Replacing and supplementing Canada's fighters

• This competition requires extensive planning and stakeholder and industry engagement
• We need to get this right and we will ensure the Canadian aerospace and defence industries are consulted in this process so that they are well-positioned to participate
• A contract award is anticipated in 2021 to 2022, with the first replacement aircraft delivered in 2025
• The current estimated schedule to complete this process is consistent with competitions led by allied and partner countries for replacing their fighter fleets

• This is aimed at ensuring Canada works with foreign governments that are operators of fighter aircraft and that they meet Canada’s needs for sharing defence information with commercial manufacturers currently producing fighter aircraft
• Fighter aircraft and their component systems are sensitive, heavily controlled goods, and discussing their potential sale requires the existence of defence material cooperation arrangements between Canada and its partners and allies
• Also, the aircraft manufacturer must currently have an aircraft in production that meets Canada’s requirements as indicated in the Suppliers List invitation

• The list of Supplier teams that are eligible to participate in the formal engagement activities and to submit proposals for the future fighter capability, has been established and is published above
• The list will remain open throughout the procurement, and an eligible Supplier team can add or remove an entity from its team at any time in the manner described in the Suppliers List invitation, at Canada’s discretion
• A team may withdraw from the list at any time, by written notification to Canada
• Canada reserves the right to remove, at any time, any team or entity, if it presents potential, perceived or real issues that may be injurious to Canada’s national security

As long as the list remains open:

• A new Supplier team may request to be added to the List, however they will not be invited to participate in the formal engagement or to submit a proposal in the competition for the future fighter capability

• We will take the time necessary to engage with the Canadian aerospace and defence sectors to ensure they are informed and well-positioned to participate
• The Industrial and Technological Benefits Policy will apply to this procurement, requiring the winning Supplier to make investments in Canada equal to the value of the contract
• Eligible Suppliers on the list will be motivated to form partnerships with Canadian industry and post-secondary institutions over the coming months in order to develop a strong Value Proposition
• The Aerospace Industries Association of Canada (AIAC) and the Canadian Association of Defence and Security Industries (CADSI) are involved in supporting engagement of Canadian industry and interactions with foreign government representatives
• Innovation, Science and Economic Development Canada can also help establish partnering opportunities between foreign governments and Canadian industry
• Canadian aerospace and defence sectors from across Canada are being invited to participate in the series of regional forums that will be conducted across Canada in April and May 2018

• The Government’s Industrial and Technological Benefits Policy will apply to this procurement, requiring contractors to make investments in Canada equal to the value of the contract
• The Government is engaging with fighter aircraft manufacturers and Canadian industry towards the development of a Value Proposition strategic objective that will support the long-term growth of Canada’s aerospace and defence sectors
• This includes promoting growth and innovation of Canadian industry through investments in research and development, providing supplier development opportunities, especially for small and medium-sized businesses and providing export opportunities for Canadian firms
• Canada will take the time needed to engage industry stakeholders to gather and share general information related to this procurement. This will ensure the Canadian aerospace and defence industries are well-positioned to participate

• The government is committed to conducting an open and transparent competition to replace Canada's fighter aircraft
• This process is overseen by an independent fairness monitor to ensure a level playing field for all suppliers
• All proposals will be evaluated according to the same evaluation criteria

• Proposals will be rigorously assessed on cost, technical requirements and economic benefits
• The evaluation of bids will also include an assessment of bidders’ impact to Canada’s economic interests. Any bidder that is responsible for harm to Canada’s economic interests will be at a distinct disadvantage
• The new assessment criteria, as well as guidelines for its application as an ongoing procurement tool, are being developed through separate consultations

• We are continuously looking for ways to enhance our procurement processes and improve outcomes for Canadians
• Procurements are about forming effective and long-term partnerships and we want to ensure that we are doing business with suppliers whose activities align with Canada’s economic interests
• The evaluation of proposals will also include an assessment of bidders’ impact on Canada’s economic interests

• No. Consultations on how Canada will assess bidders’ impact on its economic interests will not be conducted through engagement activities for the future fighter capability
• The new criteria as well as the guidelines for its application as an ongoing procurement tool, are being developed through separate consultations
• This approach is consistent with Minister Qualtrough’s Mandate Letter, which outlines direction to modernize procurement practices to support our economic policy goals, among other objectives

• Until permanent replacement aircraft are in place and fully operational, Canada must ensure that the Canadian Armed Forces has the equipment it needs to continue to deliver its missions, and meet its international obligations
• Canada has received a formal offer for sale of F-18 Hornets, spare parts, and equipment from the Government of Australia, which it is pursuing

• Department of National Defence is assessing infrastructure requirements to accommodate these supplemental aircraft

• Ensuring the safety and security of our women and men in uniform is our top priority
• The Australian aircraft are similar in age to Canada’s CF-18 fleet
• Australia and Canada have both made significant investments in the development of structural modifications that have allowed the structural life of their respective F-18s to be extended
• More recently, Canada invested in the development of additional structural modifications that Australia did not
• Canadian companies have the experience required, and are already performing most of the maintenance work on our existing fleet. Any supplemental aircraft would be maintained through these existing arrangements
• Just as we do with our current fleet, we will make necessary investments in these aircraft to ensure they meet all requirements of the Royal Canadian Air Force

• Since the December 2017 announcement, we have been working closely with the Australian Government on an agreement to procure 18 F-18 fighter aircraft, plus associated spare parts and equipment
• In parallel, the Government of Australia has engaged the United States (U.S.) Government to obtain the necessary transfer approvals prior to an agreement with Canada. Third-party transfer of any controlled goods, such as fighter aircraft and parts, requires agreement of the originating country. As such, in this case, the U.S. government needs to agree to the third-party transfer of the aircraft and parts
• Work continues to progress and should the U.S. Government approve the transfer of these aircraft and parts from Australia to Canada, we expect to enter into a final agreement with Australia in early 2019 and to receive the first two fighter aircraft in spring 2019