Question Period Note: Future fighter capability project

In this increasingly volatile security environment with Chinese and Russian aggressors, why is this Government failing to deliver a fighter jet capability to the CAF?

• A modern fighter aircraft fleet is vital to protecting North American airspace and supporting our defence and security efforts at home and abroad.

• That is why this Government launched an open and transparent competition to acquire 88 new, advanced fighter aircraft.

• We are currently in the finalization phase with the top-ranked bidder, the United States Government and Lockheed Martin, for the F-35 fighter jet.

• The bidder must now demonstrate that any contract will meet our criteria such as value for money, protection against risks, and delivery assurances.

• To prepare for the arrival of these aircraft, we have already taken steps to prepare for construction of some of the new fleet’s facilities in Bagotville and Cold Lake.

• Construction of these Fighter Squadron facilities will generate over 900 jobs.

• We are confident this procurement process will deliver the best results for the Canadian Armed Forces, while providing economic benefits for Canada.

Quick Facts

• Project Budget: $19B in funding as established in Strong, Secure, Engaged

• Aircraft Delivery: The delivery schedule and follow-on milestones will be determined in consultation with the bidder as part of the finalization process.

• Fighter Squadron Facilities:

  • National Defence has awarded two contracts to undertake infrastructure upgrades.

  • This infrastructure will support the long-term maintenance and operation of these new aircraft.

• GBA+: Bagotville and Cold Lake Fighter Squadron Facilities are planned to have:

  • Gender-inclusive washrooms and barrier free facilities;

  • Cultural rooms to accommodate diverse backgrounds and faiths; and,

  • Lactation and nursing rooms.

• Economic benefits: Eligible Suppliers were required to submit economic benefits proposals outlining planned investments in Canadian industry.

• Indigenous relations: The infrastructure design-builders in Bagotville and Cold Lake will prepare benefit plans to support Indigenous procurement objectives.

Background

Project Details:

• The objective of the Future Fighter Capability Project (FFCP) is to successfully acquire and transition into service 88 advanced fighter aircraft along with the associated equipment, weapons, infrastructure, information technology, and sustainment, including training and software support. This project will leverage Canadian capabilities and support the growth of Canada’s aerospace and defence industries.

• The process, led by Public Service and Procurement Canada, is overseen by an independent fairness monitor.

Project Timelines:

• December 2017: The Government of Canada launched an open and transparent competition for the permanent replacement of Canada’s fighter aircraft fleet.

• February 2018: The Government announced five eligible government-led Supplier teams, including, Dassault (France), SAAB (Sweden), Airbus (United Kingdom), Boeing (United States of America), and Lockheed Martin (United States of America).

• November 2018: Dassault (France) informed Canada of its decision to officially withdraw from the competition.

• August 2019: Airbus (United Kingdom) informed Canada that it was withdrawing.

• July 31, 2020: The Government of Canada received bids from eligible suppliers.

• December 1, 2021: The Government of Canada announced that following evaluation of the proposals submitted, two bidders remained eligible—SAAB (Sweden) and Lockheed Martin (United States of America).

• March 28, 2022: The Government of Canada announced that it will enter into the finalization phase with the top ranked bidder: the United States Government and Lockheed Martin, for F-35 fighter jets.

Procurement process:

• Entering into the finalization phase will allow Canada to confirm that all of the requirements and outcomes of the Request for Proposals are met and are appropriately captured in the resulting contractual instruments.

• If the top ranked bidder is unable to demonstrate, within the required timeframe, how all requirements and outcomes identified in the Request for Proposal will be met, then Canada may reject the proposal and invite the next ranked bidder to participate in the finalization process. When the finalization phase is successfully completed, Canada and the bidder will need to seek final approval of the negotiated instruments, leading to Contract Award.

Economic Benefits:

• Canada has implemented a Value Proposition to motivate generational investments in our aerospace and defence industries over the coming decades, and that drive innovation, exports, and skills development in Canada’s Key Industrial Capabilities including In-Service Support, and Aerospace Systems and Components.

Fighter Squadron Facilities:

• In anticipation of the arrival of the aircraft National Defence is preparing for the construction of some of the new fleet’s facilities in Bagotville (Québec) and Cold Lake (Alberta).This will support long-term maintenance and operation of the aircraft.

• A $12.1 million design contract for a Fighter Squadron Facility in Bagotville (Québec) was awarded on September 28, 2020.

• A $9.2 million design contract for a Fighter Squadron Facility in Cold Lake (Alberta) was awarded on August 13, 2020.

• Construction on both facilities is expected to begin shortly after the awarding of contracts for the Future Fighter aircraft as early as this year.

Assistant Deputy Minister (Materiel), Royal Canadian Air Force