(Ottawa) Federal government confirms Boeing’s “Super Hornet” fighter jet is no longer in the running to replace Canada’s CF-18s.
Public Services and Procurement Canada’s official announcement comes nearly a week after The Canadian Press reported that Boeing was told its bid for the $ 19 billion contract did not meet Canadian requirements.
The Canadian government did not want to comment publicly at the time, even to clarify whether the American aerospace giant was definitely out of the competition.
But the ministry now says that only two planes are still in contention: the stealth fighter F-35 of the American giant Lockheed Martin and the Gripen fighter plane of the Swedish manufacturer Saab. In its press release, the ministry does not explain why Boeing is no longer in the race.
Fallout
Interested companies had to demonstrate that their fighter aircraft could meet military requirements for missions in Canada and abroad, but also that obtaining this contract would generate substantial economic benefits for Canadian aerospace companies.
“In the coming weeks, Canada will finalize the next steps in the process,” said the Department of Supply. Depending on a more in-depth analysis of the two remaining proposals, it could be a question of negotiating the final terms with the highest-ranked bidder, or even initiating a competitive dialogue to allow the last two bidders to improve their bids. ”
The ministry indicates that the government still expects to award this contract in 2022, for the start of deliveries “from 2025”.
NATO, NORAD
The news that one of the two U.S. companies vying for this contract failed to meet one or more of the requirements is the most recent chapter in a long, often unpredictable, saga towards replacing the old CF-18s in the Canada.
Many observers viewed the Super Hornet and the F-35 as the only two real contenders in this race, due to the close ties between Canada and the United States – including the ability to use the same aircraft to defend space. North American Air Force, within NORAD.
These perceptions were further magnified when two other European companies threw in the towel before the race even started – they complained that government demands had stacked the dice in favor of their two American rivals.
Sweden is not a member of NATO or the North American Aerospace Defense Command (NORAD). The Swedish participation also raised questions about the compatibility of the Gripen device with American planes.
Some observers have long believed that this whole bidding process was directed from the start to basically favor the Lockheed-Martin F-35, which is being bought by many of Canada’s closest allies.
Since 1997
Canada first joined the United States and other allies in 1997 as a partner in the development of the American F-35; Ottawa has since contributed US $ 613 million to stay with the club. Partners get a discount when purchasing fighter jets and compete for billions of dollars in subcontracts associated with their construction and maintenance.
Stephen Harper’s Conservative government then pledged in 2010 to buy 65 F-35s without a tender, before concerns about the cost and capabilities of the stealth fighter forced it back to the drawing board.
In 2015, the Liberals then promised not to buy the F-35s, but to put out an open tender instead. In the meantime, they have planned to buy 18 Boeing Super Hornets without a tender, as a “stopgap” measure to ensure Canada has enough fighter jets until permanent replacements are available. can be purchased.
Some observers at the time questioned that plan, suggesting the Liberals were trying to find a way to get engaged to the Super Hornet without exposing themselves to legal challenge from Lockheed Martin or any other manufacturer.
The Bombardier case
But the Liberal government ultimately canceled that plan when Boeing embarked on a trade dispute with Bombardier over the Montreal aerospace company’s C-Series. Boeing claimed that Bombardier benefited from subsidies from the Canadian government and that its aircraft were sold below their manufacturing price, which it considered to constitute unfair competition.
The Liberal government subsequently announced a penalty for any company interested in bidding for a federal contract and which would be involved in a trade dispute with Canada.
Meanwhile, the government has been forced to invest hundreds of millions of additional dollars in its aging CF-18 fleet to keep it in service until a replacement can finally be delivered. The government then announced its intention to award the contract in 2022, for deliveries from 2025.
The last plane is not expected to arrive until 2032, when the CF-18s will be around 50 years old.