For immediate release

February 3, 2017 — Gatineau, Quebec — Government of Canada

The Government of Canada is committed to providing the women and men of the military with the equipment they need to fulfill their important role.

Following an open and transparent competition, the Honourable Judy M. Foote, Minister of Public Services and Procurement, and the Honourable Harjit S. Sajjan, Minister of National Defence, today announced the awarding of a contract of $45 million to StandardAero, of Winnipeg, Manitoba, for the maintenance of T56 engines for Canada’s CP-140 Auroras and CC-130H Hercules aircraft, and a second contract of $45 million to Magellan Aerospace Corporation, of Mississauga, Ontario, for the maintenance of F404 engines for Canada’s CF-18 Hornets.

The government recently announced the way forward in replacing its fleet of CF-18 fighter jets as well as its fixed‑wing search and rescue aircraft. While work continues on securing these replacements, these investments will maintain existing aircraft.

These maintenance contracts are for an initial period of four years and three months. Services will include repair and overhaul of the aircraft engines, the management, coordination and integration of materials and information, as well as engineering work and the management of technical publications.

While these flexible, performance-based contracts have a preliminary value of $45 million, they have been designed to meet the varying needs of the Canadian Armed Forces by allowing for the total contract value to be adjusted each year based on past year expenditures, as well as anticipatory expenditures for the upcoming year.

Following the initial contract period, the companies have the potential to have their contracts extended until the fleets are retired.

These contracts are among the first that reflect a more flexible, cost-effective approach to equipment maintenance and support. Under a recently-established Sustainment Initiative, the government is ensuring that support contracts and programs are flexible enough to respond to changing operational needs, while at the same time delivering best value for money. Improving the cost-effectiveness of equipment support contracts was a principal theme of a recent Auditor General of Canada report tabled last November.

Under Canada’s Industrial and Technological Benefits Policy, both companies are required to invest in the Canadian economy equal to the value of their respective contracts. These investments will include a high level of work performed directly in Canada on the engines and other research and development initiatives. This is expected to create and maintain high-value jobs and economic growth in Canada.

Quotes

“These contracts will not only help maintain the Royal Canadian Air Force’s current fleet of aircraft, but will also help grow Canada’s innovative and strong aerospace sector, while providing well-paying jobs for the middle class and those working hard to join it.”

The Honourable Judy M. Foote
Minister of Public Services and Procurement

“Today’s announcement demonstrates our commitment to ensure that the Royal Canadian Air Force is ready to support the many operations and exercises that contribute to the safety and security of Canadians. These contracts help guarantee our CF-18 fighter jets and fixed-wing search and rescue aircraft can be kept in service while replacement fleets are being provided. They also take care of the maintenance of our long-range patrol aircraft. The contracts are structured to be flexible, performance-based and beneficial to Canada’s economy. They will help the Royal Canadian Air Force meet its operational requirements and address recommendations made by the Auditor General of Canada last fall.”

The Honourable Harjit S. Sajja
Minister of National Defence

“Through the Industrial and Technological Benefits Policy, Canada gets the economic benefits of investment from winning bidders on defence contracts. By ensuring that these companies put an amount equal of the contract values back into Canada, we are helping to create high-value jobs and giving Canadian aerospace companies great opportunities to grow.”

The Honourable Navdeep Bains
Minister of Innovation, Science and Economic Development

Quick Facts

• The Royal Canadian Air Force employs various aircraft fleets to meet its operational requirements. These aircraft require service on a regular basis, as well as periodic repair and overhaul work.
• The CP-140 Aurora long-range patrol aircraft was acquired in the early 1980s, primarily for maritime patrol and anti-submarine warfare, and its long endurance has made the aircraft ideal for an evolving variety of missions, from command and control, to intelligence, surveillance and reconnaissance, including surveillance of the Canadian Atlantic, Pacific and Arctic oceans for strike coordination, and search and rescue missions. It also provides vital support to other government agencies in combating illegal immigration, fishing, polluting or drug trafficking, as well as assisting with disaster relief.
• The CC-130H Hercules were purchased in 1996 and are four-engine fixed-wing turboprop aircraft that can carry up to 78 combat troops. Canada’s Hercules aircraft are used for a wide range of missions, including troop transport, tactical “cargo” airlift search and rescue, and aircrew training. A small number of Canada’s Hercules aircraft are also used for air-to-air refueling.
• Purchased in the 1980s, the CF-18 Hornet fleet is the Royal Canadian Air Force’s frontline multi-role fighter. The CF-18 is used for air defence, air superiority, tactical support, training, aerobatic demonstration, and aerospace testing and evaluation. Ongoing modernization and upgrade programs are ensuring that the Canadian Armed Forces has an interoperable fighter fleet to deliver its missions.

Associated Links

Canadian Armed Forces to Receive New Search and Rescue Aircraft

Canada announces plan to replace fighter jet fleet

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Information

Annie Trépanier
Office of the Honourable Judy M. Foote
819-997-5421

Media Relations
Public Services and Procurement Canada
819-420-5501
media@pwgsc-tpsgc.gc.ca

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