Tue Jun 08, 2010 11:50 am
65 Fighter Jets; $9-Billion, No Competition
Impending sole-source contract with Lockheed-Martin sparks furious lobbying from rival manufacturers to open up process
The Globe and Mail (Canada) 06/08/2010
Author: Daniel Leblanc
All material copyright Thomson Canada Limited or its licensors. All rights reserved.
OTTAWA -- Ottawa is moving on a sole-sourced purchase of high-tech U.S. fighter jets to replace its CF-18s despite furious last-minute lobbying by rival manufacturers.Industry and government sources said the cabinet is expected in coming days to approve the launch of negotiations on price and delivery schedules with Lockheed-Martin, the U.S.-based manufacturer of the Joint Strike Fighter F-35.
The government is moving early on buying 65 new aircraft in a bid to “lock up the price” long before the jets start entering into service in 2017, sources said.
The contract worth up to $9-billion would be awarded without competition, with the Harper government set to argue the only other aircraft that could eventually meet the needs of the Canadian Forces would be built in China or Russia, and that such a purchase “wouldn't fly” in Canada.
But that hasn't stopped the manufacturers of jets such as Boeing's Super Hornet from trying to whip up a storm in Parliament and the defence community.
Lobbyists have been contacting journalists and parliamentarians in an attempt to put out the story that Canada could get new aircraft at a cheaper price, and with more Canadian content, by opening up tenders.
“An open competition to select Canada's next-generation fighter would enable Canada's government and military to obtain access to detailed Super Hornet performance data, enabling a thorough and accurate evaluation of its advanced, proven capabilities,” said Boeing spokeswoman Mary Brett in a statement.
Officially, Defence Minister Peter MacKay responded to the speculation in the House on Monday by promising that his government is set to “invest in the next generation of fighters.”
“Stay tuned,” Mr. MacKay said in response to NDP attacks against a sole-sourced contract.
Privately, government officials are saying Ottawa already made a decision in the 2008 “Canada First” defence policy to buy a next-generation fighter plane, and that Boeing lost the competition in the United States to build that aircraft in 2001.
“Boeing has been driving the town crazy,” said a senior government official directly involved in the project. “This is a classic firestorm in Ottawa, with lobbyists stirring up the town trying to stall the acquisition of equipment for the Canadian Forces.”
The Joint Strike Fighter is being developed by Lockheed-Martin, which won a competition to produce the next generation of stealth single-seat aircraft. Canada has invested $160-million so far in the development project, which will cost hundreds of billions of dollars. The U.S. Forces will buy about 2,400 of the F-35s.
The 65 new fighters that the Canadian government plans to buy will replace its current fleet of 80 CF-18s starting in 2017.
Competing aircraft manufacturers say that despite the federal investment, the Joint Strike Fighter might not be the way to go. The overarching theme among manufacturers is that they want to be able to participate in a competition, and that the government will get a better deal – and more regional industrial benefits spread out across Canada – if it opens up a tendering process.
“Competition guarantees the best value for Canada,” Boeing stated in a presentation to Conservative ministers last fall.
Boeing is insisting in its material that it will continue to produce its Super Hornet into the next decade, and that the U.S. Forces will continue to have more than twice as many of these planes than the Lockheed F-35s.
But Mr. MacKay signaled in the House of Commons on May 27 that his mind is made up. He initially spoke of the Joint Strike Fighter as the designated replacement for the CF-18s, before stating that a decision has yet to be made.
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WARPLANES
Joint Strike Fighter
Lockheed-Martin promises that the radar-evading stealth F-35 will:
• fly at Mach 1.6 (about 2,000 km/h), with a range of up to 2,600 kilometres
• carry four internal missiles and up to six external missiles or bombs, as well as 25-mm cannons
• offer short takeoff and vertical landing capabilities
• include the most advanced display technologies for its pilots
CF-18 Hornet
Ottawa bought 138 CF-18 Hornets from McDonnell Douglas Corp. for $5.2-billion in 1982. The jets were intended to modernize the military's air command unit. They were updated in 1994 with more sophisticated electronics and mission software. Among the features of the aircraft:
• a radar system that tracks targets from far away in all weather
• an on-board, infrared camera that allows pilots to see at night
• top speed of about Mach 1.8 (about 2,200 km/h)
CF-104 Starfighter
Pilots who flew the CF-104 Starfighter dubbed the aircraft the Widowmaker after 37 Canadian pilots died in crashes that destroyed nearly half the fleet that Ottawa ordered in 1959.
The aircraft:
• had a sharply tapered fuselage that allowed a top speed of 2,300 km/h
• was retired in 1986; about 50 of Canada's surviving Starfighters were given to Turkey
Hawker Hurricane
The Hawker Hurricane was one of the stars of the Second World War for its role in the Battle of Britain in 1940. Hurricanes shot down more enemy aircraft than all other defences combined. Canada didn't have any first-class aircraft before the war started, except for the 19 Hurricanes it received from Britain in 1939. Hurricanes
• carried 20- and 40-mm cannons, rockets and up to 450 kilograms of bombs
• had a top speed of 580 km/h
Avro CF-105
A.V. Roe's development of the CF-105 Arrow began in 1949. But after estimated unit costs rose to $12.5-million per aircraft including the Arrow's engine, missile and fire-control systems, the government cancelled the project in 1959. The Arrow:
• had two-seats, twin-engines and a clamshell-shaped cockpit
• could have the most sophisticated aircraft of its time
• reached a top speed of Mach 1.96 (about 2,400 km/h) during test flights
Nieuport 17
British and French air forces during the First World War used the Nieuport 17, which was famously flown by Canadian ace William (Billy) Bishop. The Nieuport:
• flew up to 165 km/h
• featured a Vickers machine gun in front of the cockpit
A replica of Mr. Bishop's plane is on display at the National Aviation Museum in Ottawa
Sources: the Department
of National Defence, The Canadian
Encyclopedia