Briefing on the Market Analysis

Meeting with Companies May 31, 2013


  • To provide details on the Pricing Questionnaire and the Industrial Benefits Questionnaire
  • Respond to questions and provide information on next steps

Pricing Questionnaire - Approach

  • Use Life Cycle Costing framework
  • Request Rough Order Magnitude costing information
  • Provides companies with required assumptions and cost estimates up-front
  • Incorporates feedback from companies on draft Questionnaire
  • Developed based on advice and oversight of Independent Review Panel (IRP)

Pricing Questionnaire

Table Summary

The following table indicates the cost area and who is responsible for providing the data, its calculations and assumptions.

Cost area Calculation and assumptions
Acquisition provided by companies based on 65 aircraft delivered in 2020
Sustainment provided by companies based on 30 years operational life beginning in 2020
Operational burn rate × 11,700 flying hours per year + fixed amount for personnel, base support, etc. provided by Department of National Defence (DND)
Attrition provided by companies based on attrition rate and replacement cost
Disposal fixed amount provided by DND
TOTAL Sum of five cost areas

Industrial Benefits Questionnaire

  • Approach:
    • appropriate for a market analysis
    • provided in draft to companies for comment
    • provides flexibility to provide info on potential benefits to Canadian industry, whether through Industrial and Regional Benefits, Industrial Participation, or both
  • Assessing:
    • commitment to provide industrial benefits by generating high value-added business activity and whether proposed approach to engage industry to pursue potential benefits in Canada is acceptably comprehensive, complete and credible

Industrial Benefits Questionnaire - Assessment Guidelines


  • Is the response sufficiently broad in scope and inclusive of key Canadian stakeholders?
  • Are the activities identified to engage Canadian stakeholders sufficiently broad in scope?


  • Are the stakeholders and activities identified appropriate?
  • Does the proposed approach demonstrate the companies' understanding of Canadian aerospace and defence industrial capabilities and the characteristics of the sector?
  • Does the proposed approach include a plan to identify, understand, and consider stakeholder aspirations, in the implementation of industrial benefits in Canada?


  • Is the proposed engagement strategy to explore industrial benefits in Canada realistic and achievable, such that the probability of failure is low?
  • Does the company's experience with offsets, both in Canada and abroad, suggest a likelihood of success in implementing an industrial benefits strategy in Canada?

Summary Report

  • The Terms of Reference state that the public report will:
    • Remain unclassified
    • Be guided by the Seven-Point Plan principles of openness and transparency
    • Respect applicable disclosure agreements with other governments and industry
  • Will not contain any analysis that would reveal commercially protected or sensitive information
  • Classified information will be contained in annexes available only to those with appropriate clearances

Next Steps

  • Provide final Industrial Benefits Questionnaire to companies which reflects comments
  • Bilateral meetings on June 11th, 12th and 13th with follow up clarifications as required
  • Receive input for Pricing Questionnaire on July 5th, 2013