Future fighter jets: Committee of the Whole—May 19, 2022
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Future fighter capability project
Key data points
- Competition launched to replace Canada’s fighter fleet with 88 advanced jets in December 2017
- Proposals received from all 3 eligible suppliers:
- Swedish Government—SAAB AB
- United States Government—Lockheed Martin Corporation
- United States Government: Boeing on July 31, 2020
- Canada announced that the Swedish Government—SAAB AB and the United States Government—Lockheed Martin Corporation were eligible for the next phase of the procurement process on December 1, 2021
- On March 28, 2022, following a rigorous evaluation of the 2 remaining eligible proposals, Canada announced it would enter into the finalization phase of the procurement process with the top-ranked bidder United States Government—Lockheed Martin
- Canada’s defence policy: Strong, Secure, Engaged has established $19 billion in funding for this procurement. This value includes the acquisition of the aircraft, associated equipment, infrastructure, and set-up to enable the aircraft to enter into service
- This project cost is consistent with the 2012 recommendation of the Auditor General and the new direction in the Strong, Secure, Engaged defence policy
Current status
- In June 2017, Canada’s defence policy confirmed a fleet size of 88 advanced fighter aircrafts to replace the current CF-18s
- The government launched a procurement process for the future fighter aircraft in December 2017. Officials conducted extensive industry engagement with suppliers to maximize the likelihood that Canada received competitive proposals, and with Canadian industry to ensure that they were well positioned to participate in the procurement
- An independent fairness monitor is overseeing the entire process, to ensure a level playing field for all bidders. An independent third-party reviewer was also engaged to assess the quality and effectiveness of the procurement approach
- In July 2019, the request for proposal was issued to the eligible suppliers
- On July 31, 2020, the bid solicitation phase closed; proposals were received from all 3 remaining eligible suppliers and the process entered the bid evaluation phase
- On December 1, 2021, Canada announced that, following evaluation of the proposals, 2 bidders—Swedish Government and SAAB AB; and the United States Government—Lockheed Martin Corporation—remained eligible under the future fighter capability oroject competitive procurement process and that it would be finalizing its selection for the next step of the process, which could involve proceeding to negotiations with the top-ranked bidder or entering into a competitive dialogue with both remaining bidders
- During the finalization phase, United States Government—Lockheed Martin must successfully demonstrate that the resulting contracts would meet all of Canada’s requirements and outcomes, including value for money, flexibility, protection against risks, and performance and delivery assurances, as well as high value economic benefits for Canada’s aerospace and defence industry
- The Government of Canada continues to work towards a contract award in 2022, with delivery of aircraft as early as 2025
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