Canada to acquire four C-17s

From Defense Aerospace

Canada Awards Contract for Strategic Airlift

(Source: Government of Canada; issued Feb. 2, 2007)

OTTAWA — The Honourable Gordon O'Connor, Minister of National Defence, together with the Honourable Michael M. Fortier, Minister of Public Works, and the Honourable Maxime Bernier, Minister of Industry today announced The Boeing Company has been awarded the contract to supply strategic airlift aircraft to the Canadian Forces.

The agreement fulfills a commitment by Canada's New Government to pursue defence procurement initiatives that equip and strengthen our military and provide economic benefits across the country.

“Canada's New Government is dedicated to meeting the urgent needs of our Canadian Forces,” said Minister O'Connor. “Today's announcement is the first step to ensure that our dedicated men and women in uniform have the equipment they need.”

“Our government has delivered on our commitment to fair and open procurement and to our Canadian Forces,” added Minister Fortier. “While ensuring a win for the Canadian Forces, we have done that in a way that ensures Canadian taxpayers get the best value for their money.”

“We have worked hard to deliver real benefits to Canadian industry as a result of our defence procurements,” said Minister Bernier. “This agreement represents tremendous opportunity for Canadian companies to compete and stay at the forefront of the global industry.”

Canada's New Government is purchasing four strategic lift aircraft to provide rapid, reliable and flexible transport of large amounts of passengers and equipment over long distances in response to domestic emergencies and international crises.

This strategic lift capability will be a “Canada First” asset – to be used on our own terms and at times of our own choosing. Canada will no longer have to join the international queue, negotiating against other countries for scarce commercial options, to fulfill its responsibilities. At home, Canada will be better able to protect Canadians from coast to coast to coast, including domestic response capabilities and reaching out to all our communities, including in the Arctic.

Strategic airlift will also enhance Canada's ability to provide humanitarian assistance in any part of the world, as well as increase our disaster assistance response capability. It will ensure that our Canadian Forces in Afghanistan receive the supplies and equipment they need to get the job done.

“These new aircraft will have an immediate impact on how we can support operations,” said General Rick Hillier, Chief of the Defence Staff. “They will increase our capacity to cover vast distances with bigger loads, fewer crews and less stopovers. In addition, they will alleviate some of the workload carried out by our aging Herc fleet and that which we paid to lease.”

The acquisition of these aircraft has been conducted through a competitive process known as an Advance Contract Award Notice (ACAN), which identifies the Government's intention to contract with a specific supplier and also gives all potential suppliers the opportunity to demonstrate that they also can meet the Canadian Forces' mandatory capabilities for strategic airlift.

Under Canada's procurement policy, contractors must undertake quality economic activities in advanced technology sectors of the Canadian economy. These activities must be an amount equal to 100% of the contract value. Boeing has already identified more than $570 Million in contracts and in late-stage negotiations with Canadian companies from coast to coast, and the company will announce details of these contracts in the coming weeks.

Canada's New Government is working to ensure that these procurements deliver maximum, high-quality economic benefits to Canada, and that Canadian firms are well positioned to play significant roles as these projects progress.

The estimated total cost for this strategic lift aircraft project acquisition is C$1.8 billion, plus an estimated contract value of C$1.6 billion for 20 years of in-service support.

After following the proper procurement process, future contracts will also be awarded for tactical airlift, medium-to-heavy-lift helicopters, joint support ships and medium-sized logistics trucks. For each of these contracts, companies will be required to invest in the Canadian economy dollar for dollar what they receive from procurement contracts, resulting in approximately $13 Billion in opportunities for Canada's aerospace and defence industry. (ends)

Boeing and Canada Sign Deal for Four C-17s

(Source: Boeing Co.; issued Feb. 2, 2007)

ST. LOUIS --- Boeing and the Canadian government have signed an agreement for the purchase of four C-17 Globemaster IIIs for Canada's Department of National Defence to provide new strategic airlift mobility capabilities for the Canadian Forces. The contract, signed Thursday, is for the direct commercial sale of four airframes.

Boeing will deliver the aircraft from its Long Beach, Calif., factory where the advanced airlifters are assembled. The first delivery will occur as soon as fall 2007. The Canadian C-17s will be based at the Canadian Forces Base in Trenton, Ontario.

"Boeing is pleased that Canada joins its international partners -- the U.S. Air Force, the U.K. Royal Air Force and the Royal Australian Air Force -- in selecting C-17, the world's leading airlifter to modernize its defense forces airlift fleet," said Dave Bowman, vice president and C-17 program manager. "We look forward to delivering C-17s and a new world-class airlift capability to Canada, with industry-leading safety, quality and reliability that all C-17 customers enjoy."

As the only tactical airlifter with strategic range, the C-17 has become the world's airlifter of choice. Boeing is on contract to design, build, deliver and support 190 U.S. Air Force C-17s. The new Canadian C-17s are already factored into the C-17 production plan and will not extend the Long Beach production line beyond mid-2009, when the last C-17 is scheduled for delivery. In addition to the 160 C-17s now in service with the U.S. Air Force, the United Kingdom's Royal Air Force operates four C-17s, and the Royal Australian Air Force in late 2006 took delivery of its first of four C-17s. With today's announcement, Canada will become the fourth nation to operate C-17s.

A unit of The Boeing Company, Boeing Integrated Defense Systems is one of the world's largest space and defense businesses. Headquartered in St. Louis, Boeing Integrated Defense Systems is a $30.8 billion business. It provides network-centric system solutions to its global military, government and commercial customers. It is a leading provider of intelligence, surveillance and reconnaissance systems; the world's largest military aircraft manufacturer; the world's largest satellite manufacturer; a foremost developer of advanced concepts and technologies; a leading provider of space-based communications; the primary systems integrator for U.S. missile defense; NASA's largest contractor; and a global leader in sustainment solutions and launch services.