By Graham Warwick in Washington DC
Canada is expected to begin the process to procure four C-17 strategic airlifters and 16 CH-47 Chinook heavylift helicopters from Boeing this week under procurements totalling C$13 billion ($11.5 billion), which include a competition to provide 17 tactical transports. The “Canada First” procurement projects announced last week by the government represent the first Canadian military build-up in a decade.
The announcements did not specify the C-17 and CH-47 because Canada is using a process it calls advanced contract award notice (ACAN) for the strategic airlifter and medium- to heavy-lift helicopters. This identifies its intention to award a contract to a specific supplier, but gives rival bidders 30 days to demonstrate they can meet the requirements. Only if a valid proposal is received will a competition be conducted. The C-17 and CH-47 are considered the only aircraft to meet the Department of National Defence requirements.
In the case of the tactical transports, which will replace the Canadian Forces’ oldest Lockheed Martin C-130s, there will be a solicitation of interest and qualification, which will invite potential bidders to show they meet the mandatory requirements. The requirement calls for first delivery no later than 36 months after contract award, and final delivery within 60 months, and could favour the C-130J over the Airbus Military A400M, which is not available before 2010.
Canada has budgeted C$1.8 billion for acquisition and $1.6 billion for 20 years of support of four strategic airlifters, with first delivery no later than 18 months after contract award and final delivery within 48 months. It has budgeted C$3.2 billion for acquisition and C$1.7 billion for support of the 17 tactical transports. The budget for the 16 helicopters is C$2 billion for acquisition and C$2.7 billion for support, with deliveries to begin within 36 months, and be completed within 60 months, of contract award.
Winners of all three programmes will be required to provide full economic benefits, committing to place business in Canada equal to the contract value. Despite the ACAN process, the perceived lack of competition has drawn criticism from opposition politicians.
Source: Flight International
