Lockheed's Canada contract mollifies rejection from JCA

Canada is proceeding with plans to purchase 16 Lockheed Martin C-130Js after deciding the US manufacturer was the only qualified bidder for its tactical transport requirement. On the same day, Lockheed's protest over the US Army's elimination of the C-130J from the Joint Cargo Aircraft (JCA) contest was rejected.

The government department handling procurement of new airlifters and helicopters for the Canadian Forces says Lockheed's C-130J offer was the only response that "met the mandatory operational requirements and Canadian industrial benefits" outlined in the "solicitation of interest and qualification" released in July. EADS proposed the Airbus A400M.

The department will now issue a sole-source request for proposals (RFP) to Lockheed, negotiate the deal and seek government approval before signing a contract, which is planned for the fourth quarter of next year. Canada wants the first C-130J delivered within 36 months of contract award, and the last within 60 months.

Sensitive to criticism of its abbreviated competitive process, the government says Lockheed will be required to conduct a "fair and open competition" in Canada for provision on in-service support. The manufacturer will also be required to place regional economic benefits in Canada equal to 100% of the contract value.

Canada has already selected the Boeing C-17 for its strategic airlift and Boeing CH-47F for its heavylift helicopter requirements. Contract negotiations are under way on the four C-17s, with the US Air Force offering up two of its production slots to allow delivery of aircraft in June and October next year if Canada can sign in time.

Boeing's vice-president in Canada, Al DeQuetteville, says negotiations are moving ahead with the intent of signing a contract by year-end. The company is still waiting on an RFP for the CH-47s, as the Canadian Forces is still finalising its configuration. Contract award is expected in the third quarter of next year, with deliveries beginning 36 months later because there are no early slots available, he says.

Lockheed, meanwhile, says it is "disappointed" by the US Government Accountability Office (GAO) denial of its JCA protest. Details are not public, but the GAO is believed to have upheld the US Army's decision that the C-130J would not have global air traffic management capability in time to meet its requirements.