Question Period Note: CP-140 Aurora Replacement

About

Reference number:
DND-2024-QP-00007
Date received:
Dec 1, 2023
Organization:
National Defence
Name of Minister:
Blair, Bill (Hon.)
Title of Minister:
Minister of National Defence

Issue/Question:

Why is the Government of Canada purchasing the P8-A Poseidon aircraft from Boeing without giving the Canadian Aerospace industry an opportunity to compete?

Suggested Response:

  • The CP-140 Aurora will reach its estimated end of service in 2030.
  • That is why we are procuring up to 16 P 8A Poseidon, with the first delivery expected in 2026.
  • The Poseidon is the only currently available aircraft that meets all Canadian Multi-Mission Aircraft operational requirements.
  • There is no alternative on the market today.
  • This platform is a proven capability that is operated by several of our defence partners, including our Five Eyes allies, as well as Norway and Germany.
  • As a result, Boeing will make targeted investments across Canada, with the potential to create up to 3,000 jobs annually.
  • These aircraft will deliver the capability the Royal Canadian Air Force needs, while providing economic benefits to Canada's aerospace and defence sector for decades to come.

If pressed on Canadian-made aircraft:

  • This procurement will ensure that the Royal Canadian Air Force is able to identify, detect, track, and potentially engage advanced surface and sub-surface threats.
  • The P-8 is the only currently available aircraft that meets all CMMA operational requirements.
  • A developmental option brings a high degree of risk and uncertainty with regards to cost, schedule and the delivered operational effectiveness.

Background:

"* The CMMA Project will deliver an enhanced long-range, long-endurance, multi-mission capability to replace the CP-140 fleet.

Project timelines

  • In April 2021, Public Service and Procurement Canada (PSPC) on behalf of National Defence launched a third-party CMMA Candidate Aircraft Analysis which assessed and ranked aircraft to replace the Aurora fleet.
  • In February 2022, PSPC released a Request for Information (RFI) to validate market analysis conducted by PSPC as part of its role as the Government of Canada procurement authority on behalf of National Defence.
  • The RFI sought input from Industry on the requirements pertaining to the replacement of the CP140 Aurora fleet, including industry’s interest, capability and experience, which was used to inform the options available for the replacement of the CP-140 Aurora.
  • Following engagements with industry, Canada’s closest Allies and through independent third-party studies, the government determined that the P-8A Poseidon is the only currently available aircraft that meets all of the CMMA operational requirements.
  • In March 2023, Canada requested an offer through the US FMS program.
  • In July 2023, a Letter of Offer and Acceptance (LOA) was received from the US government and was reviewed by PSPC and National Defence and concluded that the capability offered meets all CMMA High Level Mandatory Requirements."

Additional Information:

Quick Facts

The Canadian Multi-Mission Aircraft (CMMA) will equip the CAF with a long-range manned Command and Control, Communications and Computers and Intelligence, Surveillance and Reconnaissance and Anti-Submarine Warfare and Anti-Surface aircraft with extended capabilities.

On November 30, 2023, the Government of Canada announced its decision to procure between 14 and 16 aircraft specialized in anti-submarine and anti-surface warfare from Boeing through a Foreign Military Sale with the US.

Value of Foreign Military Sale (FMS) $5.1B USD including:

  • 14 aircraft with an option for up to two additional aircraft.
  • Operation centers, spares, support equipment, technical assistance, training devices (including simulators), training, and an initial in-service support period.
  • Canada is assessing the infrastructure needs for the replacement fleet and requirements to recapitalize infrastructure at the operating bases.
  • The aircrafts will be based at 14 Wing Greenwood, N.S. and 19 Wing Comox, B.C.

Timelines:

  • First delivery: 2026.
  • Initial Operational Capability: 2028.
  • Full Operational Capability: 2033.

Benefits to Industry Canada has negotiated meaningful economic benefits for Canadian industry:

  • Boeing will integrate Canadian companies in global supply chains, develop clean technologies and support the development of skills and training in Canada.
  • Boeing’s economic commitments to Canada have the potential to generate more than 3,000 jobs annually and contribute at least $358 million annually to Canada’s gross domestic product over ten years.
  • Boeing will open an innovation centre in Montreal, invest in research centres and develop partnerships with universities across Canada.
  • Furthermore, Canada intends to compete the follow-on in-service support requirements for this capability."