Question Period Note: ECONOMIC BENEFITS OF THE CF-18 REPLACEMENT PROJECT

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About

Reference number:
DND-2019-QP-00008
Date received:
Dec 6, 2019
Organization:
National Defence
Name of Minister:
Sajjan, Harjit S. (Hon.)
Title of Minister:
Minister of National Defence

Issue/Question:

  • What is this government doing to protect Canadian aerospace jobs and provide benefits to the Canadian economy through the procurement of replacement aircraft for the CF-18s?

Suggested Response:

  • The Government is in the process of selecting a permanent replacement for Canada’s fleet of CF-18 fighter aircraft.
  • This multi-billion dollar project will deliver 88 advanced fighter aircraft to the Royal Canadian Air Force.
  • Changes have been made to this project to ensure a wide competitive field, while also incentivizing significant economic benefits to Canada.
  • We will continue to ensure that all major procurement projects provide economic and employment opportunities for Canadians.

Background:

BACKGROUND

  • On December 12, 2017, the Government of Canada launched an open and transparent competition for the permanent replacement Canada’s CF-18 fleet with an advanced fighter aircraft.

  • Canada will evaluate proposals on elements such as technical capability, cost, risk and economic benefits. The evaluation of bids will also include an assessment of each bidder’s overall impact on Canada’s economic interests.

  • Dassault and Airbus officially withdrew from the competition, citing difficulties in meeting requirements to integrate equipment with US military requirements, and to provide industrial and technology benefits to Canadian industry.

  • Three suppliers remain in the competition: Boeing (US), Lockheed Martin (US) and Saab (Sweden).

  • Eligible suppliers have until early 2020 to submit their proposals and the winning bidder will be announced in 2022.

  • The first of the new advanced fighter aircraft is expected to be delivered in 2025.

RECENT PARLIAMENTARY INTEREST

  • On November 13, 2019, NDP leader Jagmeet Singh held a press conference requesting the government guarantee that Canadian aerospace jobs be protected and expanded through procurement of the permanent replacement of the CF-18 fighter aircraft. He specifically advocated for Quebec’s aerospace industry.

RECENT MEDIA INTEREST

  • In summer 2019, the media reported on the withdrawal of Airbus and Dassault from the competition, and the issues raised by the two companies regarding the requirement to provide industrial and technological benefits to Canadian industry.

GBA+

  • Canada’s Industrial and Technological Benefits Policy on Defence Procurement now requires submission of Gender and Diversity Plans as part of the value proposition submission for projects of this scale.

INDIGENOUS

  • Considerations will be given to leverage this project to increase socio-economic benefits to Indigenous peoples through contracting, training, and/or employment.

Responsible Principals: Assistant Deputy Minister (Materiel), Royal Canadian Air Force

Additional Information:

QUICK FACTS

  • From April 23, 2018, to May 1, 2018, the Government hosted Regional Forums in select Canadian cities providing an opportunity for Canadian industry and other stakeholders to learn more about the competition.

  • The Government engaged with over 250 Canadian companies and over 50 research organizations regarding economic benefits.