Federal government selects Boeing in deal for military planes
The government's decision to bypass Bombardier by foregoing an open bid stands in contrast to a recent move by the Canadian Commercial Corporation.
The federal government has landed on Boeing Co. to replace the military’s aging patrol planes in a multibillion-dollar sole-source deal, closing the door on Quebec-based business jet maker Bombardier Inc., which had been pushing for an open bid.
Last week, cabinet green-lit the purchase of 16 P-8A Poseidon surveillance aircraft from the U.S. manufacturing giant to replace the half-century-old CP-140 Auroras, according to three sources who were not authorized to speak publicly on the matter.
Two of the sources, including a senior government official, said the Treasury Board held a special meeting on Nov. 28 and approved the contract, which a U.S. agency has listed at US$5.9 billion (C$8 billion). The rubber stamp came days before the offer was set to expire at the end of the month.
Defence Minister Bill Blair, Procurement Minister Jean-Yves Duclos and Industry Minister Francois-Philippe Champagne are expected to make the announcement on Nov. 30, sources said.
The procurement department has stated that Boeing’s off-the-shelf reconnaissance plane is “the only currently available aircraft that meets all of the CMMA (Canadian Multi-Mission Aircraft) operational requirements” — particularly around submarine-hunting technology.
The government’s decision to bypass Bombardier by foregoing an open bid stands in contrast to a recent move by the Canadian Commercial Corporation. The Crown agency, which is mandated to help domestic companies bid on foreign government contracts, signed a memorandum of understanding last week to support export opportunities for the Bombardier plane.
Earlier this month, a parliamentary committee also called on Ottawa to ensure an open tendering process, passing a motion that demanded the government put out a request for proposals.
Bombardier CEO Eric Martel has argued that its aircraft — currently a prototype, and slated to roll off the line in the early 2030s — would offer a cheaper and more high-tech alternative that’s made in Canada.
The company joined forces earlier this year with a Canadian subsidiary of U.S.-based General Dynamics Mission Systems on a patrol aircraft, a modified version of its Global 6500 business jet with submarine-detection gear. The Global 6500 is in use by several militaries, including in the United States and United Arab Emirates, but not yet for maritime patrol.
Prime Minister Justin Trudeau declined to confirm whether a decision to bet on Boeing had been made.
“The ministers will address that issue in time,” he told reporters in Ottawa on Nov. 29.
Bombardier and Boeing declined to comment.
Some Canadian aerospace companies have pushed back against the idea that a Bombardier contract win would be best for the sector, saying that a deal between Ottawa and Boeing could be at least as lucrative for suppliers.
The sole-source route has the benefit of avoiding a drawn-out procurement decision. The competition process for which fighter jet would replace the CF-18 dragged on for more than seven years before the F-35 was chosen in 2022.
