decades old, will reach its retirement age in 2030, and Blair said replacing it before that date was imperative.

“The fact that it met all of the requirements that the Air Force defined for us really made this not only the right choice, but frankly the only choice.”

In a media briefing, officials said the fleet will give Canada new capabilities, particularly in the Arctic, to hunt submarines. The planes will also be used for search-and-rescue operations and maritime patrols, and they will have anti-ship missiles.

The officials from the Defence Department, the Royal Canadian Air Force and the Procurement Department were providing the information on the condition they not be named.

The decision to go with a sole-source contract has closed the door on Quebec-based jet maker Bombardier, which had been pushing for an open bid.

A typical procurement process with open tendering would take around three to four years to complete before the planes could be purchased, officials said Thursday.

Bombardier CEO Eric Martel has argued that its plane, which is currently a prototype and slated to roll off the line in the early 2030s, would offer a cheaper, greener andmore high-tech alternative that’s made in Canada.

In a release, the company said it was disappointed that Ottawa awarded a “generational contract without an open and fair competition.”

Blair offered a blunt view on the Bombardier pitch.

“There is no aircraft, currently,” he told reporters.

“There is a high degree of uncertainty around the cost, around the schedule of delivery and around ultimate operational effectiveness.”

Industry Minister Francois-Philippe Champagne said Boeing has committed to establishing an “innovation centre” in Montreal — a global aerospace hub and Bombardier’s home base.

“But let me be very clear, we are going to be supporting Bombardier with everything we have. We believe in them,” Champagne said.

Blair said the decision to go for a sole-source deal marked a recognition the federal government needs to move faster on military procurement.

Questions linger over whether Boeing can manufacture the Poseidons on time. In recent years, the Virginia-based company has struggled with production and quality issues on its big-name commercial jetliners, particularly the 737 Max, the 787 Dreamliner and the 777.

Martin Brassard, CEO of Quebec-based landing gear maker Heroux-Devtek, said that is where the real value lies for domestic aerospace companies, which may be tapped as suppliers for Boeing’s other aircraft.

“Imagine thousands of airplanes — not 14, but thousands and thousands,” Brassard said in an interview.

“There’s tremendous opportunities out there for Canadian companies when we work with aerospace leaders in the United States, because they are the ones that are working with the Pentagon, they are the ones that are working with the generals that are developing the next fighter jet.”

As a result of the deal’s domestic investment provisions, defence contractor L3Harris Technologies Canada said it will hire 20 more employees for work on Boeing’s Chinook transport helicopter, with the potential for another 30 hires over the next few years, said CEO Rich Foster.